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b256cbfa507ebb418e44cca913c3711c
|
Expensive agenda book/organizer. Office expense or fixed asset?
|
[
{
"docid": "4e55c41eeea44abe48efafbed6d0ab44",
"text": "If your business pays taxes, it is in your best interest to expense it. Even if you don't pay taxes, setting your capitalization policy low enough to capitalize an office organizer (even a nice one) will give you headaches when your business grows larger.",
"title": ""
},
{
"docid": "9ea67f1b92bdc440e9457e179db78aaa",
"text": "I cannot imagine an organizer being worth enough to consider depreciating the expense over a period of time greater than one year. Also, once you write in an organizer, it's pretty much worthless to anyone else. Talk to your accountant if you'd like, but I cannot see how you would classify a fancy organizer as a fixed asset.",
"title": ""
}
] |
[
{
"docid": "2a0cdfb465cc280f9d44a1a6d815150e",
"text": "Straight line depreciation is marginal as far as I understand. It would be a flat expense each year. Unless you mean 2 mil year one and 4 mil for years one and two combined and it's just written ambiguously here. It seems pretty straight-forward to me. 10 mil rev per year operating increase. 6.5 mil operation expense increase. Net income= rev-expenses. Depreciation expense is not an operating expense. As far as relevant cash flows I guess if there's not omitted info in this post would just be the cash for the initial investment, the added expenses, the added revenue, the salvage sale.",
"title": ""
},
{
"docid": "3bdd2e14dc990aa712c3092fbe817087",
"text": "I received a $2,000 bonus... Gross Income is income from whatever source derived, including (but not limited to) “compensation for services, including fees, commissions, fringe benefits, and similar items.” Adjusted Gross Income is defined as gross income minus adjustments to income. My question is, must I still report this money on my tax return and if so, how? Yes, and it would be on line 21 of your 1040 with supporting documentation. Are these legal fees deductible as an expense, and where would I list them? Yes, you would aggregate your deductible expenses and place these on your Schedule A. Instructions here. Good Luck. Edit: As Ben Miller pointed out in the comments, the deduction would be placed in either line 23 or 28 depending on the nature of the attorney (investment related or not).",
"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": "53dd714fdcde93886c79bef5635ec6a9",
"text": "\"First, please allow me to recommend that you do not try gimmickry when financials do give expected results. It's a sure path to disaster and illegality. The best route is to first check if accounts are being properly booked. If they are then there is most likely a problem with the business. Anything out of bounds yet properly booked is indeed the problem. Now, the reason why your results seem strange is because investments are being improperly booked as inventory; therefore, the current account is deviating badly from the industry mean. The dividing line for distinguishing between current and long term assets is one year; although, modern financial accounting theorists & regulators have tried to smudge that line, so standards do not always adhere to that line. Therefore, any seedlings for resale should be booked as inventory while those for potting as investment. It's been some time since I've looked at the standards closely, but this used to fall under \"\"property, plant, & equipment\"\". Generally, it is a \"\"capital expenditure\"\" by the oldest definition. It is not necessary to obsess over initial bookings because inventory turnover will quickly resolve itself, so a simple running or historical rate can be applied to the seedling purchases. The books will now appear more normal, and better subsequent strategic decisions can now be made.\"",
"title": ""
},
{
"docid": "ce475229839fec15efb664cd7ad7ac50",
"text": "Your home doesn't belong to the partnership, it belongs to you. So you can (if qualified) deduct home office usage as a business expense on your individual tax return. Same goes to your partner. Similarly any other unreimbursed expense.",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "e90b7220dca38ea3bbd54dedeb996465",
"text": "Not a direct answer, but... a friend pointed out to me that z proper luxury limo, if loaded with four sales reps going to the same meeting, is cheaper than airfares would be and lets them hold a planning meeting en route. Yeah, most of it is conspicuous consumption. But some of the road yachts have legitimate uses.",
"title": ""
},
{
"docid": "447ee222e50488731e61f193dfe0790d",
"text": "Thanks for helping me gauge my expectations for this project. The more advanced stuff may require an exception then. I guess they are looking to knock off the casual Excel users while making exceptions for the more advanced Corporate Finance/Financial Reporting team. Thanks for your input though, can I ask you what your organization does and what areas you did have success in transitioning to GSuite?",
"title": ""
},
{
"docid": "0feaebba070c6c0fa61decfec8db2cb2",
"text": "Your best approach is to assess rent levels in your local area for offices of a similar size. You need to take into account all the usuals - amenities, parking, etc, just as if your home-office was provided by a third-party. Get your $/sq ft and work out the monthly amount. With this figure, you need to then work out what % of it you can charge. If the space is used exclusively for the business, charge 100%. If it's used about half the time, charge 50%, etc. I would strongly advise you to do two things - 1. make sure your accountant and your attorney help you get this squared away. 2. document everything about how you arrived at the cost. Nothing fancy, but dates, realtors, addresses, $/sq foot. A simple table will do. By doing these two things, if the IRS should come around to chat, you should be covered.",
"title": ""
},
{
"docid": "2ec447312a423d5378550f6d87afb5a5",
"text": "\"To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. (IRS, Deducting Business Expenses) It seems to me you'd have a hard time convincing an auditor that this is the case. Since business don't commonly own cars for the sole purpose of housing $25 computers, you'd have trouble with the \"\"ordinary\"\" test. And since there are lots of other ways to house a computer other than a car, \"\"necessary\"\" seems problematic also.\"",
"title": ""
},
{
"docid": "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": ""
},
{
"docid": "57fb897c059fe117bf76781c5306adb8",
"text": "\"Thanks for the response. I am using WRDS database and we are currently filtering through various variables like operating income, free cash flow etc. Main issue right now is that the database seems to only go up to 2015...is there a similar database that has 2016 info? filtering out the \"\"recent equity issuance or M&A activity exceeding 10% of total assets\"\" is another story, namely, how can I identify M&A activity? I suppose we can filter it with algorithm stating if company's equity suddenly jumps 10% or more, it get's flagged\"",
"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": ""
},
{
"docid": "39efebb7c6e866b8c97268e70ed69f1e",
"text": "I'm trying to organize my financial papers as well. I have a Fujitsu ScanSnap and it's tearing through my papers like a hot knife through butter (i.e. awesome). Here's how I'm addressing organizing the paper. I'm organizing mine a little bit organically. Here are the main parts: So anyway, all that to say that it's not necessary to organize the files to the hilt. If you want to, that's fine too, but it's a tradeoff: up-front organization for possibly some time savings later. The search function available is decreasing the advantage of organizing your files carefully. If throwing all of your files in a digital pile makes your skin crawl, then I won't force you otherwise, but I'm not worried about it for the time being. What you're doing with the other tracking sounds fine to me. Others may have different insights there.",
"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": ""
}
] |
fiqa
|
d958a4dd256a36f63423dd659315c191
|
Are ACH transfers between individuals possible?
|
[
{
"docid": "6fe59b73bc4ebfe8b534e03f3f4cc6a5",
"text": "\"Yes, many banks offer such a service. Often such payments can be made through their \"\"bill pay\"\" interface. You log in to your account on the bank's website, enter the recipient's routing and account numbers, and off you go. You could ask your bank whether they offer this. If not, you could change banks to one that does.\"",
"title": ""
}
] |
[
{
"docid": "8a5d470327994078ddafe263e20ca5f4",
"text": "I use a hack to do this sort of thing: I have an ING Direct online bank account. I link both of bank accounts I want to transfer between to the ING Direct account. I transfer between them by moving money to ING direct and then from there to wherever. Any online bank that let's you link regular checking accounts would work for this.",
"title": ""
},
{
"docid": "5d4b34e93db03a9b65fa0b00110e7e9d",
"text": "\"This seems almost overkill, but if you want to... I suppose one thing you could do is create a separate money in transit account, similar to Account Payable and Account Receivable. In your bookkeeping, transfer the money from the source account to the holding account on the date that the source bank withdraws it, and then transfer the money to the destination account on the date that the target bank deposits it. This both makes it clear that there is money going between places, and ensures that the daily balance on each \"\"physical\"\" account is accurate. For cash withdrawals and deposits, I'd just use the date when you make the withdrawal, since that is the day from which the money is available in the new location rather than the old one. Note: I don't know if this is the \"\"proper\"\" way to do it in a random jurisdiction, but I doubt being this explicit can get you into trouble.\"",
"title": ""
},
{
"docid": "7bf4d77debd51dc417ed976f42dda0f6",
"text": "If it's always the same person: Open a second account, with them as the account holder. Get them a debit card for that account. To move money, do an inter-account transfer from yours to theirs. Fast, low to no fee, simple. (For a while I had a second credit card on my account for this purpose -- the other person was a trustworthy family member -- but a debit card on its own account is cleaner and much less risky.)",
"title": ""
},
{
"docid": "0a8721715ce571fa3bbb0b11b5d5de13",
"text": "\"I found a blogger at US News as well as some people on a forum suggesting that, if you have another bank account, you may be able to do it by using that other account to initiate an electronic funds transfer (aka ACH). They say that even a PayPal payment may work. However, the former says that \"\"whether or not this trick works can vary from bank to bank.\"\" You could try doing that and see if it works. I don't think there is any way to know for sure what they would consider a \"\"boan fide\"\" direct deposit without asking them, and if you ask them they will get wise to your game.\"",
"title": ""
},
{
"docid": "4059ea0037fe601d67bfb083947ecd6d",
"text": "Shop around for a bank that offers lower/no fees for this operation and move your account there... or, yes, change where the direct deposit is routed... or move these accounts into a single bank so it's an internal transfer rather than ACH. Or ask the bank whether there is another way to arrange this which doesn't cost you money. (It costs me nothing to move money within my credit union, whether manually or on a scheduled basis. It costs me nothing to have them send funds to another entity from my checking account. Specific example: Pay comes into my savings account. On the 27th, an automatic transfer moves the cost of a mortgage payment from savings to checking. On the 30th, an automatic payment sends that to my mortgage in another bank. No fees on any of this, 100% reliable.)",
"title": ""
},
{
"docid": "fea990d65f8be890630604a5a90a96da",
"text": "JohnFx is more experienced than I am but I have paid off friends cards before. It was as simple as asking them the routing number of the bank that gave them the card and setting up an ACH with their card number. I guess this might be against some banks T&C but the CU I used to carry out the ACH gave me the go ahead as long as I did not dispute the payment later.",
"title": ""
},
{
"docid": "63b58396a8e7bd75518852e1e4567143",
"text": "If the transfer is from a country in Euro region, then yes, using Does, it's possible. However if it's outside then all other details are required. Edit IBAN is used by EURO countries and is supposed to simplify things. However till its fully adopted by all countries and clearing networks, there is quite a bit of confusion and complexity for individuals. Low Value Transfer in Euro region in EUR currency is on SEPA network that only understands IBAN and only supports EUR currency. If you are transfering within UK [both banks in UK] in GBP, it would go on BACS network that only understands SortCode+AccountNumber. There are some Banks that give you interface that take an IBAN and convert to SortCode+AccountNumber and submit to BACS.",
"title": ""
},
{
"docid": "9ed3a82a920a14a749d37bafde0dd4d9",
"text": "A non-cash transaction will not be a problem. The bank will have to fill out federal paperwork if there are large amounts of cash involved. This is to stop the underground economy. This can even extend to non-banks. If you were to walk into a car dealer or some other stores and hand them a bag of cash they will also report it. You can do what you propose without having to transfer any money between accounts. Your girlfriend can put the furniture and landscaping on her credit card, or write checks to the stores or companies. Based on the number of questions on this site regarding how to transfer funds between banks and accounts, the mechanics of the transfer is the hard part. Resist the urge to use cash to make the transfer. That will require paperwork. Many people find that the old standard of using checks to transfer funds is easy, safe and quick.",
"title": ""
},
{
"docid": "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": "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": "394d3185971fd3b7cb4f7f7da47d51fc",
"text": "\"A \"\"balance transfer\"\" is paying one credit card with another. You probably get offers in the mail to do this all of the time. As other posters have noted, however, this usually comes with finance fees rather than the rewards that you get for normal purchases because it's written into your credit card agreement as a different class of transaction with different rules. I'm not sure if it's urban legend or true, but I have heard stories that suggest there were some \"\"loop holes\"\" in the earliest credit card reward plans that allowed for something like what you want. I doubt that any plan ever allowed exactly what you've written, but I've heard stories about people buying gift cards from merchants and then using the gift cards to pay their bill. This loop hole (if it ever existed) is closed now, but it would have allowed for essentially infinite generation of rewards at no cost to the cardholder. The banks and credit card companies have a lot of years of experience at this sort of thing now, so the threshold for you finding something that works and conforms with the cardholder agreement is pretty small.\"",
"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": ""
},
{
"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": "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": "2870b87c3099cd3f536f33c2ba009d71",
"text": "Yes, a business account at Chase bank offers free incoming wire transfer fees when you keep a minimum balance of over 100k. It's the only one I have found.",
"title": ""
}
] |
fiqa
|
25edaf544b7fd644ba9e63054f5684a3
|
How do Islamic Banking give loans for housing purposes?
|
[
{
"docid": "acb94a9e1d388b05abaf94b5a3a69cde",
"text": "If the customer pays 20% of the payment in advance, then he is he owns 20% of the house and the bank owns 80%. Now they say he pays the rest of the amount and also the rent of the house until he becomes the sole owner of the house.",
"title": ""
},
{
"docid": "ad2a01c151935327633cf20386681699",
"text": "\"As I understand it, if the \"\"borrower\"\" puts a down payment of 20% and the bank puts down 80%, then the bank and the \"\"borrower\"\" own the home jointly as tenants in common with a 20%-80% split of the asset amongst them. The \"\"borrower\"\" moves into the home and pays the bank 80% of the fair rental value of the home each month. {Material added/changed in edit: For the purposes of illustration, suppose that the \"\"borrower\"\" and the bank agree that the fair rental per month is 0.5% of the purchase cost. The \"\"borrower\"\" pays 80% of that amount i.e. 0.4% of the purchase cost to the bank on a monthly basis. The \"\"borrower\"\" is not required to do so but may choose to pay more money than this 0.4% of the purchase cost each month, or pay some amount in a lump sum. If he does so, he will own a larger percentage of the house, and so future monthly payments will be a smaller fraction of the agreed-upon fair rental per month. So there is an incentive to pay off the bank.} If and when the house is sold, the sale price is divided between \"\"borrower\"\" and bank according to the percentage of ownership as of the date of sale. So the bank gets to share in the profits, if any. On the other hand, if the house is sold for less than the original purchase price, then the bank also suffers in the loss. It is not a case of a mortgage being paid off from the proceeds and the home-owner gets whatever is left, or even suffering a loss when the dust has settled; the bank gets only its percentage of the sale price even if this amount is less than what it put up in the first place minus any additional payments made by the \"\"borrower\"\". I have no idea how other costs of home ownership (property taxes, insurance, repair and maintenance) or improvements, additions, etc are handled. Ditto what happens on Schedule A if such a \"\"loan\"\" is made to a US taxpayer.\"",
"title": ""
}
] |
[
{
"docid": "c7ef1a2fdbb1359261574b34d2c11589",
"text": "A financial institution is not obligated to offer you a loan. They will only offer you a loan if they believe that they will make money off you. They use all the info available in order to determine if offering you a loan is profitable. In short, whether they offer you a loan, and the interest rate they charge for that loan, is based on a few things: How much does it cost the bank to borrow money? [aka: how much does the bank need to pay people who have savings accounts with them?]; How much does the bank need to spend in order to administer the loan? [ie: the loan officer's time, a little time for the IT guy who helps around the office, office space they are renting in order to allow the transaction to take place]; and How many people will 'default' and never be able to repay their loan? [ex: if 1 out of 100 people default on their loans, then every one of those 100 loans needs to be charged an extra 1% in order to recover the money the bank will lose on the person who defaults]. What we are mostly interested in here is #3: how likely are you to default? The bank determines that by determining your income, your assets, your current debts outstanding, your past history with payments (also called a credit score), and specifically to mortgages, how much the house is worth. If you don't have a long credit history, and because you don't have a long income history, and because you are putting <10% down on the condo [20% is often a good % to strive for, and paying less than that can often imply you will need mandatory mortgage insurance, depending on jurisdiction] the bank is a little more uncertain about your likelihood to pay. Banks don't like uncertainty, and they can deal with that uncertainty in two ways: (1) They can charge you a higher interest rate; OR (2) They can refuse you the loan. Now just because one bank refuses you a loan, doesn't mean all will - but being refused by one bank is probably a good indication that many / most institutions would refuse you, because they all use very similar analytical tools to determine your 'risk level'. If you are refused a loan, you can try again at another institution, or you can wait, save a larger down payment, and build your credit history by faithfully paying your credit card every month, paying your utilities, and making your car and rent payments on time. This will give the banks more comfort that you will have the ability to pay your mortgage every month, and a larger down payment will give them comfort that if the housing market dips, you won't owe more than the house is worth. My parting shot is this: If you are new in your career with no income history, be very careful about buying a property immediately, even if you get approved. A good rule of thumb is to only buy a property when you plan on living there for at least 5 years, or else you are likely to lose money overall, after factoring closing costs and maintenance fees. If you are refused a loan, that's probably a good sign that you aren't financially ready yet, but even if a bank approves you for a loan, you might not be ready yet either.",
"title": ""
},
{
"docid": "b10a6a9f11ddd5e980624a5df4c0c0f8",
"text": "Car dealers as well as boat dealers, RV dealers, maybe farm vehicle dealers and other asset types make deals with banks and finance companies to they can make loans to buyers. They may be paying the interest to the finance companies so they can offer a 0% loan to the retail customer for all or part of the loan term. Neither the finance company nor the dealer wants to make such loans to people who are likely to default. Such customers will not be offered this kind of financing. But remember too that these loans are secured by the asset - the car - which is also insured. But the dealer or the finance company holds that asset as collateral that they can seize to repay the loan. So the finance company gets paid off and the dealer keeps the profit he made selling the car. So these loans are designed to ensure the dealer nor the finance company looses much. These are called asset finance loans because there is always an asset (the car) to use as collateral.",
"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": "8c6d605796936481b77a643b78bc2d2c",
"text": "Since there was no sale, where does the money actually come from? From the refinancing bank. It's a new loan. How does a bank profit from this, i.e. why would they willingly help someone lower their mortgage payments? Because they sell a new loan. Big banks usually sell the mortgage loans to the institutional investors and only service them. So by creating a new loan - they create another product they can sell. The one they previously sold already brought them profits, and they don't care about it. The investors won't get the interest they could have gotten had the loan been held the whole term, but they spread the investments so that each refi doesn't affect them significantly. Credit unions usually don't sell their mortgages, but they actually do have the interest to help you reduce your payments - you're their shareholder. In any case, the bank that doesn't sell the mortgages can continue making profits, because with the money released (the paid-off loan) they can service another borrower.",
"title": ""
},
{
"docid": "049447e698bc3a74b9f5938b8d8f921e",
"text": "No. As long as you live in the house for 3 years, it's yours to keep. Financing has nothing to do with that.",
"title": ""
},
{
"docid": "a5248e0a577f68808f7f7d876323e419",
"text": "When you get a loan (car, home, student) the lending company (bank) give the (auto dealer, previous home owner, school) money. You as the borrow promise to pay this money back with interest. So in your case the 100,000 you borrow requires a payment for principal and interest of ~965 per month. After 240 payments you will have paid the bank ~231,605. So who got the ~131,000 in interest. The bank did. It was used to pay interest to the people who made deposits into the bank. It was also used to pay the expenses of the bank: salaries, retirement, rent, electricity, computers, etc. If the bank is a company with investors they may have to pay dividends to them to. Of course not all loans are successfully paid back, so some of the payment goes to cover the loans that are in default. In many cases loans are also refinanced, or the house is sold long before the 20-30 year term is up. In these cases the amount of interest received for that loan is much less than anticipated, but the good news is that it can be loaned out again.",
"title": ""
},
{
"docid": "dcd078fe91aeb1d88cef0d943fde3e12",
"text": "In India, where I live, you can: In addition, housing loans are given priority status as well - bank capital requirements on housing loans is lower than for, say, a corporate loan or a loan against other kinds of collateral. That makes housing loans cheaper as well - you get a home loan at around 10% in India versus 15% against most other assets, and since you can deduct it against tax, the effective interest rate is even lower. Housing in India is unaffordable too, if you're wondering. In a suburb 40 Km away from Delhi, a 2000 sq. foot apartment, about 1500 sq. ft. of carpet area, with no appliances costs about USD 250,000.",
"title": ""
},
{
"docid": "00dbeb32f1425fa3dd06cbdc3870abc3",
"text": "Why is a home loan (mortgage) cheaper than gold loan? It has to do with risk. Lending money secured by gold is inherently riskier than a loan secure by your home. Increased risk means the lender must charge more. That's why home loans are cheap compared to loans for other purposes. Home loans are secured by the house. Houses are assets that hold and usually retain some value. Houses are easy to track down (they can't be hidden or moved) in the event that you don't repay your loan. Houses are reasonably liquid, they can be resold to pay off a defaulted loan.",
"title": ""
},
{
"docid": "edfb5aeb4679f536da7472fa3de96b80",
"text": "What is not permitted in Islam is the practice of making unethical or immoral monetary loans that unfairly enrich the lender. Originally, usury meant interest of any kind. A loan may be considered usurious because of excessive or abusive interest rates or other factors. But In case of financial markets, people borrow money to make money and both parties benefits, and no one is taking advantage of the other. I may be wrong in interpreting this way, God knows the best.",
"title": ""
},
{
"docid": "eeac29631c2021c0a70d03a09c16d73b",
"text": "Most 0% interest loans have quite high interest rates that are deferred. If you are late on a payment you are hit with all the deferred interest. They're banking on a percentage of customers missing a payment. Also, this is popular in furniture/car sales because it's a way to get people to buy who otherwise wouldn't, they made money on the item sale, so the loan doesn't have to earn them money (even though some will). Traditional banks/lenders do make money from interest and rely on that, they would have to rely on fees if interest were not permitted.",
"title": ""
},
{
"docid": "a2c62a6f95a19d4d305afd7ae5426f82",
"text": "First, many banks do not keep the loan. Even if they send you a payment notice and process the monthly payment, there's still a good chance the loan itself was packed up and sold to investors. Collateralizing mortgages, in and of itself, is not inherently dangerous. But the loan definitely needs a house behind it. If you found a bank that keeps its loans, it would be a tough sell. You'd be asking them to trust that you've chosen the right number to match up with the house you intend to buy. And then they'd need to have another round of processing to turn this into a loan with normal collateral (i.e. put a lien on the house and tie them together.)",
"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": "91efd15284b5feb071813dda505628cb",
"text": "I've investigated this, and banks are willing to offer a deal similar to what you ask. You would take out a securities-backed loan, which provides you with the down payment on the property. For the remainder, you take out a regular mortgage. JAGAnalyst wonders why banks would accept this. Simple: because there's money to be made, both on the securities-backed loan and the mortgage. Both parts of the deal are financially sound from the banks perspective. Now, the 20% number is perhaps a bit low. Having 20% of the value in shares means you'd be able to get a loan for 50% of that, so only a 10% downpayment.",
"title": ""
},
{
"docid": "2cf27b4fe4e03d82a028792557e651f9",
"text": "FHA insured loans must 'go hand in hand' with PMI, because the FHA element is the insurance itself. The FHA isn't actually giving you a loan, that's coming from a lender; instead, the FHA is insuring the loan, at some cost to you - but allowing a loan to folks who may not be able to afford it normally (lower down payment requirements and a somewhat cheaper PMI). FHA-insured loans may be lower rates in some cases than non-FHA insured loans because of this backing; that's because they make it easier for people of poorer credit histories with smaller down payments to get a house in the first place. Those people would tend to have a harder time getting a loan, and be charged sometimes usurious rates to get it. Low down payment and mediocre credit history (think 580-620) mean higher risk, even beyond the risk directly coming from the poor loan to value ratio. Comparing this table of Freddie Mac rates to this table of FHA-backed loan rates, the loan rates seem comparable (though somewhat lagging in changes in some cases). FHA loans are not nearly the size or complexity of loan population as Freddie Mac, so be wary of making direct comparisons. Looking into this in more detail, pre-collapse (before 12/07), FHA rates were a bit lower - average rate was about .5 points lower - but starting with 12/07, FHA average rates were usually higher than Freddie Mac rates for 30 year fixed loans: in 1/2009 for example they were almost a point higher. As of the last data I see (5/13) the rates were within 0.1 points most months. This may be in part because Freddie Mac had looser requirements to get a loan pre-collapse, then tightened significantly, then started to loosen some (also around June 2013, rates climbed significantly due to some signals from the Fed, although they're almost back to their lows thanks to the Fed again). These are averages across all loans, so you get some noise as a result. Loan interest rates are very personal, in general: they depend on your credit, your house and down payment, and your bank (which varies by your location). The best thing to do is to shop around yourself and just see what you get, and ask your lender any questions you have: if you pick a local lender with a good service history and who is willing to talk to you in person (ie, has a direct phone number), you'll have no trouble getting answers.",
"title": ""
},
{
"docid": "4ebdef47b59f8a0bdd4e4fba0440b5b3",
"text": "This is fraud and could lead to jail time. The vast majority of people cannot obtain such loans without collateral and one would have to have a healthy income and good credit to obtain that kind of loan to purchase something secured by a valuable asset, such as a home. Has this been done before? Yes, despite it being the US, you may find this article interesting. Hopefully, you see how the intent of this hypothetical situation is stealing.",
"title": ""
}
] |
fiqa
|
4222932967669fa05e008bb311067afa
|
What is a clearing bank, in specific, what does RMB clearing bank do?
|
[
{
"docid": "58860fe0de482e4d2eb3464f2934d2b9",
"text": "\"Clearing means processing unsettled transactions. Specifically - all the money transfers between the banks, in this case. Clearing Bank for RMB business means that all RMB transactions will be cleared through that specific bank. If bank A in Hong Kong gets a check drawn on Bank B in Hong Kong, and the check is in RMB - A will go to the BoC with the check and will get the money, and BoC will take the money from B. That obviously requires both A and B have accounts with BoC. \"\"Sole\"\" clearing house means there's only one. I.e.: in our example, A and B cannot settle the check through C where they both happen to have accounts, or directly with each other. They MUST utilize the services of BoC.\"",
"title": ""
}
] |
[
{
"docid": "e9e8f1ee96ea1cf4023d0c344ae4d35d",
"text": "The check clears when the receiving bank successfully pulled the money from the issuing account. However, the receiving bank may hold the money for an additional time before giving it to you. Sometimes this is done for good reasons (to prevent Check kiting) and sometimes this is about the bank having the money interest free for a bit, or just their own processing convenience.",
"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": "b422f2d8480bcf4d88f824999e77f46f",
"text": "For an individual there will not be much impact immediately. This arrangement will help Corporates and Banks settle payments more easily. - It would typically help companies dealing with Yuan [Buying or selling to China or Countries that accept Yuan as payment] to make payments at a cheaper cost & in less time. - In the near future it would make it easier for companies to invest more into China financial markets - It would also open up / create new market for derivatives and other allied products - It would also make Singapore a market place for Yuan outside China [and Hong Kong] resulting in more money and related product. In a related move this would make it easy for Singapore Central Bank to invest in China. Once the markets matures more, there could be some products for Individuals.",
"title": ""
},
{
"docid": "8ed6ab8c98ab8363ff1c87bc102c0296",
"text": "gimme a break. There is always shit storm. Other country experience recession and deep recession (under US economic attack even) but none drop that kind of money. I still want to know what China is doing to even up Obama's attempt to crash their market and currency.",
"title": ""
},
{
"docid": "30e1a93b519a7a7e13e399775bde6a6e",
"text": "\"There was recently a Chinese temporary ban of crypto currency platform ICOs, followed by a bunch of fake news of crypto currencies being banned, then some uncertainty instilling official statements. China is improving regulation and oversight for crypto currency exchanges and ICOs. This was much needed, but in the short term people are freaking out and exclaiming that \"\"Bitcoin is banned\"\".\"",
"title": ""
},
{
"docid": "08f30ae13d4446f5989046359125f7c2",
"text": "One interpretation of the above is that Pound (alongside US Dollar, Euro and other major curriencies), which forms the Forex basket of countries has dropped to less than 10% weightage in case of China's Forex holding. Now the question is where did this money go, this money probably have gone into Forex market to buy Yuan against Pound/Dollar etc. to bolster or strengthen Yuan. The currency reserve management is the 'wealth' management part and the 'currency' management part is what is known as 'central bank intervention' to stabilize the currency.",
"title": ""
},
{
"docid": "c393b2a11daf7865f68881dbb8913a11",
"text": "Wiring is the best way to move large amounts of money from one country to another. I am sure Japanese banks will allow you to exchange your Japanese Yen into USD and wire it to Canada. I am not sure if they will be able to convert directly from JPY to CND and wire funds in CND. If you can open a USD bank account in Canada, that might make things easier.",
"title": ""
},
{
"docid": "dfc83f88b6585b59ac0a6f5dd80350e4",
"text": "\"No money is gone. The movement of the existing currency has slowed down. Currency moves through the economy through deposits or loans to banks, and withdrawal from banks as proceeds from loans or return of deposits. When a bank makes a loan they provide a balance in a bank account, which isn't converted to hard currency until withdrawn. So those bank loans essentially count as currency, and thus effectively multiply the stock of currency available. Deposits into money market funds, and those funds loans into the commercial paper markets, have the same effect. Banks and money funds are now making fewer loans. In particular they are not funding \"\"companies\"\" that invested in securitizations of home mortgages and credit card receivables, but they are also lending less to businesses and consumers. Because they are lending less they are \"\"effectively multiplying\"\" the currency less. Think of deposited and lent currency as spare cycles on a desktop computer. You let your computer help decipher the genome when you aren't using it yourself. If you somehow feared that you would lose those cycles, slowing down your own computing, you would be less likely to lend those cycles out. There would still be the same number of computing cycles in the world, but the stock of those available for actual computing would appear to be diminished. The technical term for this concept is \"\"monetary velocity\"\" and it is a crucial factor in determing the level of overall economic activity, banking stability, and inflation.\"",
"title": ""
},
{
"docid": "50293691274cf7b2b3f290670006f50a",
"text": "Chinese currency is not freely convertible. Its exchange rate is not determined by the market but rather by the Chinese government. Thus the counter-intuitive result. In essence, the Chinese government is subsidizing exports (which is reasonable since exports is what drives the Chinese economy).",
"title": ""
},
{
"docid": "3d39b8ee18b27b07333365f9eb826b3c",
"text": "\"Members of the Federal Reserve System keep track of what money a bank has (if it's not in the vault), who owns what shares of stock, who owns what bond, etc. The part of the Federal Reserve System that tracks stock ownership is the Depository Trust Company (DTC). They have a group of subsidiaries that settle various types of security transactions. DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission. There's lots of information on their website describing this process. DTCC's subsidiary, The Depository Trust Company (DTC), established in 1973, was created to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making \"\"book-entry\"\" changes to ownership of the securities. DTC provides securities movements for NSCC's net settlements1, and settlement for institutional trades (which typically involve money and securities transfers between custodian banks and broker/dealers), as well as money market instruments. Black pools are trades done where the price is not shared with the market. But the DTC is the one who keeps track of who owns which shares. They have records of all net transactions2. The DTC is the counterparty for transactions. When stock moves from one entity to another the DTC is involved. As the central counterparty for the nation's major exchanges and markets, DTCC clears and settles virtually all broker-to-broker equity 1. This is the link that shows that settlements are reported on a \"\"net basis\"\". 2. If broker A sells 1000 shares of something to broker B at 8 and then five minutes later broker B sells the 1000 shares back to A, you cannot be sure that that total volume will be recorded. No net trading took place and there would be fees to pay for no reason if they reported both trades. Note: In dark pool trading quite often the two parties don't know each other. For shares (book-keeping records) to be exchanged it has to be done through a Clearing House.\"",
"title": ""
},
{
"docid": "0a3635a5a8e59d48a6ffac1b38b710a0",
"text": "##CHAPS The Clearing House Automated Payment System or CHAPS is a British company established in London in February 1984, which offers same-day sterling fund transfers. A CHAPS transfer is initiated by the sender to move money to the recipient's account (at another banking institution) where the funds need to be available (cleared) the same working day. Unlike with a bank giro credit, no pre-printed slip specifying the recipient's details is required. Unlike cheques, the funds transfer is performed in real-time removing the issue of float or the potential for payments to be purposely stopped by the sender, or returned due to insufficient funds, even after they appear to have arrived in the destination account. *** ^[ [^PM](https://www.reddit.com/message/compose?to=kittens_from_space) ^| [^Exclude ^me](https://reddit.com/message/compose?to=WikiTextBot&message=Excludeme&subject=Excludeme) ^| [^Exclude ^from ^subreddit](https://np.reddit.com/r/finance/about/banned) ^| [^FAQ ^/ ^Information](https://np.reddit.com/r/WikiTextBot/wiki/index) ^] ^Downvote ^to ^remove",
"title": ""
},
{
"docid": "41e5f68b17673219e79d3d54b7ae6509",
"text": "> But then why wouldn't that be their primary mode to control their currency now/are they starting/hinting at doing so to move away from US treasuries? China is massively pumping their economy with easy loan. They have pretty much stoped/holding steady dollar piling. The question you have to ask, how can China accumulate surplus, not accumulating dollar, yet have their currency very much steady against dollar. China does not use treasury purchase as primary mean to control Yuan price anymore.",
"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": "81fb5e49a75af4893288857e2a4fc553",
"text": "This is adequately covered by the differential between lending and receiving interest rates. ...and technically, they pay the central bank an interest rate on the money lent as well, which means that they *are* paying back equity holders (all be it very slowly and very slightly). The equity holders have the ability to will money into existence, so there's no artificial limitation they face with respect to the branch banking system.",
"title": ""
},
{
"docid": "b36f4593a562c7419d44757c8d067e94",
"text": "I noticed the buy/sell board table. Where did you notice this. Generally for a pair of currencies, there is Unit associated along with direction. The Unit is generally constant. These are only revised when there is large devaluation of a particular currency. Buying Php for MYR 8.52, Selling MYR 8.98. So in this case the Unit of PHP is 100, so Bank is Buying 100 PHP from you [you are selling PHP] and will give you MYR 8.52. If you now want to buy 100 PHP [so the Bank is selling you], you have to pay MYR 8.98. So you loose MYR 0.46 Why are they selling it way beyond the exchange rate? Why is this? As explained above, they are not. Its still within the range. The quote on internet are average price. This means before going back to Philippines, I can buy a lot of peso that I can buy and exchange it for higher price right? Generally an individual cannot make money by buying in one currency and selling in other. There are specialist who try and find arbitrage between multiple pair of currencies and make money out of it. Its a continuous process, if they start making profit, the market will react and put pressure on a pair and the prices would move to remove the arbitrage.",
"title": ""
}
] |
fiqa
|
146b680e601f01e81e743f770a4e1606
|
Canadian accepting money electronically from Americans
|
[
{
"docid": "d11cb4a3b0931a5b400b4622e812ebf8",
"text": "I am not aware of a version of Interac available in the U.S., but there are alternative ways to receive money: Cheque. The problem with mailed cheques is that they take time to deliver, and time to clear. If you ship your wares before the cheque has cleared and the cheque is bad, you're out the merchandise. COD. How this works is you place a COD charge on your item at the post office in the amount you charge the customer. The post office delivers the package on the other end when the customer pays. The post office pays you at the time you send the package. There is a fee for this, talk to your local post office or visit the Canada Post website. Money order. Have your U.S. customers send an International Money Order, not a Domestic Money Order. Domestic money orders can only be cashed at a U.S. post office. The problem here is again delivery time, and verifying your customer sent an International Money Order. It can be a pain to have to send back a Domestic Money Order to a customer explaining what they have to do to pay you, even more painful if you don't catch the error before shipping your wares. Credit Card. There are a number of companies offering credit card processing that are much cheaper than a bank. PayPal, Square, and Intuit are three such companies offering these services. After I did my investigations I found Square to be the best deal for me. Please do your own research on these companies (and banks!) and find out which one makes the most sense for you. Some transaction companies may forbid the processing of payment for e-cig materials as they my be classed as tobacco.",
"title": ""
}
] |
[
{
"docid": "ed7f6e1d3fdc84d50b5109a5767fead5",
"text": "\"The other answers describe why this is highly likely to be a scam. This answer describes why you don't want to get involved, even in the unlikely case that it isn't a scam. I'm describing this using US law (which I'm not particularly familiar with, so if I go astray I'd suggest others fix any flaws in this answer), but most other countries have similar laws as these laws are all implementations of a small number of international treaties have very large memberships. The service you describe (accepting money transfers from one party and transferring them to another) is one which, if you engage in it for profit, would classify you as a \"\"financial institution\"\" under 31 USC 5312, specifically paragraph (a)(2)(R): any other person who engages as a business in the transmission of funds, including any person who engages as a business in an informal money transfer system Because you would be acting as a financial institution: Failure to follow such requirements can lead to a fine of up to $250,000 or a 5 year prison sentence (31 USC 5322). See also: Customer Identification Program and Know Your Customer.\"",
"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": "08248f5214e8b3782b0d58a4351d7af1",
"text": "He cannot get money from someone else account. Your US resident friend in New York can send money to your Indian friend in Atlanta via Western Union which has presence in almost every corner of the US. Most definitely in the city of Atlanta. Your Indian friend can receive the Western Union transfer, in cash, within minutes after the friend in New York sends it. Here's the site for location search. The sender doesn't need to go anywhere, can send online, so your New York friend doesn't even need to waste much time. In fact - you don't need to bother your friend in New York, you can send it online yourself (assuming you're American/have US bank account). In order to receive the money, your Indian friend will obviously need a proper identification (i.e.: passport).",
"title": ""
},
{
"docid": "c05c869e4935166e9ed6d58d4660102f",
"text": "\"I looked this up on Wikipedia, and was hoping the answer would be \"\"no - stores cannot refuse legal tender\"\", but unfortunately, it's not the case! If the retailer wants to go to the lengths of refusing certain denominations to protect themselves from counterfeit currency, they are fully within their rights to do so. The \"\"Legal Tender\"\" page on Wikipedia says this about Canadian bills: [...] Retailers in Canada may refuse bank notes without breaking the law. According to legal guidelines, the method of payment has to be mutually agreed upon by the parties involved with the transactions. For example, convenience stores may refuse $100 bank notes if they feel that would put them at risk of being counterfeit victims [...] What is interesting about what I found out, is that legal tender cannot be refused if it is in repayment of an existing debt (i.e. not a store transaction for which there existed no previous debt). So you could offload your $100 bills when repaying your Sears credit card account (or pay in pennies if you wanted to!) and they couldn't refuse you!\"",
"title": ""
},
{
"docid": "fa48d18f8149fb66065e280b65df9b9a",
"text": "As a dutch guy having lived in Canada for some time, and went down the the states a lot; I was extremely surprised how outdated your banking technology is. A lot of mutations require me to physically visit a bank (often my specific branch), and I couldn't believe it when I saw that people still use cheques. Before I moved, I just remembered them from my very early childhood. Get your shit together North America :)",
"title": ""
},
{
"docid": "e47fefb12bf4cd6b99aef2e6f9965891",
"text": "Western Union is one way to send emergency cash to a family member. It seems suspicious as a method of goods payment because many frauds have used it as a means of collecting irreversible payments. EBay and Paypal would be a better more trustworthy way to sell to usa customers. Most USA banks need a USA address for the account owner..... But you may not need a USA bank account as PayPal can store and exchange funds to other currencies.",
"title": ""
},
{
"docid": "6e455d5541bfe36cd522f14954c798c8",
"text": "\"PayPal offers a service called \"\"PayPal Business Payments\"\". Instead of charging a percentage, they charge a flat fee. For US-to-US payments, the fee is fifty cents per transaction. For Canada-to-Canada payments, the fee is five dollars per transaction. You need to use a third-party invoicing service and choose the \"\"PayPal Business Payments\"\" option. FreshBooks or Zoho Invoice might work.\"",
"title": ""
},
{
"docid": "56f91d84f1a43125d0d28f4dd642bb6f",
"text": "Well, one way I avoid all exchange fees is to trade currency with an individual. There's no trick, though. Just find a friend or family member on the other side of the border who wants your USD or your CAD, look up the exchange rate for the day, and hand over the money (or write each other checks). It's win-win because both sides are getting a good deal with no fees.",
"title": ""
},
{
"docid": "7b0abf889b5f4d92b0380f441a712a5d",
"text": "A USD bank draft from any of the major Canadian banks is a good solution. They clear quickly in the U.S. I use them frequently and have never had a problem depositing them in a U.S. bank account. If you carry more than $10k across the border, even as a cheque, be sure to declare it.",
"title": ""
},
{
"docid": "c2459fcb87bad231f9faf83c0f25e64d",
"text": "As long as you don't finance and the payment is upfront, its up to you and your customer how to pay. If you provide the product before the payment is being made or finance in any way (i.e.: there's debt), then the Canadian dollar, being legal tender in Canada, must be accepted. Considering the large amount, you would probably not be accepting cash anyway, so the point is moot. How they pay their credit cards is not your problem. However, do take into the account the currency exchange rates and fees that add costs to purchasing your product. If you don't have any physical presence (i.e.: online store only, no physical location on Canadian soil), then it goes by the rules of the jurisdiction where you've incorporated. Check with the local legal professional to be sure.",
"title": ""
},
{
"docid": "2d792ae9e61e82e4fe8b8f717c734814",
"text": "That's the same question I've been pondering. How did they handle it in Canada umpteen years ago on their test run? Obviously they're not giving out a lump sum at the beginning of the year, but what about month to month?",
"title": ""
},
{
"docid": "90da52d0db0ff30eb04f78eb18a7a3d0",
"text": "While most all Canadian brokers allow us access to all the US stocks, the reverse is not true. But some US brokers DO allow trading on foreign exchanges. (e.g. Interactive Brokers at which I have an account). You have to look and be prepared to switch brokers. Americans cannot use Canadian brokers (and vice versa). Trading of shares happens where-ever two people get together - hence the pink sheets. These work well for Americans who want to buy-sell foreign stocks using USD without the hassle of FX conversions. You get the same economic exposure as if the actual stock were bought. But the exchanges are barely policed, and liquidity can dry up, and FX moves are not necessarily arbitraged away by 'the market'. You don't have the same safety as ADRs because there is no bank holding any stash of 'actual' stocks to backstop those traded on the pink sheets.",
"title": ""
},
{
"docid": "d2ac4429874274f95545c551697aa732",
"text": "This doesn't directly pertain to international transactions but may be relevant. I got an American Express gift card over the holidays, and I tried to use it at an online merchant. The card was declined because it failed address verification. I called American Express gift card services (number was on the gift card), and they knew immediately what the problem was and fixed it. They simply took my address and added it as a billing address on the card. I retried the payment and it went through right away. It may be worth calling the gift card company and asking them to simply add your billing address.",
"title": ""
},
{
"docid": "7851f4eb8431440619c6ffb3774188f0",
"text": "\"As soon as I see the word \"\"friends\"\" along with money transfer I think scam. But ignoring that red flag.... You will have American companies reporting to the IRS that you are a Canadian Vendor they have hired. Then you are transferring money to people in Bangladesh. Assuming also that you fill out all the regulatory paperwork to establish this Money transfer business you may still face annual reporting requirements to 3 national taxing authorities. In the United states there are situations where the US Government hires a large company to complete a project. As part of that contract they require the large company to hire small businesses to complete some of the tasks. In a situation where the large company is imply serving as a conduit for the money between the government and the sub-contractor; and the large company has no other responsibilities; the usual fee for providing that function is 8% of the funds. This pays for their expenses for their accounting functions plus profit and the taxes that will trigger. Yet you said \"\"At the end of the day, I will not earn much, but the transactions will just burden my tax returns.\"\" The 8 percent fee doesn't include doesn't include having to file paperwork with 3 nations. Adding this to all the other risks associated with being an international bank, plus the legal costs of making sure you are following all the regulations...No thanks.\"",
"title": ""
},
{
"docid": "1c9569033a3d0a5bd57b3b256ee4b5f2",
"text": "You can buy stocks in the IRA, similarly to your regular investment account. Generally, when you open an account with a retail provider like TDAmeritrade, all the options available for you on that account are allowable. Keep in mind that you cannot just deposit money to IRA. There's a limit on how much you can deposit a year ($5500 as of 2015, $6500 for those 50 or older), and there's also a limit on top of that - the amount you deposit into an IRA cannot be more than your total earned income (i.e. income from work). In addition, there are limits on how much of your contribution you can deduct (depending on your income and whether you/your spouse have an employer-sponsored retirement plan).",
"title": ""
}
] |
fiqa
|
fdbe76bf38ab13a79af0e3555ec06ed9
|
Changing Mailing Adress
|
[
{
"docid": "e4e737a1d341684e7ec552449ffb19bb",
"text": "If you call them, you can make sure they'll use the new address, but if you want to do it online, there is some risk that the update is delayed. Note also that an address change with an immediate request for a replacement debit card smells very fishy - this what a hacker / thief would do to get your money. Calling seems to be the better approach, as you can verify your identity further. Otherwise, you might well run into an automated block.",
"title": ""
}
] |
[
{
"docid": "330f47ad6c66d22e32a300dd81b5d63a",
"text": "\"It depends on the rules in the specific places you stay. Specific places being countries or states. Some states may consider pension payments to be taxable income, others may not. Some may consider presence for X days to constitute residency, X days may be 60 days in a calendar year whether or not those days are continuous. It doesn't matter so much where your mailbox or mail handling service is located, it matters: You may owe taxes in more than one place. Some states will allow you to offset other states' taxes against theirs. Some states in the US are really harsh on income taxes. It's my understanding that if you own real estate in New York, all of your income, no matter the source, is taxable income in New York whether or not you were ever in the state that year. Ultimately, you can't just put up your hand and say, \"\"that's my tax domicile so I'm exempt from all your taxes.\"\" There is no umbrella US regulation on this topic, the states determine who they consider to be residents and how those residents are to be taxed. While it's possible you may be considered a resident of multiple states and owe income taxes in multiple states, it's equally possible that you won't meet the residency criteria for any state regardless of whether or not that state has an income tax. The issue you face, as addressed in @Jay's answer, Oklahoma will consider you a resident of OK until you have established residency somewhere else.\"",
"title": ""
},
{
"docid": "1fca0920db178eab21ddfdab3e9f8f22",
"text": "\"I've done this before for startup companies where I didn't want the mailing address to really obviously be my apartment or home address. Just for appearances. What you should be Googling are terms like \"\"private mailbox center.\"\" If I recall correctly, I used to do this with Mail Boxes Etc before they were bought by UPS. This seems to be the equivalent offering these days: https://www.theupsstore.com/mailboxes I haven't looked at a dummy office for receiving mail -- I imagine that is a bit more expensive. Unless people are delivering things in person I think that would be overkill -- the Fedex guy doesn't care if his package delivery is to a UPS mailbox center.\"",
"title": ""
},
{
"docid": "9410aac2831c33bba5318245fae862a3",
"text": "\"As a person who has had several part time assistants in the past I will offer you a simple piece of advise that should apply regardless of what country the assistant is located. If you have an assistant, personal or business, virtual or otherwise, and you don't trust that person with this type of information, get a different assistant. An assistant is someone who is supposed to make your life easier by off loading work. Modifying your records before sending them every month sounds like you are creating more work for yourself not less. Either take the leap of faith to trust your assistant or go somewhere else. An assistant that you feel you have to edit crucial information from is less than useful. That being said, there is no fundamental reason to believe that an operation in the Philippines or anywhere else is any more or less trustworthy than an operation in your native country. However, what is at issue is the legal framework around your relationship and in particular your recourse if something goes wrong. If you and your virtual assistant are both located in the US you would have an easier time collecting damages should something go wrong. I suggest you evaluate your level of comfort for risk vs. cost. If you feel that the risk is too high to use an overseas service versus the savings, then find someone in the states to do this work. Depending on your needs and comfort you might want to seek out a CPA or other licensed/bonded professional. Yes the cost might be higher however you might find that it is worth it for your own piece of mind. As a side note you might even consider finding a local part-time assistant. This can often be more useful than a virtual assistant and may not cost as much as you think. If you can live without someone being bonded. (or are willing to pay for the bonding fee) yourself, depending on your market and needs you may be able to find an existing highly qualified EA or other person that wants some after hours work. If you are in a college town, finance, accounting or legal majors make great assistants. They will usually work a couple hours a week for \"\"beer money\"\", they have flexible schedules and are glad to have something pertinent to their degree to put on their resume when they graduate. Just be prepared to replace them every few years as they move on to real jobs.\"",
"title": ""
},
{
"docid": "7548affc097d12684b115ced5528491e",
"text": "\"If you have a business web site, using firstname.lastname@businessdomain.*x* would be the best choice. Using an @gmail address should be a second choice. If gmail is your only option, though, I would strongly recommend avoiding the aka.username portion. If firstname.lastname@gmail.com isn't available (and, for most people, it no longer is), using something such as FirstinitialLastname.businessname@gmail.com would be a much better option (for example, John Smith with Example Enterprises would be JSmith.ExampleEnterprises@gmail.com). If you're looking for an email address to use for purposes such as a resume / CV or similar documents, then I would suggest to try to find a variation that includes your first name and last name on gmail. You can use your middle initial, as well, if necessary. John Curtis Smith could have any combination such as jcsmith, john.c.smith, johnathan.smith, johnathan.c.smith, j.curtis.smith (though that last one will imply that John prefers to be called Curtis), and similar. Also, and I say this as honest advice from someone who has been in charge of hiring people in the past, if you're concerned about professionalism, you'll want to ensure your grammar and spelling are impeccable. A quick glance at your posting history makes me think you're a Brit, or are currently living in England, so working on your English skills will be important. People will find it difficult to take someone seriously, otherwise, and a poor first impression via text or email can easily cost you whatever it is you're trying to establish, *especially* if you aren't the only person attempting to establish yourself for that position. You have several errors in your post (\"\"I just a question,\"\" \"\"approriate,\"\" \"\"buisness,\"\" and a lack of sentence structure and punctuation in general). It may seem silly to concern yourself with typing properly in a post on Reddit, but think of it as practice in a medium (text and typing) where repetition is key. If you're used to typing poorly, it'll take a lot more effort to type well when it counts, and you're more likely to miss an error that could cost you a job or client. Good luck to you! ^^^In ^^^before ^^^mentioning ^^^spelling ^^^/ ^^^grammar ^^^and ^^^missing ^^^something ^^^in ^^^my ^^^own ^^^text.\"",
"title": ""
},
{
"docid": "16d39c31e008e1360ae3061f08e0b4c5",
"text": "\"Maybe just put all his correspondence back in the Post Box and mark it \"\"Wrong address\"\"? Precisely. Without opening. Just tell the postman that that person doesn't live there and have it returned to sender. The Revenue will figure it out. Most definitely do not accept any certified or registered mail not addressed to you personally.\"",
"title": ""
},
{
"docid": "fd40a2626c87eeeaaae0adb7611ddc87",
"text": "Microsoft outlook is a great product for email accounts. Microsoft outlook latest version is cloud based and big storage of emails and information .after reinstalling Microsoft outlook, it can be successfully upgraded. to new customers it is not easy to understand or configure email account on Microsoft outlook. So if you are experiencing any kind of problem then call our Microsoft tech support numbel+1-800-826-8068.for more information, please click to our website.",
"title": ""
},
{
"docid": "51e46dbd8a58cab25becc496839ef207",
"text": "bzzt. Should be aol -> [ yahoo | hotmail | gmail ] -> personal domain Don't judge people by what free email provider they use. I switched back to hotmail when they followed the GB mailbox path because I like their interface better and they have folders. Not saying the gmail way is better or worse - just that I didn't like it.",
"title": ""
},
{
"docid": "8a56238e87f61f08084fe4d8d5f824ad",
"text": "Go through the IRS Publication 521. Generally, relocation assistance is given either as : or",
"title": ""
},
{
"docid": "36077f0faee1268349c9086a225dffcd",
"text": "If you want to use Gmail with your Domain, you need to use Gmail for Business - https://gsuite.google.com/products/gmail/ Office 365 with email hosting - https://products.office.com/en-us/business/office-365-business-email-and-shared-calendar-services You are looking for Email hosting with custom domain. Other than these two big providers, I would look into a bundle that the web hosting provider is offering along with the web hosting",
"title": ""
},
{
"docid": "97577ed6cc63778664972b55eee31055",
"text": "\"You have received some good answers, but since your concern is proper protocol, keep everything in writing (emails, not phone calls). Also, you'll get a quick response by contacting the University \"\"Accounts Payable\"\" department, confirm the situation with a summary as you posted here and ask for the ABA routing number for the transfer. The routing number, email, and you bank statement is all the records you need to cover your but.\"",
"title": ""
},
{
"docid": "8ec3d486bed7c5634b0d1916cbc1b54c",
"text": "If you held the shares directly, the transfer agent, Computershare, should have had you registered and your address from some point on file. I have some experience with Computershare, it turned out when Qwest restarted dividends and the checks mailed to the childhood home my parents no longer owned, they were able to reissue all to my new address with one telephone call. I can't tell you what their international transfer policies or fees might be, but if they have your money, at least its found. Transfer Agent Computershare Investor Services serves as the stock transfer agent for Tellabs. If you need to transfer stock, change ownership, report lost or stolen certificates, or change your address, please contact Computershare Investor Services at +1.312.360.5389.",
"title": ""
},
{
"docid": "7090fe91f1223c557a2b81a741d4ecb0",
"text": "Give this a try https://www.catalogchoice.org/ I started using it about 6 months ago and my junk mail intake has lowered dramatically! About the only thing I get regularly are stupid cash advance checks from companies I have credit cards with.",
"title": ""
},
{
"docid": "1e924bb349d88a39b7f61f8246bb3872",
"text": "It may be a scam. But it also may be a company trying to find a person with the same or similar name. They may have followed a trail to her old address, and still not have the correct person. They bought number of old debts at a large discount, and are trying to track down any money they can find. It is best to ignore it, especially if they know it isn't their debt. If they start providing more proof then get interested. If they keep contacting them tell them there is no business relationship and they should stop.",
"title": ""
},
{
"docid": "d2ac4429874274f95545c551697aa732",
"text": "This doesn't directly pertain to international transactions but may be relevant. I got an American Express gift card over the holidays, and I tried to use it at an online merchant. The card was declined because it failed address verification. I called American Express gift card services (number was on the gift card), and they knew immediately what the problem was and fixed it. They simply took my address and added it as a billing address on the card. I retried the payment and it went through right away. It may be worth calling the gift card company and asking them to simply add your billing address.",
"title": ""
},
{
"docid": "613a3f8d3579277d68b8deb4d159db8f",
"text": "Sure. Here it is in its deadly simplicity: Bank of Too Big 123 Fake St City State Zip Date To whom it may concern: Please let this letter serve as formal instruction for Bank of Too Big to close the following accounts held under my name, [your name], [your social security number], listed below Checking: 00000000 Savings 00000000 Please remit the remaining balances in the form of an official check made payable to me and mail that check for deposit to my account at: Your Awesome New Bank c/o the new manager Address Thank you for your prompt attention to this matter. If you wish to reach me, you may do so at [telephone number] *pro tip: they **never** call you.* Sincerely, Newly empowered consumer, you. **Here are the important parts:** 1. You HAVE to get this notarized. It will not work otherwise. But guess where there are always notaries - banks - especially your new one. 2. Make sure all your automatic payments and things attached to that old account have been switched or cancelled first. 3. Don't leave too much money in there or there is a slim chance they might call you, and you'll have to deal with that nonsense. Just leave a nominal amount like $10 and they'll just do it to get it over with. 4. Keep a copy. Just in case. I have been using this letter for my entire career in banking (a little over 10 years) and it has worked EVERY SINGLE TIME. Enjoy!",
"title": ""
}
] |
fiqa
|
1b65e2396e1d59279abdcc6eba8fe14e
|
Paying myself a distribution caused a negative Owner's Equity account balance? Is this normal?
|
[
{
"docid": "e05ba5060c8505bef6a7125afc98bf91",
"text": "\"It's not abnormal for a company that is as young as yours seems to be. It seems (based on what little I know), that you have debts, or accounts payable that were formerly covered by the $200 cash, but now aren't, because you paid it to yourself. For now, you're \"\"entitled\"\" to pay yourself a draw or a salary. But if you continue to do so without earning money to cover it, your company will fail.\"",
"title": ""
}
] |
[
{
"docid": "b573ff1763f664a030871b1be7801af5",
"text": "Could be misunderstanding your context. But ev = equity + debt - cash. So don't think it makes sense for an equity holder to have an individual ev/ebitda different from the company's. Are you asking in context of valuing equity and debt from an ev/ebitda multiple?",
"title": ""
},
{
"docid": "f08935866a28093a6c1ec0b4ac63cb12",
"text": "Okay- I follow that. When we look a shorting a name - what makes that an equity transaction rather than a debt one? I guess how does that differ from investing in a bond? I recognize the simplicity of this question. Thanks.",
"title": ""
},
{
"docid": "a9aeaec24a4f70ddde19b8acdd0afb10",
"text": "Makes sense. I typed the previous reply on an ipad and was too lazy to go into the fact that as you point out the cash exits the balance sheet so in a DCF it doesn't get any weight in the terminal value calculation which makes up a significant chunk of an EV normally.",
"title": ""
},
{
"docid": "97c5f72c1b553c04307b43372b616452",
"text": "\"I am interested in seeing what happens to your report after you test this, but I don't think it's possible in practice, would not affect your credit score, and also wouldn't be worth it for you to carry a negative balance like that. Having a -1% credit utilization essentially means that you are lending the credit card company money, which isn't really something that the credit card companies \"\"do\"\". They would likely not accept an agreement where you are providing the credit to them. Having credit is a more formal agreement than just 'I paid you too much this month'. Even if your payment does post before the transaction and it says you have a negative balance and gets reported to the credit bureau like that, this would probably get flagged for human review, and a negative credit utilization doesn't really reflect what is happening. Credit utilization is 'how much do you owe / amount of credit available to you', and it's not really correct to say that you owe negative dollars. Carrying a negative balance like that is money that could be invested elsewhere. My guess is that the credit card company is not paying you the APR of your card on the amount they owe you (if they are please provide the name of your card!). They probably don't pay you anything for that negative balance and it's money that's better used elsewhere. Even if it does benefit your credit score you're losing out on any interest (each month!) you could have earned with that money to get maybe 1-2% better rate on your next home or car loan (when will that be?). TLDR: I think credit utilization approaches a limit at 0% because it's based on the amount you owe and you don't really owe negative dollars. I am very interested in seeing the results of this experiment, please update us when you find out!\"",
"title": ""
},
{
"docid": "0f674d1424f87c8217af2cb4e6041c10",
"text": "You likely received the shares as ordinary income for services of $10k, since they withheld taxes at granting. Separately, you likely had a short term capital loss on sale of $2k, since your holding period seems to have been under one year.",
"title": ""
},
{
"docid": "05eed73a4eaea66dd596aea8bc613431",
"text": "I do understand what a creditor and equity holder is. I'm just saying my teacher NEVER brought up ponzi schemes and tied it to anything related to our accounting. He didn't think it was worth his time to go into details how ponzi schemes break accounting principles. I also posted the question in finance as my finance courses dealt with financing money... And banks...",
"title": ""
},
{
"docid": "7c8e7d04180bab1c82626651b353546a",
"text": "I funded about a half dozen loans. All were AA or A rated. All but one paid me. The one who stiffed me wiped out all my profit on the others. I ended up with a tiny negative return.",
"title": ""
},
{
"docid": "30708228023bd1981cfe9b0a16bf6694",
"text": "You did something that you shouldn't have done; you bought a dividend. Most mutual fund companies have educational materials on their sites that recommend against making new investments in mutual funds in the last two months of the year because most mutual funds distribute their earnings (dividends, capital gains etc) to their shareholders in December, and the share price of the funds goes down in the amount of the per share distribution. These distributions can be taken in cash or can be re-invested in the fund; you most likely chose the latter option (it is often the default choice if you ignored all this because you are a newbie). For those who choose to reinvest, the number of shares in the mutual fund increases, but since the price of the shares has decreased, the net amount remains the same. You own more shares at a lower price than the day before when the price was higher but the total value of your account is the same (ignoring normal market fluctuations in the price of the actual stocks held by the fund. Regardless of whether you take the distributions as cash or re-invest in the fund, that money is taxable income to you (unless the fund is owned inside a 401k or IRA or other tax-deferred investment program). You bought 56 shares at a price of $17.857 per share (net cost $1000). The fund distributed its earnings shortly thereafter and gave you 71.333-56= 15.333 additional shares. The new share price is $14.11. So, the total value of your investment is $1012, but the amount that you have invested in the account is the original $1000 plus the amount of the distribution which is (roughly) $14.11 x 15.333 = $216. Your total investment of $1216 is now worth $1012 only, and so you have actually lost money. Besides, you owe income tax on that $216 dividend that you received. Do you see why the mutual fund companies recommend against making new investments late in the year? If you had waited till after the mutual fund had made its distribution, you could have bought $1000/14.11 = 70.871 shares and wouldn't have owed tax on that distribution that you just bought by making the investment just before the distribution was made. See also my answer to this recent question about investing in mutual funds.",
"title": ""
},
{
"docid": "1cc4b08bb104d39397a5e68f8d951d9f",
"text": "Is it just -34*4.58= -$155.72 for CCC and -11*0.41= -$4.51 for DDD? Yes it needs to be recorded as negative because at some point in time, the investor will have to spend money to buy these shares [cover the short sell and return the borrowed shares]. Whether the investor made profit or loss will not be reflected as you are only reflecting the current share inventory.",
"title": ""
},
{
"docid": "9436059cc8d42a2266be9bde9f4ef66c",
"text": "\"You're not focusing in the right place and neither is anyone else on this thread because this isn't about the guy owning you money... This is about you not having enough money to pay your rent. If rent wasn't due and the utility bills weren't piling up, you wouldn't be trying to justify taking money out of someone else's account. So let's triage this. Your #1 problem isn't hunting down Dr. Deadbeat's wallet. So put a pin in that for now and get to the real deal. Getting rent paid. Right? OK, you said he called \"\"regarding a business I have\"\". It's great that you have your own business. Are you also employed elsewhere? If you are, then you really should simply go to your employer and tell them you are in financial distress. Tell them that right now you can't cover your rent or bills and you want to know if they can help, i.e. give you an advance from your paycheck, do a withdrawal/loan from a retirement savings that's in your employee benefits package, etc... They will HELP YOU because it's in their best interest as much as it is in yours. Foregoing that, consider these thoughts... If you were to go your grandparents telling them what you told all of us here, and ask them the same \"\"do you think it's ok to...\"\", they would say something close to \"\"Absolutely DO NOT touch someone else bank account EVER! It doesn't matter what information you have, how you got it, or what you think they owe you. Do NOT touch it. There's a legal system that will help you get it from them if they truly do owe it to you.\"\" I guarantee you this, withdrawing funds from an account on which you are NOT an authorized signatory is both financial theft as well as identity theft. Bonus if you do it on a computer, because you'd then be facing criminal charges that go beyond your specific legal district, i.e. you'd face criminal charges on a national level. If convicted, odds are you'd be sentenced within the penal guidelines of the Netherlands 1983 Financial Penalties Act (FPA). Ergo, you would have much much much less money in the very near future, which would feel like an eternal walk through the Hell of the court system. Ultimately, over your lifetime you would be exponentially poorer than you may think you are now. I strongly urge you to rebrand this \"\"financial loss\"\" as \"\"Tuition at the School of Hard Knocks\"\". There's one last thing... the train jumps the tracks for me during your story... This guy called you? Right?... (raised eyebrow) What kind of business do you \"\"have\"\"? The sense of desperation and naiveté in your urgent need for money to pay rent. The fact that you are accepting payment for services by conducting a bank transfer specifically from your clients account directly toward your own utility bills is a big red flag. Bypassing business accounting and using revenue for personal finances isn't legitimate business practices. Plus you are doing it by using the bank information of brand new client who is a TOTAL stranger. Now consider fact that this total stranger was so exceedingly generous to someone from whom he wanted personal services to be rendered. Those all tell me that he's doing something he wants the other person to do for him and he doesn't want anyone else to know. The fact that he's being so benevolent like a 'sugar daddy' tells me that he feels guilty for having someone do what he's asking them to do. Perceived financial superiority is the smoothest of smooth power tools that predators and abusers have in their bag. For instance, an outlandish financial promise is probably the easiest way to target someone who is vulnerable; and then seduce them into being their victim. Redirecting your focus on how much better life will be once your problem is solved by this cash rather than focusing on the fact that they're taking advantage of you. Offering to pay rates that are dramatically excessive is a way of buying a clean conscious, because he's doing something that will \"\"rescue you\"\" from a crisis. The final nail in the coffin for me was that he left so abruptly and your implied instinct suggesting his reason was a lie. It sounds like he got scared or ashamed of his actions and ran out. It paints a picture that this was sex-for-money Good luck to you.\"",
"title": ""
},
{
"docid": "c1b97df8f72eb9db4c987059358d87ac",
"text": "\"Because you've sold something you've received cash (or at least an entry on your brokerage statement to say you've got cash) so you should record that as a credit in your brokerage account in GnuCash. The other side of the entry should go into another account that you create called something like \"\"Open Positions\"\" and is usually marked as a Liability account type (if you need to mark it as such). If you want to keep an accurate daily tally of your net worth you can add a new entry to your Open Positions account and offset that against Income which will be either negative or positive depending on how the position has moved for/against you. You can also do this at a lower frequency or not at all and just put an entry in when your position closes out because you bought it back or it expired or it was exercised. My preferred method is to have a single entry in the Open Positions account with an arbitrary date near when I expect it to be closed and each time I edit that value (daily or weekly) so I only have the initial entry and the current adjust to look at which reduces the number of entries and confusion if there are too many.\"",
"title": ""
},
{
"docid": "a3721fd666e6ea8920304e2b973bef1c",
"text": "\"The part that I find confusing is the loan/stock hybridization. Why would the investor be entitled to a 30% share if he's also expecting to be getting paid back in full? This is the part that's making me scratch my head. I can understand giving equity and buying out later. I can understand giving equity with no expectation of loan repayment. I can understand loan repayment without equity. I can even understand collateralizing the loan with equity. I can not understand how \"\"zeroing out\"\" the loan still leaves him with a claim on 30% of the equity. Would this be more of a good will gesture as a way to thank the investor for taking a chance? Please forgive any naivety in my questions.\"",
"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": "7f48d2497330bc421990b575863046a8",
"text": "In accrual accounting, you account for items on the income statement when the service has been delivered - in this case, the service that your employees are providing your company. Because of this, you incur the expense in the fiscal year that your employees work for you. So, you incur the expense, and net income decreases by (1-t)*wage expense. Net income decreases, so owners' equity decreases; to balance you credit wages payable. Once the wages are paid, you decrease the liabilities side (wages payable) and offset it with a Cash change on the assets side.",
"title": ""
},
{
"docid": "5f710bf3dafd6bd265175acae324ef66",
"text": "if the consolidated joint venture/sub has a negative net worth, then it is backing out the minority owner's share. if another entity is taking the hit, or responsible for a hit/liability instead of you, then it should improve your valuation. do not confuse net worth with net income. BS vs IS.",
"title": ""
}
] |
fiqa
|
5ea5870576182cc8b1a6ffdb24cedae8
|
How May Cash be Spent Approaching Bankruptcy?
|
[
{
"docid": "989aaf6bbf20eba8bb856f0d21b398b8",
"text": "Bankruptcy law is complex. You need a lawyer who can advise you both on the statute and relevant case law for the district where you file. Your lawyer can advise you whether actions you contemplate are allowed. You can obtain advice prior to filing as you seek to determine whether the law and the relief it offers are suitable to your situation. Anyone considering filing BK should know that they will need to provide fairly extensive information. You should learn about BK as you seek to understand whether that path is the best for your situation. You should ask your lawyer specific questions about your situation and try to learn as much as you can. You should read about the problems with taking out debt or making debt repayments to creditors (especially family) prior to filing BK. These actions could impact your case and cause it to be dismissed, and could even be considered criminal (again, you need a lawyer). Some things to learn about as you contemplate Bankruptcy Be aware that BK is federal law, and you will be required to provide extensive information about your financial situation. You will be required to show up for the creditors meeting and testify that you have provided correct information. The trustee may (will) supply objections to which you and your lawyer will need to respond. Among other things, you will supply, You should seek legal advice about things that might become important, Even though you will have guidance from your lawyer, you are the one seeking relief, and you need to understand your own situation and the law.",
"title": ""
}
] |
[
{
"docid": "70e04ae623489ace987557576c29b943",
"text": "Banks can't simply make loans in the void. This is how the cash flow works, generally: 1. Depositers *add* cash into the bank. The Bank now has cash. 10% of that cash is held on *reserve* per law. This cash is held on the balance sheet as an *asset* (cash) *and a liability* (demand deposits). 2. Someone requests a loan. The loan is funded from the non-reserved cash of these deposits. This results in a lessening of an asset (cash), and the creation of a new asset (loan). 3. Traditionally, as the debtor pays back the loan, the interest is distributed in some sort of split between the bank and the depositors. This means cash in from the loan and interest, and a liability (deposits) also go up. 4. Alternatively, while the above still happens, the bank can *securitize* the loan and sell that to investors. Investors then get access to the loan and its income, and the bank collects a fee. However, this means more cash on hand for the bank to originate additional loans without going near the reserve requirement. If a bank extends too many loans and its reserve is threatened, it must borrow either from the fed or from other banks. These loans must be paid back.",
"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": "169a8d78dcfe31e4f612e23729aa6033",
"text": "\"Individual municipal bonds (not a fund) that will come to term in 2017 from your state. This satisfies 1, 2, 4 and 5. It doesn't satisfy #2. These are not insured, and there can be details in each state about whether the municipal bonds are backed up by state general revenues in the event of a municipal bankruptcy; there are two general kinds, \"\"general obligation\"\" backed by the political will to raise taxes if needed; and \"\"revenue bonds\"\" backed by cash flow such as toll revenue, water utility bills and so forth. Municipal bankruptcies are rare but not impossible. http://www.bankrate.com/finance/investing/avoid-municipal-bonds-that-default-2.aspx\"",
"title": ""
},
{
"docid": "54a054381c61a8a014d7aec236cfb8c2",
"text": "The biggest issue with personal bankruptcy is the guilt. We generally are brought up to believe that we should be responsible for our debts. Bankruptcy is a direct contradiction to that concept. Once a debtor realizes that corporations don't necessarily view bankruptcy as failure, but merely a financial tool, that makes it a lot easier to let go of the guilt. Once that happens, all a debtor needs to get used to is the idea that s/he'll be dealing with a cash economy for a while. Which isn't a particularly bad thing at all. Inconvenient at times, but that's about it.",
"title": ""
},
{
"docid": "c5d895efa21e2ef274c014d4641e24f5",
"text": "I'd suggest you start with a budget that includes savings, the minimum payment for those loans, estimates for recurring expenses, entertainment, and lifestyle items. That will let you baseline how much money you need for the lifestyle you want to have. Then apply your income to that model and whatever is left distribute out to your loans starting with the highest risk (not forgivable in bankruptcy/would make you homeless if you don't pay) and highest interest rate.",
"title": ""
},
{
"docid": "dfdae4d4e49db42f4ac8872b91cedfe5",
"text": "Assume that he reformed his ways. He stopped the destructive behavior (gambling) and had enough money from a job going forward to pay for all his future expenses. Then it is true the old debts will fade away both as being collectable, and as a source of a negative mark on the credit report. Also assume that the people or companies never figure out that the the relative has a steady source of income, also assume that all the debts can be forgiven and have no long lasting impact. If any of those assumptions aren't true the plan won't work. The trail of debts will continue to grow, and may have additional complications. As debts fall off the radar, they may be replaced even faster by new threats. Many a person has used a debt consolidation loan, or a home equity loan to pay off all the credit cards; but found themselves back in trouble because they never fixed the underlying problem: they spend more than they make. In the case of a home equity loan they put their house at rick, as a replacement of unsecured loans. If the gambling continues, the lack of payment of old debts becomes a crutch for the ability to generate new debts.",
"title": ""
},
{
"docid": "9c6339ce8800b7d88f46b532fd8775c1",
"text": "I like the answers others gave, if it's some substantial debt you definitely could go the bankruptcy route but it damages your future, also it's morally unethical to borrow all that money and not intend to pay. Second, if you can pay off the entire balance and clear out the 23% interest than I'd do that first. One less bill to concern yourself with. Now let's say you've been making $100 payments monthly on each card (my assumption for this examples sale) now instead of paying $100 to the remaining cards balance each month and saving the other $100, pay $200 against the remaining credit cards balance. By not taking home any money this way you are tackling the liability that is costing you money every month. Unless you have a great investment opportunity on that remaining $1000 or haven't created much of an emergency fund yet, I'd consider putting more of that money towards the debt. Gaining 0.01% on savings interest still means you're eating 25.99% in debt monthly. If you're able to I'd venture out to open a zero interest card and do a balance transfer over to that new card, there will be a minimal transfer fee but you may get some cash back out of it and also that zero interest for a year would help hold off more interest accruing while you're tackling the balance.",
"title": ""
},
{
"docid": "843db0456e443311227525c4f76b1fb7",
"text": "ETFs are legally separate from their issuer, so the money invested should (the lines can get blurry in a massive crisis) be inaccessible to any bankruptcy claims. The funds assets (its shares in S&P500 companies) are held by a custodian who also keeps these assets separate from their own book. That said, if no other institution takes over the SPY funds the custodian will probably liquidate the fund and distribute the proceeds to the ETF holders, this is likely a less than ideal situation for the holders as the S&P500 would probably not be at its highest levels if State Street is going bankrupt (not to mention the potential taxation).",
"title": ""
},
{
"docid": "01660d563246a14fbfa3a43f9d4ef01b",
"text": "\"If you owe the money to A, and B owes you money and goes bankrupt, that has no effect whatsoever on your loan from A. Obviously. Your best bet -- while you still owe and are owed by the same company -- is either get them to agree to apply your credit to your debt (reducing it to $30,000) -- or rush to the courthouse and ask a judge to order this done. You want to do this well before the bankruptcy is filed; too close and someone could object to you having been paid preferentially or \"\"out of turn\"\" -- and claw back the money, meaning you now owe it to the bankruptcy trustee. Your debt to them is, from their perspective, an asset. It is an asset with a cash value (based on the probability of people in that portfolio paying). It can be sold to gain some immediate cash instead of more cash over a time period. This is routine in the debt world. Before or during the throes of bankruptcy, and depending on what the reorganization plan is, the bank is quite likely to sell your debt to someone else to raise cash - typically a distress sale for a fraction of its principal value (e.g. 20% or $10,000). That goes into the pool of money to pay creditors such as yourself, and if you're lucky, you'll get some of it. So good on you, you got $2000 back from the bank and now you owe someone else $50,000. I'm assuming they owe you $20,000 for IT services or because you put a new roof on their branch, or something like that. If it's money on deposit at the bank, then two things are true: First, pre-bankruptcy, you can trivially command the bank to dump the entire $20,000 into paying down the debt. Instantly: done, and irreversible. The bankruptcy trustee can't claw that back because it was never the bank's money, it was yours. Second, any civilized country has deposit insurance, which they typically implement by helping another bank buy out your bank, and continue to honor your deposits, so this is seamless and hands-off for you. Your old checks continue to work, your branch just changes their sign. This deposit insurance has limits, which is only a problem for the very rich (who are dumb enough to put over the limit in one bank).\"",
"title": ""
},
{
"docid": "58086f490032a28d2d7dafa584763a52",
"text": "Get a Bankrupsy lawyer. They'll tell you to stop paying the bills and use the money to pay their fee. Yes... You do need to pay in advance. I can tell you honestly that it was the best thing that ever happened to me. Think about it this way... When you loan someone moneyyou're placing a bet that they'll pay you back. You try to keep the dos in your favor by using credit ratings etc but sometimes you win and sometimes you lose that bet. It's nothing personal. It's business. The casino doesn't feel bad when you lose your bets and your money and you don't expect them to. The person placing the bet knows what they're doing and knows all about the risks, etc. it's a calculated risk. Again... It's just business and it's nothing personal. It's also not nesessairly a failure. Depending on the situation... Bankrupsy is an excellent business decision. Big business do it all the time. Sometimes bankruptcy is a very smart decision and not going bankrupt is the worst decision you can make. My only regret with my own bankruptcy is that I didn't do it sooner. I could have saved the family years of unnecessary hardship and I could have gotten it over with much sooner. Don't be emotional. Be smart and do the smart thing.",
"title": ""
},
{
"docid": "05043196d0b88fe4be5ae7d41d6dd84e",
"text": "This is an extremely simplified version and not necessarily accurate. C for example has $800b in cash and 10+% Tier 1 capital relative to other banks. Yes, they need to write down debt but the larger concern as opposed to bankruptcy by capital markets is equity dilution. Both C and BAC need to raise equity capital due and, due to new leverage restrictions, will dilute existing shareholders so much that they will have difficulty matching previous EPS. Also, a lot of analysts expect thy aren't marking down assets enough (reducing that large Tier 1 buffer pretty heavily). One of the primary reasons they issue smaller dividends relative to JPM is that dividends for systematically important institutions must be approved by the Fed now (Dodd-Frank). They can't issue a big dividend because the Fed says they aren't well capitalized enough. To say they are bankrupt though shows a misunderstanding of bank balance sheets and how the FRB discount window works, though.",
"title": ""
},
{
"docid": "3732c03ce8f43f586a8a38188d3be293",
"text": "This sounds like a crazy idea, but in reality people don't make the wisest decisions when considering bankruptcy in Australia. My suggestion would be to get some advice from an insolvency specialist.",
"title": ""
},
{
"docid": "c9e79c3970a82e9d968dd3eaf9229e54",
"text": "\"This is the kind of scenario addressed by Reddit's /r/personalfinance Prime Directive, or \"\"I have $X, what should I do with it?\"\" It follows a fairly linear flowchart for personal spending beginning with a budget and essential costs. The gist of the flowchart is to cover your most immediate costs and risks first, while also maximizing your benefits. It sounds like you would fall somewhere around steps 1 and 3. (Step 2 won't apply since this is not pretax income.) If you don't already have at least $1000 reserved in an emergency fund, that's a great place to start. After that, you'll want to use the rest to pay down your debt. Your credit card debt is very high interest and should be treated as a financial emergency. Besides the balance of your gift, you may want to throw whatever other funds you have saved beyond one month's expenses at this problem. As far as which card, since you have multiple debts you're faced with the classic choice of which payoff method to use: snowball (lowest balance first) or avalanche (highest interest rate first). Avalanche is more financially optimal but less immediately gratifying. Personally, since your 26% APR debt is so large and so high interest, I would recommend focusing every available penny on that card until it is paid off, and then never use it again. Again, per the flowchart, that means using everything left over after steps 0-2 are fulfilled.\"",
"title": ""
},
{
"docid": "51863cda125d76edb58e5d99691c7392",
"text": "\"As you've observed, when you're dealing with that amount of money, you're going to have to give up FDIC guarantees. That means that keeping the money in a bank account carries some risk with it: if that particular bank goes bust, you could lose most of your money. There are a few options to stretch the FDIC limit such as CDARS, but likely can't handle your hypothetical $800 million. So, what's a lucky winner to do? There are a few options, including treasury securities, money market funds, and more general capital investments such as stocks and bonds. Which one(s) are best depend on what your goals are, and what kind of risks you find acceptable. Money in the bank has two defining characteristics: its value is very stable, and it is liquid (meaning you can spend it very easily, whenever you want, without incurring costs). Treasury securities and money market funds each focus on one of these characteristics. A treasury security is a piece of paper (or really, an electronic record) saying that the US Federal Government owes you money and when they will pay it back. They are very secure in that the government has never missed a payment, and will move heaven and earth to make sure they won't miss one in the future (even taking into account recent political history). You can buy and sell them on an open market, either through a broker or directly on the Treasury's website. The major downside of these compared to a bank account is that they're not as liquid as cash: you own specific amounts of specific kinds of securities, not just some number of dollars in an account. The government will pay you guaranteed cash on specified dates; if you need cash on different dates, you will need to sell the securities in the open market and the price will be subject to market fluctuations. The other \"\"cash-like\"\" option is money market funds. These are a type of mutual fund offered by financial companies. These funds take your money and spread it out over a wide variety of very low risk, very short term investments, with the goal of ensuring that the full value will never go down and is available at any time. They are very liquid: you can typically transfer cash quickly and easily to a normal bank account, write checks directly, and sometimes even use \"\"online bill pay\"\"-like features. They have a very good track record for stability, too, but no one is guaranteeing them against something going terribly wrong. They are lower risk than a (non-FDIC-insured) bank account, since the investments are spread out across many institutions. Beyond those two somewhat \"\"cash-like\"\" options, there are of course other, more general investments such as stocks, bonds, and real estate. These other options trade away some degree of stability, liquidity, or both, in exchange for better expected returns.\"",
"title": ""
},
{
"docid": "44cd8419b2418fff2d1e5836e4c518b6",
"text": "In a nutshell...in order to file for Chapter 9 bankruptcy, the city or county first has to actually be insolvent, the state has to give authorization for the city or county to file, and the city or county must have made an attempt to negotiate with creditors (bondholders, pensioners etc). Once those conditions are met, and they must be specifically met, the city or county files the bankruptcy petition and the automatic stay typically goes into effect shortly after. This stay basically allows the municipality to stop making payments on some of their obligations throughout the course of the bankruptcy case. Chapter 9 bankruptcies are usually very protracted, and very expensive. So fast forward a year or two, the creditors that are owed money have all been assigned to different classes by the bankruptcy court, with each class getting a specific recovery based on the type of creditor. The city or county has the sole right to propose a plan of reorganization. Some debts, such as a bond backed specifically by revenues generated by a sales tax, are usually considered special revenues and secured...those bondholders will have first priority on those revenues pledged to them throughout the bankruptcy process and are usually unimpaired. Other creditors, such as general obligation bondholders or employee pension plans, are usually considered unsecured and will not receive their contractually obligated payments during the bankruptcy process, and will likely have to take a haircut on the principal amount they are owed by the city or county. The municipality must be solvent in order to advance the plan of reorganization and exit the bankruptcy process, so quite often employee contracts are adjusted, services will be reduced, pension and OPEB promises to retired workers will be curtailed, and bonded debt is reduced to a manageable level. It's not pretty, and it is very expensive.",
"title": ""
}
] |
fiqa
|
8a5fb66fde0e70d914728440dfc7f7ad
|
Taxation of shares
|
[
{
"docid": "1ed8bea64c7ee837c5c72e696725d515",
"text": "If you sell your shares for more than their value at the time you received them (i.e. you make a profit) then you will be liable for capital gains tax - but only if the profit exceeds your annual allowance (£11,100, in tax year 2015-16). This is unrelated to how you came by the shares in the first place. (Note that there are certain exemptions to this, which includes some employer share schemes.)",
"title": ""
}
] |
[
{
"docid": "34143732aa5386271946327f19199cab",
"text": "Surprisingly enough, this one isn't actually all that complicated. No, you will not be taxed twice. Dividends are paid by the company, which in this case is domiciled in Spain. As a Spanish company, the Spanish government will take dividend witholding tax from this payment before it is paid to a foreign (i.e. non-Spanish resident) shareholder. What's happening here is that a Spanish company is paying a dividend to a Malaysian resident. The fact that the Spanish stock was purchased in the form of an ADR from a US stock market using US dollars is actually irrelevant. The US has no claim to tax the dividend in this case. One brave investor/blogger in Singapore even set out to prove this point by buying a Spanish ADR just before the dividend was paid. Bravo that man! http://www.investmentmoats.com/money-management/dividend-investing/how-to-calculate-dividend-withholding-taxes-on-us-adrs-for-international-investors-my-experience-with-telefonica/",
"title": ""
},
{
"docid": "66a0785ee194779bd28ed37715ab1536",
"text": "Well, you can just say that 1 dollar contributed = one share and pay out dividends based on number of shares. That makes it pretty easy to make things fair based. There are pros and cons with this pooling approach.",
"title": ""
},
{
"docid": "acc2e045955043c6266d5ce0d7fceb18",
"text": "The key point is from the penultimate sentence in your second paragraph: for which you have already paid taxes When you receive a dividend or realise a capital gain, you get taxed on that then, and you shouldn't have to pay taxes on it again in future. So the cost basis gets adjusted to reflect that.",
"title": ""
},
{
"docid": "2c3122d7636f15842b326dc32f0f5598",
"text": "The sale of shares on vesting convolutes matters. In a way similar to how reinvested dividends are taxed but the newly purchased fund shares' basis has to be increased, you need to be sure to have the correct per share cost basis. It's easy to confuse the total RSU purchase with the correct numbers, only what remained. The vesting stock is a taxable event, ordinary income. You then own the stock at that cost basis. A sale after that is long or short term and the profit is the to extent it exceeds that basis. The fact that you got these shares in 2013 means you should have paid the tax then. And this is part two of the process. Of course the partial sale means a bit of math to calculate the basis of what remained.",
"title": ""
},
{
"docid": "1b2244942670394e9c2efb0cfe36dbcd",
"text": "If you receive dividends on an investment, those are taxed.",
"title": ""
},
{
"docid": "722cfe37451e536106593be9c7467805",
"text": "\"Summary: The corporation pays 33.3% tax on dividends it receives and gets a tax refund at the same rate when it pays dividends out. According to http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/TaxRates/Federal-and-Provincial-Territorial-Tax-Rates-for-Income-Earned-CCPC-2015-Dec-31.pdf the corporate tax rates for 2015 are: According to page 3: The federal and provincial tax rates shown in the tables apply to investment income earned by a CCPC, other than capital gains and dividends received from Canadian corporations. The rates that apply to capital gains are one-half of the rates shown in the tables. Dividends received from Canadian corporations are deductible in computing regular Part I tax, but may be subject to Part IV tax, calculated at a rate of 33 1/3%. If I understand that correctly, this means that a Corporation in Quebec pays 46.6% on investment income other than capital gains and dividends, 23.3% on capital gains and 33.33% on dividends. I'm marking this answer as community wiki so anyone can correct these numbers if they are incorrect. UPDATE: According to http://www.pwc.com/ca/en/tax/publications/pwc-facts-figures-2014-07-en.pdf page 22 the tax rate on taxable dividends received from certain Canadian corporations is 33 1/3%. Further, this is refunded to the corporation through the \"\"refundable dividend tax on hand\"\" (RDTOH) mechanism at a rate of $1 for every $3 of taxable dividends paid. My interpretation is as follows: if the corporation receives $100 of dividends from another company, it pays $33.33 tax. If that corporation then pays out $100 of dividends at a later time, it receives a tax refund of $33.33. Meaning, the original tax gets refunded. Note the first line is for the 2015 tax year while the second link is for the 2014 tax year. The numbers might be a little different but the tax/refund process remains the same.\"",
"title": ""
},
{
"docid": "9a9d932f7e317e965f944a41ec48a41d",
"text": "I can make that election to pay taxes now (even though they aren't vested) based on the dollar value at the time they are granted? That is correct. You must file the election with the IRS within 30 days after the grant (and then attach a copy to that year's tax return). would I not pay any taxes on the gains because I already claimed them as income? No, you claim income based on the grant value, the gains after that are your taxable capital gains. The difference is that if you don't use 83(b) election - that would not be capital gains, but rather ordinary salary income. what happens if I quit / get terminated after paying taxes on un-vested shares? Do I lose those taxes, or do I get it back in a refund next year? Or would it be a deduction next year? You lose these taxes. That's the risk you're taking. Generally 83(b) election is not very useful for RSUs of established public companies. You take a large risk of forfeited taxes to save the difference between capital gains and ordinary gains, which is not all that much. It is very useful when you're in a startup with valuations growing rapidly but stocks not yet publicly trading, which means that if you pay tax on vest you'll pay much more and won't have stocks to sell to cover for that, while the amounts you put at risk are relatively small.",
"title": ""
},
{
"docid": "dc36a99ffea70f0b1e78475c3ad6fcb7",
"text": "Yes. You incur income tax on the RSU on they date they vest. At this point you own the actual shares and you can decide to sell them or to hold them. If you hold them for the required period, and sell them later, the difference between your price at vesting and the sales price would be taxed as long term capital gains. Caution: if you decide to hold, you are still liable to pay income tax in the year they vest. You have to pay taxes on income that you haven't made yet. This is fairly dangerous: if the stock goes down, you may lose a lot of this tax payment. Technically you could recover some of this through claiming capital losses, but that this is severely restricted: the IRS makes it much easier to increase taxes through gains than reducing taxes through losses.",
"title": ""
},
{
"docid": "175a9f550ec56623c289df7f2fe0dc18",
"text": "Here is how it should look: 100 shares of restricted stock (RSU) vest. 25 shares sold to pay for taxes. W2 (and probably paycheck) shows your income going up by 100 shares worth and your taxes withheld going up by 25 shares worth. Now you own 75 shares with after-tax money. If you stop here, there would be no stock sale and no tax issues. You'd have just earned W2 income and withheld taxes through your W2 job. Now, when you sell those 75 shares whether it is the same day or years later, the basis for those 75 shares is adjusted by the amount that went in to your W2. So if they were bought for $20, your adjusted basis would be 75*$20.",
"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": "ce8d5627024191690537789aedb3f34f",
"text": "You are still selling one investment and buying another - the fact that they are managed by the same company should be irrelevant. So yes, it would get the same tax treatment as if they were managed by different companies.",
"title": ""
},
{
"docid": "d04463611f1cc42a2614271873cb0e89",
"text": "I don't know the legal framework for RSUs, so I'm not sure what is mandatory and what is chosen by the company issuing them. I recently reviewed one companies offering and it basically looked like a flat purchase of stock on the VEST date. So even if I got a zillion shares for $1 GRANTED to me, if it was 100 shares that vested at $100 on the 1st, then I would owe tax on the market value on the day of vest. Further, the company would withhold 25% of the VEST for federal taxes and 10% for state taxes, if I lived in a state with income tax. The withholding rate was flat, regardless of what my actual tax rate was. Capital gains on the change from the market value on the VEST date was calculated as short-term or long-term based on the time since the VEST date. So if my 100 shares went up to $120, I would pay the $20 difference as short term or long term based on how long I had owned them since the VEST. That said, I don't know if this is universal. Your HR folks should be able to help answer at least some of these questions, though I know their favorite response when they don't know is that you should consult a tax professional. Good luck.",
"title": ""
},
{
"docid": "b3bb25844cb10bfb674a0e794e241cf7",
"text": "Capital gains taxes for a year are calculated on sales of assets that take place during that year. So if you sell some stock in 2016, you will report those gains/losses on your 2016 tax return.",
"title": ""
},
{
"docid": "6c2125ce1043cb7402146ce6ef34fdcf",
"text": "When the corporate tax rate is increased corporations either pass tax this on to 1. consumers through higher prices 2. Shareholders through smaller/fewer dividend payouts or 3. Employees through lower wages. The paper argues that the tax burden mainly falls on the shareholders which is whoever owns the stock (capital income). Effectively investors and retirement accounts/mutual funds etc",
"title": ""
},
{
"docid": "9a1d3611099cbee3136ec36c06127dd7",
"text": "Now assume these shares are vested, held for at least 1 year, and are then sold for $5 each. Everything I've read implies that the grantee now owes long-term capital gains taxes on the difference, which would be 10k * ($5 - $1). No. That's exactly what the SO is NQ for. Read more on the differences between ISO and NQSO here. Now assume these shares are vested, held for at least 1 year, and are then sold for $5 each. Everything I've read implies that the grantee now owes long-term capital gains taxes on the difference, which would be 10k * ($5 - $1). At this point you no longer have NQSO, you have RSU. If you filed 83(b) when you exercised, then you pay capital gains tax when they vest. If you didn't - its ordinary income to you. NQSO is a red herring here since once exercised they no longer exist. If you didn't file 83(b), then when the stock vests the difference between the FMV at vest and the money you spent on it when exercising (if any) is considered wages and taxed as ordinary income (+FICA etc). From that point the RSU becomes a regular stock investment and the capital gains clock starts ticking.",
"title": ""
}
] |
fiqa
|
35fa8d26f2d92cf2ec7a06393cad19d3
|
ACH debit blocks/filters on consumer account
|
[
{
"docid": "768d911368643c7cf2504b6ef63a28b4",
"text": "The technical feature exists to (1)block all ACH activity, (2)block all ACH credits, or (3)block all ACH debits attempting to post to the deposit account. The large financial institutions will not deviate from their company policies and won't offer something like this for a personal account. The smaller institutions and credit unions are much more willing to discuss options. Especially if you maintain a large deposit balance or have many products with the institution, you might convince them this feature is very important and insist they block all ACH activity on your account. This feature is used frequently on controlled asset accounts where the balance must be frozen for a variety of reasons.",
"title": ""
}
] |
[
{
"docid": "724f4aa42a46fe16ff32b4f2087a57a4",
"text": "I think you're off base here. The bureaus only remove information if the creditor cannot verify any dispute within 30 days, or if the information's super old. If the creditor can provide corrected information, then the credit bureau is required to apply it to its own database. A dispute can be about the entire account, or it can be about payment status within a given span (or spans) of time. Of course, it's the consumer who has to initiate the dispute.",
"title": ""
},
{
"docid": "a386e36b20ff237638ae665b783d9a5c",
"text": "A large biller is registered and can initiate an ACH Debit to your account based on the Account Number and the Routing number. He assumes responsibility and completes the due diligence of obtaining a written mandate / permission / authorization from you. There are other legal process where by you get a Power of Attorney that would allow you to transact on behalf of someone. The key point you seem to be missing is that one can ONLY transact from ones account either by walking into the Bank / ATM, or by writing a check. There are other options as well to transact.",
"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": "6f722df3ca2eb8fbd660feb3b5217055",
"text": "Actually BofA never charged for their debit card usage. It was all heresy from the media because Wells Fargo and Chase Bank were actually charging their customers. As to your credit card, you know that you can close that at anytime and pay off whatever owing balance you have left with it still closed.",
"title": ""
},
{
"docid": "6f62ba256f7ca5d4fa51838d7cbfe7d4",
"text": "Because more than a few utility companies have overcharged me in the past, and with online banking they can automatically deduct from my account. With a check I can control how much I pay them. It's much easier to fight a charge when they don't already have your money.",
"title": ""
},
{
"docid": "0507b77c98c3fcf6da71fa48b8d2b9c8",
"text": "My bank will let me download credit card transactions directly into a personal finance program, and by assigning categories to stores I can get at least a rough overview of that sidd of things, and then adjust categories/splits when needed. Ditto checks. Most of my spending is covered by those. Doesn't help with cash transactions, though; if I want to capture those accurately I need to save receipts. There are ocr products which claim to help capture those; haven't tried them. Currently, since my spending is fairly stable, I'm mostly leaving those as unknown; that wouldn't work for you.",
"title": ""
},
{
"docid": "15719a8b8ee5b0361f43e22b91f3d55b",
"text": "\"Generally not. Since authorized user cards are the same account and the difference between the two (the original and the AU card) are minimal. Note, there's nothing technically stopping banks from offering this as a feature, two cards do have identifiers that indicate they're separate cards, but the banks concern for your needs stops at how much they can bleed from you, and \"\"helping you control your spending\"\" is not part of that.\"",
"title": ""
},
{
"docid": "dda10a36c9726f77dbfe6a1c3bc8c942",
"text": ">Why would any customer (we aren't customers, credit providers are), use Equifax moving forwards This incident doesn't seem to have had any impact on Equifax' ability to provide the service for which credit providers pay. I could have missed it, but I also haven't read/heard anywhere that customer (i.e., credit providers) data was compromised or that there's any push to limit Equifax' ability to gather data needed to provide their service.",
"title": ""
},
{
"docid": "53e374665eaace62273f1f98af21ad34",
"text": "Surprisingly accurate. Are you in the industry? I usually see wildly incorrect info about processing online. (I work in processing.) Only part not quite correct: >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 acquiring bank/processor actually fronts money to the merchant (typically within 1-2 days.) The issuing bank later reimburses the acquiring bank/processor, less interchange fees. The processor then deducts the interchange fee amount and their markup from the merchant's account, making themselves whole from the original money fronting and getting their profit. That's why there's risk to processors when it comes to chargebacks. If a transaction is fraudulent, the issuing bank isn't going to give them money for it, but they've already given money to the merchant. So they need to be able to recoup it from the merchant or they'll be out that money. But yeah, definitely a service, and it's odd that people often argue that it isn't.",
"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": "b427ead79d6bc0ca641b104f8705fd3c",
"text": "I would presume this goes entirely through the credit card network rather than the banking network. I am guessing that it's essentially the same operation as if you had returned something purchased on a card to the store for credit, but I'm not sure whether it really looks like a vendor credit to the network or if it is marked as a different type of transaction.",
"title": ""
},
{
"docid": "7d643ed047c1d902947122689b38d25b",
"text": "\"Banks have a financial, and regulational duty called \"\"Know your customer\"\", established to avoid a number of historical problems occurring again, such as money laundering, terrorism financing, fraud, etc. Thanks to the scale, and scope of the problem (millions of customers, billions of transactions a day), the way they're handling this usually involves fuzzy logics matching, looking for irregular patterns, problem escalation, and other warning signs. When exceeding some pre-set limit, these signal clues are then filtered, and passed on for human inspection. Needless to say, these algorithms are not perfect, although, thanks to financial pressure, they are improving. In order to understand why your trading account has been suspended, it's useful to look at the incentives: false positives -suspending your trade, and assuming you guilty until proven otherwise- could cost them merely your LTV (lifetime value of customer -how much your business brings in as profit); while false negatives -not catching you while engaging in activities listed above- might cost them multi-month investigations, penalties, and court. Ultimately, this isn't against you. I've been with the bank for 15 years and the money in the accounts has been very slowly accumulated via direct-deposit paychecks over that time. From this I gather the most likely explanation, is that you've hit somekind of account threshold, that the average credit-happy customers usually do not exceed, which triggered a routine checkup. How do you deal with it? Practice puppetry! There is only one way to survive angry customers emotionally: you have to realize that they’re not angry at you; they’re angry at your business, and you just happen to be a convenient representative of that business. And since they’re treating you like a puppet, an iconic stand-in for the real business, you need to treat yourself as a puppet, too. Pretend you’re a puppeteer. The customer is yelling at the puppet. They’re not yelling at you. They’re angry with the puppet. Your job is to figure out, “gosh, what can I make the puppet say that will make this person a happy customer?” In an investigation case, go with boredom: The puppet doesn't care, have no feelings, and is eternally patient. Figure out what are the most likely words that will have the matter \"\"mentally resolved\"\" from the investigator's point of view, tell them what they have to hear, and you'll have case closed in no time. Hope this helps.\"",
"title": ""
},
{
"docid": "ae4e54968ebe99dc5bf2825a8df4e00c",
"text": "I had exactly the same need and I ended up using BillGuard and I like it. At the end of the day, it sends an alert where I need to review all the transactions - takes hardly 5seconds and I am on top of all transactions. From the last 1yr I have found 1 fraudulent and 2 duplicate charge using billguard. Didn't really save a ton of money but its useful to understand how you use your credit card. Don't work for or promoting the app, its just useful.",
"title": ""
},
{
"docid": "5390aa6214c748dcc7d6424c7e65f2eb",
"text": "It may seem very simple on its face but you don't know the merchant's agreement. You don't know who is providing the processing equipment. You don't know a lot of things. You know that Visa, Mastercard, Discover, Amex and others have network requirements and agreements. You know that laws have been changed to allow merchant surcharges (previously it was contracts that prohibited surcharges, not laws). That gas station, or that pizza parlor, or any other merchant doesn't have a direct relationship with Visa or Mastercard; it has an agreement with a bank or other processing entity. The issue here, is whom do you even call? And what would you gain? Find out what bank is contracted for that particular equipment and file a complaint that the merchant charged you $0.35? Maybe the merchant agreement allows surcharges up to state and local maximums? You don't know the terms of their agreement. Calling around to figure out what parties are involved to understand the terms of their agreement is a waste of time, like you said you can just go across the street if it's so offensive to you. Or just carry a little cash. If that's not the answer you're looking for, here's one for you: There is no practical recourse.",
"title": ""
},
{
"docid": "d6f71dff8db4673fa34062138bb0397c",
"text": "Consumerist posted a list of how long to keep bills.",
"title": ""
}
] |
fiqa
|
4d070ab9901fac8db231acdaae2532f6
|
Where should I invest to hedge against the stock market going down?
|
[
{
"docid": "c4af7c5b84f8a8e9b587e166afcedb5c",
"text": "If you believe the stock market will be down 20-30% in the next few months, sell your stock holdings, buy a protective put option for the value of the holdings that you want to keep. That would be hedging against it. Anything more is speculating that the market will fall.",
"title": ""
},
{
"docid": "48345d5776717886b3a688f1d83911e7",
"text": "If you were certain you would probably do best by short selling an ETF that tracked the index for the market you think was about to tank. You'd certainly make a lot more money on that strategy than precious metals. If you were feeling super confident and want to make your money earn even more, you could also buy a bunch of put options on those same ETF funds. Obligatory Warning: Short selling and options can be extremely risky. While most investments cap your potential losses to your total investment, a short sale has no theoretical limit to the amount of money you can lose.",
"title": ""
},
{
"docid": "e24ea228461090f6021348631a5de106",
"text": "Sometimes the simple ways are the best:",
"title": ""
},
{
"docid": "85489c05ac7a10c1377c05bb0291504e",
"text": "Put Options. They're less risky than shorting, and have similar upsides. The major difference is that if the price goes up, you're just out the underwriting price. You'll also need to know when the event will happen, or you risk being outwaited. More traditionally, an investor would pull their money out of the market and move into Treasury bonds. Recall that when the market tanked in 2008, the price of treasuries jumped. Problem is, you can only do that trade once, and it hasn't really unwound yet. And the effect is most pronounced on short term treasuries, so you have to babysit the investment. Because of this, I think some people have moved into commodities like gold, but there's a lot of risk there. Worst case scenario you have a lot of shiny metal you can't eat or use.",
"title": ""
},
{
"docid": "afdd5a936be2a9b0e538321fa88b1cd4",
"text": "There are multiple ETFs which inversely track the common indices, though many of these are leveraged. For example, SDS tracks approximately -200% of the S&P 500. (Note: due to how these are structured, they are only suitable for very short term investments) You can also consider using Put options for the various indices as well. For example, you could buy a Put for the SPY out a year or so to give you some fairly cheap insurance (assuming it's a small part of your portfolio). One other option is to invest against the market volatility. As the market makes sudden swings, the volatility goes up; this tends to be true more when it falls than when it rises. One way of invesing in market volatility is to trade options against the VIX.",
"title": ""
}
] |
[
{
"docid": "8615e9a68e1874e10f12d06764d16009",
"text": "Your question reminds me of a Will Rogers quote: buy some good stock, and hold it till it goes up, then sell it. If it don’t go up, don’t buy it. There's no way to prevent yourself from buying a stock that goes down. In fact all stocks go down at some times. The way to protect your long term investment is to diversify, which increases the chances that you have more stocks that go up than go down. So many advisors will encourage index funds, which have a low cost (which eats away at returns) and low rick (because of diversification). If you want to experiment with your criteria that's great, and I wish you luck, but Note that historically, very few managed funds (meaning funds that actively buy and sell stocks based on some set of criteria) outperform the market over long periods. So don't be afraid of some of your stocks losing - if you diversify enough, then statistically you should have more winners than losers. It's like playing blackjack. The goal is not to win every hand. The goal is to have more winning hands than losing hands.",
"title": ""
},
{
"docid": "1856f12fa004f6ee1b1d9889a4827b0d",
"text": "Bonds by themselves aren't recession proof. No investment is, and when a major crash (c.f. 2008) occurs, all investments will be to some extent at risk. However, bonds add a level of diversification to your investment portfolio that can make it much more stable even during downturns. Bonds do not move identically to the stock market, and so many times investing in bonds will be more profitable when the stock market is slumping. Investing some of your investment funds in bonds is safer, because that diversification allows you to have some earnings from that portion of your investment when the market is going down. It also allows you to do something called rebalancing. This is when you have target allocation proportions for your portfolio; say 60% stock 40% bond. Then, periodically look at your actual portfolio proportions. Say the market is way up - then your actual proportions might be 70% stock 30% bond. You sell 10 percentage points of stocks, and buy 10 percentage points of bonds. This over time will be a successful strategy, because it tends to buy low and sell high. In addition to the value of diversification, some bonds will tend to be more stable (but earn less), in particular blue chip corporate bonds and government bonds from stable countries. If you're willing to only earn a few percent annually on a portion of your portfolio, that part will likely not fall much during downturns - and in fact may grow as money flees to safer investments - which in turn is good for you. If you're particularly worried about your portfolio's value in the short term, such as if you're looking at retiring soon, a decent proportion should be in this kind of safer bond to ensure it doesn't lose too much value. But of course this will slow your earnings, so if you're still far from retirement, you're better off leaving things in growth stocks and accepting the risk; odds are no matter who's in charge, there will be another crash or two of some size before you retire if you're in your 30s now. But when it's not crashing, the market earns you a pretty good return, and so it's worth the risk.",
"title": ""
},
{
"docid": "231edf979c5c89266277168a74e11be4",
"text": "\"There is no rule-of-thumb that fits every person and every situation. However, the reasons why this advice is generally applicable to most people are simple. Why it is good to be more aggressive when you are young The stock market has historically gone up, on average, over the long term. However, on its way up, it has ups and downs. If you won't need your investment returns for many years to come, you can afford to put a large portion of your investment into the volatile stock market, because you have plenty of time for the market to recover from temporary downturns. Why it is good to be more conservative when you are older Over a short-term period, there is no certainty that the stock market will go up. When you are in retirement, most people withdraw/sell their investments for income. (And once you reach a certain age, you are required to withdraw some of your retirement savings.) If the market is in a temporary downturn, you would be forced to \"\"sell low,\"\" losing a significant portion of your investment. Exceptions Of course, there are exceptions to these guidelines. If you are a young person who can't help but watch your investments closely and gets depressed when seeing the value go down during a market downturn, perhaps you should move some of your investment out of stocks. It will cost you money in the long term, but may help you sleep at night. If you are retired, but have more saved than you could possibly need, you can afford to risk more in the stock market. On average, you'll come out ahead, and if a downturn happens when you need to sell, it won't affect your overall situation much.\"",
"title": ""
},
{
"docid": "5a72ff5df7c10fc5819181bb3b972e83",
"text": "Then buy an indexed ETF or mutual fund that tracks the S&P 500 and leave your money there until you need it. If you can (there are restrictions for income, etc.), try and setup a retirement vehicle, such as a Roth IRA to get tax advantages.",
"title": ""
},
{
"docid": "ee81a90148d0f963fa707fa0e5631b6c",
"text": "\"The standard low-risk/gain very-short-term parking spot these days tends to be a money market account. However, you have only mentioned stock. For good balance, your portfolio should consider the bond market too. Consider adding a bond index fund to diversify the basic mix, taking up much of that 40%. This will also help stabilize your risk since bonds tend to move opposite stocks (prperhaps just because everyone else is also using them as the main alternative, though there are theoretical arguments why this should be so.) Eventually you may want to add a small amount of REIT fund to be mix, but that's back on the higher risk side. (By the way: Trying to guess when the next correction will occur is usually not a winning strategy; guesses tend to go wrong as often as they go right, even for pros. Rather than attempting to \"\"time the market\"\", pick a strategic mix of investments and rebalance periodically to maintain those ratios. There has been debate here about \"\"dollar-cost averaging\"\" -- see other answers -- but that idea may argue for investing and rebalancing in more small chunks rather than a few large ones. I generally actively rebalance once a year or so, and between those times let maintainng the balance suggest which fund(s) new money should go into -- minimal effort and it has worked quite well enough.,)\"",
"title": ""
},
{
"docid": "cb87072852045121352db618e87426c1",
"text": "If you are worried about an increase in volatility, then go long volatility. Volatility itself can be traded. Here in the US there is an index VIX that is described as tracking volatility. What VIX actually tracks is the premium of S&P 500 options, which become more expensive when traders want to hedge against volatility. In the US you can trade VIX options or invest in VIX tracking ETFs like VXX. Apparently there are similar ETFs listed in Canada, such as HUV. Volatility itself is quite volatile so it is possible that a small volatility long position would cover the losses of a larger long position in stocks. If you do choose to invest in a volatility ETF, be aware that they experience quite a lot of decay. You will not want to hold it for very long.",
"title": ""
},
{
"docid": "e9479291259074533e355387dc6805eb",
"text": "\"The difference is in the interrelation between the varied investments you make. Hedging is about specifically offsetting a possible loss in an investment by making another related investment that will increase in value for the same reasons that the original investment would lose value. Gold, for instance, is often regarded as the ultimate hedge. Its value is typically inversely correlated to the rest of the market as a whole, because its status as a material, durable store of value makes it a preferred \"\"safe haven\"\" to move money into in times of economic downturn, when stock prices, bond yields and similar investments are losing value. That specific behavior makes investing in gold alongside stocks and bonds a \"\"hedge\"\"; the increase in value of gold as stock prices and bond yields fall limits losses in those other areas. Investment of cash in gold is also specifically a hedge against currency inflation; paper money, account balances, and even debt instruments like bonds and CDs can lose real value over time in a \"\"hot\"\" economy where there's more money than things to buy with it. By keeping a store of value in something other than currency, the price of that good will rise as the currencies used to buy it decrease in real value, maintaining your level of real wealth. Other hedges are more localized. One might, for example, trade oil futures as a hedge on a position in transportation stocks; when oil prices rise, trucking and airline companies suffer in the short term as their margins get squeezed due to fuel costs. Currency futures are another popular hedge; a company in international business will often trade options on the currencies of the companies it does business in, to limit the \"\"jitters\"\" seen in the FOREX spot market caused by speculation and other transient changes in market demand. Diversification, by contrast, is about choosing multiple unrelated investments, the idea being to limit losses due to a localized change in the market. Companies' stocks gain and lose value every day, and those companies can also go out of business without bringing the entire economy to its knees. By spreading your wealth among investments in multiple industries and companies of various sizes and global locations, you insulate yourself against the risk that any one of them will fail. If, tomorrow, Kroger grocery stores went bankrupt and shuttered all its stores, people in the regions it serves might be inconvenienced, but the market as a whole will move on. You, however, would have lost everything if you'd bet your retirement on that one stock. Nobody does that in the real world; instead, you put some of your money in Kroger, some in Microsoft, some in Home Depot, some in ALCOA, some in PG&E, etc etc. By investing in stocks that would be more or less unaffected by a downturn in another, if Kroger went bankrupt tomorrow you would still have, say, 95% of your investment next egg still alive, well and continuing to pay you dividends. The flip side is that if tomorrow, Kroger announced an exclusive deal with the Girl Scouts to sell their cookies, making them the only place in the country you can get them, you would miss out on the full possible amount of gains you'd get from the price spike if you had bet everything on Kroger. Hindsight's always 20/20; I could have spent some beer money to buy Bitcoins when they were changing hands for pennies apiece, and I'd be a multi-millionaire right now. You can't think that way when investing, because it's \"\"survivor bias\"\"; you see the successes topping the index charts, not the failures. You could just as easily have invested in any of the hundreds of Internet startups that don't last a year.\"",
"title": ""
},
{
"docid": "700d562ac8cc25dccfd48cd894eb4ef0",
"text": "\"Some thoughts: 1) Do you have a significant emergency fund (3-6 months of after-tax living expenses)? If not, you stand to take a significant loss if you have an unexpected need for cash that is tied up in investments. What if you lose/hate your job or your car breaks down? What if a you want to spend some time with a relative or significant other who learns they only have a few months to live? Having a dedicated emergency fund is an important way to avoid downside risk. 2) Lagerbaer has a good suggestion. Given that if you'd reinvested your dividends, the S&P 500 has returned about 3.5% over the last 5 years, you may be able to get a very nice risk-free return. 3) Do you have access to employer matching funds, such as in a 401(k) at work? If you get a dollar-for-dollar match, that is a risk-free pre-tax 100% return and should be a high priority. 4) What do you mean by \"\"medium\"\" volatility? Given that you are considering a 2/3 equity allocation, it would not be at all out of the realm of possibility that your balance could fall by 15% or more in any given year and take several years to recover. If that would spook you, you may want to consider lowering your equity weights. A high quality bond fund may be a good fit. 5) Personally, I would avoid putting money into stocks that I didn't need back for 10 years. If you only want to tie your money up for 2-5 years, you are taking a significant risk that if prices fall, you won't have time to recover before you need your money back. The portfolio you described would be appropriate for someone with a long-term investment horizon and significant risk tolerance, which is usually the case for young people saving for retirement. However, if your goals are to invest for 2-5 years only, your situation would be significantly different. 6) You can often borrow from an investment account to purchase a primary residence, but you must pay that amount back in order to avoid significant taxes and fees, unless you plan to liquidate assets. If you plan to buy a house, saving enough to avoid PMI is a good risk-free return on your money. 7) In general, and ETF or index fund is a good idea, the key being to minimize the compound effect of expenses over the long term. There are many good choices a la Vanguard here to choose from. 8) Don't worry about \"\"Buy low, sell high\"\". Don't be a speculator, be an investor (that's my version of Anthony Bourdain's, \"\"don't be a tourist, be a traveler\"\"). A speculator wants to sell shares at a higher price than they were purchased at. An investor wants to share in the profits of a company as a part-owner. If you can consistently beat the market by trying to time your transactions, good for you - you can move to Wall Street and make millions. However, almost no one can do this consistently, and it doesn't seem worth it to me to try. I don't mean to discourage you from investing, just make sure you have your bases covered so that you don't have to cash out at a bad time. Best of luck! Edit Response to additional questions below. 1) Emergency fund. I would recommend not investing in anything other than cash equivalents (money market, short-term CDs, etc.) until you've built up an emergency fund. It makes sense to want to make the \"\"best\"\" use of your money, but you also have to account for risk. My concern is that if you were to experience one or more adverse life events, that you could lose a lot of money, or need to pay a lot in interest on credit card debt, and it would be prudent to self-insure against some of those risks. I would also recommend against using an investment account as an emergency fund account. Taking money out of investment accounts is inefficient because the commissions/taxes/fees can easily eat up a significant portion of your returns. Ideally, you would want to put money in and not touch it for a long time in order to take advantage of compounding returns. There are also high penalties for early disbursements from retirement funds. Just like you need enough money in your checking account to buy food and pay the rent every month, you need enough money in an emergency fund to pay for things that are a real possibility, even if they are less common. Using a credit card or an investment account is a relatively expensive way to do this. 2) Invest at all? I would recommend starting an emergency fund, and then beginning to invest for retirement. Once your retirement savings are on track, you can begin saving for whatever other goals you may have\"",
"title": ""
},
{
"docid": "8310f2218e19f58e31b2da656ce534a7",
"text": "Are you willing to risk the possibility of investing to prepare for these things and losing money or simply getting meager returns if those crises don't happen? Just invest in a well diversified portfolio both geographically and across multiple sectors and you should be fine.",
"title": ""
},
{
"docid": "58d36651cc5f1d4b3e8327bc4833378a",
"text": "\"If you're investing for the long term your best strategy is going to be a buy-and-hold strategy, or even just buying a few index funds in several major asset classes and forgetting about it. Following \"\"market conditions\"\" is about as useful to the long term trader as checking the weather in Anchorage, Alaska every day (assuming that you don't live in Anchorage, Alaska). Let me suggest treating yourself to a subscription to The Economist and read it once a week. You'll learn a lot more about investing, economics, and world trends, and you won't be completely in the dark if there are major structural changes in the world (like gigantic housing bubbles) that you might want to know about.\"",
"title": ""
},
{
"docid": "5b70a0767127af96e29b1b5b41b93e99",
"text": "\"I can think of a few reasons for this. First, bonds are not as correlated with the stock market so having some in your portfolio will reduce volatility by a bit. This is nice because it makes you panic less about the value changes in your portfolio when the stock market is acting up, and I'm sure that fund managers would rather you make less money consistently then more money in a more volatile way. Secondly, you never know when you might need that money, and since stock market crashes tend to be correlated with people losing their jobs, it would be really unfortunate to have to sell off stocks when they are under-priced due to market shenanigans. The bond portion of your portfolio would be more likely to be stable and easier to sell to help you get through a rough patch. I have some investment money I don't plan to touch for 20 years and I have the bond portion set to 5-10% since I might as well go for a \"\"high growth\"\" position, but if you're more conservative, and might make withdrawals, it's better to have more in bonds... I definitely will switch over more into bonds when I get ready to retire-- I'd rather have slow consistent payments for my retirement than lose a lot in an unexpected crash at a bad time!\"",
"title": ""
},
{
"docid": "61d4dc5d0d5d24072fd42eeb5e6639bc",
"text": "I've thought of the following ways to hedge against a collapsing dollar:",
"title": ""
},
{
"docid": "8aca5ab77ad9a7c18b6ceeb4300f23be",
"text": "$10k isn't really enough to make enough money to offset the extremely high risks in investing in options in this area. Taking risks is great, but a sure losing proposition isn't a risk -- it's a gamble. You're likely to get wiped out with leveraged options, since you don't have enough money to hedge your bets. Timing is critical... look at the swings in valuation in the stock market between the Bear Sterns and Lehman collapses in 2009. If you were highly leveraged in QQQQ that you bought in June 2009, you would have $0 in November. With $10k, I'd diversify into a mixture of foreign cash (maybe ETFs like FXF, FXC, FXY), emerging markets equities and commodities. Your goal should be to preserve investment value until buying opportunities for depressed assets come around. Higher interest rates that come with inflation will be devastating to the US economy, so if I'm betting on high inflation, I want to wait for a 2009-like buying opportunity. Then you buy depressed non-cyclical equities with easy to predict cash flows like utilities (ConEd), food manufacturers (General Mills), consumer non-durables (P&G) and alcohol/tobacco. If they look solvent, buying commodity ETFs like the new Copper ETFs or interests in physical commodities like copper, timber, oil or other raw materials with intrinsic value are good too. I personally don't like gold for this purpose because it doesn't have alot of industrial utility. Silver is a little better, but copper and oil are things with high intrinsic value that are always needed. As far as leverage goes, proceed with caution. What happens when you get high inflation? High cost of capital.",
"title": ""
},
{
"docid": "dbf893ec807be8fab7f44e5329eadcc3",
"text": "\"As a great man once said, \"\"No risk it, no biscuit.\"\" Nothing can immunize you from catastrophe. But cash won't do well in a war, either, so you need to turn it into something else. And timing is a crapshoot. When you enter, when you exit, total waste of your energy. Find something you want to own and watch, and get wet. If you want to be diversified, get into index funds. You'll technically own a little of everything, and they do well if you just leave them be. For example, they're higher than they were at the start of every war in the past. If you don't need the money in the war, just leave it there and you'll come out later with more than you started with which is what you wanted. Stay away from bonds, because the Fed is going to start unwinding QE soon and that's going to clobber bond values, taking bond funds with them. If you feel totally convinced war is coming, then get something that exposes you to gold. Like gold, for instance.\"",
"title": ""
},
{
"docid": "6821015b22bf903e1176699de9ec2480",
"text": "Buy puts on stock holdings buy puts on indexes look at volatility etfs and silver/gold etf s. Calling a market top is hard people hVe tried for 8 years now. 90 of protection via options expires worthless. Who knows if we have another crash. I don't call tops or bottoms if we start falling then I'll look at protection and play the downside",
"title": ""
}
] |
fiqa
|
b07ce295ab0cdebf84df42a43eb42461
|
LLC in states with customers with and without employees in the state
|
[
{
"docid": "776d1b6aa23bf68f4ab21bf947292452",
"text": "If I hire someone in Utah to do sales for me over the phone, and he works out of his home, am I required to register an LLC or file my current one as a foreign entity in Utah? Yes, since you've established presence in Utah. You'll register your current LLC in Utah, no point creating another one. If my sales guy, or I, call businesses in, say, Florida, and sell a few businesses our services for online work like maybe a website design, etc. Are we required to file our LLC In Florida as either a new LLC or a foreign one? No, you need to register where you (your company, including your employees or physical offices) are physically present. You don't need to register in any state you ship products or provide services to. If no-one of your company's employees is present in Florida and you don't have an office/rent a storage there - then you have no presence in Florida. If you actually go there to provide the services - then you do.",
"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": "e8c6bd900f8d5b7b20accdc0347b2060",
"text": "Is the business an S-Corp, LLC or Sole Prop? I am going to guess based on the question that it is an LLC that you never closed with the state and you live in a state (NY) that charges a fee for having an LLC in the state in which case you owe those fees to the state. I am not aware of any taxes on the mere existence of a business by the IRS. I think you are going to find out that the are no taxes owed to the IRS for this nonexistent activity.",
"title": ""
},
{
"docid": "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": "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": "2973a018811353f6171f1d53d9ea2499",
"text": "If it was me I would want to go with the state I am moving too. I'm not familiar with business law too much as I'm only a law student right now but I would guess it's a safer bet. There might be local state laws that could apply. If there are not any local regulations then they should still know all of the national regulations just the same.",
"title": ""
},
{
"docid": "b2c2a2438b925a7ca203cf52bfabeaf3",
"text": "You really shouldn't be using class tracking to keep business and personal operations separate. I'm pretty sure the IRS and courts frown upon this, and you're probably risking losing any limited liability you may have. And for keeping separate parts of the business separate, like say stores in a franchise, one approach would be subaccounts. Messy, I'm sure.",
"title": ""
},
{
"docid": "251c9013285d126814056298950fb80e",
"text": "If you have a single-member LLC that is treated as a disregarded entity (i.e. you didn't elect to be taxed as a corporation), and that LLC had no activity, you're off the hook for federal reporting. The LLC's activity would normally be reported on your personal tax return on a Schedule C. If the LLC had under $400 in taxable earnings, no Schedule C is needed. So an inactive LLC does not have a tax reporting requirement. (If you had taxable income but under $400, you include that amount on your 1040 but don't need a Schedule C.) In Texas, you still must file a Texas franchise tax report every year, even for a single-member LLC with no activity.",
"title": ""
},
{
"docid": "90605b0a6f67febcdf781d210077a575",
"text": "I'm not sure I am fully understanding the nuance of your question, but based on your answer in the comments you and your business are not separate legal entities. So your income is the full $70K, there is no distinct business to have income. If you clarify your question to include why you want to know this I might be able to give a more meaningful answer for your situation.",
"title": ""
},
{
"docid": "014eed84264edbbd345b926d91b2fd96",
"text": "Delaware LLC requires that each business entity have and hold an enterprise Registered in the State of Delaware who can be both a character resident or enterprise entity this is legal to do business in the Wilmington, Delaware. the Delaware LLC has offered the same asset protections and tax advantages that a corporation offers. Often the LLC is the simpler, more flexible choice for small businesses. This small amount of required information not only makes it easy to start an LLC in Delaware, but it also helps to keep your identity and personal information secure.",
"title": ""
},
{
"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": "662573bb6e4c7fa0c1481bfb27440a7f",
"text": "An LLC is a pass-through entity in the USA, so profits and losses flow through to the individual's taxes. Thus an LLC has a separate TIN but the pass-through property greatly simplifies tax filings, as compared to the complicated filings required by C-corps.",
"title": ""
},
{
"docid": "6bb6a1a14e9041f629aaad59a6f59497",
"text": "\"SOS stands for Secretary of State. The California Department of State handles the business entities registration, and the website is here. See \"\"Forms\"\" in the navigation menu on the left. Specifically, you'll be looking for LLC-5.\"",
"title": ""
},
{
"docid": "9a2f36176458673c1befe588ea650e77",
"text": "\"What exactly would the financial institution need to see to make them comfortable with these regulations The LLC Operating Agreement. The OA should specify the member's allocation of equity, assets, income and loss, and of course - managerial powers and signature authorities. In your case - it should say that the LLC is single-member entity and the single member has all the managerial powers and authorities - what is called \"\"member-managed\"\". Every LLC is required to have an operating agreement, although you don't necessarily have to file it with the State or record it. If you don't have your own OA, default rules will apply, depending on your State law. However, the bank will probably not take you as a customer without an explicit OA.\"",
"title": ""
},
{
"docid": "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": ""
}
] |
fiqa
|
a8d95bbb2a5808e3f17d3a092c9fd266
|
FATCA compliance for small Foreign Company. What do I need to do?
|
[
{
"docid": "cd457dc2775f548272da666b546bbfaf",
"text": "Unless you started a bank or other kind of a financial institution (brokerage, merchant processor, etc etc), the page you linked to is irrelevant. That said, there's enough in the US tax code for you to reconsider your decision of not living in the US, or at least of being a shareholder of a foreign company. Your compliance costs are going to go through the roof. If you haven't broken any US tax laws yet (which is very unlikely), you may renounce your citizenship and save yourself a lot of money and trouble. But in the more likely case of you already being a criminal with regards the US tax law, you should probably get a proper tax advice from a US-licensed CPA/EA who's also proficient in the Japanese-American tax treaty and expats' compliance issues resolution.",
"title": ""
}
] |
[
{
"docid": "00bc89ab3a0057676da35438e13822f5",
"text": "I have just established a limited company (three directors spread around the UK) and I am in the process of setting up a business account. We will be able to arrange everything over the phone and each of us will have to appear in one of the branches with original documents: passport, bank statement. We are EU citizens and have UK bank accounts for over 5 years. That would probably be a problem for you. But still, you can try to call around and see if you can find a company to help you. You can also setup an account on one of the online currency exchange websites and then provide your customers with the website's bank account details with appropriate reference. You would have to check the legal side of this solution.",
"title": ""
},
{
"docid": "83f92b50ccebdd89ecdfa9794d4be2f5",
"text": "I'm hearing that I should maybe wait and see how things go at first as it is only a very small operation. But if I moved into a side of the trade where I require staff, vehicles, and the likes then I would need to registed as a limited company.",
"title": ""
},
{
"docid": "a8d2b79642f69b96d682fd6049896ed9",
"text": "I won't think so. Too much trouble for the compliance and internal audit team. Unless you are moving money from Russia, Iran or those non-FATCA countries.",
"title": ""
},
{
"docid": "915e6ec3c328a2e4c2e8506fe7bc97cb",
"text": "\"This is several questions wrapped together: How can I diplomatically see the company's financial information? How strong a claim does a stockholder or warrantholder have to see the company's financials? What information do I need to know about the company financials before deciding to buy in? I'll start with the easier second question (which is quasi implicit). Stockholders typically have inspection rights. For example, Delaware General Corporate Law § 220 gives stockholders the right to inspect and copy company financial information, subject to certain restrictions. Check the laws and corporate code of your company's state of incorporation to find the specific inspection right. If it is an LLC or partnership, then the operating agreement usually controls and there may be no inspection rights. If you have no corporate stock, then of course you have no statutory inspection rights. My (admittedly incomplete) understanding is that warrantholders generally have no inspection rights unless somehow contracted for. So if you vest as a corporate stockholder, it'll be your right to see the financials—which may make even a small purchase valuable to you as a continuing employee with the right to see the financials. Until then, this is probably a courtesy and not their obligation. The first question is not easy to answer, except to say that it's variable and highly personal for small companies. Some people interpret it as prying or accusatory, the implication being that the founders are either hiding something or that you need to examine really closely the mouth of their beautiful gift horse. Other people may be much cooler about the question, understanding that small companies are risky and you're being methodical. And in some smaller companies, they may believe giving you the expenses could make office life awkward. If you approach it professionally, directly, and briefly (do not over-explain yourself) with the responsible accountant or HR person (if any), then I imagine it should not be a problem for them to give some information. Conversely, you may feel comfortable enough to review a high-level summary sheet with a founder, or to find some other way of tactfully reviewing the right information. In any case, I would keep the request vague, simple, and direct, and see what information they show you. If your request is too specific, then you risk pushing them to show information A, which they refuse to do, but a vague request would've prompted them to show you information B. A too-specific request might get you information X when a vague request could have garnered XYZ. Vague requests are also less aggressive and may raise fewer objections. The third question is difficult to say. My personal understanding is some perspective of how venture capitalists look at the investment opportunity (you didn't say how new this startup is or what series/stage they are on, so I'll try to stay vague). The actual financials are less relevant for startups than they are for other investments because the situation will definitely change. Most venture capital firms like to look at the burn rate or amount of cash spent, usually at a monthly rate. A high burn rate relative to infusions of cash suggests the company is growing rapidly but may have a risk of toppling (i.e. failing before exit). Burn rate can change drastically during the early life of the startup. Of course burn rate needs the context of revenues and reserves (and latest valuation is helpful as a benchmark, but you may be able to calculate that from the restricted share offer made to you). High burn rate might not be bad, if the company is booming along towards a successful exit. You might also want to look at some sort of business plan or info sheet, rather than financials alone. You want to gauge the size of the market (most startups like to claim 9- or 10-figure markets, so even a few percentage points of market share will hit revenue into the 8-figures). You'll also have to have a sense for the business plan and model and whether it's a good investment or a ridiculous rehash (\"\"it's Twitter for dogs meets Match.com for Russian Orthodox singles!\"\"). In other words, appraise it like an investor or VC and figure out whether it's a prospect for decent return. Typical things like competition, customer acquisition costs, manufacturing costs are relevant depending on the type of business activity. Of course, I wouldn't ignore psychology (note that economists and finance people don't generally condone the following sort of emotional thinking). If you don't invest in the company and it goes big, you'll kick yourself. If it goes really big, other people will either assume you are rich or feel sad for you if you say you didn't get rich. If you invest but lose money, it may not be so painful as not investing and losing out the opportunity. So if you consider the emotional aspect of personal finance, it may be wise to invest at least a little, and hedge against \"\"woulda-shoulda\"\" syndrome. That's more like emotional advice than hard-nosed financial advice. So much of the answer really depends on your particular circumstances. Obviously you have other considerations like whether you can afford the investment, which will be on you to decide. And of course, the § 83(b) election is almost always recommended in these situations (which seems to be what you are saying) to convert ordinary income into capital gain. You may also need cash to pay any up-front taxes on the § 83(b) equity, depending on your circumstances.\"",
"title": ""
},
{
"docid": "e11be041a4602cb98ea6178e945d96c5",
"text": "\"I think the best advice you could get would be to find a lawyer. If that foreign company has any presence in the US, they should be the ones signing off as the successor, otherwise you may find yourself in a limbo that would require some legal assistance. Generally, in most States a Corporation cannot be dissolved without resolving issues like this, which is probably why they told you \"\"the plan is terminating\"\". Someone asked them to terminate it. You need to find that someone.\"",
"title": ""
},
{
"docid": "8953b3725881f261f602826fe4222395",
"text": "Here's the real reason OKPay (actually the banks they interface with) won't accept US Citizens. The Foreign Account Tax Compliance Act Congress passed the Foreign Account Tax Compliance Act (FATCA) in 2010 without much fanfare. One reason the act was so quiet was its four-year long ramp up; FATCA did not really take effect until 2014. Never before had a single national government attempted, and so far succeeded in, forcing compliance standards on banks across the world. FATCA requires any non-U.S. bank to report accounts held by American citizens worth over $50,000 or else be subject to 30% withholding penalties and possible exclusion from U.S. markets. By mid-2015, more than 100,000 foreign entities had agreed to share financial information with the IRS. Even Russia and China agreed to FATCA. The only major global economy to fight the Feds is Canada; however it was private citizens, not the Canadian government, who filed suit to block FATCA under the International Governmental Agreement clause making it illegal to turn over private bank account information. Read more: The Tax Implications of Opening a Foreign Bank Account | Investopedia http://www.investopedia.com/articles/personal-finance/102915/tax-implications-opening-foreign-bank-account.asp#ixzz4TzEck9Yo Follow us: Investopedia on Facebook",
"title": ""
},
{
"docid": "2a02ac17db8eb9028d002db2277cc1d7",
"text": "It is very important to note the strength and reputation of the country's regulatory agency. You cannot assume the standards of say the SEC (US Securities and Exchange Commission) apply in other countries (even well-developed ones). These regulations force companies to disclose certain information to inform and protect investors. The standards for such practices vary internationally.",
"title": ""
},
{
"docid": "b805044f17ae992893840a7f2135a968",
"text": "Yes it is true. The US based companies have to meet the requirements placed on them by the US government. The agency with all these reports is the Security and Exchange Commission. They run the EDGAR system to hold all those required reports The SEC’s EDGAR database provides free public access to corporate information, allowing you to quickly research a company’s financial information and operations by reviewing registration statements, prospectuses and periodic reports filed on Forms 10-K and 10-Q. You also can find information about recent corporate events reported on Form 8-K but that a company does not have to disclose to investors. EDGAR also provides access to comment and response letters relating to disclosure filings made after August 1, 2004, and reviewed by either the Division of Corporation Finance or the Division of Investment Management. On May 22, 2006, the staffs of the Divisions of Corporation Finance and Investment Management began to use the EDGAR system to issue notifications of effectiveness for Securities Act registration statements and post-effective amendments, other than those that become effective automatically by law. These notifications will be posted to the EDGAR system the morning after a filing is determined to be effective. As pointed out by Grade 'Eh' Bacon: Other countries may require different types of information to be reported to the public, in particular, financial statements. To find the financial statements released for a particular company, you can go to the appropriate stock exchange, or often simply the company's corporate website.",
"title": ""
},
{
"docid": "ccd605b3bc6a3e996150716450fc9cee",
"text": "\"(Note: out of my depth here, but in case this helps...) While not a direct answer to your question, I'll point out that in the inverse situation - a U.S. investor who wants to buy individual stocks of companies headquartered outside US - you would buy ADRs, which are $-denominated \"\"wrapper\"\" stocks. They can be listed with one or multiple brokerages. One alternative I'd offer the person in my example would be, \"\"Are you really sure you want to directly buy individual stocks?\"\" One less targeted approach available in the US is to buy ETFs targeted for a given country (or region). Maybe there's something similar there in Asia that would eliminate the (somewhat) higher fees associated with trading foreign stocks.\"",
"title": ""
},
{
"docid": "22c0f2cf46cd1c218084c88abdbc96d4",
"text": "This is bullshit. The US government requires taxes to be paid in USD. There's your intrinsic value. If you want to be compliant with the federal law, your business and you as an individual are required to convert assets or labor into USD to pay them.",
"title": ""
},
{
"docid": "aeb176a02d712dd802fd6804e23b1081",
"text": "\"This page from the CRA website details the types of investments you can hold in a TFSA. You can hold individual shares, including ETFs, traded on any \"\"designated stock exchange\"\" in addition to the other types of investment you have listed. Here is a list of designated stock exchanges provided by the Department of Finance. As you can see, it includes pretty well every major stock exchange in the developed world. If your bank's TFSA only offers \"\"mutual funds, GICs and saving deposits\"\" then you need to open a TFSA with a different bank or a stock broking company with an execution only service that offers TFSA accounts. Almost all of the big banks will do this. I use Scotia iTrade, HSBC Invest Direct, and TD, though my TFSA's are all with HSBC currently. You will simply provide them with details of your bank account in order to facilitate money transfers/TFSA contributions. Since purchasing foreign shares involves changing your Canadian dollars into a foreign currency, one thing to watch out for when purchasing foreign shares is the potential for high foreign exchange spreads. They can be excessive in proportion to the investment being made. My experience is that HSBC offers by far the best spreads on FX, but you need to exchange a minimum of $10,000 in order to obtain a decent spread (typically between 0.25% and 0.5%). You may also wish to note that you can buy unhedged ETFs for the US and European markets on the Toronto exchange. This means you are paying next to nothing on the spread, though you obviously are still carrying the currency risk. For example, an unhedged S&P500 trades under the code ZSP (BMO unhedged) or XUS (iShares unhedged). In addition, it is important to consider that commissions for trades on foreign markets may be much higher than those on a Canadian exchange. This is not always the case. HSBC charge me a flat rate of $6.88 for both Toronto and New York trades, but for London they would charge up to 0.5% depending on the size of the trade. Some foreign exchanges carry additional trading costs. For example, London has a 0.5% stamp duty on purchases. EDIT One final thing worth mentioning is that, in my experience, holding US securities means that you will be required to register with the US tax authorities and with those US exchanges upon which you are trading. This just means fill out a number of different forms which will be provided by your stock broker. Exchange registrations can be done electronically, however US tax authority registration must be submitted in writing. Dividends you receive will be net of US withholding taxes. I am not aware of any capital gains reporting requirements to US authorities.\"",
"title": ""
},
{
"docid": "c2e05bb63adfc1d974e7fbd191ec7cfd",
"text": "If I can play the Devil's avocado, though, these foreign-owned entities will still be subject to the laws of the country they operate in. I mean, if they're State-owned, there's little accountability because the government is largely shielded from being called out if they screw up, whereas a privately owned enterprise is accountable if they make mistakes.",
"title": ""
},
{
"docid": "0f02d14b3b88c6a19f10f13209e2455d",
"text": "I've talked to several very experienced accountants that deal with startup shares, stock 83(b)'s, etc. weekly (based in SF, CA) as this issue would have had a massive impact on me. The most important part of filing an 83(b) is notifying the IRS within 30 days. The law requires the written notification within the 30 day window. Adding it to that years tax return is an IRS procedure. Forgetting to include a copy of that years tax return is apparently a common occurrence when no tax was owed (0 spread, you actually paid the FMV). And the accepted method to resolve this is to simply file a blank amendment for that years return and include the copy of the 83(b) election.",
"title": ""
},
{
"docid": "ce98c234306e5b450314f6d30b23a592",
"text": "Setting up an entity that is partially foreign owned is not that difficult. It takes an additional 1-1.5 months in total, and in this particular case, you guys would be formed as a Joint Venture. It will cost a bit more (about 3-5000). If you're serious about owning a part of a business in China, you should carefully examine what he means by 'more complicated'. From my point of view, I have set up my own WOFE in China, and examined the possibilities of a JV and even considered using a friend to set up the company under their personal name as a domestic company (which is what your supervisor is doing), any difference between the three are not really a big deal anymore, and comes down to the competency of the agencies you are using and the business partner themselves. It cost me 11,000 for a WOFE including the agency and government registration fees (only Chinese speaking). You should also consider the other shareholders who may be part of this venture as well. If there are other shareholders, and you are not providing further tangible contribution, you will end up replaced and penniless (unless of course you trust them too...), because they are actually paying money to be part of the business and you are not. They will not part with equity for you. I'm not a lawyer, but think you should not rely on any promises other than what it says on a company registration paper. Good luck!",
"title": ""
},
{
"docid": "572a32d554233503e883503c3868ed18",
"text": "In the spring of this year FHA increased their rates for Mortgage Protection insurance. (I am looking for a good refernceon the government website) Non Government reference Annual MIP For an FHA Streamline Refinance that replaces a FHA loan endorsed on, or after, June 1, 2009, the annual MIP varies based on loan type and loan-to-value. The annual MIP schedule, for loans with case numbers assigned on, of after, June 1, 2009 : For your example the monthly payment would be: $184,192*(1.2/100)*(1/12) = ~ $184.19 You were quoted 179.57 a month",
"title": ""
}
] |
fiqa
|
f0e060f96bd432ce7260b9aa62713090
|
is the bankruptcy of exchange markets possible?
|
[
{
"docid": "f744364c976f38ef461e3449e043a277",
"text": "You seem to think that stock exchanges are much more than they actually are. But it's right there in the name: stock exchange. It's a place where people exchange (i.e. trade) stocks, no more and no less. All it does is enable the trading (and thereby price finding). Supposedly they went into mysterious bankruptcy then what will happen to the listed companies Absolutely nothing. They may have to use a different exchange if they're planning an IPO or stock buyback, that's all. and to the shareholder's stock who invested in companies that were listed in these markets ? Absolutley nothing. It still belongs to them. Trades that were in progress at the moment the exchange went down might be problematic, but usually the shutdown would happen in a manner that takes care of it, and ultimately the trade either went through or it didn't (and you still have the money). It might take some time to establish this. Let's suppose I am an investor and I bought stocks from a listed company in NYSE and NYSE went into bankruptcy, even though NYSE is a unique business, meaning it doesn't have to do anything with that firm which I invested in. How would I know the stock price of that firm Look at a different stock exchange. There are dozens even within the USA, hundreds internationally. and will I lose my purchased stocks ? Of course not, they will still be listed as yours at your broker. In general, what will happen after that ? People will use different stock exchanges, and some of them migth get overloaded from the additional volume. Expect some inconveniences but no huge problems.",
"title": ""
},
{
"docid": "115ffc4a1e702919e0b5eb98226b394a",
"text": "@MichaelBorgwardt gave an excellent answer. Let me add a little analogy here that might help. Suppose you bought a car from Joe's Auto Sales. You pay your money, do all the paperwork, and drive your car home. The next day Joe's goes bankrupt. What affect does that have on your ownership rights to your car? The answer is, Absolutely none. Same thing with stocks and a stock exchange. A stock exchange is basically just a store where you can buy stock. Once you buy it, it's yours. That said, there could potentially be a problem with record keeping. If you bought a car from Joe's Auto Sales, and Joe went out of business before sending the registration paperwork to the state, you might find that the state has no record that you legally own the car and you could have difficulty proving it. Likewise if a stock exchange went out of business without getting all their records properly updated, their might be an issue. Actually I think the bigger concern here for most folks would be their broker and not the stock exchange, as your broker is the one who keeps the records of what stocks you own long term. In practice, though, most companies are responsible enough to clean up their paperwork properly when they go out of business, and if they don't, a successor company or government regulators or someone will try to clean it all up.",
"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": "596c851ead1b66cb3bf36f4853c6a8e8",
"text": "Based on my research while asking How are unmarketable market orders (other side of the order book is empty) matched with incoming orders? and the one answer there, it seems like there are a few things for certain: All of this of course depends on the exact algorithm specified by the given exchange - I don't think there's a standard here.",
"title": ""
},
{
"docid": "45c3cb28491d6b35f3219f442d3100a6",
"text": "\"These have the potential to become \"\"end-of-the-world\"\" scenarios, so I'll keep this very clear. If you start to feel that any particular investment may suddenly become worthless then it is wise to liquidate that asset and transfer your wealth somewhere else. If your wealth happens to be invested in cash then transferring that wealth into something else is still valid. Digging a hole in the ground isn't useful and running for the border probably won't be necessary. Consider countries that have suffered actual currency collapse and debt default. Take Zimbabwe, for example. Even as inflation went into the millions of percent, the Zimbabwe stock exchange soared as investors were prepared to spend ever-more of their devaluing currency to buy stable stocks in a small number of locally listed companies. Even if the Euro were to suffer a critical fall, European companies would probably be ok. If you didn't panic and dig caches in the back garden over the fall of dotcom, there is no need to panic over the decline of certain currencies. Just diversify your risk and buy non-cash (or euro) assets. Update: A few ideas re diversification: The problem for Greece isn't really a euro problem; it is local. Local property, local companies ... these can be affected by default because no-one believes in the entirety of the Greek economy, not just the currency it happens to be using - so diversification really means buying things that are outside Greece.\"",
"title": ""
},
{
"docid": "d35cff4fb7363e321d88241932eab2a0",
"text": "\"If I really understood it, you bet that a quote/currency/stock market/anything will rise or fall within a period of time. So, what is the relationship with trading ? I see no trading at all since I don't buy or sell quotes. You are not betting as in \"\"betting on the outcome of an horse race\"\" where the money of the participants is redistributed to the winners of the bet. You are betting on the price movement of a security. To do that you have to buy/sell the option that will give you the profit or the loss. In your case, you would be buying or selling an option, which is a financial contract. That's trading. Then, since anyone should have the same technic (call when a currency rises and put when it falls)[...] How can you know what will be the future rate of exchange of currencies? It's not because the price went up for the last minutes/hours/days/months/years that it will continue like that. Because of that everyone won't have the same strategy. Also, not everyone is using currencies to speculate, there are firms with real needs that affect the market too, like importers and exporters, they will use financial products to protect themselves from Forex rates, not to make profits from them. [...] how the brokers (websites) can make money ? The broker (or bank) will either: I'm really afraid to bet because I think that they can bankrupt at any time! Are my fears correct ? There is always a probability that a company can go bankrupt. But that's can be very low probability. Brokers are usually not taking risks and are just being intermediaries in financial transactions (but sometime their computer systems have troubles.....), thanks to that, they are not likely to go bankrupt you after you buy your option. Also, they are regulated to insure that they are solid. Last thing, if you fear losing money, don't trade. If you do trade, only play with money you can afford to lose as you are likely to lose some (maybe all) money in the process.\"",
"title": ""
},
{
"docid": "d136f7a305f0ebe8718fdc3b590115ec",
"text": "As Chris pointed out in his comment, smaller stock exchanges may use open outcry. There are several exchanges that use open outcry/floor trading in the US, however, although they aren't necessarily stock exchanges. Having visited the three Chicago exchanges I mentioned, I can personally vouch for their continued use of a trading floor, although its use is declining in all three.",
"title": ""
},
{
"docid": "809ccbb5c07858622251eb8ac3250b5d",
"text": "High risk foreign debt is great until the bottom falls out of the market when the government default on debt or revalues currency. If you do this, you should be able to sustain near total losses of principal and interest.",
"title": ""
},
{
"docid": "7a02f833c1d38b9690a782247c15885f",
"text": "\"Its bandwidth, so no, it wouldn't clog up the \"\"tubes\"\" like a highway. Everyone who quotes has a fixed amount of bandwidth and an exchange can cut off a firm's connection. The exchanges know who is quoting- you have to buy connections to them to do this stuff. Every exchange I have seen has reporting capability to see who is quoting what, and who is trading what. Whoever is doing this isn't making any money, because they didn't trade anything! Servers and connectivity are expensive, so they are actually losing money. This situation is almost certainly due to either a new algo \"\"soft launching\"\" or being tweaked and having its parameters set too conservatively.\"",
"title": ""
},
{
"docid": "0da4ce624e5475b510e50627b98ae7a5",
"text": "\"Yes, except many, many Icelanders still owe debt on assets they purchased in krona (the Icelandic dollar) before it collapsed. Now many are stuck with homes, vehicles, etc. on which they owe twice the underlying value. You'll often see this referred to as \"\"private debt overhang\"\" in financial news articles, and it is not reported on nearly enough. Just letting the banks fail doesn't unwind all of the ridiculous currency speculation that took place in Iceland. They may be on their way to recovery...eventually...but they're still in terrible shape in the short term.\"",
"title": ""
},
{
"docid": "a7d9132f205e3cc966b4f2f0534c76c4",
"text": "Technically, of course. Almost any company can go bankrupt. One small note: a company goes bankrupt, not its stock. Its stock may become worthless in bankruptcy, but a stock disappearing or being delisted doesn't necessarily mean the company went bankrupt. Bankruptcy has implications for a company's debt as well, so it applies to more than just its stock. I don't know of any historical instances where this has happened, but presumably, the warning signs of bankruptcy would be evident enough that a few things could happen. Another company, e.g. another exchange, holding firm, etc. could buy out the exchange that's facing financial difficulty, and the companies traded on it would transfer to the new company that's formed. If another exchange bought out the struggling exchange, the shares of the latter could transfer to the former. This is an attractive option because exchanges possess a great deal of infrastructure already in place. Depending on the country, this could face regulatory scrutiny however. Other firms or governments could bail out the exchange if no one presented a buyout offer. The likelihood of this occurring depends on several factors, e.g. political will, the government(s) in question, etc. For a smaller exchange, the exchange could close all open positions at a set price. This is exactly what happened with the Hong Kong Mercantile Exchange (HKMex) that MSalters mentioned. When the exchange collapsed in May 2013, it closed all open positions for their price on the Thursday before the shutdown date. I don't know if a stock exchange would simply close all open positions at a set price, since equity technically exists in perpetuity regardless of the shutdown of an exchange, while many derivatives have an expiration date. Furthermore, this might not be a feasible option for a large exchange. For example, the Chicago Mercantile Exchange lists thousands of products and manages hundreds of millions of transactions, so closing all open positions could be a significant undertaking. If none of the above options were available, I presume companies listed on the exchange would actively move to other, more financially stable exchanges. These companies wouldn't simply go bankrupt. Contracts can always be listed on other exchanges as well. Considering the high level of mergers and acquisitions, both unsuccessful and successful, in the market for exchanges in recent years, I would assume that option 1 would be the most likely (see the NYSE Euronext/Deutsche Börse merger talks and the NYSE Euronext/ICE merger that's currently in progress), but for smaller exchanges, there is the recent historical precedent of the HKMex that speaks to #3. Also, the above answer really only applies to publicly traded stock exchanges, and not all stock exchanges are publicly-held entities. For example, the Shanghai Stock Exchange is a quasi-governmental organization, so I presume option 2 would apply because it already receives government backing. Its bankruptcy would mean something occurred for the government to withdraw its backing or that it became public, and a discussion of those events occurring in the future is pure speculation.",
"title": ""
},
{
"docid": "d0639d406a8990b39b5ae168d9ebf638",
"text": "There no legal framework that allows states like the US or countries in Europe to default on their debt. Should congress pass a law to default the US supreme court is likely to nullify the law.",
"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": "d53e34fe02d98329fad8b4a92043b8fb",
"text": "not a chance. imagine how this could be abused. US stock exchanges rarely ever do any reversing of transactions. theres a million different ways the market can take your money. a loss from a typo is nothing special. its a mismanagement just like any other loss or profit for others.",
"title": ""
},
{
"docid": "998e630126f66709e84a3de6ba91fdda",
"text": "If any Euro countries leave the Euro, they will have to impose capital flow restrictions - it's a given, to avoid a complete implosion of the entire system. The idea of retroactive controls is very interesting - this may be one of the first times in a currency collapse that such a system would be feasible (i.e., both the country being fled from and the countries being fled to are under common control). No doubt they would try such a thing if they thought they could get away with it.",
"title": ""
},
{
"docid": "5e8494e54f4125111114c7361174730d",
"text": "\"Am I wrong? Yes. The exchanges are most definitely not \"\"good ole boys clubs\"\". They provide a service (a huge, liquid and very fast market), and they want to be paid for it. Additionally, since direct participants in their system can cause serious and expensive disruptions, they allow only organizations that know what they're doing and can pay for any damages the cause. Is there a way to invest without an intermediary? Certainly, but if you have to ask this question, it's the last thing you should do. Typically such offers are only superior to people who have large investments sums and know what they're doing - as an inexperienced investor, chances are that you'll end up losing everything to some fraudster. Honestly, large exchanges have become so cheap (e.g. XETRA costs 2.52 EUR + 0.0504% per trade) that if you're actually investing, then exchange fees are completely irrelevant. The only exception may be if you want to use a dollar-cost averaging strategy and don't have a lot of cash every month - fixed fees can be significant then. Many banks offer investments plans that cover this case.\"",
"title": ""
},
{
"docid": "c0d0368bdda605c51b53c580867697f1",
"text": "US or EU states are sovereigns which cannot go bankrupt. US states have defaulted in the 1840's, but in most of those cases creditors were eventually repaid in full. (I'm not 100% sure, but I believe that Indiana was an exception with regard to costs incurred building a canal system) The best modern example of a true near-default was New York City in the late 1970's. Although New York City isn't a state, the size and scope of its finances is greater than many US states. What happened then in a nutshell: Basically, a default of a major state or a city like NYC where creditors took major losses would rock the financial markets and make it difficult for all states to obtain both short and long term financing at reasonable rates. That's why these entities get bailed out -- if Greece or California really collapse, it will likely create a domino effect that will have wide reaching effects.",
"title": ""
},
{
"docid": "0221b08de55ce6d99cfc7df8255d9b26",
"text": "Hey thanks for your response. The commodity is actually electricity, so definitely not able to store. Would you mind giving me a short summary of your thought process or an example of how you compare liquid markets vs illiquid ones when looking at more traditional commodities? If that is a bit much to ask, as I am sure it could get quite involved do you have any reading recommendations? This little project has sparked an interest.",
"title": ""
}
] |
fiqa
|
d7063513a5fbae992525227eda0ef13a
|
Filing Form 7004 if an LLC's only members are husband and wife
|
[
{
"docid": "6c6506ac79cb6824fd2b472b524cba0f",
"text": "Since you both are members of the LLC - it is not a single-member LLC, thus you have to file the tax return on behalf of the LLC (I'm guessing you didn't elect corporate treatment, so you would be filing 1065, which is the default). You need to file form 4868 on behalf of yourselves as individuals, and form 7004 on behalf of the LLC as the partnership. Since the LLC is disregarded (unless you explicitly chose it not to be, which seems not to be the case) the taxes will in fact flow to your individual return(s), but the LLC will have to file the informational return on form 1065 and distribute K-1 forms to each of you. So you wouldn't pay additional estimated taxes with the extension, as you don't pay any taxes with the form 1065 itself. If you need a help understanding all that and filling the forms - do talk to a professional (EA or CPA licensed in your state). Also, reconsider not sending any payment. I suggest sending $1 with the extension form even if you expect a refund.",
"title": ""
}
] |
[
{
"docid": "0fe37bd3e480b3c4d7d039cdfb26aa2a",
"text": "\"IANAL, but no, this is not sound legal advice. There are a few things that stick out to me as fishy. First off: you are calculating the 3% safe-harbor on the 2017 compensation limit of $270k, but limiting yourself to $53k in total contributions which is the 2016 limit. It's hard to tell what tax year you're working in here. If you're planning for 2017, fine, but if you're wrapping up 2016 then you need to use 2016 limits. Secondly (and this is something I think your counsel should know already): you don't take Employer contributions out of gross wages (box 1) on the W-2. They aren't even reported there in the first place! With your base scenario the 2 employees' W-2s would look like this: Employee A's W-2 Gross Wages (box 1) = 280,000 - 14,966.67 = 265,033.33 Employee B's W-2 Gross Wages (box 1) = 280,000 - 0 = 280,000 Elective deferrals are the only thing that should come out of wages. Not the SH 3% or Match. Thirdly: Retirement Plan expenses really aren't an \"\"above the line\"\" expense. They are not included in cost of goods sold. Even if you establish a \"\"pool\"\" for that expense, it's still not a direct cost attributable to the production of whatever your company sells. Also: Employee B should not have to contribute to the retirement account of Employee A! The only situation I can see where Employee A and B would be required to fund the match equally, were if Employee A & B are both 50% owners and the company has no funds of its own with which to fund the match. The company has obligated itself to fund the match, and if the company doesn't have any money then the money still has to come from somewhere (ie. the owners pony up more funds for the match they promised their employees, it just happens that the employees are also the owners). Even in this situation though, I still stand behind my first 3 points.\"",
"title": ""
},
{
"docid": "851d7afd9275dd990fccef28368d64ff",
"text": "\"The issues are larger than taxes. If one of you receives the check, then breaks off 25% of it for themselves and sends three checks out to each of you that will be indicated on that person's taxes. You three will then all recognize your portion of the income on your taxes and it's all settled. It's no big deal, it's a bit rag-tag but it'll get the job done. I've done little ad-hoc partnership work with people this way and it's not a problem. This is why you should really be more formal. What if this entity contracting you guys sues you? Who has the liability, if only one of you was paid? What if the money is sent to one of you and that person dies before paying you? What if you all get another client? What if this contracting entity has another project? The partnership needs to have the liability. The partnership needs to receive the money. The partnership needs to be named on whatever contract you all sign. The partnership can be a straight partnership, or maybe the four of you take a 25% stake in an LLC or Inc arrangement. Minimally, you should sit down with your partners so everyone knows everyone else's responsibilities, and you should write it all down. It probably sounds like overkill, and I'm sure your partners are you buddies and \"\"we're tight and nothing bad could come between us.\"\" I've done some partnership work with more than one friend, we've always been fine. Some ventures are successful, some aren't; I'm still very good friends with all of them. Writing things down manages expectations and when money starts moving around, everyone is happier when everyone has a solid expectation of who gets what.\"",
"title": ""
},
{
"docid": "84d4f83c99c529b4aed1b5664848b939",
"text": "\"When I was in this situation, I always did Married Filing Separately. In the space for spouse you just write \"\"non resident alien\"\". I'm assuming you don't make more than the Foreign Earned Income exclusion (about $100k), so the fact that you don't qualify for certain exemptions is probably irrelevant for you. As a side note, now that you are married you have \"\"a financial interest in\"\" all her bank accounts so if her and your foreign bank accounts had an aggregate value of over $10k at any point in 2015 you have until June 30th to file an FBAR, listing both her and your accounts. If you have a decent amount of assets you might need to fill out form 8938 with your tax return too. Here is a link with the reporting thresholds. https://www.irs.gov/Businesses/Corporations/Summary-of-FATCA-Reporting-for-U.S.-Taxpayers\"",
"title": ""
},
{
"docid": "4e5c747746142c0d25d8674c0f3044c0",
"text": "\"They are basically asking for the name of the legal entity that they should write on the check. You, as a person, are a legal entity, and so you can have them pay you directly, by name. This is in effect a \"\"sole proprietorship\"\" arrangement and it is the situation of most independent contractors; you're working for yourself, and you get all the money, but you also have all the responsibility. You can also set up a legal alias, or a \"\"Doing Business As\"\" (DBA) name. The only thing that changes versus using your own name is... well... that you aren't using your own name, to be honest. You pay some trivial fee for the paperwork to the county clerk or other office of record, and you're now not only John Doe, you're \"\"Zolani Enterprises\"\", and your business checks can be written out to that name and the bank (who will want a copy of the DBA paperwork to file when you set the name up as a payable entity on the account) will cash them for you. An LLC, since it was mentioned, is a \"\"Limited Liability Company\"\". It is a legal entity, incorporeal, that is your \"\"avatar\"\" in the business world. It, not you, is the entity that primarily faces anyone else in that world. You become, for legal purposes, an agent of that company, authorized to make decisions on its behalf. You can do all the same things, make all the same money, but if things go pear-shaped, the company is the one liable, not you. Sounds great, right? Well, there's a downside, and that's taxes and the increased complexity thereof. Depending on the exact structure of the company, the IRS will treat the LLC either as a corporation, a partnership, or as a \"\"disregarded entity\"\". Most one-man LLCs are typically \"\"disregarded\"\", meaning that for tax purposes, all the money the company makes is treated as if it were made by you as a sole proprietor, as in the above cases (and with the associated increased FICA and lack of tax deductions that an \"\"employee\"\" would get). Nothing can be \"\"retained\"\" by the company, because as far as the IRS is concerned it doesn't exist, so whether the money from the profits of the company actually made it into your personal checking account or not, it has to be reported by you on the Schedule C. You can elect, if you wish, to have the LLC treated as a corporation; this allows the corporation to retain earnings (and thus to \"\"own\"\" liquid assets like cash, as opposed to only fixed assets like land, cars etc). It also allows you to be an \"\"employee\"\" of your own company, and pay yourself a true \"\"salary\"\", with all the applicable tax rules including pre-tax healthcare, employer-paid FICA, etc. However, the downside here is that some money is subject to double taxation; any monies \"\"retained\"\" by the company, or paid out to members as \"\"dividends\"\", is \"\"profit\"\" of the company for which the company is taxed at the corporate rate. Then, the money from that dividend you receive from the company is taxed again at the capital gains rate on your own 1040 return. This also means that you have to file taxes twice; once for the corporation, once for you as the individual. You can't, of course, have it both ways with an LLC; you can't pay yourself a true \"\"salary\"\" and get the associated tax breaks, then receive leftover profits as a \"\"distribution\"\" and avoid double taxation. It takes multiple \"\"members\"\" (owners) to have the LLC treated like a partnership, and there are specific types of LLCs set up to handle investments, where some of what I've said above doesn't apply. I won't get into that because the question inferred a single-owner situation, but the tax rules in these additional situations are again different.\"",
"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": "d715a1051df70433a15f15013544d74a",
"text": "\"Thinking about the business overall, your \"\"profit\"\" would be: Since this is a sole proprietorship, the taxes are going to depend on your marginal tax rate. If you file jointly, your income will determine what your marginal tax rate is. If you file separately, there likely wouldn't be any tax on that income since it's less than the standard deduction, but you lose benefits of filing jointly (combined exemptions, etc.) So think about how much she would charge, what expenses are involved (before taxes), what the taxes would be on that profit, and what the \"\"opportunity costs\"\" are - is it worth time away from the kids/hobbies/etc. for that hobby? How much should a hobby business make to make it worth the effort of charging for such services? That would fall in the \"\"expense\"\" section. Are you talking about the actual costs (tax prep, etc.) or just the hassle of collecting, accounting, etc. Certainly those are a consideration but it's harder to quantify that. If you can come up with some sort of cost then certainly it would fit in the overall value equation. I'm not sure using additional Social Security benefits as a gauge is helpful, since you wouldn't see those benefits until you're of retirement age (according to SS) and a lot can happen between now and then.\"",
"title": ""
},
{
"docid": "9a2f36176458673c1befe588ea650e77",
"text": "\"What exactly would the financial institution need to see to make them comfortable with these regulations The LLC Operating Agreement. The OA should specify the member's allocation of equity, assets, income and loss, and of course - managerial powers and signature authorities. In your case - it should say that the LLC is single-member entity and the single member has all the managerial powers and authorities - what is called \"\"member-managed\"\". Every LLC is required to have an operating agreement, although you don't necessarily have to file it with the State or record it. If you don't have your own OA, default rules will apply, depending on your State law. However, the bank will probably not take you as a customer without an explicit OA.\"",
"title": ""
},
{
"docid": "90605b0a6f67febcdf781d210077a575",
"text": "I'm not sure I am fully understanding the nuance of your question, but based on your answer in the comments you and your business are not separate legal entities. So your income is the full $70K, there is no distinct business to have income. If you clarify your question to include why you want to know this I might be able to give a more meaningful answer for your situation.",
"title": ""
},
{
"docid": "857caa5f04ace57403694601f1826c25",
"text": "\"First, filing status. If you and your wife are legally married, you should be filing your tax returns as married, either jointly or separately. In the US, \"\"head of household\"\" has a specific meaning and is for unmarried people who are supporting one or more relatives, per the IRS. If you are working full-time and your wife is not, then likely you will file a joint return, including all your income and all the expenses for your wife's business. So yes, the losses in her business will offset your income. Depending on how complex things are, you may want to hire a professional to help with your taxes. The rules for what can and cannot be deducted as a business expense can be opaque.\"",
"title": ""
},
{
"docid": "521ca52299c5af07b7cf3157b6a45764",
"text": "\"TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain). Unless you decide to have your LLC taxed as a corporation, there's no change in taxes. LLC, by default, is a pass-through entity and all income will flow to your respective tax returns. From tax perspective, the LLC will be treated as a partnership. It will file form 1065 to report its income, and allocate the income to the members/partners on schedules K-1 which will be given to you. You'll use the numbers on the K-1 to transfer income allocated to you to your tax returns and pay taxes on that. Being out of state, will she incur more taxes from the money being now filtered through the business? Your employee couldn't care less about your tax problems. She will continue receiving the same salary whether you are a sole proprietor or a LLC, or Corporatoin. What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now? Your contract counterparts couldn't care less about your tax problems. Unless you are a corporation, people who pay you more than $600 a year must file a 1099. Since you'll be a partnership, you'll need to provide the partnership EIN instead of your own SSN, but that's the only difference. Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says \"\"you must now pay four times per year\"\". Unless you choose to tax your LLC as a corporation, LLC will pay no taxes. You will need to make sure you have enough withholding to cover for the additional income, or pay the quarterly estimates. The magic number is $1000. If your withholding+estimates is $1000 less than what your tax liability is, you'll be penalized, unless the total withholding+estimates is more than 100% of your prior year tax liability (or 110%, depending on the amounts). The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership? Partnerships can be very flexible, and equity split doesn't have to be the same as income, loss or assets split. But, you'll need to have a lawyer draft your operational agreement which will define all these splits and who gets how much in what case. Make sure to cover as much as possible in that agreement in order to avoid problems later.\"",
"title": ""
},
{
"docid": "5b287fe3e5c18c67590e241a102689ff",
"text": "\"1 - in most cases, the difference between filing joint or married filing single is close to zero. When there is a difference you're better off filing joint. 2 - The way the W4 works is based on how many allowances you claim. Unfortunately, even in the day of computers, it does not allow for a simple \"\"well my deduction are $xxx, don't tax that money.\"\" Each allowance is equal to one exemption, same as you get for being you, same as the wife gets, same as each kid. 3 people X $3800 = $11,400 you are telling the employer to take off the top before calculating your tax. She does this by using Circular E and is able to calculate your tax as you request. If one is in the 15% bracket, one more exemption changes the tax withheld by $570. So if you were going to owe $400 in April, one few exemption will have you overpay $170. i.e. in this 15% bracket, each exemption changes annual withholding by that $570. For most people, running the W4 numbers will get them very close, and only if they are getting back or owing over $500, will they even think of adjusting. 3 - My recently published Last Minute Tax Moves offers a number of interesting ideas to address this. The concept of grouping deductions in odd years is worth noting. 4 - I'm not sure what this means, 2 accounts each worth $5000 should grow at the same rate if invested the same. The time it makes sense to load one person's account first is if they have better matching. You say you are not sure what percent your wife's company matches. You need to change this. For both of your retirement plans you need to know every detail, exact way to maximize matching, expense ratios for the investments you choose, any other fees, etc. Knowledge is power, and all that. In What is an appropriate level of 401k fees or expenses in a typical plan? I go on to preach about how fees can wipe out any tax benefit over time. For any new investor, my first warning is always to understand what you are getting into. If you can't explain it to a friend, you shouldn't be in it. Edit - you first need to understand what choices are within the accounts. The 4% and 6% are in hindsight, right? These are not fixed returns. You should look at the choices and more heavily fund the account with the better selection. Deposit to her account at least to grab the match. As far as the longer term goals, see how the house purchase goes. Life has a way of sending you two kids and forcing you to tighten the budget. You may have other ideas in three years. (I have no P2P lending experience, by the way.) Last - many advise that separate finances are a bad path for a couple. It depends. Jane and I have separate check books, and every paycheck just keep enough to write small checks without worry, most of the money goes to the house account. Whatever works for you is what you should do. We've been happily married for most of the 17 years we've been married.\"",
"title": ""
},
{
"docid": "382a84ba2de816aeea68f21ab665c9b2",
"text": "Yes, absolutely she can. I come across small businesses from sole props to corps and llc who have their spouses employed. One thing to note is that the business won't need Workers Comp insurance if you're the only employee, if you hire anyone else you will need it.",
"title": ""
},
{
"docid": "691ebc769be4882276be7460d9e1cd52",
"text": "Checkout the worksheet on page 20 of Pub 535. Also the text starting in the last half of the third column of page 18 onward. https://www.irs.gov/pub/irs-pdf/p535.pdf The fact that you get a W-2 is irrelevant as far as I can see. Your self-employment business has to meet some criteria (such as being profitable) and the plan needs to be provided through your own business (although if you're sole proprietor filing on Schedule C, it looks like having it in your own name does the trick). Check the publication for all of the rules. There is this exception that would prevent many people with full-time jobs on W-2 from taking the deduction: Other coverage. You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2014, do not use amounts paid for coverage for that month to figure the deduction. (Pages 20-21). Sounds like in your case, though, this doesn't apply. (Although your original question doesn't mention a spouse, which might be relevant to the rule if you have one and he/she works.) The publication should help. If still in doubt, you'll probably need a CPA or other professional to assess your individual situation.",
"title": ""
},
{
"docid": "d402dc885d5d6ef6afda8b49de969880",
"text": "You're doing business in the US and derive income from the US, so I'd say that yes, you should file a non-resident tax return in the US. And in Connecticut, as well, since that's where you're conducting business (via your domestic LLC registered there). Since you paid more than $600 to your contractor, you're probably also supposed to send a 1099 to him on that account on behalf of your LLC (which is you, essentially, if you're the only member).",
"title": ""
},
{
"docid": "fb4538721131cc3f19655a02ffa66286",
"text": "\"If you start an LLC with you as the sole member it will be considered a disregarded entity. This basically means that you have the protection of being a company, but all your revenues will go on your personal tax return and be taxed at whatever rate your personal rate calculates to based on your situation. Now here is the good stuff. If you file Form 2553 you can change your sole member LLC to file as an S Corp. Once you have done this it changes the game on how you can pay out what your company makes. You will need to employ yourself and give a \"\"reasonable\"\" salary. This will be reported to the IRS and you will file your normal tax returns and they will be taxed based on your situation. Now as the sole member you can then pay yourself \"\"distribution to share holders\"\" from your account and this money is not subject to normal fica and social security tax (check with your tax guy) and MAKE SURE to document correctly. The other thing is that on that same form you can elect to have a different fiscal year than the standard calendar IRS tax year. This means that you could then take part of profits in one tax year and part in another so that you don't bump yourself into another tax bracket. Example: You cut a deal and the company makes 100,000 in profit that you want to take as a distribution. If you wrote yourself a check for all of it then it could put you into another tax bracket. If your fiscal year were to end say on sept 30 and you cut the deal before that date then you could write say 50,000 this year and then on jan 1 write the other check.\"",
"title": ""
}
] |
fiqa
|
726caaf57baba142809f8be97ec3da93
|
What to do if my aging father is sustaining a hobby that is losing several thousand dollars every month?
|
[
{
"docid": "7ec4d463de280d6d4461ce69417c614f",
"text": "You've already counted the cost. It will cost your family ~$10,000 per month until your father dies, or until there's no money left, to enable him to pretend that he is a successful business owner. I'd ask him when he thinks business is going to pick up again. He may be honest with himself. Or, ask him to consider what will happen if he outlives the money that's going out the door. Ask him if he would like to be bankrupt on top of needing to close his business. (I don't view asking those questions as being unloving, by the way.)",
"title": ""
},
{
"docid": "16a0641d140641aa679109946d6d6e96",
"text": "If this was going on in the UK, I would try to get a mental capacity assessment done on the father. There are laws that stop you taking advantage of people that don’t understand what is going on; these laws could be used against the manager, but only if you can clearly prove that the father does not understand that the “business” is losing money. If the father does understand what is going on, then there is nothing you can do, as he has every right to waste his money, and anyone that may inherit what is left has no rights until he is dead.",
"title": ""
},
{
"docid": "d7e62833852404cbfd6fa6601126fe0f",
"text": "How about opening a Coffee shop section in the bookshop to generate some cash flow per month to offset some of the expenses ? Off course success of this venture will depend on where the location of shop is, how big it is and whether people are coffee enthusiast in that region. Since the rent/mortgage ( the major expense) is already taken care of all you have to do is invest in one time expenses for : Interior (hip these days - rustic expose brick walls, nostalgic filament light, chalk board menu, etc ) Seating (big communal table, lounge couch, some regular table chairs,some out door seats if weather is good) ...and the ugly licencing and approval. Throw in some social media marketing, SEO, yelp,urbanspoon, tripadvisor, etc If the bookstore is old, I am assuming it might have the old world charm & character which could attract lot of coffee enthusiast. The unique and competitive edge of this coffee shop could be its historic charm , which no other competitor can achieve. Would definitely beat the staryuks. Even if no one shows up , only recurring additional expense will be barrista wages. The interior , seating and coffee m/c costs can be minimized by savvily shopping stuff on community sites like craigslist, gumtree etc. I beleive if you are in US , everything could be set up under 6K. Later on premade food items like bananacake, raw cacao balls, toasted panini sandwich etc. can be added. If one has 3 key ingredients in food industry - Location, Vibe and taste, then there is high probability that they will succeed. At the same time one should be cognizant that 95 % of business fail in first 3 years and therefore they should have an exit plan. Unfortunately if your business does not work, then you exit cost would be just getting rid of the equipment & furniture. Just to put in perspective, some Dunkin Donut shops that I was researching in North East were clearing between 1/2 to 1 mil per year. As it is the current damage per month is 10k, if this business offsets even some of the damage it would be worth while. So the cost of keeping the pride of 91 yo dad can potentially reduce from 10k to 2-3 k. Who knows if it takes off , one day it could be a good sustainable business and might turn into a win-win situation for you and your father. I have made lot of assumption without knowing the facts like- you are located in US, you have risk appetite, bookshop is not in industrial area but some prime retail area like this : ... etc. While I am at it { giving unsolicited advise that is}.. Currently the books in the bookshop are very old books that it published by itself. Nobody is interested in reading these books. Due to his previous excitement of getting editors and publishing books, there are thousands of books that need to be kept in storerooms. They don’t move because people hardly buy any books from this bookshop. To help the old published book sales why not convert the old books to ebooks using providers like 'Blueleaf-book-scanning' and publish the books on amazon kindle,itunes & play store. The books will be available online forever and they might get exposure to tons of book enthusiast around the world. I heard at one of our client's MDS ( mass digitization system ) project , they had in-house robot scanning machine like Treventus Pardon me if none of the above gibberish applies to your situation , but hpefully SE community might have some fun reading this for kicks and giggles . Cheers and good luck. Source: I am US person in Australia, operated restaurant / bar in US , visited 100's of coffee shops, consulting for living, ...and a dreamer { :-) hard not to imagine from the short post}.",
"title": ""
}
] |
[
{
"docid": "b340e451dbecd509d99941c9524c8504",
"text": "IMHO these people need to understand finance. I think Dave Ramsey is the best for this kind of situation. They need their butts kicked. What kind of parent spends money on playing cards when they have a child and not a place of their own? Answer: Parents that needs to grow up. Most of all they probably have an income problem. I would assume that the husband stays at home because he does not earn enough to justify quality child care. Okay how about he cares for a few other kids and turns watching one kid into an income stream? Duh? Giving them money will only hurt them in the long run. They are holding onto childhood, avoiding becoming adults. No amount of money you can give them will dig them out of their rut, in fact it may only prolong it. MTG is an intellectual game. If he spent half as much brain power on earning a living, the could probably be well off, and earn enough to have a tidy budget for gaming. Sorry Yamikuronue, but I disagree with your first comment.",
"title": ""
},
{
"docid": "2ef47bc6e77a08529092f461b85d993b",
"text": "\"The lead story here is you owe $12,000 on a car worth $6000!! That is an appalling situation and worth a lot to get out of it. ($6000, or a great deal more if the car is out of warranty and you are at risk of a major repair too.) I'm sorry if it feels like the payments you've made so far are wasted; often the numbers do work out like this, and you did get use of the car for that time period. Now comes an \"\"adversary\"\", who is threatening to snatch the car away from you. I have to imagine they are emotionally motivated. How convenient :) Let them take it. But it's important to fully understand their motivations here. Because financially speaking, the smart play is to manage the situation so they take the car. Preferably unbeknownst that the car is upside down. Whatever their motivation is, give them enough of a fight; keep them wrapped up in emotions while your eye is on the numbers. Let them win the battle; you win the war: make sure the legal details put you in the clear of it. Ideally, do this with consent with the grandfather \"\"in response to his direct family's wishes\"\", but keep up the theater of being really mad about it. Don't tell anyone for 7 years, until the statute of limitations has passed and you can't be sued for it. Eventually they'll figure out they took a $6000 loss taking the car from you, and want to talk with you about that. Stay with blind rage at how they took my car. If they try to explain what \"\"upside down\"\" is, feign ignorance and get even madder, say they're lying and they won, why don't they let it go? If they ask for money, say they're swindling. \"\"You forced me, I didn't have a choice\"\". (which happens to be a good defense. They wanted it so bad; they shoulda done their homework. Since they were coercive it's not your job to disclose, nor your job to even know.) If they want you to take the car back, say \"\"can't, you forced me to buy another and I have to make payments on that one now.\"\"\"",
"title": ""
},
{
"docid": "cae10da6b845a9f5199d74784818981b",
"text": "You probably have a UMTA/UGMA account. While the money in that account belongs to you, as long as you're a minor (which is until the age of 18, in California) - you cannot directly access it. Instead, your parent(s) or guardian(s) or any other trustee manages that account for you, with your best interests in mind. While you may want to spend that money or give it away to your boyfriend or whoever else, it is very likely not in your best interest to do that. That is why your dad refuses. He has a legal responsibility, which is called fiduciary duty, to ensure the money is spent in a way that is best for you. If the fiduciary just lets you spend the money away - you could later, when you're no longer a minor, sue that person for the breach of trust. When you're older and a bit more mature you'll be able to make your own decisions and do whatever you want with that money. But as long as your parents have the responsibility to act in your best interests, it is likely that your boyfriend will stay in Pennsylvania for a while.",
"title": ""
},
{
"docid": "6c99c588997217aa52230b26473a0d06",
"text": "This may be best handled by an expert. Look for somebody recommended by a church, homeless shelter, food pantry, office of unemployment, office of disability, or Veterans services to advise you on maximizing support for your father. You want to know what type of help you can give without causing the overall level of support to drop. You may even find there are other avenues of assistance.",
"title": ""
},
{
"docid": "1b59c0bc37af31e47d57ee03486d9b18",
"text": "Might want to cross-post to /r/financialindependence; I'm in a similar situation like yours. The problem is that working hard and really hustling it lost a lot of it's primal motivation because the utility of extra money isn't there. You have to be intrinsically motivated to achieve it, or gain enough satisfaction from the other factors that comes with it (power, ego, etc.). If none of these are super-motivating to you, like it was for me, then you need to find something that is a lot of fun to you, but at the same time still very challenging and the outcome is not certain. For me it turned out that it was active investing. I can scale it up or down as I please (ie: spend 10 hours on it in a day, then spend no time on it for a day) - there's no employees and no customers, so no schedule I have to keep or person I need to keep happy. It takes a while to find that, so you just have to give things a go. However, the difference between a hobby and this is that it's A) a challenge and B) you can actually lose. At least for me, that makes it so much more interesting compared to playing computer games, which I also enjoy very much but get bored of if I spend too much time on it.",
"title": ""
},
{
"docid": "e0d87eaa0bb1c532220ac894df266ab6",
"text": "I'm not good at persuasion, and I'm not an expert at any of this, but here's what I've been thinking. Rather than telling him that he shouldn't rack up more debt, I'd ask him whether he's planning for his debt levels to increase, remain static, or decrease over the next five years. Try to make it feel like he's the one reaching the conclusion that he should be decreasing his debt load. If he says that he's fine with his debt levels remaining static or increasing, then I don't have any further advice. If he says he's trying to decrease his debt level, but it's actually increasing, then maybe he's in denial.",
"title": ""
},
{
"docid": "7983410bd30fee5ecb0154399b8cdd4f",
"text": "I'm not sure how much living expenses are there but half of $12,600 in the US would be a decent monthly income. I agree that debt on debt would just add to his problems, sort of like quicksand, the interest will just makes a person sink deeper and deeper. It seems like it might take some more radical options here to pay off the debt. Like, could he move into a much smaller home or get a roommate? How expensive was that vehicle? Could he sell it and pay cash for a much cheaper used one and use the difference toward his debt? How much does he work? Could he get a second job for just a few hours to help make extra money? Is he willing to speak with a debt counselor?",
"title": ""
},
{
"docid": "f606940b8bf3f1e2be77666f0e26ffe5",
"text": "The title of your question basically asks: What can I do? And you state this regarding the meeting and “advice” they gave towards criticism of their method: While this they also indoctrinated that you should avoid talking to people talking bad about it (or say it is scam) because you gain no money from them and they just want to destroy your business. First, you really cannot do anything to “save” your friend if they have bought this nonsense. You are right, it’s a scam. But past stating as such to your friend, there is not much you can do past shielding yourself. The reality is this: Any scenario you are in where you cannot ask basic questions and get a reasonable response or are given—at least—the option to walk away unscathed or uninsulated is basically a cult-like mentality. Simple as that. If the first thing someone tells you is “Don’t listen to others, just listen to me…” then you need to excuse yourself to go to the bathroom or something and just leave. From my personal experience meeting people who are successful and have power, they always—and I mean always—ask questions and are critical of things they invest in… Whether that investment is time, money or just basic mental energy. Rich people are just like you and me! Except they have more money so they can take bigger risks. Critical thinking and the ability to walk away from something are key life skills. Now others have talked salesman psychology which is on point. But here is something else you brought up in your question: He also wants to use his position as respected member of multiple local youth and other communities to get their members as referals or in his words “…to give them the oppurtunity to also simply earn money.” Okay, so you can set personal boundaries between you and this clown, but you cannot stop him. But if he plans on targeting people and organizations in your community, you can warn them about him and his behavior and this scam. Chances are other people will know right away it’s a scam, but honestly if you feel the need to help others, that’s the most reasonable thing you can do to help them. But whatever you do, don’t take any of this emotional crap personally. If anything, maybe you can learn some reverse salesman techniques to get this “friend” to disengage. Such as only meeting with them in public and if they say something really vile to you, repeating what they said back to them as a question… Maybe even louder so everyone can hear. Remember a harsh reality of life: Public shaming can work to change someone’s behavior but you never want to do something like that unless you have utterly no choice. That last bit of advice is pretty harsh, but the reality is at some point you need to do something to “smack” reality into the situation.",
"title": ""
},
{
"docid": "a5a0adb60ff59b3eb5574f10cbb7c96f",
"text": "Are you doing the right thing? Yes, paying back some of the expense of college is a great way to show your gratitude. Could your sister also pitch in a little to help pay the debt down? Will you get approved for a $30,000 unsecured loan? You don't mention your credit rating but that will have an effect obviously. You might consider visiting a credit union with your father and co-signing a loan since it is his debt that you are assuming. You might still want to write a loan for your dad to sign even if he isn't co-signed on a loan. This could protect you in case of his death if there are other assets to divide. If you are not approved for a loan, you could also simply join your dad in paying down the highest-rate cards first and have a loan agreement for him to pay back that money if/when it is possible. You've mentioned that you have no collateral. There aren't many options for loans with no collateral. Your dad's bank or a credit union might consider a debt consolidation loan with you as a co-signer. That's why I mentioned going to a credit union. Talking to a loan officer at a local financial institution will make it easier to get approved. If they see that you are taking responsible steps to pay off the debt, that reduces your credit risk. If you do get a debt consolidation loan, they will probably ask your dad to close some credit card accounts.",
"title": ""
},
{
"docid": "5a30ca466d80719a7c9e250e11f6afd8",
"text": "This sounds like my dad in so many ways. Rather than ask questions and listen to vagueness (or lies) from your dad, I suggest you ask to see financial, tax, and legal documentation. Maybe speak to the accountant, lawyer, bank official - whomever - to see where checks were written, transfers, etc. I'm really sorry you are in this situation, but there needs to be a major family meeting immediately. Good Luck.",
"title": ""
},
{
"docid": "b84e43a18db301825aa7a9e96c8f979a",
"text": "\"I'm not an accountant, and you should probably get the advice of one to be sure about what to do. However, if the business is a sole-proprietorship, you'd complete a Schedule C for the business, and you'd end up with a loss at the end. If the investment you made in the business is considered to be entirely or partially \"\"at risk\"\" per the IRS definition, you'd get to claim all or part of the loss as a reduction in your income. If the business was an LLC, then you're beyond my already limited knowledge. There may be some other considerations based on whether this was really a business vs a hobby, and whether or not you're going to try to continue with the business, or whether you've shut it down. I'm not sure about those parts, but they'd be worth exploring with an accountant.\"",
"title": ""
},
{
"docid": "e868482836540c7dd427677dc7b31626",
"text": "This is not the case with your brother only. There are many business which run on this premise. It goes till the time all the conditions are in control and get busted when things goes out of way. You have mentioned the loan amount and not the monthly repayment amount. Even if you say, a new loan will not solve his problem, what are the way out ? Telling things nicely sometime does not work especially when facts are otherwise. Hence you need to make a compete case study which should also consider his capacity to pay. As of now it seems he has debts of around 20 months of his earning, which can be considered high, depending upon the terms of major loan such as car loan and personal loan. A case study is way out. You can explain him with such case study that he should not go for further loans.",
"title": ""
},
{
"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": "934859b738bd50f06e05dfd70c8c7e66",
"text": "\"My dad keeps complaining that I treat him like a kid but hey, when the shoe fits, right? That right there is some wisdom. I would question why you need a student account. If I found myself in this situation; and, decided to participate. I would open a savings account (no debit card) in both of your names. This account would have little or no fees, have a branch convenient for both of you, and no ability for him to overdraft. When I wanted to, I could deposit money into his account, and he could withdraw. You might even open your own account at the same bank that he does not have access to. Then it is a matter of transferring the money into his account which can be done by mobile phone. The thing that I would say to you, beyond your question, is that you are choosing to participate and enabling this insanity. By \"\"quickly\"\" sending him money you are not allowing him to find alternatives for his poor behavior. If it was me, I would require that he have some sort of financial literacy education. He needs help budgeting, planning, and managing a bank account. I am a Dave Ramsey guy, so I would require him to attend FPU, that I would happily pay for ~$100. Alternatives are more than fine, mostly there has to be progress in his financial literacy and behavior. If he asked for money in the future, I would ask to see his budget and explain what went wrong. If there was no budget, there would be no money. If there was some legitimacy to his need, I would help meet it. One example would be the company he worked for did not meet payroll. That is something mostly beyond his control and can really hurt when a person is just starting to take control of their life. So yes, I would send a check in that case. However, that choice is yours. For perspective, when my son was 18 he came to me for help with habitual bounced checks. He wanted me to pay the fee and probably pay it every month that he went crazy. I paid the fee once, and I provided the education he needed. After that he learned and was quickly a self-sufficient adult. I also made it very clear that I would only pay it once. My situation was normal, parents should teach their children. Your situation is insanity. There is no way you should be put in the situation you are in with your father. He needs to grow up, and you will have to help him somewhat. If nothing more you should cut him off financially.\"",
"title": ""
},
{
"docid": "d3902742e4da767d26536fb6c57774f0",
"text": "\"A few ideas. I suggest it would wise to consider what lesson is learned as a result of any resolution of a financial issue. Is it a lesson of responsibility and of the importance of keeping one's word, or of getting away with whatever happens (poorly planned business) with no adverse consequences. \"\"No\"\" consequences (e.g. forgiven loan) is also a consequence, and it sends a message. Sounds like paying the loan from your savings automatically means it's deducted from inheritance, since the savings are part of that inheritance. This may seem like a square deal if we ignore inflation. Assuming Today the $54K is worth much more than, unless it is adjusted for inflation, the same $54K will be worth (i.e. will allow to buy) a few decades from now, when the inheritance materializes. So this option means your son is foregoing a significantly smaller financial loss in the future in exchange for foregoing his debt completely today. This is like borrowing $54K from a bank now, and only having to forego the same amount decades in the future when it is in fact worth much less. What borrower would not be happy with such arrangement, and what lender would do it? Only one's own loving parents :) You are in charge of what life lessons your son will walk away with from this situation. Good luck!\"",
"title": ""
}
] |
fiqa
|
1cbbfafc540c0ddd51797d49e1d8fd45
|
What tax rules apply to selling of digital goods, specifically in-game currencies?
|
[
{
"docid": "31dd8c969c8a715cae3a09966b339ea4",
"text": "\"Believe it or not, unless you directly contact an accountant with experience in this field or a lawyer, you may have a tough time getting a direct answer from a reputable source. The reason is two fold. First, legally defining in-game assets is exceptionally difficult from a legal/taxation stand point. Who really owns this data? You or the company that has built the MMO and manages the servers containing all of the data? You can buy-and-sell what is effectively \"\"data\"\" on their servers but the truth is, they own the code, the servers, the data, your access rights, etc. and at any point in time could terminate everything within their systems. This would render the value of your accounts worthless! As such, most countries have overwhelmingly avoided the taxation of in-game \"\"inventory\"\" because it's not really definable. Instead, in game goods are only taxed when they are exchanged for local currency. This is considered a general sale. There may be tax codes in your region for the sale of \"\"digital goods\"\". Otherwise, it should be taxed as sale a standard good with no special stipulations. The bottom line is that you shouldn't expect to find much reliable information on this topic, on the internet. Law's haven't been welled defined, regarding in-game content worth and taxing of sales and if you want to know how you should pay your taxes on these transactions, you need to talk to a good accountant, a lawyer or both.\"",
"title": ""
}
] |
[
{
"docid": "ccefdd027aad5948c8d5fcb48923313a",
"text": "\"Income from a hobby is tax exempt under Dutch law. To consider whether it's hobby, a few rules are applied such as: How much time do you spend on the activity? And is the hourly wage low? Obviously, having a boss is a sure sign of it not being a hobby. The typical example is making dolls and selling them on a crafts fair. If you travel the country and sell each weekend on a different fair, that's a lot of time. If you only sell them on the fair in your home town, it's a hobby. Situation 3 is the most difficult. If you just happened to luck out, it's still a hobby. If you spent significant time to improve the value of your holdings, e.g. by trading in-game, then it might be seen as work. In the latter case, you simply file it as \"\"income from other sources, not yet taxed\"\". For the purpose of determining income from a hobby, you may deduct actual expenses. So, in your case they'd look at the net income of $-1000, which is not unusual for a hobby. It wouldn't be any different if you took up horse riding, decided that you didn't like it, and sell your horse at a loss.\"",
"title": ""
},
{
"docid": "fcb2df2969c498e8cc9787fb8e1c130e",
"text": "I was only able to find Maryland form 1 to fit your question, so I'll assume you're referring to this form. Note the requirement: Generally all tangible personal property owned, leased, consigned or used by the business and located within the State of Maryland on January 1, 201 must be reported. Software license (whether time limited or not, i.e.: what you consider as rental vs purchase) is not tangible property, same goes to the license for the course materials. Note, with digital media - you don't own the content, you merely paid for the license to use it. Design books may be reportable as personal tangible property, and from your list that's the only thing I think should be reported. However, having never stepped a foot in Maryland and having never seen (or even heard of) this ridiculous form before, I'd suggest you verify my humble opinion with a tax adviser (EA/CPA) licensed in the State of Maryland to confirm my understanding of this form.",
"title": ""
},
{
"docid": "86376543a6c5ea3be9031394552c401b",
"text": "In many cases yes. In the case of an employer handing employees a credit card to use, that is clearly income if the card is used for something other than a business expense. Generally speaking, if you're receiving something with a significant value without strings attached, it is likely taxable. Google no doubt has an army of tax attorneys, so perhaps they are able to exploit loopholes of some sort.",
"title": ""
},
{
"docid": "258c76938c7fe7a967057eda50b957c9",
"text": "A rather good IRS paper on the topic states that a donation of a business' in-kind inventory would be Under IRC 170(e)(1), however, the fair market value must be reduced by the amount of gain that would not be long-term capital gain if the property had been sold by the donor at the property's fair market value (determined at the time of the contribution). Under this rule, deductions for donated inventory are limited to the property's basis (generally its cost), where the fair market value exceeds the basis. There are references to IRC regulations in a narrative context you may find helpful: This paper goes on for 16 pages describing detailed exceptions and the political reasons for the exceptions (most of which are concerned with encouraging the donation of prepared food from restaurants/caterers to hunger charities by guaranteeing a value for something that would otherwise be trashed valueless); and a worked out example of fur coats that had a cost of goods of $200 and a market value of $1000.",
"title": ""
},
{
"docid": "e11ac463150afa914242e4ad3e1b1a96",
"text": "It's income. It's almost certainly subject to income tax. As miscellaneous income, if nothing else. (That's what hobby income usually falls under.) If you kept careful records of the cost of developing the app, you might be able to offset those against the income... again, as with hobby income.",
"title": ""
},
{
"docid": "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": "aa6b5fd3a2691763e0186d3daa30563b",
"text": "Buyer A didn't send money to the US government, Buyer A sent money to Seller B, a US resident. I think the most common way to facilitate a transaction like this is a regular old international wire transfer. Buyer A in India goes to their bank to exchange X INR to $1mm USD. $1mm USD is then wire transferred to Seller B's bank account. The USD was sold to Buyer A, either by funds held by Buyer A's bank, or foreign exchange markets, or possibly the US government. Seller B may owe taxes on the gain derived from the sale of this thing to Buyer A, but that taxation would arise regardless of who the buyer was. Buyer A may owe an import tax in India upon importing whatever they bought. I don't think it's common to tax imported money in this sort of transactional setting though.",
"title": ""
},
{
"docid": "3078a9b101176a07d9507d44a6890d1d",
"text": "It's technically correct to say BK will still pay taxes on all profits made here in the US, the problem here is that it's very easy to structure this whole thing so that there are no US profits. Company A sells itself to Company B, which it also owns. Company A transfers all its' intellectual property to Company B which then charges Company A a fee to use it. The fee is structured so that Company A makes zero profit and Company B makes all the money.",
"title": ""
},
{
"docid": "9a3f6748d92f2d9a8e733dcbd0ecf9f6",
"text": "This sounds like a perfect application for a cryptocurrency. There are already some currencies designed for use in-game. Gamecredits and Voxel come to mind but there are others. You could use on of them or you could create your own just for your game. I second what others said about letting prices change naturally according to supply and demand.",
"title": ""
},
{
"docid": "db771c350828f1d9fd3eec7bc720f297",
"text": "Where does your image show the following entry: * Massive fees paid to parent corporation in tax-free state, to avoid local income tax This is much like the way Microsoft siphons off ALL its revenue to some tax-free haven with similar deals. If I were benevolent dictator, there would be no income tax, and no tac on profit of any kind. There would only be Sales Tax. Corporations can't avoid or evade sales taxes, because they are leveraged at the point of sale, and the vendor send the government the money. Income tax is retarded.",
"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": "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": "3200217e7939b7c9eb0a82e4a1124feb",
"text": "Here is the technical guidance from the accounting standard FRS 23 (IAS 21) 'The Effects of Changes in Foreign Exchange Rates' which states: Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements shall be recognised in profit or loss in the period in which they arise. An example: You agree to sell a product for $100 to a customer at a certain date. You would record the sale of this product on that date at $100, converted at the current FX rate (lets say £1:$1 for ease) in your profit loss account as £100. The customer then pays you several $100 days later, at which point the FX rate has fallen to £0.5:$1 and you only receive £50. You would then have a realised loss of £50 due to exchange differences, and this is charged to your profit and loss account as a cost. Due to double entry bookkeeping the profit/loss on the FX difference is needed to balance the journals of the transaction. I think there is a little confusion as to what constitutes a (realised) profit/loss on exchange difference. In the example in your question, you are not making any loss when you convert the bitcoins to dollars, as there is no difference in the exchange rate between the point you convert them. Therefore you have not made either a profit or a loss. In terms of how this effects your tax position; you only pay tax on your profit and loss account. The example I give above is an instance where an exchange difference is recorded to the P&L. In your example, the value of your cash held is reflected in your balance sheet, as an asset, whatever its value is at the balance sheet date. Unfortunately, the value of the asset can rise/fall, but the only time where you will record a profit/loss on this (and therefore have an impact on tax) is if you sell the asset.",
"title": ""
},
{
"docid": "2a82b567373d7eaed263f4cc27b725f1",
"text": "It looks like fair-market value when you receive your virtual currency is counted as income. And you're also subject to self-employment tax on that income. Here's an FAQ from the IRS: 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.Q-9: Is an individual who “mines” virtual currency as a trade or business subject to self-employment tax on the income derived from those activities? A-9: If a taxpayer’s “mining” of virtual currency constitutes a trade or business, and the “mining” activity is not undertaken by the taxpayer as an employee, the net earnings from self-employment (generally, gross income derived from carrying on a trade or business less allowable deductions) resulting from those activities constitute selfemployment income and are subject to the self-employment tax. See Chapter 10 of Publication 334, Tax Guide for Small Business, for more information on selfemployment tax and Publication 535, Business Expenses, for more information on determining whether expenses are from a business activity carried on to make a profit. You'd of course be able to offset that income with the expense of mining the virtual currency, depreciation of dedicated mining equipment, electricity, not sure what else. Edit: Here's a good resource on filing taxes with Bitcoin: Filling in the 1040 Income from Bitcoins and all crypto-currencies is declared as either capital gains income or ordinary income, for example from mining. Income Ordinary income will be declared on either your 1040 (line 21 - Other Income) for an individual, or within your Schedule C, if you are self-employed or have sole-proprietor business. Capital Gains Capital gains income, or losses, are declared on Schedule D. Since there are no reported 1099 forms from Bitcoin exchanges, you will need to include your totals with Box C checked for short-term gains, and with Box F checked for long-term gains. Interesting notes from that article, your first example could actually be trickier than expected if you started mining before there was a Monero to USD exchange. Also, there can also be capital gains implications from using your virtual currency to buy goods, which sounds like a pain to keep track of.",
"title": ""
},
{
"docid": "0cf658c6d4727ceda9b94342ac66bd0e",
"text": "\"Earned income is what your software is doing, so it is taxable. So you can't really make it tax exempt. You can form a business and claim the revenues from that business as income and deduct expenses it costs you to earn that revenue. If you buy a server to run your software, then that is an acceptable expense to deduct from your revenues. Others can be more questionable and the best thing to do is to consult a CPA. If you are still in the testing stage and the revenues will be small then it should not matter. Worry about the important things, not if you paid the IRS a few hundred to much. Are you in a state/country that allows online gambling? In most states here in the US you are operating on shaky legal ground. Before \"\"Black Friday\"\" I used to earn a nice part-time income playing online poker.\"",
"title": ""
}
] |
fiqa
|
2aa83d6e237f4b7d2158cceb665798a0
|
What is the field “Folio” in an accounting book for?
|
[
{
"docid": "717d401602f6d89571d26e30eef6e0bc",
"text": "It's used as a reference column: In journals folio coloumn is used to mention the reference or “address” of ledger in which the journal entry has been posted thus giving an easy access and also easily understanding whether all the entries has been posted in the relevant accounts or not.",
"title": ""
}
] |
[
{
"docid": "7a01acf95a353dcd5c011f4163d3d225",
"text": "To understand the answer we first have to understand what Goodwill is. Goodwill in a companies balance sheet is an intangible asset that represents the extra value because of a strong brand name, good customer relations, good employee relations and any patents or proprietary technology. An article from The Economist explains this very well and actually talks about Time Warner directly - The goodwill, the bad and the ugly When one firm buys another, the target’s goodwill—essentially the premium paid over its book value—is added to the combined entity’s balance-sheet. Goodwill and other intangibles on the books of companies in the S&P 500 are valued at $2.6 trillion, or 10% of their total assets, according to analysts at Goldman Sachs. As the economy deteriorates and more firms trade down towards (or even below) their book value, empire-builders are having to mark down the value of assets they splashed out on in rosier times. A recently announced $25 billion goodwill charge is expected to push Time Warner into an operating loss for 2008, for instance. Michael Moran of Goldman Sachs thinks such hits could amount to $200 billion or more over the cycle. Investors have so far paid little attention to intangibles, but as write-downs proliferate they are likely to become increasingly wary of industries with a high ratio of goodwill to assets, such as health care, consumer goods and telecoms. How bad things get will depend on the beancounters. American firms used to be allowed to amortise goodwill over many years. Since 2002, when an accounting-rule change ended that practice, goodwill has had to be tested every year for impairment. In this stormy environment, with auditors keener than ever to avoid being seen to go easy on clients, companies are being told to mark down assets if there is any doubt about their value. The sanguine point out that this has no effect on cashflow, since such charges are non-cash items. Moreover, some investors take goodwill write-offs with a pinch of salt, preferring to look past such non-recurring costs and accept the higher “normalised” earnings numbers to which managers understandably cling. The largest companies are thus able to survive thumping blows that might otherwise floor them, such as the $99 billion loss that the newly formed but ill-conceived AOL Time Warner, as it then was, reported for 2002. But the impact can be all too real, as write-downs reduce overall book value and increase leverage ratios, a particular concern in these debt-averse times.",
"title": ""
},
{
"docid": "c2a80bbadd20bcfeb527a72ff20e820a",
"text": "\"These types of diagrams appear all throughout Kiyosaki's Rich Dad, Poor Dad book. The arrows in the diagrams represent cash flow. For example, the first two diagrams of this type in the book are: The idea being presented here is that an asset generates income, and a liability generates expenses. According to the book, rich people spend their money buying assets, while middle class people buy liabilities. The diagram you posted above does not appear in the edition of the book I have (Warner Books Edition, printed in 2000). However, the following similar diagram appears in the chapter titled \"\"The History of Taxes and the Power of Corporations\"\": The idea behind this diagram is to demonstrate what the author considers the tax advantages of a personal corporation: using a corporation to pay for certain expenses with pre-tax dollars. Here is a quote from this chapter: Employees earn and get taxed and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It's one of the biggest legal tax loopholes that the rich use. They're easy to set up and are not expensive if you own investments that are producing good cash flow. For example; by owning your own corporation - vacations are board meetings in Hawaii. Car payments, insurance, repairs are company expenses. Health club membership is a company expense. Most restaurant meals are partial expenses. And on and on - but do it legally with pre-tax dollars. This piece of advice, like so much of the book, may contain a small amount of truth, but is oversimplified and potentially dangerous if taken a face value. There are many examples, as JoeTaxpayer mentioned, of people who tried to deduct too many expenses and failed to make a business case for them that would satisfy the IRS.\"",
"title": ""
},
{
"docid": "2dfe6493d1498c8a53450ba87bfba776",
"text": "\"I would say that all of the reasons you list in your question are valid, and I would add the following... You are in the landscaping business, not the accounting business. If you manage everything in spreadsheets, at least one of you has to become the bookkeeper and leave the landscaping to the others. Spreadsheets are \"\"agnostic\"\" in how you use them, so you have to turn them into an accounting system, which means you're now not only more of a bookkeeper, but you're also more of a developer, too, and even less of a landscaper. Accounting software is already developed by developers who understand accounting. Using it requires you to only perform the data entry tasks, and then you can focus on the landscaping, customer service, sales and marketing, etc., things that actually contribute to your business. It is still good for you to understand basic accounting principles. Specialized accounting software will guide you through the process of learning and help you avoid making many of the costly mistakes you might have made in that learning process.\"",
"title": ""
},
{
"docid": "79aab99d579d1d2115bdcaa91f224fb4",
"text": "\"I'm a mathematician, not an accountant. But my feeling has been that the distinction between Asset and Liability is mainly a sign convention, and comes from a wish to avoid negative numbers. Suppose you take out a loan for $1000 and deposit the proceeds in your bank account. Under normal accounting conventions, your bank account is an Asset and the loan is a Liability. After the loan, Bank has a balance of 1000 and Loan has a balance of 1000. You can compute your net worth by adding all Assets and subtracting all Liabilities (so in this case your net worth remains 0). If you treat Loan as an Asset account, then after taking out the loan, you should give it a balance of -1000. Under this convention, you have lots of negative numbers to deal with everywhere, which I suspect early accountants would have found inconvenient. The Asset/Liability convention means you only need to deal with negative numbers in unusual situations (overdrawn bank account, overpaid loan, etc). Likewise, in theory you could treat Expense accounts as negative Income. But I'm not sure why you feel the need to reinvent the wheel by \"\"simplifying\"\" double-entry accounting like this. The standard conventions are not that complicated, and their major advantage is that they're standard: other people will be able to understand your books if they ever need to. (Say you want to hire somebody to do your taxes at some point: if your books are kept in your own idiosyncratic system, their job will be at best error-prone and at worst impossible.) It's a bit like a proposal to simplify English spelling: shur, a sistum waar yu rit lik this mit bee simplur in sum abstrakt sens, but if nobudee els can reed it eezulee, it izunt ackshyualee veree yusful.\"",
"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": "df9ab79001c00f515a3dc8ee69f05872",
"text": "I'm not really sure yet. I know I'm beginning my upper level finance courses (Corp. Finance & Investments this Autumn) so I am going to try and see what I like. Investments have always attracted me but I have to experience it before I can say what I would like. I'm really open to anything. I know excel quite well (thought of getting Microsoft certified to put on resume) and stats have always been fun for me. I took 2 intro to accounting courses but have forgotten most of the material. Is there any part of accounting you recommend is valuable (auditing, financial acct, reporting & financial statements, etc.; maybe any course suggestions bc I know Ohio State Uni has multiple courses on different acct topics)?",
"title": ""
},
{
"docid": "f81be4f9823d02ee0fb501533af22d0d",
"text": "If an accounting firm had constant errors and was wrong over 50% of the time about the books how would that go about? As a former bond trader, I would rarely look at the ratings.... CDS was most useful when applicable, and if not spread to the closest benchmark/sectoral average.",
"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": "b622bc6d4c5c0e320f76c82c2ef0411a",
"text": "\"SEC filings do not contain this information, generally. You can find intangible assets on balance sheets, but not as detailed as writing down every asset separately, only aggregated at some level (may be as detailed as specifying \"\"patents\"\" as a separate line, although even that I wouldn't count on). Companies may hold different rights to different patents in different countries, patents are being granted and expired constantly, and unless this is a pharma industry or a startup - each single patent doesn't have a critical bearing on the company performance.\"",
"title": ""
},
{
"docid": "53dd714fdcde93886c79bef5635ec6a9",
"text": "\"First, please allow me to recommend that you do not try gimmickry when financials do give expected results. It's a sure path to disaster and illegality. The best route is to first check if accounts are being properly booked. If they are then there is most likely a problem with the business. Anything out of bounds yet properly booked is indeed the problem. Now, the reason why your results seem strange is because investments are being improperly booked as inventory; therefore, the current account is deviating badly from the industry mean. The dividing line for distinguishing between current and long term assets is one year; although, modern financial accounting theorists & regulators have tried to smudge that line, so standards do not always adhere to that line. Therefore, any seedlings for resale should be booked as inventory while those for potting as investment. It's been some time since I've looked at the standards closely, but this used to fall under \"\"property, plant, & equipment\"\". Generally, it is a \"\"capital expenditure\"\" by the oldest definition. It is not necessary to obsess over initial bookings because inventory turnover will quickly resolve itself, so a simple running or historical rate can be applied to the seedling purchases. The books will now appear more normal, and better subsequent strategic decisions can now be made.\"",
"title": ""
},
{
"docid": "77eace4c4744e927720c62b309b3214e",
"text": "Certainly sounds worthwhile to get a CPA to help you with setting up the books properly and learning to maintain them, even if you do it yourself thereafter. What's your own time worth?",
"title": ""
},
{
"docid": "d55e2123743cdd8329b8a35345731e11",
"text": "In addition to the expatriation case already mentioned by Ben Miller, traders/investors are required to use mark-to-market accounting on certain investments. These go by Section 1256 contracts due to the part of the law that defines them. Mark-to-market is also required on straddles (combination of a long and and a short position in equities that are expected to vary inversely to each other). Mark-to-market means that you have to treat the positions as if you closed them at their end-of-year market value (even if you still have the position across the new year).",
"title": ""
},
{
"docid": "3291ee40c53d2a8029846397a034b05e",
"text": "The actual financial statements should always be referenced first before opening or closing a position. For US companies, they are freely available on EDGAR. Annual reports are called 10-Ks, and quarterly reports are called 10-Qs. YHOO and GOOG do a great job of posting financials that are quickly available, but money.msn has the best. These should be starting point, quick references. As you can see, they may all have the same strange accounting. Sometimes, it's difficult to find the information one seeks in the consolidated financial statements as in this case, so searching through the filing is necessary. The notes can be helpful, but Ctrl-F seems to do everything I need when I want something in a report. In AAPL's case, the Interest expense can be found in Note 3.",
"title": ""
},
{
"docid": "b9db0b7887a063e58b947c0f70c752d4",
"text": "Reading and analyzing financial statements is one of the most important tasks of Equity Analysts which look at a company from a fundamental perspective. However, analyzing a company and its financial statements is much more than just reading the absolute dollar figures provided in financial statements: You need to calculate financial ratios which can be compared over multiple periods and companies to be able to gauge the development of a company over time and compare it to its competitors. For instance, for an Equity Analyst, the absolute dollar figures of a company's operating profit is less important than the ratio of the operating profit to revenue, which is called the operating margin. Another very important figure is Free Cash Flow which can be set in relation to sales (= Free Cash Flow / Sales). The following working capital related metrics can be used as a health check for a company and give you early warning signs when they deviate too much: You can either calculate those metrics yourself using a spreadsheet (e.g. Excel) or use a professional solution, e.g. Bloomberg Professional, Reuters Eikon or WorldCap.",
"title": ""
},
{
"docid": "956c4b8421dcdae2a37ff8d135d43cce",
"text": "In general stock markets are very similar to that, however, you can also put in limit orders to say that you will only buy or sell at a given price. These sit in the market for a specified length of time and will be executed when an order arrives that matches the price (or better). Traders who set limit orders are called liquidity (or price) makers as they provide liquidity (i.e. volume to be traded) to be filled later. If there is no counterparty (i.e. buyer to your seller) in the market, a market maker; a large bank or brokerage who is licensed and regulated to do so, will fill your order at some price. That price is based on how much volume (i.e. trading) there is in that stock on average. This is called average daily volume (ADV) and is calculated over varying periods of time; we use ADV30 which is the 30 day average. You can always sell stocks for whatever price you like privately but a market order does not allow you to set your price (you are a price taker) therefore that kind of order will always fill at a market price. As mentioned above limit orders will not fill until the price is hit but will stay on book as long as they aren't filled, expired or cancelled.",
"title": ""
}
] |
fiqa
|
192c444a29e9f088026372bc0fa4f60e
|
How much can you write off on a car lease through a LLC?
|
[
{
"docid": "aec159d832b416596b4ba5e39324d200",
"text": "An expense is an expense. You can deduct your lease payment subject to some limitations, but you don't make out by having more expenses. Higher expenses mean lower profit. Is leasing better than owning? It depends on the car you'd buy. If your business doesn't benefit from flashiness of your car, then buying a quality used car (a few years old at most) would probably be a wiser decision financially. I'd think hard about whether you really need an up-to-date car.",
"title": ""
}
] |
[
{
"docid": "3b4fe471620d50e5a84a040ceb454af1",
"text": "It's wrong in several situations: One, the business owner counts this as a business expense, which it is not, and therefore reduces the company's profit and taxes. That would be tax avoidance and probably criminal. Two, someone who is not the sole owner counts this as a business expense, which it is not, reduces the company's profit and when profits are shared, the company pays out less money to the other owners. That's probably fraud. Third, if the owner or owners of a limited liability company draw out lots of money from the company with the intent that the company should go bankrupt with tons of debt that the owners are not going to pay, while keeping the money they siphoned off for themselves. That would probably bankruptcy fraud. Apart from being wrong, there is the obvious risk that you lose control over your company's and your own expenses, and might be in for a nasty surprise if the company has to pay out money and there's nothing left. That would be ordinary stupidity. If you have to tell your employees that you can't pay their salaries but offer them to admire your brand new Ferrari, that's something I'd consider deeply unethical.",
"title": ""
},
{
"docid": "73476d4891f0c410c689123c015f63e0",
"text": "\"Assuming you are talking about an LLC in the United States, there are no tax repercussions on the LLC itself, because LLCs use pass-through taxation in the U.S., meaning that the LLC does not pay taxes. Whatever you take out of the LLC in the form of distributions goes onto your personal income tax as ordinary income, and you pay personal income tax on it. See this link on the subject from the Nolo.com web site: Tax treatment of an LLC from the Nolo.com web site Repayment of your loan by the LLC would just be another business expense for the business itself. I guess the question would then turn on what your personal tax repercussion would be for payments received from the LLC on the loan. I would guess (and I emphasize \"\"guess\"\") that you would pay tax on any interest gain from the loan payments, which makes the assumption you made the loan to include interest. If not (in other words, if you made this an interest-free loan) then it would be considered a wash for tax purposes and you would have no tax liability for yourself. To reiterate, the LLC (if it is a U.S.. entity) does not pay taxes. Taxation of LLC income is based on whatever distributions the principals take out of it, which is then claimed as taxable personal income. My apologies to littleadv for not making my prior answer (I deleted it) more clear about my answer assuming you were speaking of a U.S.-chartered LLC. I hope this helps. Good luck!\"",
"title": ""
},
{
"docid": "c32fc1a5d359b2cf5d01df4273c82101",
"text": "LLC in NJ. You are awesome my friend. I have the LLC started. Im just getting the low voltage waiver and deciding on the payment system but this seems to work. I can just simply print them out the invoice. I gotta check with Amazon but this was extremely helpful.",
"title": ""
},
{
"docid": "fab076774b036cd9084c4f5e2bad63c9",
"text": "I'm not an expert, but here's my $0.02. Deductions for business expenses are subject to the 2% rule. In other words, you can only deduct that which exceeds 2% of your AGI (Adjusted Gross Income). For example, say you have an AGI of $50,000, and you buy a laptop that costs $800. You won't get a write-off from that, because 2% of $50,000 is $1,000, and you can only deduct business-related expenses in excess of that $1,000. If you have an AGI of $50,000 and buy a $2,000 laptop, you can deduct a maximum of $1,000 ($2,000 minus 2% of $50,000 is $2,000 - $1,000 = $1,000). Additionally, you can write off the laptop only to the extent that you use it for business. So in other words, if you have an AGI of $50,000 and buy that $2,000 laptop, but only use it 50% for business, you can only write off $500. Theoretically, they can ask for verification of the business use of your laptop. A log or a diary would be what I would provide, but I'm not an IRS agent.",
"title": ""
},
{
"docid": "baafc7faa6bfbfcb4e5e51674043a1bd",
"text": "Assuming your country is the United States there is. See schedule C line 9 and the corresponding instructions. There are many rules associated with this, in some cases the entire purchase can be written off but typically if the truck is only used for business. Most people write off partial usage in the form of credits for mileage. You are best to consult with a CPA once your business earns a profit. Good luck.",
"title": ""
},
{
"docid": "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": "ceeecc34e00810972aa028a778fd4c31",
"text": "The LLC will file its own business taxes which may or may not have business level income and expenses. At the end, the LLC will issue Schedule K-1 tax forms to the members, that based on their percentage ownership, will reflect the percentage share of the income/losses. From an individual standpoint, the members need only worry about the K-1 form they receive. This has quite a few pass-through categories from the LLC, but the Income/Loss may be the only used one. The individual will likely include the K-1 by filing a Schedule-E along with their 1040 form. The 1040 Schedule-E has some ability to deduct expenses as an individual. Generally it's best not to commingle expenses. Additional schedule-E expense reporting is generally for non-reimbursed, but related business expenses. If a member paid certain fees for the LLC, it is better for the LLC to reimburse him and then deduct the expense properly. Schedule-E is on a non-LLC, personal level.",
"title": ""
},
{
"docid": "a53d039df4a55a0bd546570e4d0f657b",
"text": "\"A lease is a rental plain and simple. You borrow money to finance the expected depreciation over the course of the lease term. This arrangement will almost always cost more over time of your \"\"ownership.\"\" That does not mean that a lease is always a worse \"\"deal.\"\" Cars are almost always a losing proposition; save for the oddball Porsche or Ferrari that is too scarce relative to demand. You accept ownership of a car and it starts to lose value. New cars lose value faster than used cars. Typically, if you were to purchase the car, then sell it after 3 years, the total cost over those three years will work out to less total money than the equivalent 36 month lease. But, you will have to come up with a lot more money down, or a higher monthly payment, and/or sell the car after 36 months (assuming the pretty standard 36 month lease). With this in mind, some cars lease better than others because the projected depreciation is more favorable than other brands or models. Personally, I bought a slightly used car certified pre-owned with a agreeable factory warranty extension. My next car I may lease. Late model cars are getting so unbelievably expensive to maintain that more and more I feel like a long term rental has merit. Just understand that for the convenience, for the freeing up of your cash flow, for the unlikelihood of maintenance, to not bother with resale or trading the car in, a lease will cost a premium over a purchase over the same time frame.\"",
"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": "2dc2dfe450a48df2c777876f86fd96ba",
"text": "I have a colleague who always leases cars first. He's very well off, has piles of money in savings, owns a home, and the cherry on top, he could just write a check for the car.... He sees the lease as an insurance policy on the first couple of years of the car's life. If it gets in an accident or he finds something about it he doesn't like, he can give it back to the dealer at the end of the term with no hassle and move on to the next car. Some people value the fact that a lease is a rental. If you're leasing a luxury car or something you couldn't otherwise afford, no amount of mental gymnastics will turn this in to a good idea. Separately, you should never make a down payment on a lease. If the car is totaled early on, you will not recoupe the money you put down. The issue here is that while the numbers all work out the same between a lease and a purchase your situation is different. If the leased car is totaled, the bank gets its money back from an insurer. If that payment doesn't cover the value of the car, the GAP insurance will cover it. In either situation, if there's an excess remaining it will be returned to you. The issue is the excess may not fully replace your down payment. If you then went to lease another car you would need to come up with that down payment again because you couldn't just simply choose to lease a used car; like you could in the case of a purchase. Additionally, GAP is generally included in a lease whether you want it or not. As far as I'm concerned it doesn't make financial sense to mitigate the value of the GAP coverage once you've decided to live in a lease situation.",
"title": ""
},
{
"docid": "538680ffbeda237b411a08ebf7cd17fd",
"text": "My assumption here is that you paid nearly 32K, but also financed about 2500 in taxes/fees. At 13.5% the numbers come out pretty close. Close enough for discussion. On the positive side, you see the foolishness of your decision however you probably signed a paper that stated the true cost of the car loan. The truth in lending documents clearly state, in bold numbers, that you would pay nearly 15K in interest. If you pay the loan back early, or make larger principle payments that number can be greatly reduced. On top of the interest charge you will also suffer depreciation of the car. If someone offered you 31K for the car, you be pretty lucky to get it. If you keep it for 4 years you will probably lose about 40% of the value, about 13K. This is why it is foolish for most people to purchase a new vehicle. Not many have enough wealth to absorb a loss of this size. In the book A Millionaire Next Door the author debunks the assumption that most millionaires drive new cars. They tend to drive cars that are pretty standard and a couple of years old. They pay cash for their cars. The bottom line is you singed documents indicating that you knew exactly what you were getting into. Failing any other circumstances the car is yours. Talking to a lawyer would probably confirm this. You can attempt to sell it and minimize your losses, or you can pay off the loan early so you are not suffering from finance charges.",
"title": ""
},
{
"docid": "ad462ecbfc5f54f1f9fd156f8790e689",
"text": "20% is almost certainly too high. I agree with 2%, as a very rough rule. It will vary significantly depending on the industry. I generally calculate an average of the previous 2-3 years working capital, and deduct that from cash. Working capital is Current Assets less Current Liabilities. Current Assets is comprised of cash, prepaid expenses, and significantly, accounts receivable. This means that CA is likely to be much higher than just cash, which leaves more excess cash after liabilities are deducted. Which reduces EV, which makes the EV/EBITDA ratio look even more pricey, as Dimitri noted. But a balance sheet is just a snapshot of the final day of the quarter. As such, and because of seasonal effects, it's critical to smooth this by averaging several periods. After calculating this for a few companies, compare to revenue. Is it close to 2%?",
"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": "6d864190cdecc0a7b03e663b49b5604b",
"text": "It's my understand that leasing is never the better overall deal, with the possible exception of a person who would otherwise buy a brand new car every 2 or 3 years, and does not drive a lot of miles. Note: in the case of a company car, Canadian taxes let you deduct the entire lease payment (which clearly has some principal in it) if you lease, while if you buy you can only deduct the interest, and must depreciate the car according to their schedule. This can make leasing more attractive to those buying a car through a corporation. I don't know if this applies in the US. The numbers you ran through in class presumably involved calculating the interest paid over the term of the loan. Can you not just redo the calculation using actual interest and lease numbers from a randomly chosen current car ad? I suspect if you do, you will discover leasing is still not the right choice.",
"title": ""
},
{
"docid": "8cd2b0cad322b4f13659c8aa60ac7af7",
"text": "There are a few things you should keep in mind when getting another vehicle: DON'T use dealership financing. Get an idea of the price range you're looking for, and go to your local bank or find a local credit union and get a pre-approval for a loan amount (that will also let you know what kind of interest rates you'll get). Your credit score is high enough that you shouldn't have any problems securing a decent APR. Check your financing institution's rules on financing beyond the vehicle's value. The CU that refinanced my car noted that between 100% and 120% of the vehicle's value means an additional 2% APR for the life of the loan. Value between 120% and 130% incurred an additional 3% APR. Your goal here is to have the total amount of the loan less than or equal to the value of the car through the sale / trade-in of your current vehicle, and paying off whatever's left out of pocket (either as a down-payment, or simply paying off the existing loan). If you can't manage that, then you're looking at immediately being upside-down on the new vehicle, with a potential APR penalty.",
"title": ""
}
] |
fiqa
|
4de86cc7f804aac13f9f0b1fa8a1ceee
|
Is there a difference between managerial accounting and financial accounting?
|
[
{
"docid": "76a9ed4fab9cd5cc581ca44a192f6936",
"text": "\"From Wikipedia: Managerial accounting is used primarily by those within a company or organization. Reports can be generated for any period of time such as daily, weekly or monthly. Reports are considered to be \"\"future looking\"\" and have forecasting value to those within the company.** Financial accounting is used primarily by those outside of a company or organization. Financial reports are usually created for a set period of time, such as a fiscal year or period. Financial reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company. At my university, managerial accounting focused more on the details of how costs were managed in the company, the future of the business, etc. while the courses that were considered financial accounting were more from the point of view of a financial analyst or investor, like you said. The financial accountancy material covered analysis of financial statements and the associated investment decisions, among other things. These areas overlapped in areas like the production of financial statements, since the company also needs to consider how analysts will interpret these statements, and dividend policy, corporate tax accounting, etc. The Wikipedia articles on managerial accounting and financial accounting may provide helpful information as well. Disclaimer: I took an introductory accounting course in university and nothing more, so my knowledge of the course structures, even at my alma mater, is secondhand recollection at best. I'm sure there are more similarities and differences of which I'm unaware, and I would assume that forensic accountants, auditors, etc. dabble in both these areas and others.\"",
"title": ""
}
] |
[
{
"docid": "9181a0442098d0d31d1e676242aa7daf",
"text": "\"tl;dr It's a difference between cash and cash equivalents and net cash and cash equivalents. Download the 2016 annual report from http://www.diageo.com/en-us/investor/Pages/financialreports.aspx On page 99 is the Consolidated Statement of Cash Flows at the bottom is a section \"\"Net cash and cash equivalents consist of:\"\" Net cash and cash equivalents consist of: 2016-06-30 2015-06-30 Cash and cash equivalents 1,089 472 Bank overdrafts (280) (90) 809 382 The difference between net cash of 809 million and 382 million is 427 million, matching the \"\"Change in Cash and Cash Equivalents\"\" from Yahoo. I do not know that bank overdrafts mean in this situation, but appears to cause cash to show up on balance sheet without being reflected in the net cash portions of the cash flow statement. And the numbers seem like balances, not year of year changes like the rest of the statement of cash flows. 2015 net CCE 382 2016 cash flow + 427 ---- 2016 net CCE 809 Cash from overdrafts + 280 ---- 2015 balance sheet cash 1,089\"",
"title": ""
},
{
"docid": "2747532012caf19a07d2e6b3a29df97f",
"text": "I'm in MIS with a comajor in International Business at a top 10 school for Business. I am thinking about adding Accounting as a double major. It all depends on what you want to do with your future and where you want to go. I wouldn't personally do Finance unless you're at a top recruiting school. Accounting is by far the most stable though, you will always find a job. It is regarded as the language of Business",
"title": ""
},
{
"docid": "ba5bf7b67849af2a301c29a925ef0c59",
"text": "The technical skills (excel, matlab, econometrics) others posted are absolutely essential, but I have seen a ton of world class number crunchers who could not put anything in context. My advice: - Read any annual report for any company you find somewhat interesting, aim for reading 2 or 3 a week. This is the best way to learn real world macro economics and get a very strong grasp on financial accounting - Practice writing about what you learn.",
"title": ""
},
{
"docid": "420d39d6d31b8ce2982d48cb4065f66f",
"text": "To me that says nothing good about the manager that said it. You can't quantify everything, and managing the intangibles is a big part of what a manager's supposed to do. If they're just dealing in numbers, they're just a bad approximation of an accountant.",
"title": ""
},
{
"docid": "75260e7774ee476972d911e43cb412db",
"text": "\"There are some tedious parts for sure - often times people hear \"\"Finance\"\" and think invoices, accounting, etc., but I would say it's less that 10% of my role. I do handle the budgeting process - what I have enjoyed about that is that it offers a window into the strategy of the firm, and whether they are making investments in areas that align with their strategic objectives. This is another good question to ask as you get to know different teams - does the FP&A/Finance group have a seat at the table in strategic discussions. In any corp fin function, I think you will find that the more finance is valued as a partner to the business, the more interesting your work will be.\"",
"title": ""
},
{
"docid": "24fdc1ed97d7e0a99735fbd9cbb571ac",
"text": "Finance encompasses many disciplines. What aspect of finance would you like to work in? A hedge fund analyst is very different from a portfolio manager who is also very different from an accountant. All of those would technically fall under finance, but your background for those careers would be very different.",
"title": ""
},
{
"docid": "257116992df00710237576f5bac1cec2",
"text": "In the US there's no significant difference between what a business can deduct and what an individual can deduct. However, you can only deduct what is an expense to produce income. Businesses are allowed to write off salaries, but individuals can't write off what they pay their gardener or maid (at least in the US) If you're a sole proprietor in the business of managing properties - you can definitely deduct payments to gardeners or maids. Business paying for a gardener on a private property not related to producing the income (like CEO's daughter's house) cannot deduct that expense for tax purposes (although it is still recorded in the business accounting books as an expense - with no tax benefit). Businesses are allowed to deduct utility expenses as overhead, individuals cannot Same thing exactly. I can deduct utility expenses for my rental property, but not for my primary residence. Food, shelter, clothing and medical care are fundamental human needs, but we still pay for them with after-tax money, and pay additional sales tax. Only interest (and not principal) on a mortgage is deductible in the US, which is great for people who take out mortgages (and helps banks get more business, I'm sure), but you're out of luck if you pay cash for your house, or are renting. Sales taxes are deductible. You can deduct sales taxes you paid during the year if you itemize your deduction. You can chose - you either deduct the sales taxes or the State income taxes, whatever is more beneficial for you. BTW in many states food and medicine are exempt from sales tax. Medical expenses are deductible if they're significant compared to your total income. You can deduct medical expenses in excess of 10% of your AGI. With the ACA kicking in - I don't see how would people even get to that. If your AGI is low you get subsidies for insurance, and the insurance keeps your expenses capped. For self-employed and employed, insurance premiums are pre-tax (i.e.: not even added to your AGI). Principle for mortgage is not deductible because it is not an expense - it is equity. You own an asset, don't you? You do get the standard deduction, even if your itemized (real) deductions are less - business don't get that. You also get an exemption amount (for your basic living needs), which businesses don't get. You can argue about the amounts - but it is there. In some States (like California) renters get tax breaks for renting, depending on the AGI. CA renters credit is phasing out at AGI of about $60K, which is pretty high.",
"title": ""
},
{
"docid": "e8fdb8bd557a09997281ae84779c7003",
"text": "I just want to clarify that accounting and finance are two very different fields and if you're looking into finance you should get a finance degree, not an accounting degree. It is much more versatile. Finance is forward-looking, accounting is backward-looking. If you want to take online courses then take them from a reputable state school which offers them. Don't get a degree from an online-only school; even if they aren't a scam, you will have a degree from an online-only school.",
"title": ""
},
{
"docid": "39901689d87f33aa1067214b33177033",
"text": "Buy an accounting for MBA's book and go through that. It's the absolute base of finance. I can't see how you can even wrap your head around most of the articles in FT or in the Economist if you don't know what a balance sheet, income statement, cashflow statement or statement of shareholders equity is. This is absolutely a requirement for any understanding of the finance sector, or you'll become just another schmoe on CNBC.",
"title": ""
},
{
"docid": "8b27a63bdb0730b88a8c021fafa174de",
"text": "Both US GAAP and IFRS are accrual basis frameworks. 99.9% of businesses report under those frameworks (or their local gaaps, but still accrual based). Usually it's public sector entities which are cash-basis in my experience. Anyway, accrual basis has more to do with revenue recognition, not taxation, so that's not really relevant here. The value date of an invoice (ie in which moment it becomes taxable) depends on tax legislation (which sets the rules to determine the so called date of taxable event), not so much on accounting principles. In many cases taxable rules are intertwined with cash collection/payment, however, to prevent creative accounting for tax evasion purposes. For example, provisions for various uncertain future events might be required by accounting rules, but the corresponding expenses are generally not deductible for tax purposes (so you won't be able to deduct them until the event actually occurs and you pay).",
"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": "6d19500998654ae4a95b5adbfe8450b8",
"text": "\"P/E is price to earnings, or the price of the company divided by annual earnings. Earnings, as reported, are reported on accrual basis. Accrual basis accounting is...without going too deep, like taking a timeline, chopping it up and throwing different bits and pieces of every year into different piles. Costs from 2008 might show up in 2011, or the company might take costs in 2011 that aren't necessarily costs until 2012. Examples would include one-time charges for specific investments, like new shipping centers, servers for their hosting services, etc. Free cash flow is the amount of cash Amazon is generating from its operations. Free cash flow is almost always different from earnings because it's the amount of Earnings + adjustments for non-cash activities - capital expenditures (long-term investments.) Earnings is one thing. Cash generation is a completely different animal. There are plenty of companies that \"\"earn\"\" billions, but only have a few hundred million in cash to show for it because their earnings have to be reinvested into new stuff to grow/maintain the business. To have a free cash flow yield of 2.5% is to have a company valued at $40 for each $1 of free cash flow that the company generates each year. $1/$40 = 2.5%. SGA = Selling, General, & Administrative expenses. These are the costs of running the company - paying salaries, advertising, etc. This cost is second only to COGS, which is Cost of Goods Sold. Currently, Amazon pays $.774 for every $1 product it sells. Its operations add another ~$.20 to that total. After taxes, Amazon keeps about 2 cents of every dollar's worth of product it sells. This 2 cents is Amazon's net margin of 2%. Net margin is (net income)/(sales). If Amazon earned $3 for every $100 in sales it would have a net margin of 3%. Let me know if this makes no sense. If there's anything in particular that is especially confusing, definitely reply and I'll better clarify on specific items. Fire away with any questions, also. I love to discuss finance and accounting.\"",
"title": ""
},
{
"docid": "8f20d184f04a39ab58bee86c211d7adc",
"text": "\"To answer your question briefly: net income is affected by many things inside and outside of management control, and must be supplemented by other elements to gain a clear picture of a company's health. To answer your question in-depth, we must look at the history of financial reporting: Initially, accounting was primarily cash-based. That is, a business records a sale when a customer pays them cash, and records expenses when cash goes out the door. This was not a perfectly accurate system, as cashflow might be quite erratic even if sales are stable (collection times may differ, etc.). To combat problems with cash-based accounting, financial reporting moved to an accrual-based system. An accrual is the recording of an item before it has fully completed in a cash transaction. For example, when you ship goods to a customer and they owe you money, you record the revenue - then you record the future collection of cash as a balance sheet item, rather than an income statement item. Another example: if your landlord charges you rent on December 31st for the past year, then in each month leading up to December, you accrue the expense on the income statement, even though you haven't paid the landlord yet. Accrual-based accounting leaves room for accounting manipulation. Enron is a prime example; among other things, they were accruing revenue for sales that had not occurred. This 'accelerated' their income, by having it recorded years before cash was ever collectible. There are specific guidelines that restrict doing things like this, but management will still attempt to accelerate net income as much as possible under accounting guidelines. Public companies have their financial statements audited by unrelated accounting firms - theoretically, they exist to catch material misstatements in the financial statements. Finally, some items impacting profit do not show up in net income - they show up in \"\"Other Comprehensive Income\"\" (OCI). OCI is meant to show items that occurred in the year, but were outside of management control. For example, changes in the value of foreign subsidiaries, due to fluctuations in currency exchange rates. Or changes in the value of company pension plan, which are impacted by the stock market. However, while OCI is meant to pick up all non-management-caused items, it is a grey area and may not be 100% representative of this idea. So in theory, net income is meant to represent items within management control. However, given the grey area in accounting interpretation, net income may be 'accelerated', and it also may include some items that occurred by some 'random business fluke' outside of company control. Finally, consider that financial statements are prepared months after the last year-end. So a company may show great profit for 2015 when statements come out in March, but perhaps Jan-March results are terrible. In conclusion, net income is an attempt at giving what you want: an accurate representation of the health of a company in terms of what is under management control. However it may be inaccurate due to various factors, from malfeasance to incompetence. That's why other financial measures exist - as another way to answer the same question about a company's health, to see if those answers agree. ex: Say net income is $10M this year, but was only $6M last year - great, it went up by $4M! But now assume that Accounts Receivable shows $7M owed to the company at Dec 31, when last year there was only $1M owed to the company. That might imply that there are problems collecting on that additional revenue (perhaps revenue was recorded prematurely, or perhaps they sold to customers who went bankrupt). Unfortunately there is no single number that you can use to see the whole company - different metrics must be used in conjunction to get a clear picture.\"",
"title": ""
},
{
"docid": "e51b2c1c0f24eb4c0d15cd0e8086e9ee",
"text": "\"Monkey, Big four accounting firms have FRM departments. Maybe you could apply to one of those. FRM is mostly about Credit Risk (Loans, advances, receivables) and Market Risk (IR, FX). I'm trying to \"\"break into\"\" credit risk myself, but materials are difficult to find. It's about modeling portfolio default probabilities and losses given default. You'll impress with basic programming and advanced prob&stats. Can you ask your professor to recommend a book on Credit Risk? For Market Risk, I know that a lot of the work guys do is pricing IR and FX swaps in Bloomberg. Take a class in derivatives, if you can.\"",
"title": ""
},
{
"docid": "faf9f9e338f01e03d85205250f7a0f20",
"text": "\"You're looking at the \"\"wrong\"\" credit. Here's the Wikipedia article about the bookkeeping (vs the Finance, that you've quoted) term.\"",
"title": ""
}
] |
fiqa
|
75b48f9d84ff491fc33fc6055d3abe35
|
How to register LLC in the US from India? [duplicate]
|
[
{
"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": ""
}
] |
[
{
"docid": "0659e8e19457737aa39ca2904088ade5",
"text": "Thank you for the pointers! Did you find it necessary to hire an attorney to set up your llc? Have you found any real down-sides with the llc option? It seems to be great in most circumstances from what I'm reading/hearing, there must be some negatives.",
"title": ""
},
{
"docid": "115d0a051dd222f63829ad5e3d860058",
"text": "You should not form a company in the U.S. simply to get the identification number required for a W-8BEN form. By establishing a U.S.-based company, you'd be signing yourself up for a lot of additional hassle! You don't need that. You're a European business, not a U.S. business. Selling into the U.S. does not require you to have a U.S. company. (You may want to consider what form of business you ought to have in your home country, however.) Anyway, to address your immediate concern, you should just get an EIN only. See businessready.ca - what is a W8-BEN?. Quote: [...] There are other reasons to fill out the W8-BEN but for most of you it is to make sure they don’t hold back 30% of your payment which, for a small company, is a big deal. [...] How do I get one of these EIN US taxpayer identification numbers? EIN stands for Employer Identification Number and is your permanent number and can be used for most of your business needs (e.g. applying for business licenses, filing taxes when applicable, etc). You can apply by filling out the Form SS-4 but the easier, preferred way is online. However, I also found at IRS.gov - Online EIN: Frequently Asked Questions the following relevant tidbit: Q. Are any entity types excluded from applying for an EIN over the Internet? A. [...] If you were incorporated outside of the United States or the U.S. territories, you cannot apply for an EIN online. Please call us at (267) 941-1099 (this is not a toll free number) between the hours of 6:00 a.m. to 11:00 p.m. Eastern Time. So, I suggest you call the IRS and describe your situation: You are a European-based business (sole proprietor?) selling products to a U.S.-based client and would like to request an EIN so you can supply your client with a W-8BEN. The IRS should be able to advise you of the correct course of action. Disclaimer: I am not a lawyer. Consider seeking professional advice.",
"title": ""
},
{
"docid": "f7613eabc169fad3fafc9d947392f98d",
"text": "The IRS' primary reference Pub 519 Tax Guide for Aliens -- current year online (current and previous years downloadable in PDF from the Forms&Pubs section of the website) says NO: Students and business apprentices from India. A special rule applies .... You can claim the standard deduction .... Use Worksheet 5-1 to figure your standard deduction. If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Note the last sentence, which is clearly an exception to the 'India rule', which is already an exception to the general rule that nonresident filers never get the standard deduction. Of course this is the IRS' interpretation of the law (which is defined to include ratified treaties); if you think they are wrong, you could claim the deduction anyway and when they assess the additional tax (and demand payment) take it to US Tax Court -- but I suspect the legal fees will cost you more than the marginal tax on $6300, even under Tax Court's simplified procedures for small cases.",
"title": ""
},
{
"docid": "fd5be2826839269830e2c39aba971b96",
"text": "I know that there are a lot service on the internet helping to form an LLC online with a fee around $49. Is it neccessarry to pay them to have an LLC or I can do that myself? No, you can do it yourself. The $49 is for your convenience, but there's nothing they can do that you wouldn't be able to do on your own. What I need to know and what I need to do before forming an LLC? You need to know that LLC is a legal structure that is designed to provide legal protections. As such, it is prudent to talk to a legal adviser, i.e.: a Virginia-licensed attorney. Is it possible if I hire some employees who living in India? Is the salary for my employees a expense? Do I need to claim this expense? This, I guess, is entirely unrelated to your questions about LLC. Yes, it is possible. The salary you pay your employees is your expense. You need to claim it, otherwise you'd be inflating your earnings which in certain circumstances may constitute fraud. What I need to do to protect my company? For physical protection, you'd probably hire a security guard. If you're talking about legal protections, then again - talk to a lawyer. What can I do to reduce taxes? Vote for a politician that promises to reduce taxes. Most of them never deliver though. Otherwise you can do what everyone else is doing - tax planning. That is - plan ahead your expenses, time your invoices and utilize tax deferral programs etc. Talk to your tax adviser, who should be a EA or a CPA licensed in Virginia. What I need to know after forming an LLC? You'll need to learn what are the filing requirements in your State (annual reports, tax reports, business taxes, sales taxes, payroll taxes, etc). Most are the same for same proprietors and LLCs, so you probably will not be adding to much extra red-tape. Your attorney and tax adviser will help you with this, but you can also research yourself on the Virginia department of corporations/State department (whichever deals with LLCs).",
"title": ""
},
{
"docid": "b15d163a90235fed85ed81ab71d178ac",
"text": "\"Do I understand correctly, that we still can file as \"\"Married filing jointly\"\", just add Schedule C and Schedule SE for her? Yes. Business registration information letter she got once registered mentions that her due date for filing tax return is January 31, 2016. Does this prevent us from filing jointly (as far as I understand, I can't file my income before that date)? IRS sends no such letters. IRS also doesn't require any registration. Be careful, you might be a victim to a phishing attack here. In any case, sole proprietor files a regular individual tax return with the regular April 15th deadline. Do I understand correctly that we do not qualify as \"\"Family partnership\"\" (I do not participate in her business in any way other than giving her money for initial tools/materials purchase)? Yes. Do I understand correctly that she did not have to do regular estimated tax payments as business was not expected to generate income this year? You're asking or saying? How would we know what she expected? In any case, you can use your withholding (adjust the W4) to compensate.\"",
"title": ""
},
{
"docid": "525af4c7a0373197b4a72adee488f3df",
"text": "The US will let you keep as much money as you want to within its borders regardless of your citizenship. You'll owe capital gains tax in the US unless you're subject to a tax treaty (which you would probably make as an election in the year of the transaction). I don't know if India has any rules about how it governs its citizens' foreign assets, but the US requires citizens to file a form annually declaring foreign accounts over $10,000. You may be subject to additional Indian taxes if India taxes global income like the US does.",
"title": ""
},
{
"docid": "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": "fb5105cef9bf56d1edb545ff9441e282",
"text": "The data provided in your question is irrelevant. The data that you provided in the comments (that you're physically present in the US while doing the work) is the only relevant information needed to answer your question. You will need to pay taxes in the US for the earnings. The company invoicing the US client will also need to pay taxes in the US for its earnings from these invoices. You can transfer between bank accounts and deposit whatever you want anywhere you want, no-one cares (with respect to the US taxes, check with Indian tax accountant about Indian requirements).",
"title": ""
},
{
"docid": "e4a96168ebf9048f2eaba2e0c6ff53fc",
"text": "\"As you said, in the US LLC is (usually, unless you elect otherwise) not a separate tax entity. As such, the question \"\"Does a US LLC owned by a non-resident alien have to pay US taxes\"\" has no meaning. A US LLC, regardless of who owns it, doesn't pay US income taxes. States are different. Some States do tax LLCs (for example, California), so if you intend to operate in such a State - you need to verify that the extra tax the LLC would pay on top of your personal tax is worth it for you. As I mentioned in the comment, you need to check your decision making very carefully. LLC you create in the US may or may not be recognized as a separate legal/tax entity in your home country. So while you neither gain nor lose anything in the US (since the LLC is transparent tax wise), you may get hit by extra taxes at home if they see the LLC as a non-transparent corporate entity. Also, keep in mind that the liability protection by the LLC usually doesn't cover your own misdeeds. So if you sell products of your own work, the LLC may end up being completely worthless and will only add complexity to your business. I suggest you check all these with a reputable attorney. Not one whose business is to set up LLCs, these are going to tell you anything you want to hear as long as you hire them to do their thing. Talk to one who will not benefit from your decision either way and can provide an unbiased advice.\"",
"title": ""
},
{
"docid": "3c4e68fdc0aab40d75d449b9f4deae58",
"text": "Thanks for your input. > Are you talking about domicile? Nope, **domestication**. See #2 [here]. I've seen that term on a few places on the web. I am a single-member LLC. I think I'll probably get a biz attorney. Do you think it matters whether the attorney is within the state I currently reside as opposed to the one I'm moving to?",
"title": ""
},
{
"docid": "40d1d12be6d8959552901e3a29b6f550",
"text": "Is it really necessary? If $800 / year registration fee is too much to you, an LLC is apparently not something you need right now. Many people conduct web-based business online on personal terms. My suggestion is that you focus on your business first and try to grow it as much as you can before you get down to a company.",
"title": ""
},
{
"docid": "d402dc885d5d6ef6afda8b49de969880",
"text": "You're doing business in the US and derive income from the US, so I'd say that yes, you should file a non-resident tax return in the US. And in Connecticut, as well, since that's where you're conducting business (via your domestic LLC registered there). Since you paid more than $600 to your contractor, you're probably also supposed to send a 1099 to him on that account on behalf of your LLC (which is you, essentially, if you're the only member).",
"title": ""
},
{
"docid": "d76bbc43cd3bf93b8b9e3ae212e99e7b",
"text": "\"Depends on the State. In California, for example, you pay a franchise tax of $800 every year just for having LLC, and in addition to that - income tax on gross revenue. But in other States (like Wyoming, for example) there's no taxes at all, only registration fees (which may still amount to ~$100-300 a year). IRS doesn't care about LLC's at all (unless you chose to treat is as a corporation). You need to understand that in the US we have the \"\"Federal Government\"\" (IRS is part of that) and the \"\"State Government\"\" that deals with business entities, in each of the 50 States. Since you're talking about Italy, and not EU, you should similarly be talking about the relevant State, and not US.\"",
"title": ""
},
{
"docid": "fe5cfb09968ac4444f604fac9e9b16c9",
"text": "According to the W9 instructions you are considered a U.S. person if: According to the following section, it looks like a C corporation may be easier then an LLC: All of this information can be found here: http://www.irs.gov/pub/irs-pdf/fw9.pdf Hope this helps!",
"title": ""
},
{
"docid": "e8426dce951f35375138937670093510",
"text": "In any case you need a CA. Please consult one. I am selling a plot of land that I own in India. This would be treated as capital gains event and you would owe taxes on the gains. I would like to purchase an apartment in India for my parents use. Yes you can. You maybe able to offset some gains on land sale against the apartment. Would like to gift part the money (about INR 20 lakhs) towards my US born son's college education in the US. As you are NRI; Under FEMA, you can transfer funds from your NRO account to US. A form 15CAB and 15CB need to be submitted to the bank to enable transer.",
"title": ""
}
] |
fiqa
|
0826ad059368d526817387b5786f3ed1
|
How can a company charge a closed credit card?
|
[
{
"docid": "4292a7bd8f3414af85c8a085f74175c4",
"text": "If this is a pre-authorized automatic billing, and if you have signed any contract with the merchant, cancelling may not block any future charges from the merchant. Happens with gyms, magazines, memberships quite often. There is a time period after the cancellation this will occur, then it'll be completely dead.",
"title": ""
},
{
"docid": "74cb59c84c8f5b2738b01dd113047091",
"text": "You should contact the Company who purchased your visa balance and ask/write the following questions: 1. Dispute the charge from Emusic.com as invalid. 2. Instruct that no future charges will be accepted. 3. How come Emusic.com was allowed to debit your account? 4. When did they purchased your visa account? 5. Ask for written verification that they purchased your account from the original company? such as a bill of sale? 6. Ask if the company is a registered debt collector in your state? 7. The FAIR DEBT COLLECTION PRACTICES ACT (FDCPA) may apply to your circumstance(s) and provide for $1,000 in damages to the consumer and $1,000 attorney fees from a third party debt collector per violation. You may want to seek the advice of an attorney to help determine if you have a good cause to sue the company and Emusic. If you did not receive anything form Emusic.com or your contract/agreement ended without a cancelation/early termination fee, ALso, file a written dispute with Emusic.com. Check your credit report. Many companies automatically charge your accounts through automatic payments after termination of the agreement because they get away with it in the U.S., if the consumer does not take steps to dispute the current charge and stop future charges from occurring in the future. Never use auto pay unless required and the service is essential. When using auto pay use a dedicated account not your main checking account. It is less of a pain in the neck to close the account if its your 2nd or 3rd checking account and not your only account.",
"title": ""
},
{
"docid": "bc7685ecec082bcae6aa5d12e0fb7397",
"text": "Wow, I had never heard of this before but I looked into it a bit and Mikey was spot on. It seems that if you don't pay attention to the fine print when making credit card purchases (as most of us tend to skip) many companies have stipulations that allow continued charges if they are recurring fees (monthly, yearly, etc.) even after you have cancelled the card.",
"title": ""
}
] |
[
{
"docid": "00e5b6849aa3eb56d71d5a50da47a537",
"text": "\"Well, I answered a very similar question \"\"Credit card payment date\"\" where I showed that for a normal cycle, the average charge isn't due for 40 days. The range is 35-55, so if you want to feel good about the float just charge everything the day after the cycle closes, and nothing else the rest of the month. Why is this so interesting? It's no trick, and no secret. By the way, this isn't likely to be of any use when you're buying gas, groceries, or normal purchases. But, I suppose if you have a large purchase, say a big TV, $3000, this will buy you extra time to pay. It would be remiss of me to not clearly state that anyone who needs to take advantage of this \"\"trick\"\" is the same person who probably shouldn't use credit cards at all. Those who use cards are best served by charging what they can afford to pay at that moment and not base today's charges on what paychecks will come in by the due date of the credit card bill.\"",
"title": ""
},
{
"docid": "e18a6ca79cdbe05daed214257d18350c",
"text": "\"This is somewhat unbelievable. I mean if you had a business of collecting debts, wouldn't you want to collect said debts? Rather than attempting to browbeat people with these delinquent debts into paying, you have someone volunteering to pay. Would you want to service that client? This would not happen in just about any other industry, but such is the lunacy of debt collecting. The big question is why do you need this cleared off your credit? If it is just for a credit score, it probably is not as important as your more recent entries. I would just wait it out, until 7 years has passed, and you can then write the reporting agencies to remove it from your credit. If you are attempting to buy a home or similarly large purpose and the mortgage company is insisting that you deal with this, then I would do the following: Write the company to address the issue. This has to be certified/return receipt requested. If they respond, pay it and insist that it be marked as paid in full on your credit. I would do this with a money order or cashiers check. Done. Dispute the charge with the credit reporting agencies, providing the documentation of no response. This should remove the item from your credit. Provide this documentation to the mortgage broker. This should remove any hangup they might have. Optional: Sue the company in small claims court. This will take a bit of time and money, but it should yield a profit. There was a post on here a few days ago about how to do this. Make part of any settlement to have your name cleared of the debt. It is counterproductive to fall into the trap of the pursuit of a perfect credit score. A person with a 750 often receives the same rate options as a person with 850. Also your relationship with a particular lender could trump your credit score. Currently I am \"\"enjoying\"\" the highest credit score of my life, over 820. Do you know how I did it? I got out of debt (including paying off the mortgage) and I have no intentions of ever going into debt for anything. So why does it matter? It is a bit ridiculous.\"",
"title": ""
},
{
"docid": "59c250a05c383c5e3f9f3bceaaa60434",
"text": "\"In 2010, the Restore Online Shoppers' Confidence Act was passed, which prohibited certain activities, most of which had to do with online sites sharing your CC info with third parties. However, the final part of the act deals with \"\"negative option\"\" marketing, which is basically what you're describing - \"\"We will charge you unless you say no\"\". It requires three components to allow a negative option: If you did not explicitly enroll in automatic payment, and made the initial purchase online (or made your most recent purchase online, I suspect) then it sounds like this was a violation of this act. On the other hand, the act isn't terribly careful about defining terms, and is really quite vague in a lot of places, so it's possible they would argue they are not using a 'negative option' scheme but instead simply charging your bill similar to how your phone company might use autopay. If it was not online, then this probably doesn't apply. Instead, the FTC's rule on Negative Option with regard to sale of goods applies. Title 16 Part 425 covers this; this law is much less limiting as to what the marketer can do.\"",
"title": ""
},
{
"docid": "29d14308ca1707942c0fe3a844c420fe",
"text": "I did just what you suggest. The card company honored the charge, they told me the temporary number was solely for the purpose of assigning a number to one vendor/business. So even though I set a low limit, the number was still active and the card company paid the request. Small price to pay, but it didn't go as I wished. For this purpose, I've used Visa/Mastercard gift cards. They are often on sale for face value and no additional fees.",
"title": ""
},
{
"docid": "02f0413df7c358b8eb5703f2298318a0",
"text": "\"The fee structures are different for PIN-based transactions versus \"\"credit\"\" style transactions. Usually there is a fixed fee (around $0.50) for PIN-based transactions and a varying fixed fee plus a percentage for credit transactions (something like $0.35 + 2.5%). There are also value limits for PIN-based transactions... I believe that you cannot exceed $400 in most places. The signature feature of credit transactions isn't there to protect you, it signifies your agreement to comply with the contract you and the credit card issuer, protecting the merchant from some types of chargeback. Some merchants waive the signature for low dollar value transactions to increase convenience and speed up the lines. All of your other questions are answered elsewhere on this site.\"",
"title": ""
},
{
"docid": "5b0d95869358bf04e59f28abbe0058a2",
"text": "\"Ever wonder why certain businesses won't accept certain credit cards? (The sign above the register saying \"\"Sorry, we don't accept AmericanExpress\"\"). It's because they don't want to pay that credit card company's transaction fees. One of the roles of the credit card company is to facilitate the transaction process between the customer (you) and the store. And now that using credit cards over cash or check is so ingrained in our culture, it creates extra work for the customer to make purchases at an establishment that is cash-only. Credit card companies know this, and so do businesses. So businesses will partner with credit card companies so that customers can use their cards. This way, everything is handled electronically (this can also benefit the business, since there's added security as they're not dealing with cash directly, and they don't have to manually count as much cash later). However a business may only budget a certain amount of their profits they want taken by credit card transactions. So if a company's fees are too high (say AmericanExpress, for example) and they are banking on you already having a Visa card, the company isn't going to go out of its way to provide the AmericanExpress option for you. If it were free for the business to use a credit card company's service at their stores, then they would all just provide the option for every card! So the credit card company making money is all contingent on you spending your money by using their credit card. You use the card, and the store pays the company for the transaction.\"",
"title": ""
},
{
"docid": "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": "e17891853f8ba14a06247af56ef889c3",
"text": "\"No. Credit card companies will typically not care about your individual credit card account. Instead they look either at a \"\"package\"\" of card accounts opened at roughly the same time, or of \"\"slices\"\" of cardholder accounts by credit rating. If an entire package's or slice's balance drops significantly, they'll take a look, and will adjust rates accordingly (often they may actually decrease rates as an incentive to increase you use of the card). Because credit card debt is unstructured debt, the bank cannot impose an \"\"early payment penalty\"\" of any kind (there's no schedule for paying it off, so there's no way to prove that they're missing out on $X in interest because you paid early). Generally, banks don't like CC debt anyway; it's very risky debt, and they often end up writing large balances off for pennies on the dollar. So, when you pay down your balance by a significant amount, the banks breathe a sigh of relief. The real money, the stable money, is in the usage fees; every time you swipe your card, the business who accepted it owes the credit card company 3% of your purchase, and sometimes more.\"",
"title": ""
},
{
"docid": "f2247122968b09670d2cec77d633d95f",
"text": "\"There is no universal answer here. Some card issuers will. Some that will close the account will warn you first. For my \"\"sock drawer\"\" cards I'll try to take each out semi-annually to make a single transaction, then put it back in the drawer. I've heard you should charge something quarterly, I've never had one closed with semi-annual charges.\"",
"title": ""
},
{
"docid": "c435f5c350f31fd9c7567c22ec82571e",
"text": "Obviously, the credit card's administators know who this charge was submitted by. Contact them, tell them that you don't recognize the charge, and ask them to tell you who it was from. If they can't or won't, tell them you suspect fraud and want it charged back, then wait to see who contacts you to complain that the payment was cancelled. Note that you should charge back any charge you firmly believe is an error, if attempts to resolve it with the company aren't working. Also note that if you really ghink this is fraud, you should contact your bank and ask them to issue a new card number. Standard procedures exist. Use them when appropriate.",
"title": ""
},
{
"docid": "c41b9a53c96d790c841c235e6ad05cd0",
"text": "\"Tough spot. I'm guessing the credit cards are a personal line of credit in their name and not the company's (the fact that the business can be liquidated separately from your parents means they did at least set up an LLC or similar business entity). Using personal debt to save a company that could have just been dissolved at little cost to their personal credit and finances was, indeed, a very bad move. The best possible end to this scenario for you and your parents would be if your parents could get the debt transferred to the LLC before dissolving it. At this point, with the company in such a long-standing negative situation, I would doubt that any creditor would give the business a loan (which was probably why your parents threw their own good money after bad with personal CCs). They might, in the right circumstances, be able to convince a judge to effectively transfer the debt to the corporate entity before liquidating it. That puts the debt where it should have been in the first place, and the CC companies will have to get in line. That means, in turn, that the card issuers will fight any such motion or decision tooth and nail, as long as there's any other option that gives them more hope of recovering their money. Your parents' only prayer for this to happen is if the CCs were used for the sole purpose of business expenses. If they were living off the CCs as well as using them to pay business debts, a judge, best-case, would only relieve the debts directly related to keeping the business afloat, and they'd be on the hook for what they had been living on. Bankruptcy is definitely an option. They will \"\"re-affirm\"\" their commitment to paying the mortgage and any other debts they can, and under a Chapter 13 the judge will then remand negotiations over what total portion of each card's balance is paid, over what time, and at what rate, to a mediator. Chapter 13 bankruptcy is the less damaging form to your parent's credit; they are at least attempting to make good on the debt. A Chapter 7 would wipe it away completely, but your parents would have to prove that they cannot pay the debt, by any means, and have no hope of ever paying the debt by any means. If they have any retirement savings, anything in their name for grandchildren's college funds, etc, the judge and CC issuers will point to it like a bird dog. Apart from that, their house is safe due to Florida's \"\"homestead\"\" laws, but furniture, appliances, clothing, jewelry, cars and other vehicles, pretty much anything of value that your parents cannot defend as being necessary for life, health, or the performance of whatever jobs they end up taking to dig themselves out of this, are all subject to seizure and auction. They may end up just selling the house anyway because it's too big for what they have left (or will ever have again). I do not, under any circumstance, recommend you putting your own finances at risk in this. You may gift money to help, or provide them a place to live while they get back on their feet, but do not \"\"give till it hurts\"\" for this. It sounds heartless, but if you remove your safety net to save your parents, then what happens if you need it? Your parents aren't going to be able to bail you out, and as a contractor, if you're effectively \"\"doing business as\"\" Reverend Gonzo Contracting, you don't have the debt shield your parents had. It looks like housing's faltering again due to the news that the Fed's going to start backing off; you could need that money to weather a \"\"double-dip\"\" in the housing sector over the next few months, and you may need it soon.\"",
"title": ""
},
{
"docid": "7c5c80b89c7a12c454f67efe2fd2f61a",
"text": "\"Typically, the CC company itself won't follow the customer very far upon a default (though it certainly can act as its own debt collector, or hire an agency for a fee to do the collection). What most often happens: Once they do that, assuming they win the lawsuit, they can do the following: They cannot \"\"force\"\" you into bankruptcy, but they might make it so you have no better options (if bankruptcy is less painful than the above, which it often is). They certainly can (and will) report to the credit bureaus, of course. For more information, Nolo has a decent help site on this subject. Different jurisdictions have slightly different rules, so look up yours. Here is an example (this is from Massachusetts). Not every debt is sued for, of course; particularly, pay attention to the statute of limitations in your state. (In mine, it's seven years, for example.) And it's probably worth contacting someone locally (a legitimate non-profit debt relief agency, or your state's help agency if they have one) to find local rules and regulations.\"",
"title": ""
},
{
"docid": "ebe8905a496ad4f1d60a1c4af85f0f24",
"text": "\"Yes, merchants are charged. Visa/Mastercards charge 1 to 2%, of which some part goes to the Visa/MC and the rest to the issuing bank (if you have an HDFC Bank Visa card, HDFC bank is the issuing bank. And yes, you can get a discount from the merchant - while it probably isn't allowed by Visa/MC, some merchants still provide discounts for cash. But you won't get it at places like supermarkets or large brand retail. Late fees + charges can be huge. In multiple ways - first, they all seem to charge a late fee of Rs. 300-500 nowadays, plus service tax of 10%. Then, you will pay interest from the bill date to the eventual payment date. And further, any new purchases you make will attract interest from the day they are made (no \"\"interest-free\"\" period). Interest rates in India on CCs are over 3% a month, so you really must get rid of any open balances. I've written a longish piece on this at http://in.finance.yahoo.com/news/The-good-bad-ugly-credit-yahoofinancein-2903990423.html\"",
"title": ""
},
{
"docid": "8d3a8e900cecf7ac3996efc9e605a862",
"text": "\"I think your confusion comes from the negative impact when a creditor writes off your bad credit and ceases attempting to collect it. \"\"Chargebacks\"\" as you call them are an attempt to undo fraudulent charges on your card, whether from stolen credit card info or from a merchant who is using shady business practices. For what it's worth, if you joined on December 20, January 20 seems like a reasonable date for the next billing cycle, with the December 31 date reflecting the fact that their system couldn't automatically bill you the day you joined. I also think it's reasonable for you to ask them to refund the bill for the second month if you do not plan to use their gym further. So the dispute seems like a reasonable one on both sides. Good luck.\"",
"title": ""
},
{
"docid": "b13b0be848881f207f07f18d7f4d49e1",
"text": "Your credit card company will send you funds, probably a paper check, if you have a negative balance. So this situation will not last long. I'd guess 3-6 months at most, depending on the company's procedures.",
"title": ""
}
] |
fiqa
|
0dedd82709ce83d5af9ec367ff39f12a
|
How long does a bank's “Know Your Customer” (KYC) process typically take?
|
[
{
"docid": "bcdd5b7a7ca2418631c4fb294d0f65cd",
"text": "The idea is to positively identify you with properly issued government ID. If you show up with your passport, visa, and another form of government-issued identification which the banker can recognize and use (for example - international driver's license, a US-State driver's license, EU internal ID, etc) - it will be quick and painless. Usually, at least two distinct forms of identification are required from foreigners: passport and something else, and not the visa stamped in a passport, that just shoes to show your status upon your W9/W8 requirements may be based. You'll probably be asked for a TIN before any payments are made to you by the bank. If you don't have anything credible to show as your identification it will be equally quick and painless, except that you'd be leaving without a bank account. If your identity cannot be established properly there and then - they will not serve you.",
"title": ""
}
] |
[
{
"docid": "b427ead79d6bc0ca641b104f8705fd3c",
"text": "I would presume this goes entirely through the credit card network rather than the banking network. I am guessing that it's essentially the same operation as if you had returned something purchased on a card to the store for credit, but I'm not sure whether it really looks like a vendor credit to the network or if it is marked as a different type of transaction.",
"title": ""
},
{
"docid": "a09fd048db24b6c49ff5d6bcaf62ade3",
"text": "Transfers are defined to arrive on a specific number of business days, nearly always one business day (if you submit it before the cutoff time). The exact number of days depends on the receiver bank, but when you try to create a transfer, it will tell you when it will arrive, before you send it out.",
"title": ""
},
{
"docid": "fb0ec6287c551631f64d37bf35bb7dc5",
"text": "\"For most banks this is not the case. Transfers within the bank are usually instantaneous. It is not uncommon for banks to draw out the length of transactions because while the money is \"\"transferring\"\" or \"\"settling\"\" it is actually sitting on the bank's balance sheet, being lent out but not earning any interest. A good deal for them when you aggregate over the millions of customers they have. Your bank may be trying to squeeze a few pennies of interest out of you. Delays in transactions also allow their fraud team the flexibility to investigate transactions if they want to. Normally they probably don't but if the bank delays all transactions, then those being investigated will not be aware of it.\"",
"title": ""
},
{
"docid": "ceb0169d967e05a1d9e2cb1df64a3729",
"text": "It depends on the broker. The one I use (Fidelity) will allow me to buy then sell or sell then buy within 3 days even though the cash isn't settled from the first transaction. But they won't let me buy then sell then buy again with unsettled cash. Of course not waiting for cash to settle makes you vulnerable to a good faith violation.",
"title": ""
},
{
"docid": "fffb74ba8313f7a711cd5eb56455bbde",
"text": "Navy Federal Credit Union recently added this feature. It is free for members making a deposit to their personal checking account, though you have to be a member for at least 90 days to be eligible. I have an all-in-one printer with flatbed scanner and availed myself of the service a couple of days ago. There wasn't any additional software involved as everything was done through the web browser, as shown the scan deposit demo. The only problem I had was figuring out how to align the check for it to be scanned completely (had to place the check in the middle of the scanner, aligned lengthwise; that was more of a hassle to figure out that one would suppose). That was it. I immediately received an e-mail confirmation that my deposit had been approved and processed. While Navy Federal's scan deposit FAQ is specific to them, of course, it is pretty comprehensive and gives one an idea of the general restrictions applied to the service.",
"title": ""
},
{
"docid": "e86d9e681a078f8aa2a70b189d89be01",
"text": "TIL, thanks for the pricing ballpark. Yeah, auto-freeze would piss of their customers, but the alternative is entire cohorts of consumers *learning* to ramp down credit utilization *and teaching their children* because the consumer credit industry can't get its data management act together and the PITA factor rises so high consumers start to get taught by the breaches and their expenses and time to repair it on their end is not worth the credit: that's a secular long term trend that would piss off shareholders.",
"title": ""
},
{
"docid": "5d9228e10db25f68942d77425abb2fd5",
"text": "It takes about 4-5 workdays, maybe it depends on the day also when you start the transfer. I transferred an amount last Wednesday, and the same amount on Thursday too. Both transactions hit the destination account on the next Tuesday, with a difference of 2 minutes.",
"title": ""
},
{
"docid": "761f768d6cdb089c8bda6e11a9c686d1",
"text": "\"You have what is called in the biz a \"\"thin file\"\". Check with a Credit Union. They will get you a secured card or maybe a straight credit card. They usually will graduate you from a secured card to a real credit card in 12-18 months. Then you are on your way. You should also sign up for Creditkarma to get your credit report updated every week. They make their money on referring people to credit card companies so you might be able to kill two birds with one stone.\"",
"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": "0d0741eee12de03a7beb55b8a9fe3b40",
"text": "Set up a meeting with the bank that handles your business checking account. Go there in person and bring your business statements: profit and loss, balance sheet, and a spreadsheet showing your historical cash flow. The goal is to get your banker to understand your business and your needs and also for you to be on a first-name basis with your banker for an ongoing business relationship. Tell them you want to establish credit and you want a credit card account with $x as the limit. Your banker might be able to help push your application through even with your credit history. Even if you can't get the limit you want, you'll be on your way and can meet again with your banker in 6 or 12 months. Once your credit is re-established you'll be able to shop around and apply for other rewards cards. One day you might want a line of credit or a business loan. Establishing a relationship with your banker ahead of time will make that process easier if and when the time comes. Continue to meet with him or her at least annually, and bring updated financial statements each time. If nothing else, this process will help you analyze your business, so the process itself is useful even if nothing comes of it immediately.",
"title": ""
},
{
"docid": "6d6484df1dd699dba84e32c627210e21",
"text": "Another explanation is that they keep your money three days to make money with it, because they can. The other reasons might have been valid 100 years ago, and no bank would voluntarily cut that down until forced by law. Example: In Europe, bank to bank transfers used to take three days, until a law forced them to give next day, and suddenly it was possible.",
"title": ""
},
{
"docid": "1ea2344208d80cbee5e6b1a582e4a3e6",
"text": "As it is international debits, this will take a while. BofA is right, You have to dispute this with Card Issuer, i.e. HDFC. The worst case for me was around 1 month. Keep chasing and sending out reminders every 3-4 days.",
"title": ""
},
{
"docid": "6456413b7ec143609b45ca93f8c59625",
"text": "Generally, unless you're doing a wire transfer, bank transactions are processed in batches overnight. So the credit card company won't be able to confirm your transfer until the next business day (it may take even longer for them to actually receive the money).",
"title": ""
},
{
"docid": "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": "d146a6977cc30bc9a7693a2d74881d0e",
"text": "Technically, it's only when you need to pass money through. However consider that the length the account has been open builds history with the financial institution, so I'd open ASAP. Longer history with the bank can help with getting approved for things like business credit lines, business cards, and other perks, though if you're not making money with that business, seek out a bank that does not charge money to have a business account open with them.",
"title": ""
}
] |
fiqa
|
b20ade943cee96557597e6671452a125
|
Sage Instant Accounts or Quickbooks?
|
[
{
"docid": "de17d65e3851f9880f148e6e04324901",
"text": "The company I work with uses Intuit QuickBooks Online and have had zero problems with it. The functionality is effective and it fits the size of our company as well. (Not huge, but I wouldn't consider it a 'small business') Also, you can try a 30 day free trial. QuickBooks Simple Start focuses on small business accounting, so for this reason it has a cleaner interface and is simple to use. QuickBooks Simple Start compared to Quicken Home This article doesn't exactly have a bright light shining on Quickbooks, but I think it's fair to show you other alternatives: http://www.pcmag.com/article2/0,2817,2382514,00.asp [Note that it is from 2011]",
"title": ""
},
{
"docid": "ecee48966e5afa4be10a044574cde76f",
"text": "\"Note: Specific to UK. I can't recommend anything higher than Crunch - they act as your accountant and have their own cloud accounting software, so it's more expensive than just using cloud accounting software, but if you use an accountant to do your year-end anyway, then they cost about the same as using cloud accounting software plus using an accountant to do your year-end. The thing I like (as a software development contractor) is that I don't have to know or worry about different ledger accounts, or journal entries, or any of the other weird accounting things, etc. Most cloud accounting software claim to simplify accounting \"\"so that you can concentrate on running your business\"\" whereas the reality is that you still have to spend ages learning how to be an accountant just to fill it in correctly. With Crunch that's actually true, it does actually make it simple. I've used Crunch, Sage, and Xero, so my sample-set isn't very big - just thought I'd share my experiences. If you value your time and get annoyed by having to create multiple internal transfers between different ledgers just to do something simple, it's for you. This probably sounds like a sales pitch, but I have nothing to do with them and nothing to gain by recommending them. The only reason I'm so passionate is I started a new business to do an online shop and tried to use Crunch, but they don't do retail businesses. Only contractors/freelancers or simple service-based businesses (their software is geared up specifically for that which I guess is why it's more simple than the others). Anyway, so now I'm annoyed at having to use the more complicated ones.\"",
"title": ""
}
] |
[
{
"docid": "9e3aeb1e220e254a1b835e73c9e24e8b",
"text": "\"Since this is a cooperative I'm guessing your partners may want to be able to view the books so another key point you may want to consider is collaboration. QuickBooks desktop has all of these same issues because it is meant to be used on a single desktop. We're in an age of mobile devices, and especially in a business like landscaping it would be nice if certain aspects of record keeping could be done at the point and time where they are incurred. I'd argue you want a Software as a Service (SaaS) accounting package as opposed to \"\"accounting software\"\" which might come on a CD in the form of QuickBooks, Sage and others. Additionally, most of these will also have guides to help make sure you are properly entering your records. Most of these SaaS products also have customer success teams to help you along should you need assistance. Depending on the level of your subscription you may get more sophisticated handling of taxes, customized invoices or integrated payroll. Your goal is to keep accurate records so you can better run your business and maintain obligations like filing taxes. You're not keeping the records just to have them. Keep them in a place where they will work for you and provide the insights and functionality that will help your business grow and become successful. Accounting software will always win in this scenario over a spreadsheet. FULL DISCLAIMER: I work for Kashoo, a simple cloud accounting product designed for small businesses. But the points I mention above are true for Xero, QuickBooks Online and Wave as well as Kashoo. And if you really want expertise to go with the actual software consider service providers with a platform like: Indinero, Bench, easyrecordbooks or Liberty Accounting.\"",
"title": ""
},
{
"docid": "5cd9bf9eeeb4256ee79f6605e933f98c",
"text": "\"I use TIAA-Cref for my 403(b) and Fidelity for my solo 401(k) and IRAs. I have previously used Vanguard and have also used other discount brokers for my IRA. All of these companies will charge you nothing for an IRA, so there's really no point in comparing cost in that respect. They are all the \"\"cheapest\"\" in this respect. Each one will allow you to purchase their mutual funds and those of their partners for free. They will charge you some kind of fee to invest in mutual funds of their competitors (like $35 or something). So the real question is this: which of these institutions offers the best mutual and index funds. While they are not the worst out there, you will find that TIAA-Cref are dominated by both Vanguard and Fidelity. The latter two offer far more and larger funds and their funds will always have lower expense ratios than their TIAA-Cref equivalent. If I could take my money out of TIAA-Cref and put it in Fidelity, I'd do so right now. BTW, you may or may not want to buy individual stocks or ETFs in your account. Vanguard will let you trade their ETFs for free, and they have lots. For other ETFs and stocks you will pay $7 or so (depends on your account size). Fidelity will give you free trades in the many iShares ETFs and charge you $5 for other trades. TIAA-Cref will not give you any free ETFs and will charge you $8 per trade. Each of these will give you investment advice for free, but that's about what it's worth as well. The quality of the advice will depend on who picks up the phone, not which institution you use. I would not make a decision based on this.\"",
"title": ""
},
{
"docid": "9e73b8c9ad91cf3c650c89a14d2f62db",
"text": "Quicken has tools for this, but they have some quirks so i hesitate to actually recommend it on that basis.",
"title": ""
},
{
"docid": "faef59d5875f40e992a989808dd55827",
"text": "Systems to research that may help you out: Less Accounting and Wave are great because they can import data from banks / credit cards. I know you said your bank doesn't export it but it seems like something as a small business you would want.",
"title": ""
},
{
"docid": "d6a9e0f25e6a651144af61739899b4ea",
"text": "Here's a link with comparison of various online and offline PF software: http://personalfinancesoftwarereviews.com/compare-personal-finance-software/",
"title": ""
},
{
"docid": "20e98e4667c085a816c0741afb09a41f",
"text": "I use QuickBooks online... It's really the best out there for the price, just make sure to never upgrade to an edition you aren't 100% sure you need or you're forever stuck essentially. That's the mess I'm in right now. Paying $20 more than necessary a month, but it's still cheaper than switching to, say, xero. The starter edition of QuickBooks online is a lot more powerful than the equivalent plans anywhere else for the price.",
"title": ""
},
{
"docid": "05d3ac6dcaba580e33c44aa4734bc879",
"text": "A special 24/7 available QuickBooks support phone number helpline for users who are getting any issues or trouble or errors. You are just one call away to get world class QuickBooks customer support service. Dial or call today to know exactly how we can help you. visit our page - https://events.com/r/en_US/registration/quickbooks-customer-support-phone-number-1855-441-4417-los-angeles-june-62185",
"title": ""
},
{
"docid": "f643e275d94fd71b891a92d9b7dee4e1",
"text": "\"Fair enough. FB extends out quite a bit from its core as billing software, but I don't know if it'd do the kind of inventory management you want. SAP, on the other hand, is as pricey as it is because it's *powerful* and \"\"enterprise ready\"\" ... probably way more than you need (or enough rope to hang yourself with, as they say). I wonder if the best solution might be to hire a competent contractor to fix / upgrade whatever your current system is lacking. I still recommend taking FreshBooks for a test run; it might just do the trick for you. Care to elaborate on why you're looking to replace the 10-year-old custom solution you've got?\"",
"title": ""
},
{
"docid": "4eb21a693fbd8bfccffd42ad8ca2d72a",
"text": "I use mint.com for tracking my finances. It works on mobile phones, tablets, and in a browser. If you don't mind the initial hassle of putting in the credentials you use to access your account online, you'll find that you're able to build a comprehensive picture of the state of your finances relatively quickly. It does a great job of separating the various types of financial transactions you engage in, and also lets you customize those classifications with tags. It's ad-supported, so there's no out-of-pocket cost to you, and it doesn't preclude you from using the personal finance software you already have on your phone.",
"title": ""
},
{
"docid": "03ac1825bcc0f4d4efa367730d88c525",
"text": "Our Finance organization does much of their reporting out of Excel being fed out of SSAS cubes, and beyond that, there's significant need for PowerPivot charts, forecasting, and Monte Carlo simulation, as well as significant use of various plugins and VBA code. We kept Office 365 ProPlus around for Finance and HR. For the rest of the organization, they don't need particularly advanced capabilities for slides, drawing, or word processing, or light spreadsheet capability and we're quite content to output to PDF, Google Sheets, and other things as needed, as well as using cost free alternatives to MS Exchange/Outlook, Visio, and Project. The collaboration is a particular plus, and Google Hangouts is really convenient working from multiple sites/screen sharing. We've done our best to keep our data centralized and universally accessible, in lieu of living in Excel spreadsheets and MS Access databases as tribal knowledge.",
"title": ""
},
{
"docid": "b490bab61c836b4b45405bf78db7ab16",
"text": "Update: I am now using another app called toshl and I am very satisfied with it. In fact, I am a paying customer. It is web based, but it has clients for iPhone, Android and Windows Phone as well. Another one, I tried is YNAB. Did you consider trying an online app? I am using Wesabe and I am happy with it. I found it much better these web-based ones because I can access my data from anywhere.",
"title": ""
},
{
"docid": "4bb4c6f31eaea21b14c16f88eaab362c",
"text": "\"One easy way to monitor costs in QuickBooks is to establish sub-bank accounts. For example, you may have an asset account called \"\"State Bank\"\" numbered 11100 (asset, cash and cash equivalents, bank). Convert this to a parent account for a middle school by making subaccounts such as At budget formation, transfer $800 from Operations 11110 to Family Fun Committee 11130. Then write all checks for Family Fun from the Family Fun 11130 subaccount. For fundraising, transfer $0 at budget formation to the X Grade accounts. Do deposit all grade-level receipts into the appropriate grade-level subaccounts and write all checks for the grades from the grade-level subaccounts. The downside to the above is that reconciling the check book each month is slightly more complicated because you will be reconciling one monthly paper bank statement to multiple virtual subaccounts. Also, you must remember to never write a check from the parent \"\"State Bank\"\" 11100, and instead write the checks from the appropriate subaccounts.\"",
"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": "4455296b4da807afafea1bbac8d675dd",
"text": "Lots of business do work and buy products for their customers then invoice them later think of landscapers or IT professionals. They keep track of the work and products on post-its they stick on their desks. Need further help, contact QuickBooks Support team by visit our site - https://www.wizxpert.com/quickbooks-support-help-phone-number/",
"title": ""
},
{
"docid": "fe71733a101a6794a0f35456fd068aa7",
"text": "My possible new job requires me to do dfast and ccar among others. A few questions 1) My background is public accounting and tax. I noted that these jobs requires experience from public firms. My past experience has nothing to do with banking. Any reasons? I have been reading up dfast in the past week and it seems they trust me to pick up fast. Another job ad from another bank indicates the same thing. 2) What type of job this is under? I tried risk analyst but quite a lot of times the results are quite different from what my job is. 3) What is the job outlook? My eventual plan is to a more data analyst role and/or job opportunities in EU. Currently in EA/SEA market. 4) Any programming language should I learn to speed up data extraction? I will be learning either python/r. And will surface 3 do? My current laptop is not working and the repair shop indicates the costs of repairing doesnt worth it.",
"title": ""
}
] |
fiqa
|
a633345a72804e6e396b7e6569d9bad9
|
Asset protection: When should an individual seriously consider shielding their assets?
|
[
{
"docid": "a11b3faa4f2d442093ab3f4f0a497ccc",
"text": "\"If your meaning of \"\"asset protection\"\" is buying gold and canned food in the name of a Nevada LLC because some radio guy said so, bad idea. For a person, if you have assets, buy appropriate liability limits with your homeowner/renter insurance policy or purchase an \"\"umbrella\"\" liability policy. This type of insurance is cheap. If you don't have assets, it may not be worth the cost of insuring yourself beyond the default limits on your renter's or homeowner's policy. If you have a business, you need to talk to your insurance agent about what coverage is appropriate for the business as a whole vs. you personally. You also need to talk to your attorney about how to conduct yourself so that your business interests are separated from your personal interests.\"",
"title": ""
}
] |
[
{
"docid": "5c31fd2ca20d45cccad3bed1bf0859cf",
"text": "\"Well.... If you have alllll your money invested, and then there's a financial crisis, and there's a personal crisis at the same time (e.g. you lose your job) then you're in big trouble. You might not have enough money to cover your bills while you find a new job. You could lose your house, ruin your credit, or something icky like that. Think 2008. Even if there's not a financial crisis, if the money is in a tax-sheltered retirement account then withdrawing it will incur ugly penalities. Now, after you've got an emergency fund established, things are different. If you could probably ride out six to twelve months with your general-purpose savings, then with the money you are investing for the long term (retirement) there's no reason you shouldn't invest 100% of the money in stocks. The difference is that you're not going to come back for that money in 6 months, you're going to come back for it in 40 years. As for retirement savings over the long term, though, I don't think it's a good idea to think of your money in those terms. If you ever lose 100% of your money on the stock market while you've invested in diversified instruments like S&P500 index funds, you're probably screwed one way or another because that represents the core industrial base of the US economy, and you'll have better things to worry about, like looking for a used shotgun. Myself, I prefer to give the suggestion \"\"don't invest any money in stocks if you're going to need to take it out in the next 5 years or so\"\" because you generally shouldn't be worried about a 100% loss of all the money in stocks your retirement accounts nearly so much as you should be worried about weathering large, medium-term setbacks, like the dot-com bubble crash and the 2008 financial crisis. I save the \"\"don't invest money unless you can afford to lose it all\"\" advice for highly speculative instruments like gold futures or social-media IPOs. Remember also that while you might lose a lot of your money on the stock market, your savings accounts and bonds will earn you pathetic amounts by comparison, which you will slowly lose to inflation. If you've had your money invested for decades then even during a crash you may still be coming out ahead relative to bonds.\"",
"title": ""
},
{
"docid": "a4f311b8e9a415d3b78b0ada9a971e97",
"text": "First off, I'm very sorry for your loss. Depending on when the money comes in I would park it and give it some time. After that, one of the best investments is paying off debt. Right now your net worth is less than 30K and that is really not even accessible until retirement. If the money is there to pay off the house I would do that. If there isn't enough to pay off the house then I would pay off the automobile and put all or a sizable portion of the remainder into the house. Now you have very little risk in your life and most likely much more monthly income to invest in 401K, IRAs, college funds or any other investment. Life insurance is mostly to replace your income if there are people counting on that income (spouse, kids, etc). Normally this would be invested to hopefully replace that income with the growth of the money. In your case it doesn't sound like you were relying on your father's income, so this can go to clean up current debt. Finally, depending on your relationship, what kind of person your father was and how he was with financials, what do you think he would want you to do with it?",
"title": ""
},
{
"docid": "bbe09b887ad9d055b33d437d3cc8b65f",
"text": "At 22yo, unless you have a terminal illness, you have many years to earn and save a lot more that you will have in your 401k right now (unless you have already been extremely lucky in the market with your 401k investments). This means that even if you lost everything in your 401k right now, it probably wouldn't hurt you that much over the long term. The net present value of all your future savings should far exceed the net present value of your 401k, if you plan to earn and save responsibly. So take as much risk as you want with it right now. There is no real benefit to playing safe with investments at your age. If you were asking me how much risk should you be taking with a $10m inheritance and no income or much prospects of an income, then I'd be giving you a very different answer.",
"title": ""
},
{
"docid": "1d9b7055c1522d9d7a7d11a6cd135f89",
"text": "Pay off the debt first. Life circumstances change without notice, and starting any stage of life with a debt puts you at a disadvantage. Luckily, your debt is small. Please also consider accumulating a 6 month emergency fund before making investments. This will further protect you when life hands you a curveball.",
"title": ""
},
{
"docid": "0e509a6832eed10fe457a8ba15858363",
"text": "Since the question asked for options, rather than advice, I’ll offer a few. And you can ignore the gratuitous advice that may sneak in. There are countries that will happily give you citizenship for a fee. And others where an investment of far less than your million will get you well on your way. Having citizenship and a passport from another country can be handy if your current one is or becomes unpopular or unstable. From data at numbeo.com, I estimate that my lifestyle would cost me $3300 (US) in Geneva, Switzerland, and that everywhere else on the planet would be less. I haven’t been to Geneva, but I have spent only $2500 (average) per month in eleven countries over three years, and could have been comfortable on far less. $2500/month will go through 1.2 million in only forty years, but if you use it to generate income, and are less wasteful than me, ... With the first few dollars you get, you might take steps to hedge the possibility of not actually getting it all. Appeals can take a long time, and if the defendant runs out of money or figures out how to hide, the size of the judgment is irrelevant. Believe strongly enough in something to donate money for/to it? I’ll leave the investment options to others.",
"title": ""
},
{
"docid": "844b080608d71038304278a98fc4281c",
"text": "It is not likely the YA would die in 10 years. Hence the investment the parents make in policy premiums would lose all of its money. Repeat: lose all money. On average, you'll slightly lose with insurance. It's there for peace of mind and to mitigate a catastrophe. It's not an investment. Of course, if the YA is likely to die suddenly, that might change things. But concealing medical information would be grounds for denying the policy claim.",
"title": ""
},
{
"docid": "13600689d517cc3f682b64709187c5e4",
"text": "Whatever you choose for a remedy (my first impulse is to suggest bankruptcy) you should protect your retirement plans. These are immune from most collection actions, the exception being govt debts (e.g. taxes) and student loans. The sad part is that the student loans won't go away except by paying them off. Miss one payment and it will hound you for 10 years. Bankruptcy will stop you from getting a home loan for only two years. Unless you have the discipline to live like a monk for a decade it sounds like you're headed for a train wreck. The kids will have to cut back to junior college or some other method of reducing costs and as hard as it sounds, don't cosign for any more student loans. Kids are more resilient than you think and they'll probably come up with their own solutions like scholarships, work study and off campus jobs. I hate to keep beating the bankruptcy horse but at least that way you could still keep your house and car. Otherwise you risk losing either or both from missed payments. I actually hope that you can avoid bankruptcy so I suggest first you talk to a financial adviser or bankruptcy attorney to see if this is in fact right for you. But if it's just the shame of the scarlet letter B then consider that pride doesn't keep a roof over your head or food in your belly.",
"title": ""
},
{
"docid": "a2bf1c47d53d91b23541aff73656f0c7",
"text": "\"is it worth it? That is for you to judge. The risks are having it blowup in your face, and you having to pay a penalty, or go to jail. The issue is how you keep it secret, and who you keep it secret from. If you have money in a secret account and keep it hidden even though you: You are taking a big risk. If the knowledge of the contents of the secret stash would cause a judge or government agency to make a different decision, you could face penalties ranging from monetary to jail time. The government could also decide that they need to determine the source of the funds. They may want to know if the money was \"\"earned\"\" through illegal means. They will want to determine if the funds should haven taxed not just on the interest but if the original income tax was ever collected. If the amounts are large enough the taxing authority and police will have a lot of fun pulling apart your entire financial history. Oh and the lawyers you pay to keep you out of jail will also have their fun. why do some people do it? They are greedy; or paranoid; or they don't trust others; or they are criminals.\"",
"title": ""
},
{
"docid": "69dd9dbb23a5fbb80ce41d7c0fa951cb",
"text": "\"Making these difficult portfolio decisions for you is the point of Target-Date Retirement Funds. You pick a date at which you're going to start needing to withdraw the money, and the company managing the fund slowly turns down the aggressiveness of the fund as the target date approaches. Typically you would pick the target date to be around, say, your 65th birthday. Many mutual fund companies offer a variety of funds to suit your needs. Your desire to never \"\"have to recover\"\" indicates that you have not yet done quite enough reading on the subject of investing. (Or possibly that your sources have been misleading you.) A basic understanding of investing includes the knowledge that markets go up and down, and that no portfolio will always go up. Some \"\"recovery\"\" will always be necessary; having a less aggressive portfolio will never shield you completely from losing money, it just makes loss less likely. The important thing is to only invest money that you can afford to lose in the short-term (with the understanding that you'll make it back in the long term). Money that you'll need in the short-term should be kept in the absolute safest investment vehicles, such as a savings account, a money market account, short-term certificates of deposit, or short-term US government bonds.\"",
"title": ""
},
{
"docid": "26a57903414688b1996637fdfd548d71",
"text": "Yes. If you're still 20 years off from retirement, it wouldn't make sense to liquidate everything; it'd be an attempt to time the market. If you're *very* worried and retirement is soon, then it'd be something to consider (albeit bonds would make more sense at that point).",
"title": ""
},
{
"docid": "e7c606e17d41f33ef5ca789b461f6c8b",
"text": "(Disclosure - I am a real estate agent, involved with houses to buy/sell, but much activity in rentals) I got a call from a man and his wife looking for an apartment. He introduced itself, described what they were looking for, and then suggested I google his name. He said I'd find that a few weeks back, his house burned to the ground and he had no insurance. He didn't have enough savings to rebuild, and besides needing an apartment, had a building lot to sell. Insurance against theft may not be at the top of your list. Don't keep any cash, and keep your possessions to a minimum. But a house needs insurance for a bank to give you a mortgage. Once paid off, you have no legal obligation, but are playing a dangerous game. You are right, it's an odds game. If the cost of insurance is .5% the house value and the chance of it burning down is 1 in 300 (I made this up) you are simply betting it won't be yours that burns down. Given that for most people, a paid off house is their largest asset, more value that all other savings combined, it's a risk most would prefer not to take. Life insurance is a different matter. A person with no dependents has no need for insurance. For those who are married (or have a loved one), or for parents, insurance is intended to help survivors bridge the gap for that lost income. The 10-20 times income value for insurance is just a recommendation, whose need fades away as one approaches independence. I don't believe in insurance as an investment vehicle, so this answer is talking strictly term.",
"title": ""
},
{
"docid": "8b3fafaa967083f6341aed5116b52e70",
"text": "There is not necessarily a need to prevent what you describe - 'turning insurance on before high risk situations'. They just need to calculate the premiums accordingly. For example, if an insurance needs to take 50$/year for insuring your house against flood, and a flood happens in average every 10 years, if you just insure the two weeks in the ten years where heavy rain is predicted, you might pay 500$ for the two weeks. The total is the same for the insurance - they get 500$, and you get insurance for the dangerous period. In the contrary; if a flooding (unexpectedly) happens outside your two weeks, they are out. From the home owners view, 500$ for two weeks when heavy rains and floods are expected, and nothing otherwise sounds pretty good, compared to 50$ every year. It is the same of course, but psychology works that way.",
"title": ""
},
{
"docid": "5ab3e118c60058987f14696f65d3471e",
"text": "\"You don't mention what kind of insurance you're talking about, but I'll just address one angle on the question. For some kinds of insurance, such as health insurance (in the US), auto insurance, and homeowner's insurance, you may be insuring against an event that you would not be able to pay for without the insurance. For instance, if you are at fault in a car accident and injure someone, they could sue you for $100,000. A lot of people don't have $100,000. So it's not even a matter of \"\"I'll take the risk of having to pay it when the time comes\"\"; if the time comes, you could lose virtually everything you own and still have to pay more from future earnings. You're not just paying $X to offset a potential loss of $Y; you're paying $X to offset a potential derailment of your entire life. It is plausible that you could assign a reasonable monetary value to that potential \"\"cost\"\" that would mean you actually come out ahead in the insurance equation. It is with smaller expenses (such as insuring a new cellphone against breakage) that insurance becomes harder to justify. When the potential nonfinancial \"\"collateral damage\"\" of a bad event are less, you must justify the insurance expenses on the financial consequences only, which, as you say, is often difficult.\"",
"title": ""
},
{
"docid": "31c85c9a1a3ff37a154976266b53107e",
"text": "There is no such animal. If you are looking to give up FDIC protection, investing in a short-term, high quality bond fund or a tax-free bond fund with short durations is a good way to balance safety vs. return. Make sure you buy funds -- buying individual bonds isn't appropriate for folks without a high net worth. Another option is savings bonds, but the yields on these is awful today.",
"title": ""
},
{
"docid": "67b39f9d9a0fa81fd6d9e382b9752159",
"text": "\"The conclusion that \"\"it's bad to have 0% utilization\"\" from the data you linked is misleading. When people have zero history, they also have zero utilization. The fact that generally people with zero utilization are credit virgins is what drives that average score. Obviously, people with zero, or limited, history will have significantly lower credit scores than folks with some utilization and a lot of history. In response to the couple comments regarding the dip on attaining 0% utilization. The data shows a 67 point drop in average score from 0% to 1%-10%. The stark deviation in average score between those two groups is not the result of a couple point change because of zero utilization.\"",
"title": ""
}
] |
fiqa
|
d9af2f6cbb6820a2007fc6789be09ee1
|
What prevents interest rates from rising?
|
[
{
"docid": "b8d815174889601581e7a93298b8cf93",
"text": "A lot of loans are taken out on a fixed rate basis, so the rate is part of the contract and is therefore covered by contract law. If the loan is taken out on a variable basis then in principle the rate can rise within the terms of the contract. If a particular lender tries to raise its rates out of line with the market then its customers will seek alternative, cheaper, loans and pay off their expensive loan if they can. If rates rise sharply in general due to unusual politico-economic circumstances then those with variable rate loans can find themselves in severe trouble. For example the base rate in the UK (and therefore variable mortgage rates closely tied to it) spiked sharply in the late 80s which caused severe stress to a lot of borrowers and undoubtedly pushed some into financial difficulties.",
"title": ""
},
{
"docid": "3338ec3d0d5b89a5e26b1e9989b9d8b9",
"text": "Interest rates are market driven. They tend to be based on the prime rate set by the federal reserve bank because of the tremendous lending capacity of that institution and that other loan originators will often fund their own lending (at least in part) with fed loans. However, there is no mandatory link between the federal reserve rate and the market rate. No law stipulates that rates cannot rise or fall. They will rise and fall as lenders see necessary to use their capital. Though a lender asking 10% interest might make no loans when others are willing to lend for 9%. The only protection you have is that we are (mostly) economically free. As a borrower, you are protected by the fact that there are many lenders. Likewise, as a lender, because there are many borrowers. Stability is simply by virtue of the fact that one market participant with inordinate pricing will find fewer counterparties to transact.",
"title": ""
},
{
"docid": "ce56e7d9f1405f3971ee597f12eac44f",
"text": "To protect yourself from an increase in interest rates get a fixed rate loan. The loan terms: interest rate, number of payments, monthly payments will be fixed for the loan. Of course if rate for the rest of the market drops during the period of the loan, you may be able to refinance the loan. But if you can't refinance, or won't refinance, the drop in rates for the rest of the market doesn't help you. If you want to be able to have your rate float you can get a variable rate loan. Of course it can float up, or it can float down. So you take that risk. Because of that risk adjustable rate loans start at a lower rate. If the market interest rate drops far enough many people will refinance into a fixed rate loan at a lower rate than they could have gotten at the start. For adjustable rate loans the lender, during the application process, details how the rate is determined. It is pegged to be x% above some national or international interest rate that they don't have any control over. If that base rate moves then your loan rate may move. They also specify how often it will adjust, and the maximum it can adjust between each adjustments and over the entire life of the loan. That rate that starts initially lower than the fixed rate loan is the enticement that many people have to pick an adjustable rate loan. Some do it because they believe they will payoff the loan before the rates get too high, or they will see enough increase in income so they can afford the higher monthly payment if rates rise. If they are wrong about these things they may find themselves in trouble. The terms of the adjustable rate loan still have to follow the terms of the contract: the lender can't change the % offset or the source used to used to set interest rate.",
"title": ""
},
{
"docid": "c0e8abc9b375caa02303b94bdb010151",
"text": "There do not appear to be any specific legal measures to prevent bankruptcies. In fact, they seems to be part of the means for which rates are raised, for the consequent aim of lowering inflation. See: The Budgetary Implications of Higher Federal Reserve Board Interest Rates by Dean Baker, Center for Economic and Policy Research. The Federal Reserve Board (Fed) is widely expected to start raising interest rates some time in 2015. The purpose of higher interest rates is to slow the economy and prevent inflation. This is done by reducing the rate of job creation and thereby reducing the ability of workers to achieve wage gains.",
"title": ""
}
] |
[
{
"docid": "0d5aab7d69f4d7dcc600f2e8dffe876e",
"text": "\"House prices do not go up. Land prices in countries with growing economies tend to go up. The price of the house on the land generally depreciates as it wears out. Houses require money; they are called money pits for a reason. You have to replace HVAC periodically, roofs, repairs, rot, foundation problems, leaks, electrical repair; and all of that just reduces the rate at which the house (not the land) loses value. To maintain value (of the house proper), you need to regularly rebuild parts of the house. People expect different things in Kitchens, bathrooms, dining rooms, doors, bedrooms today than they do in the past, and wear on flooring and fixtures accumulate over time. The price of land and is going to be highly determined by the current interest rates. Interest rates are currently near zero; if they go up by even a few percent, we can expect land prices to stop growing and start shrinking, even if the economy continues to grow. So the assumption that land+house prices go up is predicated on the last 35 years of constant rigorous economic growth mixed with interest rate decreases. This is a common illusion, that people assume the recent economic past is somehow the way things are \"\"naturally\"\". But we cannot decrease interest rates further, and rigorous economic growth is far from guaranteed. This is because people price land based on their carrying cost; the cost you have to spend out of your income to have ownership of it. And that is a function of interest rates. Throw in no longer expecting land values to constantly grow and second-order effects that boost land value also go away. Depending on the juristiction, a mortgage is a hugely leveraged investment. It is akin to taking 10,000$, borrowing 40,000$ and buying stock. If the stock goes up, you make almost 5x as much money; if it goes down, you lose 5x as much. And you owe a constant stream of money to service the debt on top of that. If you want to be risk free, work out how you'd deal with the value of your house dropping by 50% together with losing your job, getting a job paying half as much after a period of 6 months unemployment. The new job requires a 1.5 hour commute from your house. Interest rates going up to 12% and your mortgage is up for renewal (in 15 years - they climbed gradually over the time, say), optionally. That is a medium-bad situation (not a great depression scale problem), but is a realistic \"\"bad luck\"\" event that could happen to you. Not likely, but possible. Can you weather it? If so, the risk is within your bounds. Note that going bankrupt may be a reasonable plan to such a bit of bad luck. However, note that had you not purchased the house, you wouldn't be bankrupt in that situation. It is reasonably likely that house prices will, after you spend ~3% of the construction cost of the house per year, pay the mortgage on the land+house, grow at a rate sufficient to offset the cost of renting and generate an economically reasonable level of profit. It is not a risk-free investment. If someone tries to sell you a risk-free investment, they are almost certainly wrong.\"",
"title": ""
},
{
"docid": "d2c3ec39ec3c53bdfdd0d80414f2ef8f",
"text": "Inflation can go up for a number of reasons. Boom times can cause inflation, as everyone is making and spending a lot of money, so prices and inflation goes up. In times like these central banks usually increase interest rates to curb spending and thus bring down inflation. By raising interest rates the central bank is increasing the cost of borrowing money. So with high prices and a higher cost to borrowing money, most people start reducing their spending. When this happens businesses sell less stock and have increased costs (due to higher interest rates) so have to lay off staff or reduce their hours at work, so people will have even less money to spend. This causes prices to fall and reduces inflation and can result in a recession. At this point in time central banks start reducing interest rates to make the cost of borrowing money cheaper and stimulate people to start spending again. And so the cycle continues. The result in this case is that inflation itself didn't kerb demand, but was helped along by the central bank rising interest rates. Another reason causing inflation can be a restriction on the supply of certain goods or services. An example we went through about 2 years ago was when floods caused banana crops up in Northern Australia to be devastated. This caused a lack of supply in bananas for almost a year across Australia. The normal price for bananas here is between $1 to $3 per kg. During this period banana prices skyrocketed up to $14 per kg. The result: very few were buying bananas. So the increase in price here caused a reduction in demand directly.",
"title": ""
},
{
"docid": "28187df0941807dfabb9cb1a848d3531",
"text": "\"Keep in mind that the Federal Reserve Chairman needs to be very careful with his use of words. Here's what he said: It is arguable that interest rates are too high, that they are being constrained by the fact that interest rates can't go below zero. We have an economy where demand falls far short of the capacity of the economy to produce. We have an economy where the amount of investment in durable goods spending is far less than the capacity of the economy to produce. That suggests that interest rates in some sense should be lower rather than higher. We can't make interest rates lower, of course. (They) only can go down to zero. And again I would argue that a healthy economy with good returns is the best way to get returns to savers. So what does that mean? When he says that \"\"we can't make interest rates lower\"\", that doesn't mean that it isn't possible. He's saying that our demand for goods is lower than our ability to produce them. Negative interest would actually make that problem worse -- if I know that things will cost less in a month, I'm not going to buy anything. The Fed is incentivizing spending by lowering the cost of capital to zero. By continuing this policy, they are eventually going to bring on inflation, which will reduce the value of the currency -- which gives people and companies that are sitting on money an dis-incentive to continue hoarding it.\"",
"title": ""
},
{
"docid": "b45d931f0cfba1a028cae1a5bc8f4399",
"text": "Fundamentally interest rates reflect the time preference people place on money and the things money can buy. If I have a high time preference then I prefer money in my hand versus money promised to me at some date in the future. Thus, I will only loan my money to someone if they offer me an incentive which would be an amount of money to be received in the future that is larger than the amount of money I’m giving the debtor in the present (i.e. the interest rate). Many factors go into my time preference determination. My demand for cash (i.e. my cash balance), the credit rating of the borrower, the length of the loan, and my expectation of the change in currency value are just a few of the factors that affect what interest rate I will loan money. The first loan I make will have a lower interest rate than the last loan, ceteris paribus. This is because my supply of cash diminishes with each loan which makes my remaining cash more valuable and a higher interest rate will be needed to entice me to make additional loans. This is the theory behind why interest rates will rise when QE3 or QEinfinity ever stops. QE is where the Federal Reserve cartel prints new money to purchase bonds from cartel banks. If QE slows or ends the supply of money will stop increasing which will make cash more valuable and higher interest rates will be needed to entice creditors to loan money. Note that increasing the stock of money does not necessarily result in lower interest rates. As stated earlier, the change in value of the currency also affects the interest rate lenders are willing to accept. If the Federal Reserve cartel deposited $1 million everyday into every US citizen’s bank account it wouldn’t take long before lenders demanded very high interest rates as compensation for the decrease in the value of the currency. Does the Federal Reserve cartel affect interest rates? Yes, in two ways. First, as mentioned before, it prints new money that is loaned to the government. It either purchases the bonds directly or purchases the bonds from cartel banks which give them cash to purchase more government bonds. This keeps demand high for government bonds which lowers the yield on government bonds (yields move inverse to the price of the bond). The Federal Reserve cartel also can provide an unlimited amount of funds at the Federal Funds rate to the cartel member banks. Banks can borrow at this rate and then proceed to make loans at a higher rate and pocket the difference. Remember, however, that the Federal Reserve cartel is not the only market participant. Other bond holders, such as foreign governments and pension funds, buy and sell US bonds. At some point they could demand higher rates. The Federal Reserve cartel, which currently holds close to 17% of US public debt, could attempt to keep rates low by printing new money to buy all existing US bonds to prevent the yield on bonds from going up. At that point, however, holding US dollars becomes very dangerous as it is apparent the Federal Reserve cartel is just a money printing machine for the US government. That’s when most people begin to dump dollars en masse.",
"title": ""
},
{
"docid": "15e8bee2da522fc40bf064208134acbd",
"text": "yield on a Treasury bond increases This primarily happens when the government increases interest rates or there is too much money floating around and the government wants to suck out money from the economy, this is the first step not the other way around. The most recent case was Fed buying up bonds and hence releasing money in to the economy so companies and people start investing to push the economy on the growth path. Banks normally base their interest rates on the Treasury bonds, which they use as a reference rate because of the probability of 0 default. As mortgage is a long term investment, so they follow the long duration bonds issued by the Fed. They than put a premium on the money lent out for taking that extra risk. So when the governments are trying to suck out money, there is a dearth of free flowing money and hence you pay more premium to borrow because supply is less demand is more, demand will eventually decrease but not in the short run. Why do banks increase the rates they loan money at when people sell bonds? Not people per se, but primarily the central bank in a country i.e. Fed in US.",
"title": ""
},
{
"docid": "272fde803a207bd1d4ff77e0cfc80790",
"text": "Another option is to short whatever interest rate you think will go up. For example, if you think that interest on treasuries will go up, then short treasuries.",
"title": ""
},
{
"docid": "463fdf12613144bedc0bfe74333f35f4",
"text": "\"How should I allocate short-term assets in a rising-interest rate environment? Assuming that the last part is correct, there could be bear bond funds that short bonds that could work well as a way to invest. However, bear in that the the \"\"rising-interest rate environment\"\" is part of the basis that may or may not be true in the end as I'm not sure I've seen anything to tell me why rates couldn't stay where they are for another couple of years or more. Long-Term Capital Management would be a cautionary tale before about bonds that had assumptions that backfired when something that wasn't supposed to happen, happened. Thus, while you can say there is \"\"rising-interest rate environment\"\" what else are you prepared to assume and how certain are you of that happening? An alternate theory here would be that \"\"junk bonds\"\" may do well because the economy has to be heating up for rates to rise and thus the bonds that are priced down so much because of default risk may turn out to not go bust and thus could do well. Course this would carry the \"\"Your mileage may vary\"\" and without a working time machine I couldn't say which funds will be good and which would suck. As for what I would do if I was dealing with my own money: Money market funds and CDs would likely be my suggestion for the short-term where I want to prevent principal risk. This is likely what I would do if I believed the rising rate environment is here.\"",
"title": ""
},
{
"docid": "fe4cac5d97ea232f71072bed556b83c2",
"text": "Great reply. This is one of reasons why I like this subreddit. I thought that fed interest are far more important that you state. Rate is low + economy is booming (lender thinks there is good chance of repayment), banks loan money much more willingly (reserves are covered by cheap fed loans -> greater profit). That should significantly affect money supply.",
"title": ""
},
{
"docid": "aefe743b20c09ba211183e7b92a884ed",
"text": "Increasing rates from .75% to 1% is an attempt to control debt. The new 1% rate drives down demand for bonds based on the old .75% rate and drives down demand for stocks who have decrease profit because they pay more interest on debt. This is the federal reserves primary tool controling inflation. 1% is what the banks pay to borrow money, they base their lending rates on this 1% figure. If a person can guarantee a .75% return on money borrowed at 1%, they will opt to save and instead lend their money out at 1%.",
"title": ""
},
{
"docid": "8ab90eea050860a8a0fd05acc26713a6",
"text": "\"To understand the Twist, you need to understand what the Yield Curve is. You must also understand that the price of debt is inverse to the interest rate. So when the price of bonds (or notes or bills) rises, that means the current price goes up, and the yield to maturity has gone down. Currently (Early 2012) the short term rate is low, close to zero. The tools the fed uses, setting short term rates for one, is exhausted, as their current target is basically zero for this debt. But, my mortgage is based on 10yr rates, not 1 yr, or 30 day money. The next step in the fed's effort is to try to pull longer term rates down. By buying back 10 year notes in this quantity, the fed impacts the yield at that point on the curve. Buying (remember supply/demand) pushes the price up, and for debt, a higher price equates to lower yield. To raise the money to do this, they will sell short term debt. These two transactions effectively try to \"\"twist\"\" the curve to pull long term rates lower and push the economy.\"",
"title": ""
},
{
"docid": "6137d88bfb2b541dee593b29f485261c",
"text": "\"True. My thinking is, the higher the rates are, the less people you'll have borrowing, the less chance of people defaulting, more people buying with flat cash, and of course cheaper housing prices. Whereas with low interest rates, you'll have more people borrowing (thus, increasing the likelihood of more people defaulting), more people \"\"buying\"\" homes (technically not buying, technically just \"\"borrowing\"\" money and putting down mortgages), and more expensive housing prices. Quite frankly, I think the way that the western world can solve its issue with unaffordable housing is by raising the interest rates to at least the double digits, like they once were (when housing was still cheap).\"",
"title": ""
},
{
"docid": "028f0077a16460f918c8515dff3fc444",
"text": "I know that assets like bonds have prices that have an inverse relationship with interest rates, but what other assets do as well? I'm a bit new to finance and all that so I'm trying to learn. Would real estate prices be high as well? If so, why?",
"title": ""
},
{
"docid": "3d5f5f1829782f7f48ca417c3f0e1b75",
"text": "Is your question academic curiosity or are you thinking of buying bonds? Be aware that bond interest rates are near all-time lows, and if interest rates were to rise, the prices of bonds could fall. Those buying bonds today are taking unusually large risk of capital loss.",
"title": ""
},
{
"docid": "055049ff07087e73c9e065bffc2b48a0",
"text": "\"On a longer time scale, the plot thickens: It almost looks random. A large drop in real rates in the mid-70s, a massive spike in the early 80s, followed by a slow multi-decade decline. The chaos doesn't seem to be due to interest rates. They steadily climbed and steadily fell: All that's left is inflation: First, real rates should be expected to pay a moderate rate, so nominal rates will usually be higher than inflation. However, interest rates are very stable over long time periods while inflation is not. Economists call this type of phenomenon \"\"sticky pricing\"\", where the price, interest rates in this case, do not change much despite the realities surrounding them. But the story is a little more complicated. In the early 1970s, Nixon had an election to win and tried to lessen the impacts of recession by increasing gov't spending, not raising taxes, and financing through the central bank, causing inflation. The strategy failed, but he was reelected anyways. This set the precedent for the hyperinflation of the 1970s that ended abruptly by Reagan at the beginning of his first term in the early 1980s. Again, interest rates remained sticky, so real rates spiked. Now, the world is not growing, almost stagnating. Demand for equity is somewhat above average, but because corporate income is decelerating, and the developed world's population is aging, demand for investment income is skyrocketing. As demand rises, so does the price, which for an investor is a form of inverse of the interest rate. Future demand is probably best answered by forecasters, and the monetarist over and undertones still dominating the Federal Reserve show that they have finally learned after 100 years that inflation is best kept \"\"low and stable\"\": But what happens if growth in the US suddenly spikes, inflation rises, and the Federal Reserve must sell all of the long term assets it has bet so heavily on quickly while interest rates rise? Inflation may not be intended, but it is not impossible.\"",
"title": ""
},
{
"docid": "09341e6010c64a265197ec01f49e1ee6",
"text": "As no one has mentioned them I will... The US Treasury issues at least two forms of bonds that tend to always pay some interest even when prevailing rates are zero or negative. The two that I know of are TIPS and I series bonds. Below are links to the descriptions of these bonds: http://www.treasurydirect.gov/indiv/research/indepth/tips/res_tips.htm http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm",
"title": ""
}
] |
fiqa
|
14ad733f22a29d78324d4fbf323209ed
|
Sales Tax Licence/Permit - When is it required and how can I make a use of it as a non-US resident selling in USA?
|
[
{
"docid": "fd92041009e1e4708fcdf3ef4229c67f",
"text": "Sales tax permits come from the state in which your business is operating. You need a business license first for them to issue you one. US sales taxes are collected by the business and remitted to the government, you need the permit in order to do this. A bigger question is whether it's legal for you to engage in business in the first place. What is your visa status?",
"title": ""
},
{
"docid": "46a36a35ae2c95ebde6fa7d46367d2ac",
"text": "Disclaimer: I am not a tax specialist You probably need a sales tax permit if you're going to sell goods, since just about every state taxes goods, though some states have exemptions for various types of goods. For services, it gets tricker. There is a database here that lists what services are taxed in what states; in Wyoming, for example, cellphone services and diaper services are taxed, while insurance services and barber services are not. For selling over the internet, it gets even dicier. There's a guide on nolo.com that claims to be comprehensive; it states that the default rule of thumb is that if you have a physical presence in a state, such as a warehouse or a retail shop or an office, you must collect tax on sales in that state. Given your situation, you probably only need to collect sales tax on customers in Wyoming. Probably. In any event, I'd advice having a chat with an accountant in Wyoming who can help walk you through what permits may or may not be needed.",
"title": ""
}
] |
[
{
"docid": "18aa3fdbbe9aca96da6f7a89dc764210",
"text": "If you sell through an intermediate who sets up the shop for you, odds are they collect and pay the sales tax for you. My experience is with publishing books through Amazon, where they definitely handle this for you. If you can find a retailer that will handle the tax implications, that might be a good reason to use them. It looks like Etsy uses a different model where you yourself are responsible for the sales tax, which requires you to register with your state (looks like this is the information for New York) and pay the taxes yourself on a regular basis; see this link for a simple guide. If you're doing this, you'll need to keep track of how much tax you owe from your sales each month, quarter, or year (depending on the state laws). You can usually be a sole proprietor, which is the easiest business structure to set up; if you want to limit your legal liability, or work with a partner, you may want to look into other forms of business structure, but for most craftspeople a sole proprietorship is fine to start out with. If you do a sole proprietorship, you can probably file the income on a 1040 Schedule C when you do your personal taxes each year.",
"title": ""
},
{
"docid": "d1a109c26a029ec8504ceeeeb3d37240",
"text": "As other people have said they should register with a broker in the country they reside in that can deal in US stocks, then fill out a W8-BEN form. I have personally done this as I am from the Uk, it's not a very complicated process. I would assume that most US brokers don't allow foreign customers due to the person having to pay tax where they reside and the US brokers don't want to have to keep approximately 200 different tax codes in track.",
"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": "2a5e7e8abd8792236b68ae0bf2f88c73",
"text": "Are you sure about this? I mean your premise. I thought tax was based on shipping address. I've made purchases, live, in NY, and had the choice to pay sales tax or to have the item shipped, in effect paying shipping, for real, instead of sales tax. It appears that by buying a loaded cash card you'd accomplish your goal. I've seen such cards go fo $1.50, no fees other than that. To save the sales tax, or pay the tax of the state you're in, it may be worth it. But a NH billing address don't solve this, again, I believe tax is based on ship-to.",
"title": ""
},
{
"docid": "d67803ddbaed689189eccfe8f6a604e9",
"text": "It's not just the US based mailing address for registration or US based credit-card or bank account: even if you had all these, like I do, you will find that these online filing companies do not have the infrastructure to handle non-resident taxes. The reason why the popular online filing companies do not handle non-resident taxes is because: Non-residents require a different set of forms to fill out - usually postfixed NR - like the 1040-NR. These forms have different rules and templates that do not follow the usual resident forms. This would require non-trivial programming done by these vendors All the NR forms have detailed instructions and separate set of non-resident guides that has enough information for a smart person to figure out what needs to be done. For example, check out Publication 519 (2011), U.S. Tax Guide for Aliens. As a result, by reading these most non-residents (or their accountants) seem to figure out how the taxes need to be filed. For the remaining others, the numbers perhaps are not significant enough to justify the non-trivial programming that need to be done by these vendors to incorporate the non-resident forms. This was my understanding when I did research into tax filing software. However, if you or anyone else do end up finding tax filing software that does allow non-resident forms, I wil be extremely happy to learn about them. To answer your question: you need to do it yourself or get it done by someone who knows non-resident taxes. Some people on this forum, including me for gratis, would be glad to check your work once you are done with it as long as you relieve us of any liability.",
"title": ""
},
{
"docid": "a195bc1db3e3089f9216fa4126fd4007",
"text": "\"Yes, you can do that, but you have to have the stocks issued in your name (stocks that you're holding through your broker are issued in \"\"street name\"\" to your broker). If you have a physical stock certificate issued in your name - you just endorse it like you would endorse a check and transfer the ownership. If the stocks don't physically exist - you let the stock registrar know that the ownership has been transferred to someone else. As to the price - the company doesn't care much about the price of private sales, but the taxing agency will. In the US, for example, you report such a transaction as either a gift (IRS form 709), if the transaction was at a price significantly lower than the FMV (or significantly higher, on the other end), or a sale (IRS form 1040, schedule D) if the transaction was at FMV.\"",
"title": ""
},
{
"docid": "22b5a58c9b402f5d89f7f3c5801e101a",
"text": "Hi u/Sagiv1, Short answer: Yes, you do have to pay taxes in Israel for all your worldincome. Long answer: All countries within the OCDE consider you as a fiscal resident in the country where you spend over half a year in (183 days and up). If you do not spend that much time in any country, there are other tying measures to avoid people not being fiscal residents in any country. Since you are living in Israel, you will have to pay all your worlwide generated income in Israel, following the tax regulation that is in place there. I am no Isarely Tax Lawyer so I cannot help you there. Having a lot of business internationally brings other headaches with it. Taking for example the U.S. there is a possibility that they withold taxes in their payments. It is unlikely, though, as they have a Tax Treaty to prevent double taxation. You can ask for this witholded money to be returned from the U.S. or other countries through each country's internal process. Another thing to take into account is that you can be taxed in other countries for any revenue you generate in said country. This is especially relevant for revenue that comes from Real Estate. The country where the real estate is will tax you in the country and you will have to deduct these taxes paid in your country, Israel in this case. If there is no tax treaty you might possibly be paying twice. I know you said you do promotion, but I have to warn you about this, because I ignore what other countries tax or do not tax. So been giving more info won't hurt. If the US is the main and/or only country you will be doing business with, I strongly recommend you real the Tax treaty with lots of love and patience. You can find it here: https://www.irs.gov/pub/irs-trty/israel.pdf or here: Treaty:http://mfa.gov.il/Style%20Library/AmanotPdf/005118.pdf Amendment: http://mfa.gov.il/Style%20Library/AmanotPdf/005120.pdf If you are from Israel and prefer it in Hebrew, here are the treaties in your language: Treaty: http://mfa.gov.il/Style%20Library/AmanotPdf/005119.pdf Amendment: http://mfa.gov.il/Style%20Library/AmanotPdf/005121.pdf Normally most IRS Departments have sections with very uselful help on these sort of matters. I'd recomment you to take a look at yours. Last, what I've explained is the normal process that applies almost all over the world. But each country has their own distinctions and you need to look carefully. Take what I said as a starting point and do your own research or ideally try to find a tax consultant/lawyer who helps you. Best of luck.",
"title": ""
},
{
"docid": "9757bb5c63f8eaefdd7cb9c62f6da0b4",
"text": "\"The HMRC has a dedicated self-help/learning site that is helpful here: It's important to tell HMRC that you are self-employed as soon as possible. If you don't, you may have to pay a penalty. You don't want to pay more to HMRC than you have to as it is a waste of your money. Your business has started when you start to advertise or you have a customer to buy your goods or services. It is at this point that your business is 'trading'. You cannot register before you start trading. For example, if you advertise your business in the local newspaper on 15 January but do not get your first customer until 29 March; in this case, you have been trading since 15 January. You must tell HMRC within six months of the end of the tax year in which you start self-employment. You must therefore register by 5 October. But it's best to register well before this so that you do not forget to do so. The HMRC also has a YouTube channel with help videos, and \"\"Am I Trading or Not?\"\" might be of particular interest to you. Most of the registration is based around the concept of starting to work with the intent to make a profit. By the letter of law and regulations, you should register within six months of the end of the tax year you started to avoid any potential penalty. However note that the situation is different based upon your intent. If you begin making/putting up videos online as a hobby with the hope that you can make something to help you defray the basic costs involved, and the total amount you make is relatively small (say, less than 500 pounds), you will not be classified as \"\"trading\"\" and likely have no need to register with HMRC. As soon as you begin to get in regular payments, maybe a single payment of a significant size, or multiple payments for a similar service/item, you are vastly more likely to need to register. From my reading you would likely be safe to begin putting up videos without registration, but if you begin spending a large portion of your time over an extended period (multiple months) and/or begin getting payments of any notable size then you should likely register with the appropriate services (HMRC, etc). As is the case in both the USA and UK, simple registration is pretty cheap and the costs of little/no income are usually pretty minor. Also note that the HMRC trading and self-employment regulations are unusual compared to many US laws/institutions, in that you are explicitly permitted to begin doing something and only register later. So if you start doing videos for an entire tax year + 5 months and make nothing significant, you'd seemingly be fine to never register at all.\"",
"title": ""
},
{
"docid": "769c576c16662129867297ce0d808f29",
"text": "We run into this all the time with our EU clients. As far as I can tell, the only requirements when it comes to invoicing have to do with sales tax, which is determined at the state level, and only in the case that items are taxable. It seems that the service provided to you is not taxable and so there is no obligation under Californian law to provide you with the invoice you need. That said, it would be nice to provide this information to you as a courtesy. We don't provide the information typically required by EU tax authorities on our receipts either, but whenever one of our EU clients requests a more formal invoice we gladly send them one.",
"title": ""
},
{
"docid": "d80c18ea48134a0b736e4a9b6d587ae9",
"text": "It means you must pay federal (and possibly state) tax on any income you produce in America -- including Internet and mail-order sales. Tax treaties may keep you from having to pay tax on it again in your own country, or may not.",
"title": ""
},
{
"docid": "772946ff47e21a96b19981c24cf4bcc0",
"text": "\"The short answer is you're tax exempt if the tax laws say you are. There are a bunch of specific exemptions based on who you are, what you're buying and why. Taking British Columbia as an example. One exemption is supplies for business use: Some exemptions are only available to certain purchasers in certain circumstances. These exemptions include: You can also claim an exemption if you are buying \"\"adult size\"\" clothing for a child under 15 years. Farmers are exempt from sales tax on various goods and services. First Nations individuals are exempt in some circumstances. And so on and so on.\"",
"title": ""
},
{
"docid": "a411a0d06008a2f1d26323c304233202",
"text": "Many states require that USE tax be paid on items purchased out of state and the subsequently brought to your home state. The vendor has the responsibility to collect based upon the shipping destination. It is the buyers responsibility to declare and pay taxes on purchases where the vendor is not required to collect them for your state(like when you purchase it out of state). So if you have an item shipped out of state to avoid sales tax and then bring it to your home state then you are required to pay sales tax in your home state as well. Some states (Florida for 1) allow for the reduction in sales tax owed by the amount paid in out of state sales taxes. Some states (Like CT) exempt purchases under a certain amount. Federation of Tax Administrators website has links to state revenue services where you can check the tax requirements for your (and other) states. Other State Links",
"title": ""
},
{
"docid": "c630aeb467186a71cce758e33cc14d9f",
"text": "ML is a brokerage firm. Tell them to sell. If you can't or don't know how to do it on-line - call them and do it over the phone. Your citizenship might come in effect when tax are withheld, you need to fill form W8-BEN if you haven't done so yet. If US taxes are withheld, you can file 1040NR to request refund, or get it credited against your local tax liabilities.",
"title": ""
},
{
"docid": "74dea6edbd5eea1befcb0045eb80bbcd",
"text": "\"I am a realtor. When I am approached directly by a buyer, it's their choice to bring their own agent, come unrepresented, or buy through us via disclosed dual agency. With no buyer agent, my office and I get the full commission. The seller has already agreed to a fixed percent of the sale price. How does it benefit me to agree to this? Update From all the comments below, I'll add this. The Realtor site (country-wide) states \"\"A real estate professional can also agree to rebate a portion of his/her commission to a consumer. However, note that some states do have laws prohibiting the payments of rebates to unlicensed individuals, and so this would not be legal in those jurisdictions.\"\" So far, so good. My own state, Massachusetts, says Inducements or rebates to the seller or buyer are permissible given that the seller or buyer in the transaction is a principal and is not required to be licensed as a broker. Brokers are, by definition, agents for either the seller or buyer. Consequently, using inducements to attract listings or giving incentives such as rebates for those who purchase a listed property do not violate the prohibition on sharing valuable consideration with those who are brokering without the benefit of a license. The sellers and buyers in purchase and sale transactions are not acting for anyone else and, therefore, are not brokering. Indeed, it is their broker who acts on their behalf. Thus, in my state, what OP asks for is legal, and a matter of whether or not either broker wishes to participate. If another member wishes to research NY laws, that would be great.\"",
"title": ""
},
{
"docid": "7c0a0278315e3d323293789b6ad3c383",
"text": "Some aspect is legal some in grey area. Please maintain proper documentation. Generally for amounts in question, there is less scrutiny from Income tax. Buying on behalf of your friends... First there is a limit of 250,000 USD, so fine on this point. Second is only licensed dealers can participate in FX. In your case, it can appear that you are acting as dealer. On getting money back, this looks like gift and if it's more than 50,000 in a year it is taxable. Of course if you establish that it was convenience then no issues. So you need good amount of documentation, plus if you are getting paid after few months, tax can treat this as personal loan and arrive at deemed interest. Edits: There is no guideline as to what the income tax will ask you, if there is a scrutiny. One would need to have paper work, a letter from friend requesting you to purchase things. You would have to keep a record of items ordered and match it with credit card statement. Proof that the goods were delivered to his address. Proof of equivalent credit entry from your friend into your bank statement. Reason why your friend could not do this himself. i.e. what is stopping him from getting a international debit/credit card? So if you think you can convince that its convenience, yes, else taxes.",
"title": ""
}
] |
fiqa
|
d0fdc272b096af2a0731d250b5f2084f
|
Is expense to freelancers tax deductible?
|
[
{
"docid": "c57ecc03290fad54da460d569830663f",
"text": "Yes, legitimate, documented, expenses are written off against that income.",
"title": ""
},
{
"docid": "83b8ff6405ec069847836954c0674ea8",
"text": "If it's a legitimate cost of doing business, it's as deductible as any other cost of doing business. (Reminder: be careful about the distinctions between employee and contractor; the IRS gets annoyed if you don't handle this correctly.)",
"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": "4f23189bc5ab93bc85fe590c711b5301",
"text": "If you want to subcontract some of your excess work to somebody else, you better be in business! While some kinds of employees (e.g. commissioned salespeople) are permitted to deduct some expenses on their income tax, generally only a real business can deduct wages for additional employees, or the cost of services provided by subcontractors. Do you invoice your clients and charge HST (GST)? Or do you tell your clients each pay period how many hours you worked and they compensate you through their payroll system like everybody else that walks through the door? If you're not invoicing and charging HST (GST) (assuming you exceed the threshold, and if you have too much work, you probably do!), then perhaps your clients are treating you as an employee – by default – and withholding taxes, CPP, and EI so they don't get in trouble? After all, Canada Revenue Agency is likely to consider any person providing a service to a company to be an employee unless there is sufficient evidence to the contrary, and when there isn't enough evidence, it's the company paying for the services that would be on the hook for unpaid taxes, CPP, and EI. Carefully consider what form of business you are operating, or were intending to operate. It's essential for your business to be structured appropriately if you want to hire or subcontract. You ought to be either self-employed as a sole proprietor, or perhaps incorporated if it makes more sense to your situation. Next, act accordingly. For instance, it's likely that your business should be taking care of the source deductions, CPP, and EI. In fact, self-employed individuals shouldn't even be paying into EI – an independent contractor wouldn't qualify to make an EI claim if they lost a contract. As an independent, one doesn't have a job, one has a business, and EI doesn't cover the business itself, only the employees that the business deals with at arm's length. As a business owner, you would be considered non-arms-length, and exempt from EI. Growing your business in the way that you are suggesting is an important enough a step that you should seek professional advice in advance. Find a good accountant that deals with self-employed individuals & small businesses and run all this by him. He should be able to guide you accordingly. Find a lawyer, too. A lawyer can guide you on how to properly subcontract others while protecting you and your business. Finally, be mindful of what it is you agreed to in your contract with your client: Do they expect all services to be performed by you, personally? Even if it wasn't written down who exactly would be performing the services, there may be an assumption it's you. Some negotiation may be in order if you want to use subcontractors.",
"title": ""
},
{
"docid": "fab076774b036cd9084c4f5e2bad63c9",
"text": "I'm not an expert, but here's my $0.02. Deductions for business expenses are subject to the 2% rule. In other words, you can only deduct that which exceeds 2% of your AGI (Adjusted Gross Income). For example, say you have an AGI of $50,000, and you buy a laptop that costs $800. You won't get a write-off from that, because 2% of $50,000 is $1,000, and you can only deduct business-related expenses in excess of that $1,000. If you have an AGI of $50,000 and buy a $2,000 laptop, you can deduct a maximum of $1,000 ($2,000 minus 2% of $50,000 is $2,000 - $1,000 = $1,000). Additionally, you can write off the laptop only to the extent that you use it for business. So in other words, if you have an AGI of $50,000 and buy that $2,000 laptop, but only use it 50% for business, you can only write off $500. Theoretically, they can ask for verification of the business use of your laptop. A log or a diary would be what I would provide, but I'm not an IRS agent.",
"title": ""
},
{
"docid": "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": "15a3ce075535c30d8b619174f5cd06e6",
"text": "Salaries and etc are a business expense and chargeable against revenue for tax purposes. It is NOT tax deductible but it is an expense on an income statement in calculating net profit (after tax). You could say salary & etc are tax effective but not tax deductible.",
"title": ""
},
{
"docid": "257116992df00710237576f5bac1cec2",
"text": "In the US there's no significant difference between what a business can deduct and what an individual can deduct. However, you can only deduct what is an expense to produce income. Businesses are allowed to write off salaries, but individuals can't write off what they pay their gardener or maid (at least in the US) If you're a sole proprietor in the business of managing properties - you can definitely deduct payments to gardeners or maids. Business paying for a gardener on a private property not related to producing the income (like CEO's daughter's house) cannot deduct that expense for tax purposes (although it is still recorded in the business accounting books as an expense - with no tax benefit). Businesses are allowed to deduct utility expenses as overhead, individuals cannot Same thing exactly. I can deduct utility expenses for my rental property, but not for my primary residence. Food, shelter, clothing and medical care are fundamental human needs, but we still pay for them with after-tax money, and pay additional sales tax. Only interest (and not principal) on a mortgage is deductible in the US, which is great for people who take out mortgages (and helps banks get more business, I'm sure), but you're out of luck if you pay cash for your house, or are renting. Sales taxes are deductible. You can deduct sales taxes you paid during the year if you itemize your deduction. You can chose - you either deduct the sales taxes or the State income taxes, whatever is more beneficial for you. BTW in many states food and medicine are exempt from sales tax. Medical expenses are deductible if they're significant compared to your total income. You can deduct medical expenses in excess of 10% of your AGI. With the ACA kicking in - I don't see how would people even get to that. If your AGI is low you get subsidies for insurance, and the insurance keeps your expenses capped. For self-employed and employed, insurance premiums are pre-tax (i.e.: not even added to your AGI). Principle for mortgage is not deductible because it is not an expense - it is equity. You own an asset, don't you? You do get the standard deduction, even if your itemized (real) deductions are less - business don't get that. You also get an exemption amount (for your basic living needs), which businesses don't get. You can argue about the amounts - but it is there. In some States (like California) renters get tax breaks for renting, depending on the AGI. CA renters credit is phasing out at AGI of about $60K, which is pretty high.",
"title": ""
},
{
"docid": "b7c17ae0a48b1b0c0783dd5e5b0f8db8",
"text": "\"You can report it as \"\"hobby\"\" income, and then you won't be paying self-employment taxes. You can also deduct the blog-related expenses from that income (subject to the 2% limit though). See this IRS pub on the \"\"hobby\"\" income.\"",
"title": ""
},
{
"docid": "3bdd2e14dc990aa712c3092fbe817087",
"text": "I received a $2,000 bonus... Gross Income is income from whatever source derived, including (but not limited to) “compensation for services, including fees, commissions, fringe benefits, and similar items.” Adjusted Gross Income is defined as gross income minus adjustments to income. My question is, must I still report this money on my tax return and if so, how? Yes, and it would be on line 21 of your 1040 with supporting documentation. Are these legal fees deductible as an expense, and where would I list them? Yes, you would aggregate your deductible expenses and place these on your Schedule A. Instructions here. Good Luck. Edit: As Ben Miller pointed out in the comments, the deduction would be placed in either line 23 or 28 depending on the nature of the attorney (investment related or not).",
"title": ""
},
{
"docid": "967d750f818153d0e8c46e28e5bd0ae7",
"text": "Any deductable expense will reduce your taxable income not your tax payable. Your Example 1 above is correct and gives you 100% deduction. It is like having a business where your sales are $100,000 and your expenses in making the sales is $40,000. The expenses are your tax deductions and reduce your profits on which you pay tax on to $60,000. If your Example 2 was correct then the situation above would change that you would pay say $30,000 tax on $100,000 sales, then apply your deductions (or expenses) of $40,000 so that you would pay no tax at all and in fact get $10,000 back in your return. In this case the government would not be collecting any taxes but paying out returns to everyone. Your Example 2 is absolutly incorrect.",
"title": ""
},
{
"docid": "894f9971edb02a62cb857bcb56f6a802",
"text": "As an individual freelancer, you would need to maintain a book of accounts. This should show all the income you are getting, and should also list all the payments incurred. This can not only include the payments to other professionals, but also any hardware purchased, phone bills, any travel and entertainment bills directly related to the service you are offering. Once you arrive at a net profit figure, you would need to file this as your income. Consult a tax professional and he can help with how to keep the records of income and expenses. i.e. You would need to create invoices for payments, use checks or online transfers for most payments, segregate the accounts, one account used for this professional stuff, and another for your personal stuff, etc. In a normal course the Income Tax Department does not ask for these records, however whenever your tax returns get scrutinized on a random basis, they would ask for all the relevant documentations.",
"title": ""
},
{
"docid": "856563741371412a4b5259527b8f3a72",
"text": "No, you cannot write off time, period. You should price the time spent into your product. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that time. Income not earned is income not taxed, so there's nothing to deduct.",
"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": "ce475229839fec15efb664cd7ad7ac50",
"text": "Your home doesn't belong to the partnership, it belongs to you. So you can (if qualified) deduct home office usage as a business expense on your individual tax return. Same goes to your partner. Similarly any other unreimbursed expense.",
"title": ""
},
{
"docid": "208e8e6f82fcd8cd2d8e45af2e8a510e",
"text": "Because you actually reside in New Zealand, your income taxes will be paid in New Zealand. However, as a non-resident of Australia you will have tax withholding on all of the interest you earn in an Australian bank account. Obviously, because that tax is paid to Australia, that will not be counted against your New Zealand income taxes due to the taxation agreement between those countries. You should still discuss this with an accountant in New Zealand and consider acting as a sole trader. Since you are doing freelance work, that seems like the most logical setup anyway.",
"title": ""
},
{
"docid": "316710461de83750af605d1897addf25",
"text": "Chris, since you own your own company, nobody can stop you from charging your personal expenses to your business account. IRS is not a huge fan of mixing business and personal expenses and this practice might indicate to them that you are not treating your business seriously, and it should classify your business as a hobby. IRS defines deductible business expense as being both: ordinary AND necessary. Meditation is not an ordinary expense (other S-corps do not incur such expense.) It is not a necessary expense either. Therefore, you cannot deduct this expense. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Deducting-Business-Expenses",
"title": ""
},
{
"docid": "3a24e8c7fb56eacce57030b2d4d34c3c",
"text": "For stocks, bonds, ETF funds and so on - Taxed only on realised gain and losses are deductible from the gain and not from company's income. Corporate tax is calculated only after all expenses have been deducted. Not the other way around. Real estate expenses can be deducted because of repairs and maintenance. In general all expenses related to the operation of the business can be deducted. But you cannot use expenses as willy nilly, as you assume. You cannot deduct your subscription to Playboy as an expense. Doing it is illegal and if caught, the tours to church will increase exponentially. VAT is only paid if you claim VAT on your invoices. Your situation seems quite complicated. I would suggest, get an accountant pronto. There are nuances in your situation, which an accountant only can understand and help.",
"title": ""
}
] |
fiqa
|
de95aabdbc807c9781b05344b9206a66
|
What IT form to use in India?
|
[
{
"docid": "cbf6046e290aff0c298d409f0eaf7fa9",
"text": "As you have income from Business / Profession, you would need to use form ITR4S",
"title": ""
}
] |
[
{
"docid": "8c44c3df83ffe71f83ceaba813b6c91a",
"text": "\"Form W-9 (officially, the \"\"Request for Taxpayer Identification Number and Certification\"\") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). A W-9 is typically required when an individual is doing work, as a contractor or as an employee, for a company and will be paid more than $600 in a tax-year. The company is required to file a W-2 or a 1099 and so requests a W-9 to get the information necessary for those forms. I cannot say if it is incompetence on the part of the accounting department or a deliberate ploy to make the refund process more onerous, but do not comply. Politely nsist on a refund without any further information. If the company refuses, request a charge-back from the credit-card company, file a complaint with the consumer-protection department of the state where the company is located, and write a bad review on Yelp or wherever else seems appropriate.\"",
"title": ""
},
{
"docid": "7eb30cb6efa624792fd394c546d3bf4d",
"text": "Like for example I use transferwise to send $x to my dad's account in India, would it show my name as the depositor ? That would depend from bank to bank, it may or may not show your name. Would it be considered as income for my dad ? Assuming your parents are Indian Residents for tax purposes. No. It would be considered as Gift. Gifts between father and son are tax free in India and there is no limit. Any special care/precaution to take before using such services ? Not really. Just to be safe, keep a copy of the transfer instruction / details of debit to you account etc, so that if there is enquiry you have all the data handy. Edit: Clarifying the comment, if you are Resident Alien in US for tax purposes, you would be liable to Gift Tax [Not your parents as they are Indian Residents and would follow Indian tax rules]. As per IRS the liability of Gift tax is on Donor subject to limit of $14000 per year per Donee. So you and your wife can gift your father and mother $14000 each. i.e. $56000 each year. Anything more will be taxable or can be reduced from the overall estate limit.",
"title": ""
},
{
"docid": "8ac393eb7139b67ca2c0f1a3581ef89c",
"text": "Assuming you are NRI, any income you earn is not taxable in India whether you transfer to India or not. Is this amount taxable in India? If yes then how much I have to pay as tax. No it is not taxable. How to fixed Deposit this money from Saudi Arabia or from India through my husband or parents? You can open Fixed Deposits in your name or your husband/parents name. It is your choice. Some Banks allow you to operate an NRE account via Internet If I put this money in 2-3 FD's (like 5 lakh one FD and 2 or 3 lakh other FD's) then the interest earned is taxable? Interest is taxable. Can I withdraw any FD without maturity if needed in urgent? That depends on type of FD you have opened. Some allow withdrawal before maturity with a penalty other don't allow.",
"title": ""
},
{
"docid": "c53e136dd96f0e48d86c1780d60108d6",
"text": "At www.corpsquare.in we make company registration in India a hassle free and smooth process by endeavor of intelligent, strict and proven procedures and protocols so that it becomes very simple and easy go through process for our clients. Our team of highly dedicated professionals keep on striving on the procedures with continuous efforts. We believe we are part of your business and should make you take your first ever step of starting your business in best manner. So confidently hand over your Company formation process with us and get going on core business of your company.",
"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": "70772d40b7d6a28b23290a08fa72a915",
"text": "This is taxable in India. You need to declare the income and pay taxes accordingly",
"title": ""
},
{
"docid": "9bd6c9487986c28f0e9fc0e9a7a2627c",
"text": "I wouldn't think so. If you read the list of features listed on the page you referred to, notice: Track Stocks It looks like it is restricted to the major U.S. stock markets. No mention of India's NSE.",
"title": ""
},
{
"docid": "746c2df9ea5a586fc65a71a374c66c25",
"text": "I have some more inputs to investigate: India has dual tax avoidance treaty signed with european countries so that NRIs dont pay tax in both countries. Please check if India has some agreement with Swiss Also for freelance job that is delivered from India, u need to make sure where you have to pay taxes as you are still in India so the term NRI will not hold good here. Also, if Swiss company is paying tax there, and you are a freelancer from India(resident in india) how to tax filing /rate etc has to be investigated. Also, can you apply for tax back from swiss( a portion of tax paid can be refunded eg: in Germany) but I dont know if this is true for Freelancers and also for people out side SWISS. Bip",
"title": ""
},
{
"docid": "c9465295f9681f3dc74f2e647335bfdd",
"text": "Since you are living in India and earning income not from salary, you must file your tax return under ITR4(Profits or Gains of Business or Profession). You can do it online on IncomeTax India eFiling website, step by step guide available here.",
"title": ""
},
{
"docid": "6ff3727684c2645fba711204d024b7bf",
"text": "Use buxfer.com. It's available in India and most of the features are free.",
"title": ""
},
{
"docid": "e65985c3ab463e6ad723656aa8e16f82",
"text": "\"You can file an LLC yourself in most states, although it might be helpful to use a service if you're not sure what to do to ensure it is correct. I filed my LLC here in Colorado online with the Secretary of State's office, which provided the fill-in-the-blank forms and made it easy. In the U.S., taxation of an LLC is \"\"pass-through\"\", meaning the LLC itself does not have any tax liability. Taxes are based on what you take out of the LLC as distributions to yourself, so you pay personal income tax on that. There are many good books on how to form and then operate an LLC, and I personally like NoLo (link to their web site) because they cater to novices. As for hiring people in India, I can't speak to that, so hopefully someone else can answer that specific topic. As for what you need to know about how to run it, I'll refer back to the NoLo books and web site.\"",
"title": ""
},
{
"docid": "c5b4fdb18cce70c231793863d4a2bebe",
"text": "Ielts British Council is the best company in the world for IELTS certification. We provide ielts certification service all over the world. We also provide the international work permit. If you want to Indian ielts certificates, then you can visit our company website and Buy indian ielts certificates. We provide the original certificates for those, who for one reason or the other are unable to take the test",
"title": ""
},
{
"docid": "a7df5d70f63aa79c1991d221463bed10",
"text": "If you are freelancing, the best form for you is ITR-4. With this form you can declare your salary income as well as your expenses related to your freelancing. And you should treat your freelancing income as business. That way you can get max deductions claimed.",
"title": ""
},
{
"docid": "7310f4dd8a03dcd115e9d50b9d7b9c74",
"text": "Best consult a CA as you may anyway need his/her service. I am NRI, availed secured loan (Against house property) in India and now I want to get that money transferred to Finland. Loans by NRI taken in India cannot be transferred outside of India. Refer FOREIGN EXCHANGE MANAGEMENT (BORROWING AND LENDING IN RUPEES) REGULATIONS Loans in Rupees to non-residents 1[***]. 7. Subject to the directions issued by the Reserve Bank from time to time in this regard, an authorised dealer in India may grant loan to a non-resident Indian, (B) against the security of immovable property (other than agricultural or plantation property or farm house), held by him in accordance with the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000 : ...... Provided that- (d) the loan amount shall not be remitted outside India; Alternative: Sell the property in India, transfer the proceeds to NRO account. Repatriate the funds outside India as per Liberalized Remittance Scheme. Form 15CA/CB with CA certificate will be required.",
"title": ""
},
{
"docid": "fde0a3995bf32d9d9647f1f627bac675",
"text": "Am I required to send form 1099 to non-US citizens who are not even residing in the US? Since they're not required to file US taxes, do I still have to send the form to them? That's tricky. You need to get W8/W9 from them, and act accordingly. You may need to withhold 30% (or different percentage, depending on tax treaty they claim on W8). If you withhold taxes, you also need to file form 1042. I suggest you talk to a tax professional. Is it fine to expose my ITIN (taxpayer identification number) to individuals or companies who I send the form to them. Since the form requires me to write my TIN/EIN, what would be the risks of this and what precautions should be taken to avoid inappropriate/illegal use? No, it is not OK. But if you pay these people directly - you don't have much choice, so deal with it. Get a good insurance for identity theft, and don't transact with people you don't trust. One alternative would be to pay through a payment processor (Paypal or credit cards) - see your next question. I send payments via PayPal and wire transfer. Should I send form 1099-MISC or 1099-K? Paypal is a corporation, so you don't need to send 1099 to Paypal. Whatever Paypal sends to others - it will issue the appropriate forms. Similarly if you use a credit card for payment. When you send money through Paypal - you don't send money directly to your business counterparts. You send money to Paypal.",
"title": ""
}
] |
fiqa
|
0d075b8c1f3b7e62dd0432804966f15e
|
Can dividends be exploited?
|
[
{
"docid": "f202937ec26c18b06aa1ba3356b006ad",
"text": "Yes, somebody could buy the shares, receive the dividend, and then sell the shares back. However, the price he would get when he sells the shares back is, ignoring other reasons for the price to change, exactly the amount he paid minus the dividend.",
"title": ""
},
{
"docid": "9b7fe43f3bcf3c5599e9725f67365179",
"text": "The moment the dividend is announced, especially from a company that doesn't normally pay dividends, the dividend is factored into everybody's analysis. In the absence of any other news the price of apple would be expected to drop once the dividend in locked in. Why would I buy shares from you at full price one day after the dividend is paid, if I will have to wait for the next dividend? Also keep in mind the dividend was announced on July 24th, and is given to shareholders of record on August 13th. You are way behind the curve.",
"title": ""
},
{
"docid": "a7bb7d45b47d80bb49f11fcf8f92205c",
"text": "No, the dividends can't be exploited like that. Dividends settlement are tied to an ex-dividend date. The ex-dividend, is the day that allows you to get a dividend if you own the stock. Since a buyer of the stock after this date won't get the dividend, the price usually drop by the amount of the dividend. In your case the price of a share would lose $2.65 and you will be credited by $2.65 in cash such that your portfolio won't change in value due to the dividend. Also, you can't exploit the drop in price by short-selling, as you would be owing the dividend to the person lending you the stock for the short sale. Finally, the price of the stock at the ex-dividend will also be affected by the supply and demand, such that you can't be precisely sure of the drop in price of the security.",
"title": ""
},
{
"docid": "4192adc2bae1410a5825b4a8f0fa431a",
"text": "In an ideal world Say on 24th July the share price of Apple was $600. Everyone knows that they will get the $ 2.65 on 16th August. There is not other news that is affecting the price. You want to go in and buy the shares on 16th Morning at $600 and then sell it on 17th August at $600. Now in this process you have earned sure shot $2.65/- Or in an ideal world when the announcement is made on 24th July, why would I sell it at $600, when I know if I wait for few more days I will get $2.65/- so i will be more inclined to sell it at $602.65 /- ... so on 16th Aug after the dividend is paid out, the share price will be back to $600/- In a real world, dividend or no dividend the share price would be moving up or down ... Notice that the dividend amount is less than 1% of the stock price ... stock prices change more than this percentage ... so if you are trying to do what is described in paragraph one, then you may be disappointed as the share price may go down as well by more than $2.65 you have made",
"title": ""
},
{
"docid": "e80cc5163e18d81954a1a7decbd86e89",
"text": "\"In addition to the other answers it's also noteworthy that the stock exchanges themselves adjust the price quotes via their ex-div mechanism. All limit orders present in the book when the stock goes ex-div will be adjusted by the dividend. Which means you can't even get \"\"accidentally\"\" filled in the very unlikely case that everyone forgot to adjust their quotes.\"",
"title": ""
}
] |
[
{
"docid": "c82725f2c339667dd6c65fc2bae50c3e",
"text": "I'm trying to think it out, but I feel like it would be hard to justify using potential profit sources as material for dividends. Especially your example of wine. Wouldn't it be counterintuitive to take a hit to sales, while still having the cost of production?",
"title": ""
},
{
"docid": "568be6cee03e6a396cb0454b1526ef50",
"text": "Yes, it is possible. But why would someone take full responsibility, if you're the one enjoying the profits? You'll have to pay your administrator a lot, and probably also develop a profit sharing plan to encourage success. What you're looking, essentially is to be a passive shareholder, and not participate in any management decisions at all. Depending on your location, it will pose additional disadvantages for you (for example, in the US, that would force you to structure your business as a C-Corp, vs more advantageous S-Corp).",
"title": ""
},
{
"docid": "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": "81fc4819252bbfa4014d3241c01a80a7",
"text": "You could hold a long position in some company XXXX and then short your own shares (assuming your broker will let you do that). The dividend that would have gone to you would then go to whoever is holding the shares you short sold. You just don't get a dividend. If you're going to short in a smart way... do it on a stock you otherwise believe in, but use it to minimize the pull-backs on the way up.",
"title": ""
},
{
"docid": "9a358c70784ab3352e50e05bdf0ec7f6",
"text": "I don't think the method falls short, it's the premise that is wrong. If the dividend stream really did grow faster than the cost of capital indefinitely, eventually the company behind the share would become larger than the entire economy. Logically, at some point, the growth must slow down.",
"title": ""
},
{
"docid": "35cac291694412e8144b9dad45f93816",
"text": "\"I was just going by [this](http://evonomics.com/amazon-accounting-corporate-profits-rich-peoples-income-invisible-bezos/) source and many like it. They might not be reffering to _literal_ dividends but increased stock value. Ultimately, I was responding to that idiot who said \"\"But a business making no profits to avoid tax is the worst tax planning advice I have ever seen!\"\"...\"",
"title": ""
},
{
"docid": "b4fd3346b362b43bc4afa5ecfc367ae3",
"text": "\"I'd agree that this can seem a little unfair, but it's an unavoidable consequence of the necessary practicality of paying out dividends periodically (rather than continuously), and differential taxation of income and capital gains. To see more clearly what's going on here, consider buying stock in a company with extremely simple economics: it generates a certain, constant earnings stream equivalent to $10 per share per annum, and redistributes all of that profit as periodic dividends (let's say once annually). Assume there's no intrinsic growth, and that the firm's instrinsic value (which we'll say is $90 per share) is completely neutral to any other market factors. Under these economics, this stock price will show a \"\"sawtooth\"\" evolution, accruing from $90 to $100 over the course of a year, and resetting back down to $90 after each dividend payment. Now, if I am invested in this stock for some period of time, the fair outcome would be that I receive an appropriately time-weighted share of the $10 annual earnings per share, less my tax. If I am invested for an exact calendar year, this works as I'd expect: the stock price on any given day in the year will be the same as it was exactly one year earlier, so I'll realise zero capital gain, but I'll have collected a $10 taxed dividend along the way. On the other hand, what if I am invested for exactly half a year, spanning a dividend payment? I receive a dividend payment of $10 less tax, but I make a capital loss of -$5. Overall, pre-tax, I'm up $5 per share as expected. However, the respective tax treatment of the dividend payment (which is classed as income) and the capital gains is likely to be different. In particular, to benefit from the \"\"negative\"\" taxation of the capital loss I need to have some positive capital gain elsewhere to offset it - if I can't do that, I'm much worse off compared to half the full-year return. Further, even if I can offset against a gain elsewhere the effective taxation rates are likely to be different - but note that this could work for or against me (if my capital gains rate is greater than my income tax rate I'd actually benefit). And if I'm invested for half a year, but not spanning a dividend, I make $5 of pure capital gains, and realise a different effective taxation rate again. In an ideal world I'd agree that the effective taxation rate wouldn't depend on the exact timing of my transactions like this, but in reality it's unavoidable in the interests of practicality. And so long as the rules are clear, I wouldn't say it's unfair per se, it just adds a bit of complexity.\"",
"title": ""
},
{
"docid": "62d2660987fbf0ed6676574ce9a3287c",
"text": "There are indeed various strategies to make money from this. As Ben correctly said, the stock price drops correspondingly on the dividend date, so the straightforward way doesn't work. What does work are schemes that involve dividend taxation based on nationality, and schemes based on American Options where people can use market rules to their advantage if some options are not exercised.",
"title": ""
},
{
"docid": "e05a30c4c2dd0cf27738493f5d1a2b47",
"text": "This investment strategy may have tax advantages. In some countries, income received from dividends is taxed as income, whereas profits on share trades are capital gains. If you have already exceeded your tax-free income limit for the year, but not your capital gains tax allowance, it may be preferable to make a dealing profit rather than an investment income. These arrangements are called a bed-and-breakfast.",
"title": ""
},
{
"docid": "2f950e48b5b647f608e84a5e1e387e60",
"text": "Yes, as long as you own the shares before the ex-dividend date you will get the dividends. Depending on your instructions to your broker, you can receive cash dividends or you can have the dividends reinvested in more shares of the company. There are specific Dividend ReInvestment Plans (or DRIPs) if you are after stock growth rather than income from dividend payments.",
"title": ""
},
{
"docid": "ee77ed54bd1eff8264dd44dd0dfa186a",
"text": "Perhaps someone has an investment objective different than following the market. If one is investing in stocks with an intent on getting dividend income then there may be other options that make more sense than owning the whole market. Secondly, there is Slice and Dice where one may try to find a more optimal investment idea by using a combination of indices and so one may choose to invest 25% into each of large-cap value, large-cap growth, small-cap value and small-cap growth with an intent to pick up benefits that have been seen since 1927 looking at Fama and French's work.",
"title": ""
},
{
"docid": "c9b6e76052a90103ff5a9ddac9ac31a5",
"text": "\"Baseball cards don't pay dividends. But many profitable companies do just that, and those that don't could, some day. Profits & dividends is where your analogy falls apart. But let's take it further. Consider: If baseball cards could somehow yield a regular stream of income just for owning them, then there might be yet another group of people, call them the Daves. These Daves I know are the kind of people that would like to own baseball cards over the long term just for their income-producing capability. Daves would seek out the cards with the best chance of producing and growing a reliable income stream. They wouldn't necessarily care about being able to flip a card at an inflated price to a Bob, but they might take advantage of inflated prices once in a while. Heck, even some of the Steves would enjoy this income while they waited for the eventual capital gain made by selling to a Bob at a higher price. Plus, the Steves could also sell their cards to Daves, not just Bobs. Daves would be willing to pay more for a card based on its income stream: how reliable it is, how high it is, how fast it grows, and where it is relative to market interest rates. A card with a good income stream might even have more value to a Dave than to a Bob, because a Dave doesn't care as much about the popularity of the player. Addendum regarding your comment: I suppose I'm still struggling with the best way to present my question. I understand that companies differ in this aspect in that they produce value. But if stockholders cannot simply claim a percentage of a company's value equal to their share, then the fact that companies produce value seems irrelevant to the \"\"Bobs\"\". You're right – stockholders can't simply claim their percentage of a company's assets. Rather, shareholders vote in a board of directors. The board of directors can decide whether or not to issue dividends or buy back shares, each of which puts money back in your pocket. A board could even decide to dissolve the company and distribute the net assets (after paying debts and dissolution costs) to the shareholders – but this is seldom done because there's often more profit in remaining a going concern. I think perhaps what you are getting hung up on is the idea that a small shareholder can't command the company to give net assets in exchange for shares. Instead, generally speaking, a company runs somewhat like a democracy – but it's each share that gets a vote, not each shareholder. Since you can't redeem your shares back to the company on demand, there exists a secondary market – the stock market – where somebody else is willing to take over your investment based on what they perceive the value of your shares to be – and that market value is often different from the underlying \"\"book value\"\" per share.\"",
"title": ""
},
{
"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": "e9bfe1b6f211d060b12f55de2c24e989",
"text": "You shouldn't technically be able to over pay. I have some share dividends set to pay into my account but one of them took me over the limit so the payment was diverted to another account and they sent me a letter. Pretty sure they would do this with any payment.",
"title": ""
},
{
"docid": "3e7480b3706084b79a9015750488260b",
"text": "\"MD-Tech's answer is correct. Let me only point out that there are easier ways to invest in the DJIA index without having to buy individual stocks. You can buy a mutual fund or ETF that will track the index and your return will be almost identical to the performance of the underlying index. It's \"\"almost\"\" identical because the fund will take a small management fee, you will have to pay annual taxes on capital gains (if you hold the investment in a taxable account), and because the fund has to actually invest in the underlying stocks, there will be small differences due to rounding and timing of the fund's trades. You also ask: Assuming that I calculated those numbers correctly, is this gain approximately better, equal to, or worse than an average investment for that timespan? While people argue about the numbers, index funds tend to do better than average (depends on what you call \"\"average\"\", of course). They do better than most actively managed funds, too. And since they have low management fees, index funds are often considered to be an important part of a long-term investment portfolio because they require very little activity on your part other than buying and holding.\"",
"title": ""
}
] |
fiqa
|
077eda5b79b121b901d1c0ba1fcac2e4
|
How to prevent misusing my Account details
|
[
{
"docid": "710a45b897f78187f6a11695bc126e34",
"text": "This is more legal and less personal finance question. You should immediately lodge a police complaint mentioning that some persons are using your PAN card details for activities not authorized by you. In the meantime also engage the services of a CA and reply back to income tax authorities. Do not ignore the notice.",
"title": ""
}
] |
[
{
"docid": "11b39e366f3d2845e53b28c60886fc9e",
"text": "\"This question has the [united kingdom] tag, so the information about USA or other law and procedures is probably only of tangential use. Except for understanding that no, this is not something to ignore. It may well indicate someone trying to use your id fraudulently, or some other sort of data-processing foul-up that may adversely impact your credit rating. The first thing I would do is phone the credit card company that sent the letter to inform them that I did not make his application, and ask firmly but politely to speak to their fraud team. I would hope that they would be helpful. It's in their interests as well as yours. (Added later) By the way, do not trust anything written on the letter. It may be a fake letter trying to lure or panic you into some other sort of scam, such as closing your \"\"compromised\"\" bank account and transferring the money in it to the \"\"fraud team\"\" for \"\"safety\"\". (Yes, it sounds stupid, but con-men are experts at what they do, and even finance industry professionals have fallen victim to such scams) So find a telephone number for that credit card company independently, for example Google, and then call that number. If it's the wrong department they'll be able to transfer you internally. If the card company is unhelpful, you have certain legal rights that do not cost much if anything. This credit company is obliged to tell you as an absolute minimum, which credit reference agencies they used when deciding to decline \"\"your\"\" application. Yes, you did not make it, but it was in your name and affected your credit rating. There are three main credit rating agencies, and whether or not the bank used them, I would spend the statutory £2 fee (if necessary) with each of them to obtain your statutory credit report, which basically is all data that they hold about you. They are obliged to correct anything which is inaccurate, and you have an absolute right to attach a note to your file explaining, for example, that you allege entries x,y, and z were fraudulently caused by an unknown third party trying to steal your ID. (They may be factually correct, e.g. \"\"Credit search on \"\", so it's possible that you cannot have them removed, and it may not be in your interests to have them removed, but you certainly want them flagged as unauthorized). If you think the fraudster may be known to you, you can also use the Data Protection Act on the company which write to you, requiring them to send you a copy of all data allegedly concerning yourself which it holds. AFAIR this costs £10. In particular you will require sight of the application and signature, if it was made on paper, and the IP address details, if it was made electronically, as well as all the data content and subsequent communications. You may recognise the handwriting, but even if not, you then have documentary evidence that it is not yours. As for the IP address, you can deduce the internet service provider and then use the Data Protection act on them. They may decline to give any details if the fraudster used his own credentials, in which case again you have documentary evidence that it was not you ... and something to give the police and bank fraud investigators if they get interested. I suspect they won't be very interested, if all you uncover is fraudulent applications that were declined. However, you may uncover a successful fraud, i.e. a live card in your name being used by a criminal, or a store or phone credit agreement. In which case obviously get in touch with that company a.s.a.p. to get it shut down and to get the authorities involved in dealing with the crime. In general, write down everything you are told, including phone contact names, and keep it. Confirm anything that you have agreed in writing, and keep copies of the letters you write and of course, the replies you receive. You shouldn't need any lawyer. The UK credit law puts the onus very much on the credit card company to prove that you owe it money, and if a random stranger has stolen your id, it won't be able to do that. In fact, it's most unlikely that it will even try, unless you have a criminal record or a record of financial delinquency. But it may be an awful lot of aggravation for years to come, if somebody has successfully stolen your ID. So even if the first lot of credit reference agency print-outs look \"\"clean\"\", check again in about six weeks time and yet again in maybe 3 months. Finally there is a scheme that you can join if you have been a victim of ID theft. I've forgotten its name but you will probably be told about it. Baically, your credit reference files will be tagged at your request with a requirement for extra precautions to be taken. This should not affect your credit rating but might make obtaining credit more hassle (for example, requests for additional ID before your account is opened after the approval process). Oh, and post a letter to yourself pdq. It's not unknown for fraudsters to persuade the Post Office to redirect all your mail to their address!\"",
"title": ""
},
{
"docid": "e6ee0268f820bc54c4686272f14fe567",
"text": "Generally just giving a Bank Account Number does not cause damage. It depends on what other information the user has and the country you are in. Generally Bank take telephone instruction for certain [non-transactional] activities , and they would authenticate you by asking account number, address, date of birth and some additional info. In today's world this info can be pretty easily accessible, for example facebook or a details posted on Jobsites etc. It is best avoided to give the bank account details, unless you are sure of the person. Typical other misuse is using your bank account to Launder black money. The typical modus is transfer funds to you and then ask you to transfer it elsewhere. At times its also a scam and you loose money as they trick you in sending money before you receive it.",
"title": ""
},
{
"docid": "dd41897ff6e235a6fe27bf154a7bdade",
"text": "Of course not, this is confidential information in the same way that I cannot phone up your bank and ask to see a list of the transactions that you have made. Any bank has to be extremely careful about protecting the private transactions of it's customers and would be subject to heavy fines if it revealed this information without the customer's consent.",
"title": ""
},
{
"docid": "e7ecc10268766997672000064e46af68",
"text": "\"Not knowing anything about your situation or what makes it so complex, I would have to agree with the other commenters. If your accountant screws up your business goes under, but at least your personal finances are safe from that and you'll recover (unless all your wealth is tied up in your business). If your virtual assistant uses your personal information to take all your money, ruin your credit, or any number of other things, you're going to spend a loooong time trying to get things \"\"back to normal\"\". If the few hours per month spent managing your finances is starting to add up, I might suggest looking into other ways to automate and manage them. For instance, are all of your bills (or as many as you can) e-bills that can be issued electronically to your bank? Have you set up online bill pay with your bank, so that you can automatically pay all the bills when they arrive? Have you tried using any number of online services (Mint, Thrive, your bank's \"\"virtual wallet/portfolio\"\") to help with budget, expense tracking, etc.? Again, I don't know your exact situation, but hopefully some of these suggestions help. Once I started automating my savings and a lot of my bill paying, it gave me a lot of peace of mind.\"",
"title": ""
},
{
"docid": "4798cc006c3126a0594e2e93fe22ef11",
"text": "Allowing others to share access to your Bank Account; i.e. giving then the login id and password has its risks;",
"title": ""
},
{
"docid": "1492c7d7a160f55fad97eb6c89942dcc",
"text": "I use another solution: debit card with an account kept empty most of the time and another account in the same bank without any card. I keep the money on the second card-less account, and when I want to buy something, I instantly transfer the appropriate amount to the account with the card and pay. That way money is on the account tied to a debit card only for a minute before payment, and normally it is empty - so even if someone would try to fraudulently use my card number - I don't care - the transaction will be rejected. I think its the perfect solution - no fraud possible, and I don't have to worry about possibly having to bother calling my bank and requesting a chargeback, which is stressful and a waste of time and harmful to peace of mind (what if they refuse the chargeback)? I prefer to spend a minute before each transaction to transfer the money between the two accounts, and that time is not a waste, because I use it to reconsider the purchase - which prevents impulse-buying.",
"title": ""
},
{
"docid": "8cf1cad1101d3b58fb25117237555f98",
"text": "I keep one card just for monthly bills (power company,car loan, etc.). This one is unlikely to get hacked so I won't have to go change the credit card information on my monthly bills. I pay the credit card from my bank account. I just don't want a lot of businesses with direct access to my bank account.",
"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": "2542ffaace3227f08df8dc8627347757",
"text": "If it is a well known company that wants to give you a refund, I would not worry about giving them your credit card number. However, I would never type my credit card number into an e-mail message. E-mail messages are very insecure, and can be read by many people along its way to the destination. They also can be archived in many places, meaning that your number will continue to be posted out there for someone to grab in the future. If you need to give this company your credit card number, do it over the phone. Having said that, ultimately you are not generally responsible for fraudulent charges if your card number is stolen and misused. I've had so many fraudulent charges, despite my being relatively careful with my number, that I don't really worry much anymore about losing my number. I just check my statement for false charges, and when they happen, the bank cancels the charge and issues me a new number. It has happened to either my wife or I maybe 5 times over the last two years.",
"title": ""
},
{
"docid": "48f3bd9101698cd08d0ebd81dfffb549",
"text": "Aside from the fact that you could now get spam calls and mailings, nothing negative at all. With your account number, anyone can send you money (which you probably wouldn't mind), but otherwise, no access is possible. In Germany, every company and many people publish their account number, so they can receive payment. Every invoice contains address, phone number, and account numbers of the company that bills you, so you are able to send them money to pay the invoice. Nobody can access the money or details of your account with only the name and number; it needs your online login user id and password, or your (government issued) ID to do so. You don't need to worry at all.",
"title": ""
},
{
"docid": "76082c0b98ca9ccbc1df18da185d027f",
"text": "I can't address the psychology of trust involved in your question, but here are some common sense guidelines for dealing with your issue. Make sure you know who you are talking to. Call the company you need to speak to via a publicly available phone number. An email or something you got in a letter might be from a different source. If you use a website, you should be sure you are on the correct website. Keep careful records. Make good notes of each phone call and keep all emails and letters forever. Note the time, name and/or ID of the person you spoke to and numbers called in addition to keeping notes on what actions should be done. Keep your faxing transmission receipts and shipping tracking numbers too. If you are nervous, ask them why they want the info. The fraud department should be able to explain it to you. For example, they probably want your social because that is how your credit report is identified. If they are going to fix a credit report, they will need a social. It is doubtful they would have a good explanation why they need your mother's maiden name. Ask for secure transmission, or confirm they have it. Postal mail isn't so secure, but I'll go out on a limb and say most fax machines today are not really fax machines, but software that deals in PDFs. At some point you will have to realize you will have to transmit something. No method is perfect, but you can limit your exposure. Help them do their jobs. If you are (understandably) nervous, consider their motivations: corporate profit. BUT that could very well mean not running afoul of the law and (with any luck) treating customers the best way they know to earn business. If you stymy the fraud department, how can they help you? If the ID theft was serious enough, document your issue for future law enforcement so you getting pulled over for speeding doesn't result in you going to jail for whatever crime the other person did. Perhaps the fraud department you are dealing with can assist there. Finally, while you work with fraud departments to clear up your name and account, work on the other end to limit future damage. Freeze your credit. See if you bank or credit card have monitoring. Use CreditKarma.com or a similar if you cannot find a free service. (Please don't ever pay for credit monitoring.)",
"title": ""
},
{
"docid": "9798257382abe1279226130c288f7543",
"text": "You could make an entry for the disputed charge as if you were going to lose the dispute, and a second entry that reverses the charge as if you were going to win the dispute. You could then reconcile the account by including the first charge in the reconciliation and excluding the reversal until the issue has been resolved.",
"title": ""
},
{
"docid": "422e6a852c0f6568b2848a07cab29dfa",
"text": "\"File a John Doe lawsuit, \"\"plaintiff to be determined\"\", and then subpoena the relevant information from Mastercard. John Doe doesn't countersue, so you're pretty safe doing this. But it probably won't work. Mastercard would quash your subpoena. They will claim that you lack standing to sue anyone because you did not take a loss (which is a fair point). They are after the people doing the hacking, and the security gaps which make the hacking possible. And how those gaps arise among businesses just trying to do their best. It's a hard problem. And I've done the abuse wars professionally. OpSec is a big deal. You simply cannot reveal your methods or even much of your findings, because that will expose too much of your detection method. The ugly fact is, the bad guys are not that far from winning, and catching them depends on them unwisely using the same known techniques over and over. When you get a truly novel technique, it costs a fortune in engineering time to unravel what they did and build defenses against it. If maybe 1% of attacks are this, it is manageable, but if it were 10%, you simply cannot staff an enforcement arm big enough - the trained staff don't exist to hire (unless you steal them from Visa, Amex, etc.) So as much as you'd like to tell the public, believe me, I'd like to get some credit for what I've done -- they just can't say much or they educate the bad guys, and then have a much tougher problem later. Sorry! I know how frustrating it is! The credit card companies hammered out PCI-DSS (Payment Card Industry Data Security Standards). This is a basic set of security rules and practices which should make hacking unlikely. Compliance is achievable (not easy), and if you do it, you're off the hook. That is one way Amy can be entirely not at fault. Example deleted for length, but as a small business, you just can't be a PCI security expert. You rely on the commitments of others to do a good job, like your bank and merchant account salesman. There are so many ways this can go wrong that just aren't your fault. As to the notion of saying \"\"it affected Amy's customers but it was Doofus the contractor's fault\"\", that doesn't work, the Internet lynch mob won't hear the details and will kill Amy's business. Then she's suing Mastercard for false light, a type of defamtion there the facts are true but are framed falsely. And defamation has much more serious consequences in Europe. Anyway, even a business not at fault has to pay for a PCI-DSS audit. A business at fault has lots more problems, at the very least paying $50-90 per customer to replace their cards. The simple fact is 80% of businesses in this situation go bankrupt at this point. Usually fraudsters make automated attacks using scripts they got from others. Only a few dozen attacks (on sites) succeed, and then they use other scripts to intercept payment data, which is all they want. They are cookie cutter scripts, and aren't customized for each site, and can't go after whatever personal data is particular to that site. So in most cases all they get is payment data. It's also likely that primary data, like a cloud drive, photo collection or medical records, are kept in completely separate systems with separate security, unlikely to hack both at once even if the hacker is willing to put lots and lots of engineering effort into it. Most hackers are script kiddies, able to run scripts others provided but unable to hack on their own. So it's likely that \"\"none was leaked\"\" is the reason they didn't give notification of private information leakage. Lastly, they can't get what you didn't upload. Site hacking is a well known phenomenon. A person who is concerned with privacy is cautious to not put things online that are too risky. It's also possible that this is blind guesswork on the part of Visa/MC, and they haven't positively identified any particular merchant, but are replacing your cards out of an abundance of caution.\"",
"title": ""
},
{
"docid": "b80ed39ad62f15207fc29041b47cdf25",
"text": "When you want to pay a bill on line there are several ways to do it. You can give them your credit card details: Name on Card, zip code, credit card number, and 3 or 4 digit security code on the back. Most of the information is available on the card or via an easy Google search. If the crook has your card they can use it to buy something. You can contact your bank's website and establish a one time or recurring transfer. You provide the information about the person/company. Your bank knows who you are because you used a secure system and your password. Their bank accepts the money because who would refuse money, they don't care who you are. You can provide the company with your bank info (bank number, your account number, and your name). If your bank limits their transactions via this method only to legitimate organizations, then your money will only be sent to legitimate organizations. But if the organization has no way of knowing who is on the other end of the phone or webpage, they may be withdrawing money from a bank account without the account owners permission. In the example article a person found a charity that had lax security standards, they were recognized by the bank as a legitimate organization, so the bank transferred the money. The charity will point to the form and say they had permission from the owner, but in reality they didn't. The subject of the article was correct, all the info required is on every check. It is just that most people are honest, and the few security hurdles that exist do stop most of the fraud.",
"title": ""
},
{
"docid": "35521eafb32f55645fbcfd314a99e5f0",
"text": "While it's wise, easier and safer to check your transactions online a few times a month, I opt to receive and file paper statements as a hard copy back up of account history. Any reconciliation I perform is a quick glance to make sure the numbers sound right. It's probably a small waste of time and space, but it settles some of my paranoia (due to my training as a computer engineer) about failure of electronic banking systems. If someone tampers with bank records or a SAN explodes and wipes out a bunch of account data, then I will have years worth of paper statements to back up my numbers. Having years worth of statements printed on the banks stationary will have better credibility in court than a .pdf or printout thereof that could have been doctored, in case I ever needed to take my bank to court. A little piece of mind for the price of a letter opener, a square foot file box and a couple of minutes a month.",
"title": ""
}
] |
fiqa
|
0e9aef81217272e21be61e9f0ac33f77
|
Why does the Brexit cause a fall in crude oil prices?
|
[
{
"docid": "4f36107f1dd32de8bf61061bd5578b52",
"text": "\"Uncertainty has very far reaching effects. Oil is up ~100% since February and down ~40% from it's 52 week high (and down even more on a longer timeline). It's not exactly a stable investment vehicle and moves a few percent each day on basically nothing. A lot of securities will be bouncing around for the next couple weeks at least while folks remain uncertain about what the \"\"brexit\"\" will actually mean.\"",
"title": ""
}
] |
[
{
"docid": "18db0e4ca9c70f63f9dfd4813596faf3",
"text": "\"I'll take a stab at this question and offer a disclosure: I recently got in RING (5.1), NEM (16.4), ASX:RIO (46.3), and FCX (8.2). While I won't add to my positions at current prices, I may add other positions, or more to them if they fall further. This is called catching a falling dagger and it's a high risk move. Cons (let's scare everyone away) Pros The ECB didn't engage in as much QE as the market hoped and look at how it reacted, especially commodities. Consider that the ECB's actions were \"\"tighter\"\" than expected and the Fed plans to raise rates, or claims so. Commodities should be falling off a cliff on that news. While most American/Western attention is on the latest news or entertainment, China has been seizing commodities around the globe like crazy, and the media have failed to mention that even with its market failing, China is still seizing commodities. If China was truly panicked about its market, it would stop investing in other countries and commodities and just bail out its own country. Yet, it's not doing that. The whole \"\"China crisis\"\" is completely oversold in the West; China is saying one thing (\"\"oh no\"\"), but doing another (using its money to snap up cheap commodities). Capitalism works because hard times strengthen good companies. You know how many bailouts ExxonMobil has received compared to Goldman Sachs? You know who owns more real wealth? Oil doesn't get bailed out, banks do, and banks can't innovate to save their lives, while oil innovates. Hard times strengthen good companies. This means that this harsh bust in commodities will separate the winners from the losers and history shows the winners do very well in the long run. Related to the above point: how many bailouts from tax payers do you think mining companies will get? Zero. At least you're investing in companies that don't steal your money through government confiscation. If you're like me, you can probably find at least 9 people out of 10 who think \"\"investing in miners is a VERY BAD idea.\"\" What do they think is a good idea? \"\"Duh, Snapchat and Twitter, bruh!\"\" Then there's the old saying, \"\"Be greedy when everyone's fearful and fearful when everyone's greedy.\"\" Finally, miners own hard assets. Benjamin Graham used to point this out with the \"\"dead company\"\" strategy like finding a used cigarette with one more smoke. You're getting assets cheap, while other investors are overpaying for stocks, hoping that the Fed unleashes moar QE! Think strategy here: seize cheap assets, begin limiting the supply of these assets (if you're the saver and not borrowing), then watch as the price begins to rise for them because of low supply. Remember, investors are part owners in companies - take more control to limit the supply. Using Graham's analogy, stock pile those one-puff cigarettes for a day when there's a low supply of cigarettes. Many miners are in trouble now because they've borrowed too much and must sell at a low profit, or in some cases, must lose. When you own assets debt free, you can cut the supply. This will also help the Federal Reserve, who's been desperately trying to figure out how to raise inflation. The new patriotic thing to do is stimulate the economy by sending inflation up, and limiting the supply here is key.\"",
"title": ""
},
{
"docid": "d3c891391da74a56a1a8f14f358283f3",
"text": "\"Not to mention that many oil fields don't make a profit below $40/barrel. The Saudis over-produced on purpose based on that premise, betting that they could drive much of the growing North American production out of business by keeping the price below the point where tar sands and hydraulic fracking could be profitable. If oil dropped to $10/barrel, few countries would bother pumping it. While Saudi Arabia and some of the UAE could make a profit at that point (for now), even Iraq would be losing money. https://www.fool.com/investing/2017/03/19/you-wont-believe-what-saudi-arabias-oil-production.aspx That reduced production would drive the price right back up, since oil is still used in plastics, shipping, road construction, etc. Even if every car being sold becomes electric overnight, *and* all the electric power plants become wind, nuclear or solar based tomorrow, we'd still have a decade or more of existing ICE cars on the road. It's not the world would stop using oil in the next 6-8 years just because \"\"investment pours into electric cars\"\". If anything, a drop to $10/barrel would slow the move away from oil significantly; what incentive would people have to buy a more expensive electric car when gas at the pump is suddenly is $1 again?\"",
"title": ""
},
{
"docid": "b6cbf93cdf03f9730462f5dd3d3dd2d7",
"text": "\"Just to get the ball rolling, here's an answer: it won't affect you in the slightest. The pound happened to be tumbling anyway. (If you read \"\"in the papers\"\" that Brexit is \"\"making the pound fall\"\", that's as valuable as anything else you've ever read in the papers.) Currencies go up and down drastically all the time, and there's nothing you can do about it. We by fluke once bought a house in Australia when that currency was very low; over the next couple years the currency basically doubled (I mean per the USD) and we happened to sell it; we made a 1/2 million measured in USD. Just a fluke. I've had the opposite happen on other occasions over the decades. But... Currency changes mean absolutely nothing if you're in that country. The example from (2) was only relevant because we happened to be moving in and out of Aus. My various Australian friends didn't even notice that their dollar went from .5 to 1 in terms of USD (how could it matter to them?) All sorts of things drastically affect the general economy of a given country. (Indeed, note that a falling currency is often seen as a very good thing for a given nation's economy: conspiracy theorists in the states are forever complaining that ) Nobody has the slightest clue if \"\"Brexit\"\" will be good bad or indifferent for the UK. Anything could happen. It could be the beginning of an incredible period of growth for the UK (after all, why does Brussels not want your country to leave - goodwill?) and your house could triple in value in a year. Or, your house price could tumble to half in a year. Nobody has the slightest clue, whatsoever about the effects on the \"\"economy\"\" of a country going forward, of various inputs.\"",
"title": ""
},
{
"docid": "8fb678e0d9a3b2ea61fa7340500ea4d0",
"text": "\"once again: the problems you have commented about (i.e. decline of UK manufacturing and foreign policy) and your very crude version of historical causality, combined with the policy conclusions you have suggested (the need for common immigration and policy regime with the US) suggest to me that either you haven't quite grasped post-war euopean history, or you've ventured into the realm of conspiracy theory. PS: \"\"when they're charismatically explained in such a systematic and specific way\"\" is not a phrase commonly used in english. explain what you mean by that, please.\"",
"title": ""
},
{
"docid": "9aacb0fcfba729270213c796ce604bd8",
"text": "\"This is the best tl;dr I could make, [original](https://www.bloomberg.com/news/articles/2017-06-19/oil-s-slide-stalls-as-investors-weigh-stockpiles-against-libya) reduced by 70%. (I'm a bot) ***** > The amount of oil stored in tankers reached a 2017 high of 111.9 million barrels earlier this month, according to Paris-based tracking company Kpler SAS. Oil has slipped below $45 a barrel as supplies in the U.S. remain plentiful and drillers continue to add rigs, raising concerns output cuts by the Organization of Petroleum Exporting Countries and allies including Russia won&#039;t succeed in draining bloated stockpiles. > Crude stockpiles remain more than 100 million barrels above the five-year average, according to data from the EIA. American production has climbed to 9.33 million barrels a day through June 9, near the highest since August 2015. > Libya is pumping about 900,000 barrels a day, according to a person with direct knowledge of the matter, who asked not to be identified for lack of authority to speak to the media. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6ietvj/oil_prices_are_tumbling_more_than_2_toward_43/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~148648 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*: **barrel**^#1 **percent**^#2 **August**^#3 **U.S.**^#4 **Oil**^#5\"",
"title": ""
},
{
"docid": "2e23c82ab6bb3ab7a9a80b14ade2e0cd",
"text": "There's a concept called interest rate parity, which sort of says that you cannot profit on the difference in interest rates. This difference accounts for the predicted movement in exchange rates as well, along with the stability of the currencies.",
"title": ""
},
{
"docid": "f91f4a2c1fefc9609804c9797e792abd",
"text": "The British didn't choose to stay away, they were forced out (as was Sweden) by their fucked up policies and being unable to defend their peg against the (trading only at the time) euro currency. They lost a fuckload in the process and when it became apparent that those that understand market arbitrage wouldn't let up (what killed Mexico/Argentia Peso as well), they backed out.",
"title": ""
},
{
"docid": "17c44572b1e35d0cce607f02b29978a4",
"text": "Because the US Energy Information Administration at the time was run by the Bush Administration, which loved fossil fuels but hated renewables, so they predicted that coal and oil demand would soar while renewables would stall. They also predicted that overall energy demand would rise (so we must dig more coal!) yet it actually fell due to efficiency improvements. One suspects they knew all their forecasts were complete crap.",
"title": ""
},
{
"docid": "1e4c595ad2869833b60878f92c7056e1",
"text": "Well, considering the US barely buys any Saudi oil...anywhere in the US is usually a good assumption. Of course that completely ignores the global nature of oil prices and why you don't actually have to buy from them for them to benefit from the demand in the US.",
"title": ""
},
{
"docid": "ef1895dfad92b13fa889c781ca9d3f62",
"text": "\"This is the best tl;dr I could make, [original](http://uk.reuters.com/article/uk-britain-economy-idUKKBN1AJ0ZV) reduced by 77%. (I'm a bot) ***** > &quot;Firms&#039; prospects for the coming year have slipped to a level which has previously been indicative of the economy stalling or even contracting ... largely reflecting heightened uncertainty about the economic outlook and Brexit process,&quot; said Chris Williamson, IHS Markit&#039;s chief business economist. > A rise in inflation to a near four-year high - largely driven by the fall in the pound since last year&#039;s referendum - has prompted a minority of BoE policymakers to call for a reversal of last year&#039;s cut in interest rates. > Prime Minister Theresa May unexpectedly failed to win an outright majority in a parliamentary election in June, and with less than two years before Britain leaves the European Union, her party has yet to agree a clear set of negotiating goals. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6rc2bx/britain_experiencing_sluggish_economic_growth/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~182238 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*: **year**^#1 **economy**^#2 **since**^#3 **Britain**^#4 **June**^#5\"",
"title": ""
},
{
"docid": "80e061f28281f79fcdea24712b43a2ab",
"text": "\"US is the major oil consumer, and produces only about half as much - so the lower the prices, the better for it. As for the oil industry in the US - it will never fail since government just prints more money to prop it up regardless of its real economic effectiveness: it needs it to defang OPEC from being able to pull off another 1974 Oil Embargo. Hell, Gore even invented the \"\"global warming\"\" just for that purpose!\"",
"title": ""
},
{
"docid": "a32103579ed3ba3b8902f81d055cf3ca",
"text": "There are two impacts: First, if the pound is dropping, then buying houses becomes cheaper for foreign investors, so they will tend to buy more houses as investments, which will drive house prices up. Second, in theory you might be able to get a mortgage in a foreign country, let's say in Euro, and you might hope that over the next few years the pound would go up again, and the Euros that you owe the foreign bank become worth less.",
"title": ""
},
{
"docid": "2ce1cee0983831c85823c1166a154b4e",
"text": "\"In layman's terms, oil on the commodities market has a \"\"spot price\"\" and a \"\"future price\"\". The spot price is what the last guy paid to buy a barrel of oil right now (and thus a pretty good indicator of what you'll have to pay). The futures price is what the last guy paid for a \"\"futures contract\"\", where they agreed to buy a barrel of oil for $X at some point in the future. Futures contracts are a form of hedging; a futures contract is usually sold at a price somewhere between the current spot price and the true expected future spot price; the buyer saves money versus paying the spot price, while the seller still makes a profit. But, the buyer of a futures contract is basically betting that the spot price as of delivery will be higher, while the seller is betting it will be lower. Futures contracts are available for a wide variety of acceptable future dates, and form a curve when plotted on a graph that will trend in one direction or the other. Now, as Chad said, oil companies basically get their cut no matter what. Oil stocks are generally a good long-term bet. As far as the best short-term time to buy in to an oil stock, look for very short windows when the spot and near-future price of gasoline is trending downward but oil is still on the uptick. During those times, the oil companies are paying their existing (high) contracts for oil, but when the spot price is low it affects futures prices, which will affect the oil companies' margins. Day traders will see that, squawk \"\"the sky is falling\"\" and sell off, driving the price down temporarily. That's when you buy in. Pretty much the only other time an oil stock is a guaranteed win is when the entire market takes a swan dive and then bottoms out. Oil has such a built-in demand, for the foreseeable future, that regardless of how bad it gets you WILL make money on an oil stock. So, when the entire market's in a panic and everyone's heading for gold, T-debt etc, buy the major oil stocks across the spectrum. Even if one stock tanks, chances are really good that another company will see that and offer a buyout, jacking the bought company's stock (which you then sell and reinvest the cash into the buying company, which will have taken a hit on the news due to the huge drop in working capital). Of course, the one thing to watch for in the headlines is any news that renewables have become much more attractive than oil. You wait; in the next few decades some enterprising individual will invent a super-efficient solar cell that provides all the power a real, practical car will ever need, and that is simultaneously integrated into wind farms making oil/gas plants passe. When that happens oil will be a thing of the past.\"",
"title": ""
},
{
"docid": "1573214cfdfec4d6fa1fe1498bde43ed",
"text": "Royalty trusts track oil prices (they're a pure play on ownership of a portfolio of mineral rights and do not otherwise have the operations that the oil companies themselves have). Many publicly traded ones listed at the embedded wikipedia link. Oil tankers are having a bang up business right now as described in the article, but that's because of the low prices and flood of product from the middle east. The article notes that inventories are near capacity, so terminals and pipelines may be in for a few good years, though these do not directly track oil price. However, as a way to bet on oil or oil services, many terminals and pipelines are organized as publicly traded master limited partnerships or MLPs, often spun out of a major oil company for tax reasons, allowing fine-grained investment in specific assets.",
"title": ""
},
{
"docid": "008101757be540c44fd26f9fcc236c2a",
"text": "The prices dropped because the scandal could mean: This some people estimated that the company could lose money, or have smaller profit. Thus each share was worth less money going forward. The mechanism is that in order to sell their shares the current share owners had to settle for lower prices.",
"title": ""
}
] |
fiqa
|
c720c18e0a111285951406fda8f895c9
|
Why can't I short a stock that sells for less than $5? Is there another way to “go short” on them?
|
[
{
"docid": "fcd9990896be0b5c627ec5da25a4af72",
"text": "I think George's answer explains fairly well why the brokerages don't allow this - it's not an exchange rule, it's just that the brokerage has to have the shares to lend, and normally those shares come from people's margin, which is impossible on a non-marginable stock. To address the question of what the alternatives are, on popular stocks like SIRI, a deep In-The-Money put is a fairly accurate emulation of an actual short interest. If you look at the options on SIRI you will see that a $3 (or higher) put has a delta of -$1, which is the same delta as an actual short share. You also don't have to worry about problems like margin calls when buying options. The only thing you have to worry about is the expiration date, which isn't generally a major issue if you're buying in-the-money options... unless you're very wrong about the direction of the stock, in which case you could lose everything, but that's always a risk with penny stocks no matter how you trade them. At least with a put option, the maximum amount you can lose is whatever you spent on the contract. With a short sale, a bull rush on the stock could potentially wipe out your entire margin. That's why, when betting on downward motion in a microcap or penny stock, I actually prefer to use options. Just be aware that option contracts can generally only move in increments of $0.05, and that your brokerage will probably impose a bid-ask spread of up to $0.10, so the share price has to move down at least 10 cents (or 10% on a roughly $1 stock like SIRI) for you to just break even; definitely don't attempt to use this as a day-trading tool and go for longer expirations if you can.",
"title": ""
},
{
"docid": "13d344c7642c5990a4d0b92f3dcccdf9",
"text": "A bit of poking around brought me to this thread on the Motley Fool, asking the same basic question: I think the problem is the stock price. For a stock to be sold short, it has to be marginable which means it has to trade over $ 5.00. The broker, therefore, can't borrow the stock for you to sell short because it isn't held in their clients' margin accounts. My guess is that Etrade, along with other brokers, simply exclude these stocks for short selling. Ivestopedia has an explanation of non-marginable securities. Specific to stocks under $5: Other securities, such as stocks with share prices under $5 or with extremely high betas, may be excluded at the discretion of the broker itself.",
"title": ""
},
{
"docid": "e8d00d25fc080b968a4da21485d99698",
"text": "Timothy Sykes specializes in this type of trade, according to his website. He has some recommendations for brokers that allow shorting low-priced stocks:",
"title": ""
},
{
"docid": "0336ebcbd40f6c26b451f893adc916c5",
"text": "If this is the initial transaction, the rules of a short margin account say that if you shorted 1000 share of ABC at $5/share your credit balance would be $5000 from the short plus you would have to put up yourself $5000 cash or $10,000 of marginal securities. So this is not really leveraging using margin. You have to put in just as much as the short generates. Is that what this relates to? Once the initial purchase has been made the minimum maintenance for a stock trading under $5 per share is 100% of the short market value in the margin account or $2.50 per share whichever is greater. For stock trading at $5/share or greater the minimum maintenance requirement is $5/share or 30% of the short market value, whichever is greater. The minimum maintenance requirements can be tighter.",
"title": ""
}
] |
[
{
"docid": "59124ea66bbedf0f81f3198152140671",
"text": "I don't know what restrictions are put on the average employee at your company. In my case, we were told we were not permitted to either short the stock, or to trade in it options. That said, I was successful shorting the exact number of shares I'd be buying at the 6 month close, the same day the purchase price would be set. I then requested transfer of the stock purchase to my broker where the long and short netted to zero. The return isn't 15%, it's 100/85 or 17.6% for an average 3 months they have your money. So do the math on APR. (Higher if the stock has risen over 6 months and you get the lower price from 6 months prior.) My method was riskless, as far as I am concerned. I did this a dozen times. The stock itself was +/- 4% by the time the shares hit, so in the end it was an effort, mostly to sleep better. I agree with posts suggesting the non-zero risk of a 20% 4 day drop.",
"title": ""
},
{
"docid": "b54bc28354a6cbbc8ecf92e5333beb93",
"text": "In terms of pricing the asset, this functions in exactly the same way as a regular sell, so bids will have to be hit to fill the trade. When shorting an equity, currency is not borrowed; the equity is, so the value of per share liability is equal to it's last traded price or the ask if the equity is illiquid. Thus when opening a short position, the asks offer nothing to the process except competition for your order getting filled. Part of managing the trade is the interest rate risk. If the asks are as illiquid as detailed in the question, it may be difficult even to locate the shares for borrowing. As a general rule, only illiquid equities or those in free fall may be temporarily unable for shorting. Interactive Brokers posts their securities financing availabilities and could be used as a proxy guide for your broker.",
"title": ""
},
{
"docid": "2946b37fe124978cc75eb71e8f0a2c12",
"text": "\"A simple way to ask the question might be to say \"\"why can't I just use the same trick with my own shares to make money on the way down? Why is borrowing someone else's shares necessary to make the concept a viable one? Why isn't it just the inverse of 'going long'?\"\" A simple way to think about it is this: to make money by trading something, you must buy it for less than you sell it for. This applies to stocks like anything else. If you believe the price will go up, then you can buy them first and sell them later for a higher price. But if you believe the price will go down, the only way to buy low and sell high is to sell first and buy later. If you buy the stock and it goes down, any sale you make will lose you money. I'm still not sure I fully understand the point of your example, but one thing to note is that in both cases (i.e., whether you buy the share back at the end or not), you lost money. You say that you \"\"made $5 on the share price dropping\"\", but that isn't true at all: you can see in your example that your final account balance is negative in both cases. You paid $20 for the shares but only got $15 back; you lost $5 (or, in the other version of your example, paid $20 and got back $5 plus the depreciated shares). If you had bought the shares for $20 and sold them for, say, $25, then your account would end up with a positive $5 balance; that is what a gain would look like. But you can't achieve that if you buy the shares for $20 and later sell them for less. At a guess, you seem to be confusing the concept of making a profit with the concept of cutting your losses. It is true that if you buy the shares for $20 and sell them for $15, you lose only $5, whereas if you buy them for $20 and sell for $10, you lose the larger amount of $10. But those are both losses. Selling \"\"early\"\" as the price goes down doesn't make you any money; it just stops you from losing more money than you would if you sold later.\"",
"title": ""
},
{
"docid": "fbac1c13951f063ca7baffe823cd5a99",
"text": "Depends on the stock involved, but for the most part brokerages allow you gain entry at 50%, meaning you can short twice the cash on hand you have. Going forward, you need to maintain 30%, so on a $10,000 short, you'd have to maintain $3000 in your account. Example, an account with $5000 cash - You can short $10,000 securities. Let say 100 shares of xyz at $100 per share. After trade settles, you won't receive a margin call until your balance falls to $3000, probably right around the time xyz rises to $120 per share. Riskier stocks will have higher margin maintenance requirements - leveraged vehicles like FAS/FAZ (triple leveraged) require 90% margin (3x30%) if they are allowed to be 'shorted' at all.",
"title": ""
},
{
"docid": "8efad011153e1a252633e7cf601a316f",
"text": "\"The process of borrowing shares and selling them is called shorting a stock, or \"\"going short.\"\" When you use money to buy shares, it is called \"\"going long.\"\" In general, your strategy of going long and short in the same stock in the same amounts does not gain you anything. Let's look at your two scenarios to see why. When you start, LOOT is trading at $20 per share. You purchased 100 shares for $2000, and you borrowed and sold 100 shares for $2000. You are both long and short in the stock for $2000. At this point, you have invested $2000, and you got your $2000 back from the short proceeds. You own and owe 100 shares. Under scenario A, the price goes up to $30 per share. Your long shares have gone up in value by $1000. However, you have lost $1000 on your short shares. Your short is called, and you return your 100 shares, and have to pay interest. Under this scenario, after it is all done, you have lost whatever the interest charges are. Under scenario B, the prices goes down to $10 per share. Your long shares have lost $1000 in value. However, your short has gained $1000 in value, because you can buy the 100 shares for only $1000 and return them, and you are left with the $1000 out of the $2000 you got when you first sold the shorted shares. However, because your long shares have lost $1000, you still haven't gained anything. Here again, you have lost whatever the interest charges are. As explained in the Traders Exclusive article that @RonJohn posted in the comments, there are investors that go long and short on the same stock at the same time. However, this might be done if the investor believes that the stock will go down in a short-term time frame, but up in the long-term time frame. The investor might buy and hold for the long term, but go short for a brief time while holding the long position. However, that is not what you are suggesting. Your proposal makes no prediction on what the stock might do in different periods of time. You are only attempting to hedge your bets. And it doesn't work. A long position and a short position are opposites to each other, and no matter which way the stock moves, you'll lose the same amount with one position that you have gained in the other position. And you'll be out the interest charges from the borrowed shares every time. With your comment, you have stated that your scenario is that you believe that the stock will go up long term, but you also believe that the stock is at a short-term peak and will drop in the near future. This, however, doesn't really change things much. Let's look again at your possible scenarios. You believe that the stock is a long-term buy, but for some reason you are guessing that the stock will drop in the short-term. Under scenario A, you were incorrect about your short-term guess. And, although you might have been correct about the long-term prospects, you have missed this gain. You are out the interest charges, and if you still think the stock is headed up over the long term, you'll need to buy back in at a higher price. Under scenario B, it turns out that you were correct about the short-term drop. You pocket some cash, but there is no guarantee that the stock will rise anytime soon. Your investment has lost value, and the gain that you made with your short is still tied up in stocks that are currently down. Your strategy does prevent the possibility of the unlimited loss inherent in the short. However, it also prevents the possibility of the unlimited gain inherent in the long position. And this is a shame, since you fundamentally believe that the stock is undervalued and is headed up. You are sabotaging your long-term gains for a chance at a small short-term gain.\"",
"title": ""
},
{
"docid": "eb0b1106505cc2f5eb4c597f84834d88",
"text": "With a short position you make your money (profit) when you buy the stocks back to close the position at a lower price than what you bought them at. As short selling is classed as speculation and not investing and you at no time own any actual assets, you cannot donate any short possition to charity. If you did want to avoid paying tax on the profits you could donate the proceeds of the profits after closing the position and thus get a tax deduction equal to the profits you made. But that raises a new and more important question, why are you trading in the first place if you are afraid to make profits in case you have to pay tax on those profits?",
"title": ""
},
{
"docid": "04df881344f4003c31ca6fb7b9d516fe",
"text": "This is a gross simplification as there are a few different ways to do this. The principle overall is the same though. To short a stock, you borrow X shares from a third party and sell them at the current price. You now owe the lender X shares but have the proceeds from the sale. If the share price falls you can buy back those shares at the new lower price, return them to the lender and pocket the difference. The risk comes when the share price goes the other way, you now owe the lender the new value of the shares, so have to find some way to cover the difference. This happened a while back when Porsche made a fortune buying shares in Volkswagen from short sellers, and the price unexpectedly rose.",
"title": ""
},
{
"docid": "907deeaa3c67ab33eead5ceaece419ad",
"text": "The point of short-selling as a separate instrument is that you can you do it when you can't sell the underlying asset... usually because you don't actually own any of it and in fact believe that it will go down. Shorting allows you to profit from a falling price. Another (non-speculative) possibility is that you don't have the underlying asset right now (and thus can't sell it) but will get it at a certain point in the future, e.g. because it's bonds that you've used to guarantee a loan... or grain that's still growing on your fields.",
"title": ""
},
{
"docid": "b5ee4d84968b9181e9d4f40543a3afb6",
"text": "\"You can't short a stock unless there is someone willing and able to \"\"lend\"\" shares to you. And there are several reasons why that might not be the case. First, BSFT is a \"\"new\"\" stock, which means that NO ONE has held it very long. It's much easier to short IBM or Exxon Mobil, where there are some long-term holders who would like to earn a little extra money lending you THEIR shares. But if \"\"everyone\"\" involved is busy buying or selling the stock, there won't be many people to lend it. That's not manipulation, that's just the market. Another reason may be a large \"\"short\"\" interest. That is many OTHERS have shorted it before you. That's dangerous for you, because if some lenders want to pull their shares off the market, they can cause a \"\"short squeeze\"\" that will drive the price much higher. And stock shortages can be orchestrated by the company or large investors to artificially drive the price higher. Unless you have a lot of experience, don't try shorting small cap stocks. Try to gain some experience with large caps like IBM or Exxon Mobil first. Those are stocks that people at least can't \"\"play games\"\" with. YOu will win or lose based on the market itself.\"",
"title": ""
},
{
"docid": "1d0a8c9d8471a51c859d2375e59ba45f",
"text": "\"> It just has to finish below the strike price of the short (which can be higher than the stock's current price). You're talking about a put option. That's one \"\"short\"\" strategy, but it's not shorting a stock, so the terminology is a little jumbled. There are reasons to not do straight options, because they can be quite risky, and you have to get the time frame correct.\"",
"title": ""
},
{
"docid": "ddfe0fd135b294be3b3199c6a3eced9e",
"text": "Your original example is a little confusing because just shorting for 1k and buying for 1k is 100% leveraged or an infinitive leverage ratio. (and not allowed) Brokerage houses would require you to invest some capital in the trade. One example might be requiring you to hold $100 in the brokerage. This is where the 10:1 ratio comes from. (1000/10) Thus a return of 4.5% on the 1000k bond and no movement on the short position would net you $45 and voila a 45% return on your $100 investment. A 40 to 1 leverage ratio would mean that you would only have to invest $25 to make this trade. Something that no individual investor are allowed to do, but for some reason some financial firms have been able to.",
"title": ""
},
{
"docid": "a87a785ece5786dd7c3b3761d25d5e96",
"text": "\"And what exactly do I profit from the short? I understand it is the difference in the value of the stock. So if my initial investment was $4000 (200 * $20) and I bought it at $3800 (200 * $19) I profit from the difference, which is $200. Do I also receive back the extra $2000 I gave the bank to perform the trade? Either this is extremely poorly worded or you misunderstand the mechanics of a short position. When you open a short position, your are expecting that the stock will decline from here. In a short position you are borrowing shares you don't own and selling them. If the price goes down you get to buy the same shares back for less money and return them to the person you borrowed from. Your profit is the delta between the original sell price and the new lower buy price (less commissions and fees/interest). Opening and closing a short position is two trades, a sell then a buy. Just like a long trade there is no maximum holding period. If you place your order to sell (short) 200 shares at $19, your initial investment is $3,800. In order to open your $3,800 short position your broker may require your account to have at least $5,700 (according to the 1.5 ratio in your question). It's not advisable to open a short position this close to the ratio requirement. Most brokers require a buffer in your account in case the stock goes up, because in a short trade if the stock goes up you're losing money. If the stock goes up such that you've exhausted your buffer you'll receive what's known as a \"\"margin call\"\" where your broker either requires you to wire in more money or sell part or all of your position at a loss to avoid further losses. And remember, you may be charged interest on the value of the shares you're borrowing. When you hold a position long your maximum loss is the money you put in; a position can only fall to zero (though you may owe interest or other fees if you're trading on margin). When you hold a position short your maximum loss is unlimited; there's no limit to how high the value of something can go. There are less risky ways to make short trades by using put options, but you should ensure that you have a firm grasp on what's happening before you use real money. The timing of the trades and execution of the trades is no different than when you take a plain vanilla long position. You place your order, either market or limit or whatever, and it executes when your trade criteria occurs.\"",
"title": ""
},
{
"docid": "34ca4c64635f2c69fa7b98f5e381c71c",
"text": "In the real world, there are only two times you'll see that 5% become worth anything - ie, something you can exchange for cash - 1) if another company buys them; (2) if they go public. If neither of these things happen, you cannot do anything with the stock or stock options that you own.",
"title": ""
},
{
"docid": "ef18299621646b2cd361cf1313bf5a04",
"text": "> A short position also loses money if the stock just appreciates more slowly than the broader market, which is one way an overvaluation can correct itself. Is there a derivative based on the literal second derivative (acceleration) of the stock price? If so, you'd be able to short those, yes?",
"title": ""
},
{
"docid": "b94340d7663d11665594ef07fe307ca5",
"text": "The main source is a direct feed from the stock market itself. The faster the feed, the more expensive. 15-minute delay is essentially free... and for those of us who do long-term investment is more than adequate. If you want data sooner, sign up with a brokerage that provides that service as part of what you're paying them for... and remember that every bit you spend on services is that much more profit you have to make just to break even, so there's a real tradeoff.",
"title": ""
}
] |
fiqa
|
385304f05c5a90c3533149b5b0bfb08b
|
Tax exemption on personal loan interest component in India
|
[
{
"docid": "5cc2b16d5596458579599c53d1788430",
"text": "Am I eligible for the tax exemption if yes then under which section. Generally Personal loans are not eligible for tax exemption. Only housing loans from qualified institutions are eligible for tax deduction. As per the income tax act; The house should be in your name. The home loans taken from recognised institutions are fully qualified under section 24B and 80C. This means you can claim Interest exemption under 24B and Principal repayment under 80C. The Act also specifies that loan can be taken from friends/relatives for construction of property and will be eligible for Interest exemption under 24B only. The principal will not be eligible for exemption under 80C. Read the FAQ from Income Tax India. There has to be certificate showing how much interest was paid on the said loan. Further there should be records/receipts on how the money was spent. There is difference of opinion amongst CA. It is best you take a professional advise.",
"title": ""
}
] |
[
{
"docid": "c75d0c4b25992b394197d4d4feaa9f05",
"text": "As I understand it, capital gains from real estate sales in India can be shielded from income tax entirely if the proceeds of the sale are invested in certain specific types of bonds (Rural Highway Contruction Authority of India?) for a period of three years beginning no later than x months (6 months?) after completion of the sale. Perhaps this applies to sales of inherited real estate only and not to commercial property or residential property acquired by purchase since there is no step-up of basis on death as occurs in the US, and in all likelihood, records of the purchase price of the inherited property are lost in the mists of time, and so the basis of the investment is effectively zero (or treated as such by the revenue authorities) The interest paid by these bonds is included in taxable income. Perhaps @Dheer will be willing to correct any mistakes in the above. So, it may be necessary to check whether (a) the interest income from the bonds was declared on Form 1040 Schedule B for each year (b) whether the appropriate boxes (the ones that ask whether the taxpayer has signature authority over foreign accounts etc) were checked on Schedule B or not, (c) whether Form TD 90-22.1 was filed each year or not (this is the FBAR requirement) Note that if the total value of the accounts is less than US $10K during the entire year, then the taxpayer is supposed to check NO on Schedule B and need not file Form TD 90-22.1. Also, there is a separate requirement to file a Form 8938 for certain specific types of investments. There was a two-part article describing these rules in Forbes magazine some time ago, and this is available on-line (Part 1 and Part II) As @superjessi says, the IRS might be lenient if the only issue is not filing the forms in timely fashion, and the taxpayer is voluntarily coming into compliance even though the filing is late. They are likely to be less forgiving if the foreign income was not reported, and still remains unreported even after filing the various forms.",
"title": ""
},
{
"docid": "7128dd586eef8101003e79d791cd59d9",
"text": "The loan itself is not tax deductible; unless you took it as part of a mortgage, anyway, it's just a regular loan. Mortgage and Student Loan Interest deductions are special cases explicitly given tax-deductible status; other loans are not deductible (unless part of a business expense or other qualifying reason). If this were a short sale (which you note it was not but included for completeness' sake), and some of your debt was cancelled, that may have tax implications. You cannot take a capital loss on your personal residence, so the loss itself is not deductible.",
"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": "b19b22ee8d55cec0980dff641e6ca784",
"text": "I would not expect any problems. Your interest will have tax deducted at 20% which I don't think you would be entitled to reclaim because you don't get a personal allowance if you aren't resident in the UK, and unless you have a huge amount of UK earnings you would not be legally liable to any higher rates of tax so there would be no issues there. If you were liable to more tax you would be obliged to inform the Inland Revenue.",
"title": ""
},
{
"docid": "2f6fc677d6cb6bd6df28c89bea847238",
"text": "Another person, not a shareholder or director, will be treated as when a bank loans you money. You are loaning out money and you are sort of getting interest income out of it or some other benefit, which needs to be put down in you company's annual return. Full source on the HMRC website. But for a shareholder or director is different matter. Check the HMRC source for sure and check with your accountant, if you have one. If you owe your company money You or your company may have to pay tax if you take a director’s loan. Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if: If the loan was more than £10,000 (£5,000 in 2013-14) If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must: You must report the loan on your personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest. If you paid interest below the official rate If you’re a shareholder and director, your company must: You must report the interest on your personal Self Assessment tax return. You may have to pay tax on the difference between the official rate and the rate you paid.",
"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": "3d8b777f6dce1bec4344460276cea708",
"text": "Is this transaction legal Yes it is. Are there any tax implications in US? The interest is taxable in US. From what I understand, there are no tax implications in India. Yes this is right. The question you haven't asked is does this makes sense? So you are paying 3% upfront. Getting 8% at end of one year. You can making monthly repayments through the year. You have not factored in the Fx Rate and their fluctuations. For Example you would convert USD to INR and back to USD. Even if you do this the same day, you loose around 2% that is referred to as Fx Spread. Plus the rates for USD and INR get adjusted for inflation. This means that INR will loose value in a year. In long term it would be balance out [i.e. the gain in interest rate is offset by loss in Fx rate]. At times its ahead or behind due to local conditions.",
"title": ""
},
{
"docid": "164754ff32a53d90a39c6fbc20049715",
"text": "I can't answer from the Indian side but on the UK side, if you and your friend are not related then there is no tax implication - you are effectively giving each other gifts - other than a possible inheritance tax liability if one of you dies within 7 years of the transfer and has an estate above the IHT allowance.",
"title": ""
},
{
"docid": "18d8988a421db7d06a74d7eb76b12ac8",
"text": "From India Tax point of view: Some one else may give the US tax treatment. Refer to this similar question what taxes I need to pay in India Capital Gains. My accountant never asked or reported the bought property in taxes- should he reported in taxes?Did he do wrong not reporting should I report the property in my next year taxes? If you mean in IT Returns, yes it should be declared. Can i bring the money back if needed? By Back if you mean repatriate to US, The capital portion would be Ease if the loan property was purchased or loan repaid from NRE. Else there is limit on the amount and paperwork. Consult a CA. If I rent the property instead of selling, do I have to report the income and what income? should I be filling taxes on the rental income in India or just in USA or both You are taxable for the rent and have to report it as income and pay taxes in India.",
"title": ""
},
{
"docid": "92672dcaf9b5d74a175578d2a4403c40",
"text": "Note that after 15 years, the tax exemption is €36800 per person, which includes both the principal you desposited and the accumulated interest. It's possible that you will have a higher balance than this in your savings account at this point and would still owe tax on the interest accumulated above the exempted amount. After 20 years, you get the full tax exemption, the lesser of your portion of the mortgage debt and €162000 per person. In direct answer to your questions: I'm not aware of any exceptions to the 15 year rule for allowing the accumulated interest to be tax free when selling your house. If your accumulated interest is low enough, you might consider just paying the tax on it as it would give you the most flexibility in choosing a new mortgage. This is why I asked about more details about your interest rate and how long the mortgage has been running. It may, however, possible to couple the savings account to a new ABN AMRO Bankspaar mortgage when you buy a new house. You should check your mortgage terms and conditions. For example, Section 23.12 in ABN AMRO's terms and conditions from 2010 describes this. See here. It is probably best, however, to speak directly with either your mortgage broker or with a mortgage adviser with ABN AMRO. If your mortgage broker still worked on commission (aflsuitprovisie) when you closed your mortgage, then they are obligated to assist you with this type of question. In order to qualify for the tax exemption, you must use the saved value to pay off debt on your primary residence (eigenwoningschuld). Decoupling the savings account entirely from a mortgage will disqualify you from the tax advantages. You will owe tax on all accumulated interest.",
"title": ""
},
{
"docid": "b74b01f700c046fa5658bca7ef5ff164",
"text": "Legally, I can't find any reason that the LLC could not lend money to an individual. However, I believe the simplest course of action is to first distribute money from your company to your personal account, and then make it a personal loan. Whether the loan is done through the business or personally, financially I don't think there is much difference as to which bucket the interest income goes into, since your business and personal income will all get lumped together anyway with a single person LLC. Even if your friend defaults on the loan, either the business or you personally will have the same burden of proof to meet that the loan was not a gift to begin with, and if that burden is met, the deduction can be taken from either side. If a debt goes bad the debtor may be required to report the debt as income.",
"title": ""
},
{
"docid": "ca8e1d390f305f11925283dd73345691",
"text": "\"Can I claim a 20% of the interest paid over the period of Oct/2015 through Mar/2017 (18 months) when I file for IT returns this year in Mar/2017? Yes you can. Does my name not being the first name affect my eligibility of claiming the relief? No you can claim relief. Joint owners need to file a declaration on the quantum of relief claimed. Both can't claim 100%. Does that mean I my claiming the 20% relief on interest (and the remaining 80% over subsequent years) is in effect moot as my \"\"taxable\"\" income cannot go negative (meaning the govt cannot/will not return some money I have paid as IT in prior years)? If you have no other income on which tax is payable; then Yes it is irrelevant. Does that mean as long as I continue to work in the US (already having become a NRI), have little or no income in India, I cannot claim any future relief regarding the principal or interest? Yes that is right.\"",
"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": "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": "0135bf2ab914c53905961d531f2b4ae1",
"text": "My understanding was that if they cash out they only have to pay capital gains tax on it, which is lower than income tax for their bracket. You also have to think about tax on dividends from these stock options, which is only 15%, which is paltry to regular incometax rate that the rich pay on their salaries. According to Wikipedia: Congress passed the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), which included some of the cuts Bush requested and which he signed into law on May 28, 2003. Under the new law, qualified dividends are taxed at the same rate as long-term capital gains, which is 15 percent for most individual taxpayers Anyways, SOMETHING needs to be done.",
"title": ""
}
] |
fiqa
|
54d947fd8d8e82b0a84f3cf1a46a1556
|
Is having a 'startup fund' a good idea?
|
[
{
"docid": "7204946de596496e2375d774802378fe",
"text": "Saving money for the future is a good thing. Whether spending those savings on a business venture makes sense, will depend on a few factors, including: (1) How much money you need that business to make [ie: will you be quitting your job and relying on the business for your sole income? Or will this just be a hobby you make some pocket change from?] (2) How much the money the business needs up front [some businesses, like simple web design consulting, might have effectively $0 in cash startup costs, where starting a franchise restaurant might cost you $500k-$1M on day 1] (3) How risky it is [the general stat is that something like 50% of all new businesses fail in their first year, and I think for restaurants that number is often given as 75%+] But if you don't have a business idea yet, and save for one in the future but never get that 'perfect idea', the good news is that you've saved a bunch of money that you can instead use for retirement, or whatever other financial goals you have. So it's not the saving for a new business that is risky, it's the spending. Part of good personal financial management is making financial goals, tracking your progress to those goals, and changing them as needed. In a simpler case, many people want to own their own home - this is a common financial goal, just like early retirement, or starting your own business, or paying for your kids' college education. All those goals are helped by saving money, so your job as someone mindful of personal finances, is to prioritize those goals in accordance to what is important for you.",
"title": ""
},
{
"docid": "8885f17a460291a9344b1c9e6e161cc7",
"text": "\"I am asking because startups are super risky and 99% of the times you fail and lose the money. First of all, that 99% number is exaggerated. Only 96% of companies fail within ten years. But starting your own business is not a pure game of chance. It mostly depends on how good your business idea is and if you have the necessary skills and resources to succeed with it. Yes, there is luck involved, but a smart businessman can calculate the risks and possible rewards and then decide if a certain business idea is a good or a bad gamble. Also, a business failing does not necessarily mean that the business owner failed. A good business owner knows when to fold. A business might be profitable at first, but market circumstances might change at any time making it unprofitable. A smart business owner notices that early, liquidates the unprofitable business as quickly as possible and refocuses on their next business idea. Only those who can not let go of an unprofitable business or take too long to notice that it is failing are those who get dragged down with it. So should you have a \"\"startup fund\"\"? Saving your disposable income is never a mistake. If you never end up starting a business, it will eventually serve you as a retirement fund. So yes, you should save a part of your money each month. But should you start a company with it? That depends on whether or not you have a business idea where you know you will succeed. How do you know that? When you answered yes to all of these questions, then you might want to consider it.\"",
"title": ""
}
] |
[
{
"docid": "5883594212907d5df467c9d29e54bb54",
"text": "\"Absolutely terrible idea(s) on many fronts. Firstly, why are you giving away equity at all? usually it's to attract people you otherwise wouldn't be able to hire (like extremely talented coders or business development managers) but normal employees? Bad idea. If you really want to give up equity, then make sure it's only realized (valued) once certain targets are met (i.e. sales/revenue/share price/investment etc). As for the nomenclature, they're not \"\"Co-Founders\"\" - that's typically reserved for the people that foundned the company, not just people who happened to be working for the company it started trading. Call them \"\"founding employee\"\" if you must, but they're certainly not founders. Why does this matter? If the company ever takes iff or you get investment, or you fire one of them or one just gets the idea to sue you, their position name suddenly REALLY matters, and by not being careful, they could win a substantial cut of your company in a lawsuit. there's even stories of employees ganging up on their bosses and they end up owning the company. I know someone that's been involved in high 8 figure suit for 7 years for exactly the same reason. So unless they're putting in startup capital or they're taking a serious hit on their salary in return for compensation in the form of equity, don't give anyone equity.\"",
"title": ""
},
{
"docid": "235f063b15ea8d58511488c38c8316ab",
"text": "Looks more like an idea for a business rather than an actual business -- especially since it hasn't even launched. That said, it does have its merits. What bank actually holds the deposit funds becomes irrelevant, and may actaully change from time to time as they forge better partnerships with different banks. Think of it like a mutual fund -- the individual stocks (if there are stocks) in the fund are less important than the balance of risk vs. income and the leveling of change over the course of time. It offers services banks offer, without fees (at least that is the proposal) with the addition of budgetting capability as well. It does have downsides as well There is an increased level of indirection between you and your money. They propose to simplify the banking business model, but in fact are only hiding it from you. The same complexity that was there before is still there, with the added complexity of their service on top of it. It's just a matter of how much of that complexity you would have to deal with directly. With that in mind, I would reiterate that they are not a business yet -- just a proposed business model. Even the sign up process is a red flag for me. I understand they need to gauge interest in order to forge initial relationships with various banks, but I don't see the need for the 'invitation only' sign up method. It just sounds like a way to increase interest (who doesn't like feeling exclusively invited), and is a bit too 'gimmicky' for my taste. But, like I said, the idea has merit -- I have my reservations, but will reserve full judgement until they are an actual operating business.",
"title": ""
},
{
"docid": "589e71741b91394ebb3fd6f370edc330",
"text": "\"Thanks for disagreeing in a classy way. Seriously - as you can see, it's not that common! Two points: 1. You wouldn't trade the (bad) experiences. People say that about being paralyzed. I said it about the douchebag ex-bf who stole my car. Doesn't mean you would recommend people do it, right? In fact, you'd probably steer them away from it. That's why I write what I write. 2. \"\"do something big, or fast, or perhaps manufacture something… these types of business need outside funding\"\" I don't disagree with you there, in principle. But the vast majority of startups who want to \"\"do something big, or fast\"\" are in fact not businesses. All the big high-growth startups are losing money -- pretty much EXCEPT Facebook. Groupon, Salesforce, LinkedIn, Angie's List, Yelp, Twitter… these are not profitable years later, they are not businesses, they are the essence of gambling. It's just another part of the con. Some of them have or will go public, spreading their lack of profitability around the stock market… just like a package of sliced up bad mortgages. Others will get sold to a bigco who bought them for some OTHER reason, but not because they are a profitable, smart business. And the rest will shutter. It's part of the con.\"",
"title": ""
},
{
"docid": "0276ecf5c172ba1ebf4e2a70fa4d5de0",
"text": "He also says if you just have $20,000 laying around it's a good idea to use that chunk specifically for investing in good ideas and start up. The problem is investing that much money is not something most people can do",
"title": ""
},
{
"docid": "dc61bab52d0f73aaebd7179bee102155",
"text": "You will probably never see it. The startup at some point may start issuing dividends to the shareholders (which would be the owners, including you if you are in fact getting equity), but that day may never come. If they hire others with this method, you'll likely lose even that 5% as more shares are created. Think of inflation that happens when government just prints more money. All notes effectively lose value. I wouldn't invest either, most startups fail. Don't work for free on the vague promise of some future compensation; you want a salary and benefits. Equity doesn't put food on your table.",
"title": ""
},
{
"docid": "deefce8e1b71ab35ffa0f37d3583e233",
"text": "\"Goodness, I wish I could put away half my paycheck. Not to rain on your parade, but a 6-month emergency fund is not quite \"\"very good.\"\" It is the typical starting time frame. Personally, I would feel more comfortable with a 2+ year fund. That is a bit extreme, but only because many of us can barely seem to make it around to a 6-month fund. So, we focus on the more attainable goal. I say you do all three. Make saving money your priority, but do enjoy some of it; in moderation. Do not plan on making any big purchases with it, but know that you will eventually be able able to do so. Money not spent is worthless Idle money is worthless. Make some -- hopefully -- prudent investments with some of your money. A small portion of that investment portfolio can/should be in speculative investments. Maybe even as much as 20% of your investment portfolio, since you are young. Consider that money gone and you will hopefully be surprised by one of those speculative investments. That is the crucial point: earmark a small portion of your investment portfolio which you are willing to lose. However, do not gamble with it. Research the hot emerging technologies, for example, and find a way to make an investment. So, in summary: You may have more money that you know what do with, right now. However, that does not mean you need to go out and spend it all. Trust me, as you get older you will think of plenty of good uses for that money.\"",
"title": ""
},
{
"docid": "f3e298b53b9b41e2e4144ca203408ea8",
"text": "\"The value will certainly fluctuate up and down (but on average gain more than a savings account), but so long as you have enough liquid assets for emergencies, then yes, it's a perfectly good alternative to savings accounts. how risky, in general, are Index Income Funds. How are you defining \"\"risk\"\"? If you mean \"\"probability that I'll lose it all\"\" then it's virtually zero. If you mean \"\"how much the value can fluctuate\"\" then it's certainly not risk-free, but it has less volatility that individual stocks. If you take the S&P 500 as a proxy, you might expect the change in value over any given year to fluctuate between -30% (like 2008) and +40%, with an average change of around 8%. There will be funds that have less volatility, but produce less return, and funds that have more volatility but higher average returns.\"",
"title": ""
},
{
"docid": "59ed460e51c03b18119d4006de23a159",
"text": "Similar premise, yes. It's an investment so you're definitely hoping it grows so you can sell it for a profit/gain. Public (stock market) vs. private (shark tank) are a little different though in terms of how much money you get and the form of income. With stocks, if you buy X number of shares at a certain price, you definitely want to sell them when they are worth more. However, you don't get, say 0.001% (or whatever percentage you own, it would be trivial) of the profits. They just pay a dividend to you based on a pre-determined amount and multiply it by the number of shares you own and that would be your income. Unless you're like Warren Buffet and Berkshire who can buy significant stakes of companies through the stock market, then they can likely put the investment on the balance sheet of his company, but that's a different discussion. It would also be expensive as hell to do that. With shark tank investors, the main benefit they get is significant ownership of a company for a cheap price, however the risk can be greater too as these companies don't have a strong foundation of sales and are just beginning. Investing in Apple vs. a small business is pretty significant difference haha. These companies are so small and in such a weak financial position which is why they're seeking money to grow, so they have almost no leverage. Mark Cuban could swoop in and offer $50k for 25% and that's almost worth it relative to what $50k in Apple shares would get him. It's all about the return. Apple and other big public companies are mature and most of the growth has already happened so there is little upside. With these startups, if they ever take off then and you own 25% of the company, it can be worth billions.",
"title": ""
},
{
"docid": "aea729f534740a40bb8f56084dddfad6",
"text": "If you have a long enough time horizon, investing in the stock market while in a bad economy can turn out to be a very smart decision. If you need access to your capital in the short-term, 1-2 years, then it is probably a bad decision. If you have the ability to ride out the next few years, then you may be buying securities at an extremely low valuation. Take AAPL and MSFT for example. These are both technology stocks, which is by far the hottest sector in the economy now, and you can buy both of these companies for less than 13x earnings. Historically, you would have had to pay 20x or higher for high tech growth companies, but today you can buy these stocks at discounted valuations. Now AAPL may have a large market capitalization and a high stock price, but the simple fact is they are growing their earnings very quickly, they have best in class management, and they have $100 billion in cash and $50 billion in annual cash flow generation and you can buy the stock for a historically low multiple.",
"title": ""
},
{
"docid": "2b0f50c6befa43aa0f99833600320dd9",
"text": "\"First, you don't state where you are and this is a rather global site. There are people from Canada, US, and many other countries here so \"\"mutual funds\"\" that mean one thing to you may be a bit different for someone in a foreign country for one point. Thanks for stating that point in a tag. Second, mutual funds are merely a type of investment vehicle, there is something to be said for what is in the fund which could be an investment company, trust or a few other possibilities. Within North America there are money market mutual funds, bond mutual funds, stock mutual funds, mutual funds of other mutual funds and funds that are a combination of any and all of the former choices. Thus, something like a money market mutual fund would be low risk but quite likely low return as well. Short-term bond funds would bring up the risk a tick though this depends on how you handle the volatility of the fund's NAV changing. There is also something to be said for open-end, ETF and closed-end funds that are a few types to consider as well. Third, taxes are something not even mentioned here which could impact which kinds of funds make sense as some funds may invest in instruments with favorable tax-treatment. Aside from funds, I'd look at CDs and Treasuries would be my suggestion. With a rather short time frame, stocks could be quite dangerous to my mind. I'd only suggest stocks if you are investing for at least 5 years. In 2 years there is a lot that can happen with stocks where if you look at history there was a record of stocks going down about 1 in every 4 years on average. Something to consider is what kind of downside would you accept here? Are you OK if what you save gets cut in half? This is what can happen with some growth funds in the short-term which is what a 2 year time horizon looks like. If you do with a stock mutual fund, it would be a gamble to my mind. Don't forget that if the fund goes down 10% and then comes up 10%, you're still down 1% since the down will take more.\"",
"title": ""
},
{
"docid": "a25513894aa9f95a80fa632bc829304f",
"text": "GENIX was started by Joel Greenblatt back in 2013, so it is a real life test of the strategy. GENIX got off to a great start in 2013 and 2014 (probably because investors were pumping money into the fund) but had a terrible 2015, and lagging in 2016. Since inception it has under-performed an S&P 500 index fund by about 1.90% per year. The expense ratio of the fund is 2.15%, so before expenses GENIX still has a slight edge, but Greenbatt is doing much better the fund's investors. I think GENIX could be an OK investment if the expense ratio were reduced from 2.15% to around 0.50%, but I doubt the fund will ever do that.",
"title": ""
},
{
"docid": "3a71be0c4fad79ee79b2a3bf10b56110",
"text": "\"What do you mean by \"\"handful\"\" and \"\"VERY well-funded\"\"? There are a plenty of HFT shops out there that do just fine. But what zenwarrior said before about the effect of fund size is especially true for HFT, since market capacity is usually the limiting factor when making trades.\"",
"title": ""
},
{
"docid": "f70d373b1e48e9949d418ae128a1d8d9",
"text": "You are wildly over-estimating your taxes. First, remember that your business expenses reduce your gross income. Second, remember that taxes are progressive, so your flat 35% only applies if you're already making a high salary that pushed you into the higher brackets of US and CA. I think the deeper problems are: 1) you are expecting a super early start-up (with no finished product) to pay you the same as a steady job, including health insurance, and 2) you are expecting Kickstarter to independently fund the venture. The best source of funding is yourself. If you believe in this venture and in your game design abilities, then pay for most of the costs out of your own savings. Cut your expenses to the extent you can. You may want to wander over to startups.SE to get more perspective and ideas on your business plan.",
"title": ""
},
{
"docid": "d69f5e6cf8b569f776788242ee66c6a8",
"text": "\"Chris - you realize that when you buy a stock, the seller gets the money, not the company itself, unless of course, you bought IPO shares. And the amount you'd own would be such a small portion of the company, they don't know you exist. As far as morals go, if you wish to avoid certain stocks for this reason, look at the Socially Responsible funds that are out there. There are also funds that are targeted to certain religions and avoid alcohol and tobacco. The other choice is to invest in individual stocks which for the small investor is very tough and expensive. You'll spend more money to avoid the shares than these very shares are worth. Your proposal is interesting but impractical. In a portfolio of say $100K in the S&P, the bottom 400 stocks are disproportionately smaller amounts of money in those shares than the top 100. So we're talking $100 or less. You'd need to short 2 or 3 shares. Even at $1M in that fund, 20-30 shares shorted is pretty silly, no offense. Why not 'do the math' and during the year you purchase the fund, donate the amount you own in the \"\"bad\"\" companies to charity. And what littleadv said - that too.\"",
"title": ""
},
{
"docid": "baf466d270de3113810f59e1b1f12027",
"text": "Sorry, I didn't mean to knock your post. I do think you have valid points. I think it's great to see discussions on the pros and cons on the VC/Start-up world. My previous work experience was at a start-up that made it big (sold 90% to News Corp at $400mm valuation), but was funded by angel investors, so it was a different situation. I'm currently getting my MBA now so am looking at the space from both the VC perspective and the Start-up perspective. VCs can provide real value to start-ups, and they can also harm them. However, no one is forcing the start-ups to take VC money; most do because it provides a higher probability for a faster path to success. The investment doesn't come free obviously, as you pointed out. The hours are horrible and you lose significant control. In many situations founders are taken away from the main leadership role. That doesn't seem fair. However, if someone sold the voting shares of their company, they are opting in for that risk. The truth of the matter is that a lot of the people who are amazing at the ideas that birth the start-ups are horrible at the day-to-day management. Sometimes VCs step in and make the necessary changes to ensure the best chance at company profitability. Is it fair? Yes. Does it suck for the person ousted, absolutely. It's an oversimplification to say this is all bad or all good. It all depends on the situation. However, yes, there are VCs who are predatory and use their superior knowledge of how business, financing, and whatever else work to extract as much as they can from their portfolio companies. Yet there are also some who honestly love the industry and want to help companies grow. Your article's stance is good because it prompts a discussion. However, as I originally felt, it does not do it as effectively as it could in my opinion. That's awesome you got a ton of re-tweets, but as you say on your blog, it's about substance, not the glitter and rainbows. Edit: Voting brigades don't count as glitter and rainbows?",
"title": ""
}
] |
fiqa
|
37e914bfff8af8775effc1aee97ea0d3
|
Supporting a Kickstarter project: Should a customer's pledge payment include sales tax, e.g. GST/HST in Canada?
|
[
{
"docid": "62aaf561c3c329705ed60c9b551bab4f",
"text": "You can only claim an input tax credit if tax was actually collected by the seller, irrespective of whether it should have been or not. You need to contact the seller to request an invoice that shows the GST/HST, if any, as well as the seller's GST/HST number, which is required to be printed on invoices. If the seller is not including GST/HST in the prices indicated on Kickstarter, I would like to know how they get away with that!",
"title": ""
}
] |
[
{
"docid": "a7ebe417a11689afa1585e43c14ceded",
"text": "(community wiki) Ontario special HST sales tax transition rebate cheques: When and how much? What will happen to quarterly GST cheques when HST starts in Ontario? Ontario HST rebate: When would I qualify? Ontario gas prices & HST: What will happen to prices at the pump on July 1, 2010? How will Ontario’s HST apply to books / textbooks, which were PST exempt before? How can I minimize the impact of the HST? How does the HST affect a condominium purchase? Will I need to pay HST on condo maintenance fees? My Ontario small business collects only PST (beneath GST threshold). How will HST affect me?",
"title": ""
},
{
"docid": "aefc603ba21f1c779d66ebe3855f09a8",
"text": "\"Your income and expenses for the business should be independent of HST. That is, if you charged somebody 100 + 13 HST, you have revenue of 100. You're going to send the 13 to the government later, it's not part of your revenue. If you go out and buy something for 10 + 1.30 HST, you record 10 as an expense. You're going to take the 1.3 off the 13 you would have sent the government, it's not part of your expenses. And so on. I am not sure what you mean by \"\"HST compensation\"\" but if it came from the government, and it needs to be declared as income, there will be information to that end in the letter that comes with the cheque. (For example, if they pay you interest on your refund, the letter reminds you to include that money in next year's income.)\"",
"title": ""
},
{
"docid": "e30a5a1b80ea499e61a377617e6a605a",
"text": "\"You'll have to research the Canada side of things on your own or maybe someone else can answer that side. For the Germany side, there is a gift tax (Schenkungssteuer) which depends on the relationship (Verwandschaftsgrad) of the giver and receiver. steuerklassen.com has an overview here which shows the tax class (Steuerklasse) and tax free amount (Freibetrag). So according to the overview, nieces get 20 000 € tax free amount, anything over 20 000 € within 10 years from the same gift giver will be taxed with tax class 2, which can range from 15% to 43% depending on the gifted amount. The full article is here It also mentiones a few \"\"tricks\"\" for example if you want to gift 40 000 € to your niece, you could gift 20 000 € directly and 20 000 € to your brother or sister who then gifts it to their daughter - you'll have to trust them to do that, though, because you can't put that in a contract. Bottom line of this: If you want to gift more than 20 000 €, your niece should contact a tax advisor (Steuerberater). About the bank transfer: Your niece will have to declare any bank transfers over 12 500 € that she receives. Her bank will know how to do that so she should just ask them. It also might be helpful for her to have a letter from you stating that the money came from you and is a gift, just in case the tax office (Finanzamt) doesn't believe that the money isn't from moonlighing (Schwarzarbeit).\"",
"title": ""
},
{
"docid": "a51c9ca986fa7b362dce41bd2e9c1e30",
"text": "The HST is a sales tax levied on most goods and services. It is important to realize that in both BC and Ontario, the new HST does not (in most cases) result in an increase in sales tax paid. For example, in Ontario the PST is 8% and when combined with the GST the sales tax is 13%. With the HST, the GST and PST are replaced by a single HST of 13% so the tax bill does not change. Some services that were previously not subject to PST (such as mutual fund service fees and labour) will now be subject to the HST. So some things will increase. Over time, this should not have a material impact on the consumer due to the way businesses remit GST/HST.",
"title": ""
},
{
"docid": "c6d279fcc0efcb58c986d4ec89ff6752",
"text": "Donations need to be with no strings attached. In this case, you make the cash donation, a deduction, and then they pay you, in taxable income. It's a wash. Why not just give them the service for free? Otherwise this is just money going back and forth.",
"title": ""
},
{
"docid": "2f60fb76c08ea1f64395a9964f0a8970",
"text": "I suspect that the new VATMOSS rules come in to play here. So you owe VAT for donations from EU countries, providing you are below £81k there would be no UK vat payable though, however then you couldn't recoup the vat you paid out. Note I am not an accountant but I did speak to one this week about a similar issue.",
"title": ""
},
{
"docid": "8032436147cca40ec80e4ea03d6c9961",
"text": "In some states, it is your responsibility to pay the sales tax on a transaction, even if the party your purchase from doesn't collect it. This is common with online purchases across state lines; for example, here in Massachusetts, if I buy something from New Hampshire (where there is no sales tax), I am required to pay MA sales tax on the purchase when I file my income taxes. Buying a service that did not include taxes just shifts the burden of paperwork from the other party to me. Even if you would end up saving money by paying in cash, as other here have pointed out, you are sacrificing a degree of protection if something goes wrong with the transaction. He could take your money and walk away without doing the work, or do a sloppy job, or even damage your vehicle. Without a receipt, it is your word against his that the transaction ever even took place. Should you be worried that he is offering a discount for an under the table transaction? Probably not, as long as you don't take him up on it.",
"title": ""
},
{
"docid": "14261eef50e1108226c297703ecfa89a",
"text": "The US doesn't have a Value Added Tax, which is the one usually refundable upon departing the country... so sales taxes you pay in this country stay in this country and you don't get a refund. Just remember to treat the tax as an implied part of the price. (And be aware that state and local taxes may vary, so the total price may be higher in one place than in another. New York City adds a few percent on top of the state sales tax, for example.) If you aren't sure how much tax would be, don't be afraid to ask.",
"title": ""
},
{
"docid": "572d21b33587678a7980c515648adadf",
"text": "Not sure where the confusion is coming from - software/digital/intangible goods are just like any other product, with regard to VAT. Turns out it's being made complicated by HMRC... Anyone would think they enjoy making everyone who collects tax for free on their behalf a crook! You charge customers everywhere in the EU VAT and pay it to HMRC, the only exception being customers outside the UK who can provide you with a VAT number. For these customers you are free to not charge VAT, as it's assumed they would be reclaiming it in their home country anyway. The above is true until 2015, when the rules become more relaxed - you will not need a VAT number from customers outside the UK in order to exempt yourself from collecting VAT. Turns out you need to be part of the MOSS scheme (more here) which was set up to prevent you having to register for VAT in every country you sell your software. Unless you only sell through app stores, and then it's easier because each sale is treated as you selling your software to the store for it to be sold on. You can reclaim all VAT on your eligible purchases in the UK, just as any other UK VAT registered business would (usual rules apply). And of course you don't collect VAT from anyone outside the EU, so you can either reduce the price of your software or pocket the additional 20%.",
"title": ""
},
{
"docid": "3fd6b4b3098f509fe727bf7a0c5a72f0",
"text": "Canada doesn't seem to have a gift tax. http://www.taxtips.ca/personaltax/giftsandinheritances.htm",
"title": ""
},
{
"docid": "ac8ee78517eb043bb57dc8c09a9056e8",
"text": "For case 1, there is no tax due as you sold the book for less than your cost basis. If you had sold for more than $100, then you would have had a profit. For case 2, that depends on the value of the gift card with respect to the value of your fare. Most likely that gift card is less than the cost of the fare. And in that case it would generally be treated as a reduction in the purchase price. The same way that rebates and cash back on credit card are treated. Note if for some reason a 1099 was generated that would change the situation and you would need to consult a tax professional. Since that would indicate that the other party to the transaction had a different view of the situation.",
"title": ""
},
{
"docid": "219bb0c68995b33694cc398f5315b1fe",
"text": "If the money awarded is sufficient to cover the cost of supporting their software, then you can at the time of entering the contract make a pledge of the money. However if you need to prove that you have sufficient funds otherwise, you need to ask the organizers what they need, typically a Bank Statement showing the funds may be sufficient in the easiest possible condition, on the other extreme you may need to open an escrow account and deposit the money as safe keeping with the Bank and then produce that letter ... Depending on the country and Bank, certain Banks allow different passowrds for transactions and different for querying, so you can share the query password ...",
"title": ""
},
{
"docid": "71cc81f950ab08f4457fb8f094df23fa",
"text": "\"Donate buttons are meaningless with regards to taxes. This is payment for something you provided, and you cannot claim that you've received a gift. Any money you receive in this way is payment for your software. Remember, for gifts - no consideration should have been provided to the donor. Anything for which a consideration was provided - cannot be a gift. In your case the consideration is the software, and it's value is the amount you were paid. Since every person can decide how much to pay you on his own - any payment is for the software, not a gift. Any money you get is taxable to you, and you cannot claim it as \"\"gifts\"\" without exposing yourself to risks of making fraudulent claims. Consult a licensed tax adviser (EA/CPA licensed in your State) for a qualified tax advice.\"",
"title": ""
},
{
"docid": "3ae4e3911e0d4d3cf06bfadd1fd38e56",
"text": "It is best to take advise from / appoint a professional CA. Will I have to pay GST? No GST is applicable. Exports outside of India do not have GST. Do I have to collect TDS when I send money to the PUBLISHERS ? No But another guy said, I have to pay 18% tax when receiving and sending payments, apart from that I have to collect 30.9% TDS when sending payment to the PUBLISHERS(outside India). There is only income tax applicable on profits. So whatever you get from Advertisers less of payments to publishers less of your expenses is your profit. Since you are doing this as individual, you will have to declare this as income from other sources and pay income tax as appropriate. Note there are restrictions on sending payments outside of India plus there are exchange rate fluctuations. It is best you open an Foreign Currency Resident [or Domestic] Account. This will enable you payout someone without much issues. Else you will have to follow FEMA and LRS schemes of RBI.",
"title": ""
},
{
"docid": "e58a8128222084751b0288d74167d85e",
"text": "In general you must charge HST on and after July 1, 2010. However, in the case of delivered sales, you must charge HST if the transfer of goods will happen on or after July 1,2010. Example: A person comes into my hypothetical store on June 29, 2010 and buys a couch. They opt to have it delivered by my truck on July 2, 2010. I should charge HST on this purchase, not GST/PST. References:",
"title": ""
}
] |
fiqa
|
f2e3254ad3e21df89a99d3cca4dbc258
|
Are marijuana based investments promising, or just another scam?
|
[
{
"docid": "c8d5564a970929110c227022086015bc",
"text": "Is there any truth to this, or is this another niche scam that's been brewing the last few years? While it may not be an outright scam, such schemes do tend to be on borderline of scams. Technically most of what is being said claimed can be true, however in reality such windfall gains never happen to the investors. Whatever gains are there will be cornered by the growers, trades, other entities in supply chain leaving very little to the investors. It is best to stay away from such investments.",
"title": ""
},
{
"docid": "23cc0532e6c7992d47926f8949ff67da",
"text": "\"Any advertisement for a \"\"business opportunity\"\" is nearly always a scam of some kind. In such deals, the seller is the one making the money. They rely on the fantasy of the average person who imagines themself with a profitable business. Real businessmen do not get their businesses from flyers on the sides of telephone poles. Real businessmen already know every aspect and detail of their business already. They do not need to pay some clown $10,000 to \"\"get them started\"\". If you are reading such advertisements, it means you have money, but do not know what to do with it. Although I cannot tell you what to do with your money. I can tell you this: giving it to somebody who advertises a \"\"great business opportunity\"\" would be a mistake.\"",
"title": ""
}
] |
[
{
"docid": "ad0a338db3941c0e992d14344f119135",
"text": "Based on several of the comments, I can foresee a situation in which an activist investor kicks in a lot of his own money, which, along with funds from kickstarter and possibly some of the investor's buddies, are enough to purchase a major share in a large bank, and by persuading other sympathetic shareholders, they are able to make headway in changing the industry. While improbable, it would at least be plausible.",
"title": ""
},
{
"docid": "0764678cf23cceb94ee9743004b917fb",
"text": "Not lies. I worked with punkgeek at some of those startups. One we founded together and it was a colossal failure. Two later ones had IPOs in the $700M market-cap range. If you hang around the valley a while (and get lucky) it gets a good bit easier to sniff out the likely successes.",
"title": ""
},
{
"docid": "b37b40587e1a7dc7fd5258696352f49a",
"text": "ATTENTION ZYNGA INVESTORS I HAVE A UNIQUE BUYING OPPORTUNITY FOR YOU STEM YOUR LOSSES AND INVEST IN TULIP BULBS NOW TULIP BULBS SHOW REMARKABLE RESISTANCE TO MARKET CHANGES AND ONLY INCREASE IN VALUE STUDIES SHOW IT'S BETTER THAN GOLD EMAIL ME AT GASDFAJKNWERIUERBIUEBERITUERBTI@YAHOO.COM FOR MORE INFO",
"title": ""
},
{
"docid": "cf470bd4321a593788bb0b83d84e07fd",
"text": "And it's only as cheap as 1.78% if you stay with them 10 years! They'd love that. You can kind of tell they really want to lock you in for over 4 years. I also think it's daylight robbery, but as a self execution investor I tend to have to talk myself out of that belief by default to be fair. One can wonder too, why are there even 2 fixed (percentage wise) fees? They are desperate not to have one number that is too big sounding, either the advisor fee is a rip off because they have to do all the same analysis regardless, or you could take the view that it's the only valid fee as you're paying for a slice of something, where as the other fee is what? A share of the fixed costs? Well, isn't advising as essential as anything else? I actually think Nutmeg is OK, I've not used them or dealt with them in any way but they are, to a greater or lesser degree, what I've wished for to recommend to friends who don't want to DIY, which is a cheaper next generation online investment facility, and their fees drop significantly over 100K. Going by their claimed past performance and fee structure, whilst I'd like them to be cheaper, I personally think they are not a bad choice in the market.",
"title": ""
},
{
"docid": "691d0314db1073e747e2b2f79ff60975",
"text": "I mean, when the federal government can pull your bank charter and the FDIC can revoke your government insurance, it's not worth the benefit just to support some small town pot grower. It's likely to be this way until the federal government legalizes it or gives outright approval to the banks.",
"title": ""
},
{
"docid": "20e5cfc13dc16a19aef4dc3ba03eba08",
"text": "\"Let me start by giving you a snippet of a report that will floor you. Beat the market? Investors lag the market by so much that many call the industry a scam. This is the 2015 year end data from a report titled Quantitive Analysis of Investor Behavior by a firm, Dalbar. It boggles the mind that the disparity could be this bad. A mix of stocks and bonds over 30 years should average 8.5% or so. Take out fees, and even 7.5% would be the result I expect. The average investor return was less than half of this. Jack Bogle, founder of Vanguard, and considered the father of the index fund, was ridiculed. A pamphlet I got from Vanguard decades ago quoted fund managers as saying that \"\"indexing is a path to mediocrity.\"\" Fortunately, I was a numbers guy, read all I could that Jack wrote and got most of that 10.35%, less .05, down to .02% over the years. To answer the question: psychology. People are easily scammed as they want to believe they can beat the market. Or that they'll somehow find a fund that does it for them. I'm tempted to say ignorance or some other hint at lack of intelligence, but that would be unfair to the professionals, all of which were scammed by Madoff. Individual funds may not be scams, but investors are partly to blame, buy high, sell low, and you get the results above, I dare say, an investor claiming to use index funds might not fare much better than the 3.66% 30 year return above, if they follow that path, buying high, selling low. Edit - I am adding this line to be clear - My conclusion, if any, is that the huge disparity cannot be attributed to management, a 6.7% lag from the S&P return to what the average investor sees likely comes from bad trading. To the comments by Dave, we have a manager that consistently beats the market over any 2-3 year period. You have been with him 30 years and are clearly smiling about your relationship and investing decision. Yet, he still has flows in and out. People buy at the top when reading how good he is, and selling right after a 30% drop even when he actually beat by dropping just 22%. By getting in and out, he has a set of clients with a 30 year record of 6% returns, while you have just over 11%. This paragraph speaks to the behavior of the investor, not managed vs indexed.\"",
"title": ""
},
{
"docid": "9e62ff0e82fb9b87212b6b1187ca6edc",
"text": "Yeah and Doctor Oz has a medical degree. There's a whole lot of skepticism and critique of the outdated and abandoned methods he's using. A quick google search will say from plenty of other experts from MIT and other name dropping schools that his data isn't and cannot be realistic. I'm anticipating a market correction, but I'm also not a conspiracy theorist.",
"title": ""
},
{
"docid": "da9bcd80c4b84b951d5e8c1372a1ed05",
"text": "\"This article is written by an idiot!! Risk ≠ failure, risk = possibility of failure Reward (return) should be commensurate with risk and this is why long-shot propositions should be worthwhile. An example of this could be something like the following; an investment with a 95% chance of success should return about 5% on the investment (1 in 20 risk of loss, 1/20th return on investment for taking the risk) while a long-shot investment with a 5% chance of success should be paying a 2000% return (1 in 20 will succeed but they will pay 20 times the investment if they do). An investment with a 0% chance of return (that you are suckered into due to \"\"opacity\"\") is not an investment, it is being robbed and it should be illegal. WTF is opacity? Lying?\"",
"title": ""
},
{
"docid": "d7d4ec3f4b46b3085ba58507580e1240",
"text": "If I needed a safe-ish way to bank a lot of cash in vegas I'd exchange for high value chips at the local gambling establishments. I have to imagine that's being done already for other less than legal enterprises.",
"title": ""
},
{
"docid": "316af7d65c5164b94b5fef54cf9f68b3",
"text": "This sort of question pops up with every new or sexy technology, and it's born (IMO) from the misguided opinion that a growth industry is a source of huge, guaranteed profit. The reality is that, even in rapidly growing tech sectors, there is a high infant mortality rate. A lot of balloons go up, many pop, some drift far off course, some get tangled in the branches... and a few rise to the heavens, making the early investors look like supergeniuses. Some very few of them were! They did their research, they made calculated risk assessments, and they chose AAPL over competitive companies. Some bought AAPL near the IPO through luck. If your investment strategy idealizes these guys, go to Las Vegas and bet on red. Red never fails. Plus: you'll get free drinks, a buffet, and a nice stage show while you go bankrupt. But in general, companies within a new, rising sector like marijuana dispensaries/farms/whatever aren't guaranteed growth. Do your research, and diversify your investments!",
"title": ""
},
{
"docid": "5b683b5c56dadebd966fea31964fadf1",
"text": "\"One alternative to bogleheadism is the permanent portfolio concept (do NOT buy the mutual fund behind this idea as you can easily obtain access to a low cost money market fund, stock index fund, and bond fund and significantly reduce the overall cost). It doesn't have the huge booms that stock plans do, but it also doesn't have the crushing blows either. One thing some advisers mention is success is more about what you can stick to than what \"\"traditionally\"\" makes sense, as you may not be able to stick to what traditionally makes sense (all people differ). This is an excellent pro and con critique of the permanent portfolio (read the whole thing) that does highlight some of the concerns with it, especially the big one: how well will it do in a world of high interest rates? Assuming we ever see a world of high interest rates, it may not provide a great return. The authors make the assumption that interest rates will be rising in the future, thus the permanent portfolio is riskier than a traditional 60/40. As we're seeing in Europe, I think we're headed for a world of negative interest rates - something in the past most advisers have thought was very unlikely. I don't know if we'll see interest rates above 6% in my lifetime and if I live as long as my father, that's a good 60+ years ahead. (I realize people will think this is crazy to write, but consider that people are willing to pay governments money to hold their cash - that's how crazy our world is and I don't see this changing.)\"",
"title": ""
},
{
"docid": "767e1e7ca8737a99e900851632cb7ea1",
"text": "You are right. It's not actually a scam but people call it that way because MLM promoters lie and use misleading statistics and demonstrations to make it look easy despite having pretty much no chance of success. Also MLM promoters usually lie to people about owning a supercar or mansion, and telling them that they can be rich by joining MLM. But yes it's a gamble disguised as a decent business.",
"title": ""
},
{
"docid": "1d1f6ae371e9282d960575c5b9122889",
"text": "\"I mean, in the eyes of investors it is a good investment. > \"\"Demand for stock from fund managers exceeded supply by more than 29 times at that price, two people said.\"\" They also have plantations in Malaysia and Indonesia, along with refining plants in China, Indonesia, Turkey, and South Africa. So it already has a stable foot hold in various economies. Like I said, it's nice to see a business IPO that offers a tangible product with a relatively cheap IPO along with a chance to see much growth. You don't see many of these around nowadays.\"",
"title": ""
},
{
"docid": "80ff743892623ae50d1e5ca836fc4400",
"text": "\"She claimed that she makes money. When you wanted to make some too, she asked for your account credentials - which are only needed to take money away, never to give. The simplest explanation would be loan scam: Even if you have only $10 on your account, you can lose much more - the trick is that someone using your credentials can take an online loan in your name, and steal that money. If the scheme is long-running, she'll be taking new loans and using the money to pay back the earlier ones, building up credit history for her victims - only to allow taking even bigger loans. Her victims see the incoming transfers and are happy about the scheme \"\"working\"\". Until she decides that the pot is big enough to cash it in and disappear, leaving everyone deep in debt. Those who fell for this could be already defaulting loans they have no idea about and the loan companies have no way of notifying them, because she redirected the contact details. Never reveal your password. Nobody needs your password for any legitimate purpose.\"",
"title": ""
},
{
"docid": "97f41387c3e0e3a356c3818c5c8d2845",
"text": "\"No. I glanced through the article you linked to. It's quite lengthy, but not compelling. I'd not lose any sleep over this. Others with far better credentials are making the opposite claim, that life is good and the Dow on its way to 20,000. Back to this guy - StansberryResearch.com Reviews – Legit or Scam? offers a look at this company. Stansberry calls his company \"\"one of the largest and most recognized investment research companies in the world\"\" but references to his firm call it a clearinghouse for other authors newsletters. Why would you give any more credence to his ranting than any other extreme prognostications? I suppose if I told you I never heard of him it would be pretty meaningless. I certainly haven't heard of every financial writer. But if he's one of the most recognized, you'd think I might have. Note, I've edited since seeing I was downvoted. But to the question author, you might want to summarize your questions in the future instead of linking to a video or 13,000 word rant. (when you click to shut the video, the text is available.)\"",
"title": ""
}
] |
fiqa
|
270753d648ba0b0db2e036ca14063f25
|
Does a US LLC owned by a non-resident alien have to pay US taxes if it operates exclusively online?
|
[
{
"docid": "e4a96168ebf9048f2eaba2e0c6ff53fc",
"text": "\"As you said, in the US LLC is (usually, unless you elect otherwise) not a separate tax entity. As such, the question \"\"Does a US LLC owned by a non-resident alien have to pay US taxes\"\" has no meaning. A US LLC, regardless of who owns it, doesn't pay US income taxes. States are different. Some States do tax LLCs (for example, California), so if you intend to operate in such a State - you need to verify that the extra tax the LLC would pay on top of your personal tax is worth it for you. As I mentioned in the comment, you need to check your decision making very carefully. LLC you create in the US may or may not be recognized as a separate legal/tax entity in your home country. So while you neither gain nor lose anything in the US (since the LLC is transparent tax wise), you may get hit by extra taxes at home if they see the LLC as a non-transparent corporate entity. Also, keep in mind that the liability protection by the LLC usually doesn't cover your own misdeeds. So if you sell products of your own work, the LLC may end up being completely worthless and will only add complexity to your business. I suggest you check all these with a reputable attorney. Not one whose business is to set up LLCs, these are going to tell you anything you want to hear as long as you hire them to do their thing. Talk to one who will not benefit from your decision either way and can provide an unbiased advice.\"",
"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": "0aca48ad4b9f2b175753f2e40374432f",
"text": "You will have to pay your taxes in the UK not USA. For tax purposes it is the company's tax residency not where the server is located. You are just hiring a server in USA. Take for example a CDN being used for your same service then would you pay taxes in 300 different countries if you use Akamai? Does not work that way.",
"title": ""
},
{
"docid": "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": "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": "a1c681097b242be2638848c973e56188",
"text": "\"Yes, it will be taxable in the US. You will report your worldwide income, and will be able to take credit for any Indian tax paid. However, the portions that are tax-free in India will be fully taxable for you in the US. Keep in mind, in addition to the taxes, the FBAR requirements and the FATCA forms you may need to be filing as well. Failure to file (regardless of if any tax is actually owed) will trigger a $10K penalty. I suggest you have a US-licensed EA/CPA (tax adviser) to help you with your US tax return. Keep in mind that a \"\"regular\"\" American tax preparer knows very little of the specific requirements for foreigners and may land you in trouble. Similarly, the \"\"off-the-shelf\"\" tax software or tax preparation outlets (like H&R Block) are ill-suited for foreigners in the US. It would be best to talk to a EA/CPA who is also familiar with Indian financial terms and Indo-US tax treaty.\"",
"title": ""
},
{
"docid": "39140129163ccabe75a9d6dcb033e4c4",
"text": "First, the SSN isn't an issue. She will need to apply for an ITIN together with tax filing, in order to file taxes as Married Filing Jointly anyway. I think you (or both of you in the joint case) probably qualify for the Foreign Earned Income Exclusion, if you've been outside the US for almost the whole year, in which cases both of you should have all of your income excluded anyway, so I'm not sure why you're getting that one is better. As for Self-Employment Tax, I suspect that she doesn't have to pay it in either case, because there is a sentence in your linked page for Nonresident Spouse Treated as a Resident that says However, you may still be treated as a nonresident alien for the purpose of withholding Social Security and Medicare tax. and since Self-Employment Tax is just Social Security and Medicare tax in another form, she shouldn't have to pay it if treated as resident, if she didn't have to pay it as nonresident. From the law, I believe Nonresident Spouse Treated as a Resident is described in IRC 6013(g), which says the person is treated as a resident for the purposes of chapters 1 and 24, but self-employment tax is from chapter 2, so I don't think self-employment tax is affected by this election.",
"title": ""
},
{
"docid": "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": "521ca52299c5af07b7cf3157b6a45764",
"text": "\"TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain). Unless you decide to have your LLC taxed as a corporation, there's no change in taxes. LLC, by default, is a pass-through entity and all income will flow to your respective tax returns. From tax perspective, the LLC will be treated as a partnership. It will file form 1065 to report its income, and allocate the income to the members/partners on schedules K-1 which will be given to you. You'll use the numbers on the K-1 to transfer income allocated to you to your tax returns and pay taxes on that. Being out of state, will she incur more taxes from the money being now filtered through the business? Your employee couldn't care less about your tax problems. She will continue receiving the same salary whether you are a sole proprietor or a LLC, or Corporatoin. What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now? Your contract counterparts couldn't care less about your tax problems. Unless you are a corporation, people who pay you more than $600 a year must file a 1099. Since you'll be a partnership, you'll need to provide the partnership EIN instead of your own SSN, but that's the only difference. Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says \"\"you must now pay four times per year\"\". Unless you choose to tax your LLC as a corporation, LLC will pay no taxes. You will need to make sure you have enough withholding to cover for the additional income, or pay the quarterly estimates. The magic number is $1000. If your withholding+estimates is $1000 less than what your tax liability is, you'll be penalized, unless the total withholding+estimates is more than 100% of your prior year tax liability (or 110%, depending on the amounts). The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership? Partnerships can be very flexible, and equity split doesn't have to be the same as income, loss or assets split. But, you'll need to have a lawyer draft your operational agreement which will define all these splits and who gets how much in what case. Make sure to cover as much as possible in that agreement in order to avoid problems later.\"",
"title": ""
},
{
"docid": "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": "d383f879b0dd06a28fdc794ad67eb32d",
"text": "Supposedly this also means that I am free from having to pay California corporate taxes? Not in the slightest. Since you (the corporate employee) reside in CA - the corporation is doing business in CA and is liable for CA taxes. Or, does this mean I am required to pay both CA taxes and Delaware fees? (In this case, minimal, just a paid agent from incorporate.com) I believe DE actually does have corporate taxes, check it out. But the bottom line is yes, you're liable for both CA and DE costs of doing corporate business (income taxes, registered agents, CA corp fee, etc). Is there any benefit at all for me to be a Delaware C-Corp or should I dissolve and start over. Or just re-incorporate as California LLC Unless you intend to go public anytime soon or raise money from VCs/investors - there's no benefit whatsoever in incorporating in DE. You should seek a legal advice with an attorney, of course, since benefits are legal issues (usually related to choosing jurisdiction for litigation etc). If you're a one-person freelancer, doing C-Corp was not the best decision as well. Tax-wise you'd be much better off with a S-Corp, or a LLC - both pass-through and have no (Federal) entity-level taxes. Corporate rates are generally higher than individual rates, and less deductions can be taken. In California, check with a CPA/EA licensed in the State, since both S-Corp and LLC would be taxed, and taxed differently.",
"title": ""
},
{
"docid": "9e74ba4baac14c76f760dc5296ec1415",
"text": "An LLC does not pay taxes on profits. As regards tax a LLC is treated as a Partnership, but instead of partners they are called members. The LLC is a passthrough entity. As in Partnerships members can have a different percentage ownership to the share of profits. The LLC reports the share of the profits of the members. Then the members pay the tax as an individual. The profit of the LLC is deemed to have been transferred to the members regardless of any funds transferred. This is often the case as the LLC may need to retain the profits for use in the business. Late paying customers may mean there is less cash in the LLC than is available to distribute. The first answer is wrong, only a C corporation files a tax return. All other corporate structures are passthrough entities. The C corporation pays corporation tax and is not required to pass any funds to the shareholders. If the C corporation passes funds to the shareholders this is a dividend, and taxable to the shareholder, hence double taxation.",
"title": ""
},
{
"docid": "818bd7c198f0113490836e80cfdaac75",
"text": "\"The founders almost certainly owe tax on the \"\"income\"\" represented by the rent they aren't being charged. It isn't clear whether the corporation also owes income tax on the rent it is not receiving back from them. You definitely want advice from a paid tax accountant, not least because that helps protect everyone should this arrangement be challenged.\"",
"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": "0cf658c6d4727ceda9b94342ac66bd0e",
"text": "\"Earned income is what your software is doing, so it is taxable. So you can't really make it tax exempt. You can form a business and claim the revenues from that business as income and deduct expenses it costs you to earn that revenue. If you buy a server to run your software, then that is an acceptable expense to deduct from your revenues. Others can be more questionable and the best thing to do is to consult a CPA. If you are still in the testing stage and the revenues will be small then it should not matter. Worry about the important things, not if you paid the IRS a few hundred to much. Are you in a state/country that allows online gambling? In most states here in the US you are operating on shaky legal ground. Before \"\"Black Friday\"\" I used to earn a nice part-time income playing online poker.\"",
"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": "159ebc98bb6fd24aa4857ed919b18228",
"text": "Do I report it as income? Is it subject to just the same amount of taxes (~30%) as regular income? Are there any restrictions on how it can be used? It is income. You can deduct the costs of maintaining the web page and producing the software from it (have an accountant do that for you, there are strict rules on how to do that, and you can only deduct up to the income if its a hobby and not a for-profit business), but otherwise it's earned income like any other self employment income. It is reported on your schedule C or on line 21 of your 1040 (miscellaneous income), and you're also liable for self-employment taxes on this income. There are no restrictions, it's your money. Technically, who is the donation even being made to? Me, just because I own the webpage? Yes. This is for the United States, but is there any difference if the donations come from overseas? No, unless you paid foreign taxes on the money (in which case you should fill form 1116 and ask for credit). If you create an official 501(c) organization to which the donations are given, instead of you getting it directly, the tax treatment will be different. But of course, you have to have a real charitable organization for that. To avoid confusion - I'm not a licensed tax professional and this is not a tax advice. If in doubt - talk to a EA/CPA licensed in your State.",
"title": ""
}
] |
fiqa
|
1582431092b449a020395ff636470ff2
|
Would extending my mortgage cause the terms to be re-negotiated?
|
[
{
"docid": "381563a5ff5f8c8db9c154df4fd540d0",
"text": "Run the numbers in advance. Understand what are the current rates for an additional 2nd mortgage, what are the rates for a brand new mortgage that will cover the additional funds. Understand what they are for another lender. Estimate the amount of paperwork involved in each option (new first, new 2nd, and new lender). Ask the what are the options they can offer you. Because you have estimated the costs in money and time for the different options, you can evaluate the offer they make. What they offer you can range from everything you want to nothing you would accept. What they offer will depend on several factors: Do they care to keep you as a customer?; Do they expect you to walk away?; are they trying to get rid of mortgages like the one you have?; Can they make more money with the plan they are offering you? You will be interested in the upfront costs, the monthly costs, and the amount of time required for the process to be completed.",
"title": ""
}
] |
[
{
"docid": "347811f50c265db95041d70d0b4ce06c",
"text": "\"Another option would be to not refinance but also not pay any extra each month but to continue as you are making the existing payments and just put the \"\"extra\"\" you would have paid aside in an investment of some type (something you are comfortable with) This as the added benefit of not tying up this extra money in your house should you need it in the next few years for something else. You would then have the option in 2 or 3 years of continuing on this path or closing the investment and paying off the remaining principal in one lump sum. If nothing else that big payment would be a really fun check to write.\"",
"title": ""
},
{
"docid": "54100a57d47534dc11922682d2510962",
"text": "In the prior PMI discussions here, it's been stated that the bank is not obligated to remove PMI until the mortgage's natural amortization puts the debt at 78% LTV. So, paying in advance like this will not automatically remove the PMI. Nor will a lump sum payment be certain to move the next payment ahead a year. If it's entered as a principal prepayment, the next month's payment is still due. In the world of coupon books, if you sent in a year's payments, you'd not benefit from the interest saved, in one year you'd owe what the amortization table tells you. There's no free lunch when it comes to mortgages or finance in general. This is why we usually caution that one should not be cash poor the day after buying a house. Best to save 30%, put down 20%, and have a cushion after the closing.",
"title": ""
},
{
"docid": "c3e502167f39903db739c29ad60d3782",
"text": "\"This is obviously a spam mail. Your mortgage is a public record, and mortgage brokers and insurance agents were, are and will be soliciting your business, as long as they feel they have a chance of getting it. Nothing that that particular company offers is unique to them, nothing they can offer you cannot be done by anyone else. It is my personal belief that we should not do business with spammers, and that is why I suggest you to remember the company name and never deal with them. However, it is up to you if you want to follow that advice or not. What they're offering is called refinance. Any bank, credit union or mortgage broker does that. The rates are more or less the same everywhere, but the closing fees and application fees is where the small brokers are making their money. Big banks get their money from also servicing the loans, so they're more flexible on fees. All of them can do \"\"streamline\"\" refinance if your mortgage is eligible. None if it isn't. Note that the ones who service your current mortgage might not be the ones who own it, thus \"\"renegotiating the rate\"\" is most likely not an option (FHA backed loans are sold to Fannie and Freddie, the original lenders continue servicing them - but don't own them). Refinancing - is a more likely option, and in this case the lender will not care about your rate on the old mortgage.\"",
"title": ""
},
{
"docid": "5866224a35f6fa88ea495093b70dd815",
"text": "In a lot of cases, the bank has already made their money. Shortly after you get your mortgage is sold to investors though the bank is still servicing it for a fee. Therefore, if you refinance, they get to sell it again.",
"title": ""
},
{
"docid": "0958b66627b633e8aad1be86ef5d6d85",
"text": "IMO they were just being dicks. I don't know if they are required to provide the payoff amount, but they should be able to at any point in time. edit: I have mortgage experience. I didn't see this too often, but borrowers sometimes payoff/include other debts on refis. This requires a payoff statement from their creditors. I've never heard of a closing getting pushed back to the next month due to a creditor not being able to provide the payoff.",
"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": "bd00e7e46a43efa0feb2741b202746a8",
"text": "Interesting thing is not all of this analysis is typically done by the person you are speaking with re: your mortgage. Likely there is an economic team (at some institution or another, as many many loans are sold/distributed in some fashion), finance team, and all of them are looking at various rates etc. Typically what is offered is matching an offsetting liability somewhere else. So there may be cases where the spread someone is looking to pick up might be tighter or looser within institutions or types of institutions vs others, even though the overall market is at one place. (e.g. banks vs. insurance companies). So you may have negotiating room at a certain term, but not another, or the reverse at another firm. One firm might have lots of 10 year money, while another might be limited, so will be picky in what they choose. Either more conservative loan terms/ltv, or a higher spread, for example. So many things go into the ultimate rate someone can get, but in theory the blog did a decent job.",
"title": ""
},
{
"docid": "b42ebcdd817bf7b9434cd9c1cf664ecf",
"text": "It depends where you are going to live and how you are going to pay for your new accommodation. If you are moving within the UK and intend to buy another house you run into the problem that you will find it hard to get a second mortgage. If you rent out the house in Kent you will probably have to change the mortgage basis on it to a mortgage that allows for letting - normal residential mortgages exclude that entirely - which would allow you to take out a residential mortgage. It depends how much equity you have in the house. If most of the value of the house is mortgaged then you'll (1) find it hard to re mortgage on a commercial mortgage (2) may find it hard to cover the costs by letting and (3) are very sensitive to house prices falling. Also bear in mind that for the past three months in a row, house prices in the UK have mostly either stagnated or fallen... so you cannot guarantee any increase in value of the house in Kent. What I'm saying is ... there is no crystal ball that will tell you what's financially the best thing to do. Talk to estate agents, find out how much the house would sell for / how much it would rent for. Talk to your mortgage lender and find out if they will let you rent it out. Talk to other mortgage lenders and find out how much a commercial mortgage would cost. Do the sums, find out if renting the house would cover the costs, in which case you can gamble on the housing market continuing to rise. Don't rely on house prices continuing to rise as they have done before. Certainly where I live due to the number of new houses being built and other economic issues house prices have fallen appreciably over the past few months and may well continue to fall as more and more new houses come on the market.",
"title": ""
},
{
"docid": "b509ef7590b593609fa926e7c92f2d42",
"text": "This may effect how much, or under what terms a bank is willing to loan us I don't think this is likely, an investment is an investment whether it is money in a savings account or a loan. However, talk to your bank. Is it worth getting something by a lawyer? Definitely, you need a lawyer and so do your parents. There is a general presumption at law that arrangements between family members are not meant to be contracts. You definitely want this to be a contract and engaging lawyers will make sure that it is. You also definitely want this to be a proper mortgage so that you get first call on the property should your parents die or go bankrupt. In addition, a lawyer will be able to advise you of the pitfalls that you haven't seen. If both of my parents were to pass away before the money is returned, would that document be enough to ensure that the loan is returned promptly? No, see above. Tax implications: Will this count as taxable income for me? And if so, presumably my parents can still count it as a tax deduction? Definitely, however the ATO is very keen that these sorts of arrangements do not result in tax minimisation. Your parents will get a deduction at the rate charged; you will pay tax on the greater of the rate charged or a fair commercial rate i.e. what your parents would be paying a bank. For example, if the going bank mortgage rate is 5.5% and you charged 2% they get the deduction for 2%, you pay tax as though they had paid 5.5%. Property prices collapse, and my parents aren't able to make their repayments, bank forecloses on the place and sells it, but not even enough to cover the outstanding loan, meaning my parents no longer have our money. (I could of course double down and pay their monthly repayments for them in this case). First, property prices collapsing have no impact on whether your parents can pay the loan. If they can it doesn't matter what the property is worth. If they can't then it will be sold as quickly as possible for an amount that covers (as far as possible) the first mortgagee's indebtedness. It is only in reading this far that I realise that there will still be a bank as first mortgagee. This massively increases the risk profile. Any other risks I have missed? Yes, among others: Any mitigations for any identified risks? Talk to a lawyer. Talk to an accountant. Talk to an insurance professional. Anything I flagged as a risk that is not actually an issue? No Assuming you would advise doing this, what fraction of savings would you recommend keeping as a rainy day fund that can be accessed immediately? I wouldn't, 100%.",
"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": "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": "67a2ae48c781807568889aa87614e451",
"text": "It doesn't matter. You will just renew your mortgage at the prevailing rates. That's part of the mortgage contract. The problem that happens is if you want to move your mortgage to another bank for a better rate, they may not accept you. Your re-negotiating position is limited. Most mortgages have a portability option where you can even transfer the mortgage to another property, but you'd have to buy a cheaper house.",
"title": ""
},
{
"docid": "08921d402d3e526350cbf30c560fb809",
"text": "Taking a slightly different approach, I would have the following priorities: I'm not sure it's worth the hassle to renogotiate either the HELOC or the mortgage if you think you are only going to have them for a year. If you can renegotiate the HELOC with the same lender that might be worth it.",
"title": ""
},
{
"docid": "d4800724455146c2e8d4292336105ef8",
"text": "There is another factor to consider when refinancing is the remaining term left on your loan. If you have 20 years left, and you re-fi into another 30 year loan that extends the length that you will be paying off the house for another 10 years. You are probably better off going with 20, or even 15. If this is a new loan, that is less of an issue, although if you moving and buying a house in a similar price range it is still something to consider. My goal is to have my house paid off before I retire (hopefully early semi-retirement around 55).",
"title": ""
},
{
"docid": "cabd6507f50414dfaa6ef94b564f4d3a",
"text": "\"The reason to put more money down or accept a shorter maximum term is because the bank sweetens the deal (or fails to sour it in some fashion). For example, typically, if there is less than 20% down, you have to pay an premium called \"\"Private Mortgage Insurance\"\", which makes it bad deal. But I see banks offering the same rate for a 15%-year mortgage as for a 30-year one, and I think: fools and their money. Take the 30-year and, if you feel like it pay more every month. Although why you would feel like it, I don't know, since it's very difficult to get that money back if you need it.\"",
"title": ""
}
] |
fiqa
|
4b120c77f9f49b18130d1278e1687ff9
|
Are there any viable alternatives to Paypal for a small site?
|
[
{
"docid": "e6c63de816b8047de3c37367fb881676",
"text": "I found out about Google checkout today, it looks like it may meet my needs, but I'd still be interested to find out about other options.",
"title": ""
},
{
"docid": "0c697bf583eec29bd45e8688953226b2",
"text": "While I've never used the service, there's also Amazon Flexible Payments Services (AFPS): (emphasis below is mine) Amazon Flexible Payments ServiceTM (Amazon FPS) is the first payments service designed from the ground up for developers. It is built on top of Amazon’s reliable and scalable payments infrastructure and provides developers with a convenient way to charge Amazon’s tens of millions of customers (with their permission, of course!). Amazon customers can pay using the same login credentials, shipping address and payment information they already have on file with Amazon. [...] Considering Amazon.com is an e-commerce heavyweight, it might be worth a look.",
"title": ""
}
] |
[
{
"docid": "a8bf89a0d530f2ee38e176a9f9378954",
"text": "You can have a way for people to pay, i.e. some kind of payment gateway. Run as Business: Best create a company and get the funds there. This would be treated as income of the website and would be taxed accordingly. One can deduct expenses for running the website, etc. Run as Charity: Register as one, however the cause should be considered as charitable one by the tax authorities. Only then the donations would be tax free.",
"title": ""
},
{
"docid": "24b3e10d3fa48d28c5a3b3b7c6628641",
"text": "\"Bitcoin payments involve by far the lowest fees. For pure bitcoin-to-bitcoin transfers you have the option of not paying any fee at all, while if you want to avoid the risk (currently very small) of miners ignoring your transaction you can pay a small transaction fee. Currently no more than 0.0005 BTC is ever required ($0.01 at $20/BTC). Bitcoin also does not support \"\"chargebacks\"\", which is an advantage for the merchant (no risk that Paypal will freeze your account, as it did in with a Burning Man nonprofit), but more risk for the consumer. Popular sites for exchanging bitcoins with other currencies charge rates of 0.65% or less. The primary barrier is that it typically takes a few days to get funds into your account from bank accounts etc. Given the volatility of the bitcoin exchange rate you may want to treat bitcoin like cash, and only keep a small amount on-hand. A variety of shopping cart interfaces are supported. The obvious downside is that only a small fraction of users would be likely to go through the steps to use this option since bitcoin is new and immature, so your investment in adding support may be hard to pay off. On the other hand, just advertising that you accept bitcoin payments would give you a bit of free advertising. Another downside is the risk of government intervention. In NPR's 2011 story a law professor said it was \"\"legal for now\"\" in the US, but that could change. I'd say that given the sizable current fees and other barriers to international commerce and micro-payments, if bitcoin doesn't succeed, something else will.\"",
"title": ""
},
{
"docid": "e0011c2d147a78e3b4afab4acd9ea44c",
"text": "PayPal does charge a premium, both for sending and receiving. Here's how you find their rates:",
"title": ""
},
{
"docid": "ffdf27fb9f7077c4a6d7ea0ba512f87f",
"text": "Three ideas: PayPal is probably the best/cheapest way to transfer small/medium amounts of money overseas.",
"title": ""
},
{
"docid": "89bf83f18f6fc3252483ecf01139e83b",
"text": "You could of course request payment in EUR or USD, maybe keep a PayPal account and just leave the funds in PayPal unless you need to withdraw the money in local currency? Either currency would be fine because the problem you are trying to overcome is the instability in the ruble. EUR and USD both accomplish that. If you can get local clients to pay in EUR or USD (again, PayPal seems like an easy way to accomplish that) you avoid the ruble, but at the risk that your services become more expensive to local clients because they have to convert a weaker currency to a stronger one. You should also solicit some international clients! You are obviously perfectly fluent in English and that's a significant advantage. And they'll be happy to pay in dollars and euros.",
"title": ""
},
{
"docid": "c9bfa8987cbedb6939b0b16377dfa26f",
"text": "KB served lends itself to optimization in a bad way (serving content as large as one can get away with). Personally I think models that work well for monetization without ads are those that start with free content and later donations (e.g. Patreon, reddit gold) or those that start with free content and ask for payment for more similar content later (e.g. first album is free but later albums by the same artist cost money). They keep the supplier honest because people can tell if the content is crap before they pay. Of course those who want to sell crappy content will resist any such model.",
"title": ""
},
{
"docid": "0f820dec5af9c8fd7db64f09fbdd2671",
"text": "I'm just a sole trader who doesn't have much money which is why I'm looking at budget stuff. It's not like I'm a big business just being really tight. I need advice on this, not to get down-voted. I need one that is cheap or free but I would prefer that I can upload my own files and I would like to connect my own domain to it.",
"title": ""
},
{
"docid": "6fca11c4ffec55524e4ced645bc4a098",
"text": "I think you need to have paypal for eBay selling, just for one reason: people will avoid buying from you if they can't pay by paypal. It decreases significantly your selling.",
"title": ""
},
{
"docid": "dd0afaa37bf03b53b50314395f854db5",
"text": "Payoneer and PayPal both allow you to connect your bank account to withdraw funds, that is likely your best option",
"title": ""
},
{
"docid": "d1d533045082cea963c107c1c6b250c9",
"text": "The fees for the services are displayed on the PayPal website at https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside Is there anything else you were looking for.",
"title": ""
},
{
"docid": "05b062c3dbfae8603e25530ca2902b85",
"text": "Yodlee's Moneycenter is the system that powered Mint.com before Intuit bought them. It works great for managing accounts in a similar fashion to Mint. They have a development platform that might be worth checking out.",
"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": "05f318392ba506ddae11981661883942",
"text": "The workaround that I use in a recent time is very simple, effective and it is spreading very quickly - Payoneer. What you will need is http://www.payoneer.com/USPService.aspx which will get you US bank account that you can link to your paypal account.",
"title": ""
},
{
"docid": "628d5e85eae78da96540a2a6aab4c2f7",
"text": "I found this page at CNN Money, that lists 5 viable alternatives to Paypal, namely: I would suggest looking for unbiased sources like CNN rather than searching for alternatives and happening upon the merchant's sites themselves. Hope this helps!",
"title": ""
},
{
"docid": "21db1c5902c3904dcba5e7cddfd17f69",
"text": "You are thinking of something similar to [Patreon](www.patreon.com) then but more automated? I don't quite think automation works for this because you might not want to give every site you visit money, even if you visit it often in a short period of time (e.g. while doing research into cults you might not want to give the WBC money).",
"title": ""
}
] |
fiqa
|
622234f715e1e8105f39f89c1e5d7d27
|
How do I report book royalties for tax purposes?
|
[
{
"docid": "177452e08f5bcd1a5ccb6fada4720bcd",
"text": "\"(Insert the usual disclaimer that I'm not any sort of tax professional; I'm just a random guy on the Internet who occasionally looks through IRS instructions for fun. Then again, what you're doing here is asking random people on the Internet for help, so here goes.) The gigantic book of \"\"How to File Your Income Taxes\"\" from the IRS is called Publication 17. That's generally where I start to figure out where to report what. The section on Royalties has this to say: Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. In most cases, you report royalties in Part I of Schedule E (Form 1040). However, if you hold an operating oil, gas, or mineral interest or 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). It sounds like you are receiving royalties from a copyright, and not as a self-employed writer. That means that you would report the income on Schedule E, Part I. I've not used Schedule E before, but looking at the instructions for it, you enter this as \"\"Royalty Property\"\". For royalty property, enter code “6” on line 1b and leave lines 1a and 2 blank for that property. So, in Line 1b, part A, enter code 6. (It looks like you'll only use section A here as you only have one royalty property.) Then in column A, Line 4, enter the royalties you have received. The instructions confirm that this should be the amount that you received listed on the 1099-MISC. Report on line 4 royalties from oil, gas, or mineral properties (not including operating interests); copyrights; and patents. Use a separate column (A, B, or C) for each royalty property. If you received $10 or more in royalties during 2016, the payer should send you a Form 1099-MISC or similar statement by January 31, 2017, showing the amount you received. Report this amount on line 4. I don't think that there's any relevant Expenses deductions you could take on the subsequent lines (though like I said, I've not used this form before), but if you had some specific expenses involved in producing this income it might be worth looking into further. On Line 21 you'd subtract the 0 expenses (or subtract any expenses you do manage to list) and put the total. It looks like there are more totals to accumulate on lines 23 and 24, which presumably would be equally easy as you only have the one property. Put the total again on line 26, which says to enter it on the main Form 1040 on line 17 and it thus gets included in your income.\"",
"title": ""
}
] |
[
{
"docid": "a561b7dc1cac02dffd14a1befccaa9bb",
"text": "I am not an accountant in any way, but I can't imagine needing to report that to the IRS. It's not income and has probably already been taxed when it was earned/received. You're not moving it from an untaxed (Roth) retirement account to a taxed one, or vice versa.",
"title": ""
},
{
"docid": "1953236f5be7555ca9b4258a6797b362",
"text": "You do actually have some profits (whatever is left from donations). The way it goes is that you report everything on your Schedule C. You will report this: Your gross profits will then flow to Net Profit (line 31) since you had no other expenses (unless you had some other expenses, like paypal fees, which will appear in the relevant category in part II), and from line 31 it will go to your 1040 for the final tax calculation.",
"title": ""
},
{
"docid": "c019cab98369192a419c76fde2604a04",
"text": "\"I'm not sure what the situation is in Canada, but in the US, the IRS does not look kindly on people overvaluing donations of used goods. The rule is obviously abused quite a bit, but that doesn't mean it's legal! Different used books have different values, usually depending on supply and demand, and there are online databases that make it easy to check the value of a book using a barcode scanner. If you took a book to a used bookstore and they didn't want to buy it, that's because supply greatly exceeds demand... it might be last year's bestseller, for example. In this situation, donating the book to charity and claiming that the book is \"\"worth\"\" more than it's actually worth is really nothing more than cheating on your taxes. You may or may not get caught, but it's certainly not the intent of any tax code to give people a break on their taxes for donating worthless books to a charity which will inevitably just have to recycle or shred them.\"",
"title": ""
},
{
"docid": "2eef07f29022cac19a6347d726c0cde3",
"text": "\"No matter what you do, the question of \"\"what is income\"\" is *always* going to be an extremely complex question. To use this particular example, is paying a royalty fee to an external party a legitimate business expense that is part of the cost of doing business and which subtracts from your \"\"income\"\"?\"",
"title": ""
},
{
"docid": "b7c17ae0a48b1b0c0783dd5e5b0f8db8",
"text": "\"You can report it as \"\"hobby\"\" income, and then you won't be paying self-employment taxes. You can also deduct the blog-related expenses from that income (subject to the 2% limit though). See this IRS pub on the \"\"hobby\"\" income.\"",
"title": ""
},
{
"docid": "3bdd2e14dc990aa712c3092fbe817087",
"text": "I received a $2,000 bonus... Gross Income is income from whatever source derived, including (but not limited to) “compensation for services, including fees, commissions, fringe benefits, and similar items.” Adjusted Gross Income is defined as gross income minus adjustments to income. My question is, must I still report this money on my tax return and if so, how? Yes, and it would be on line 21 of your 1040 with supporting documentation. Are these legal fees deductible as an expense, and where would I list them? Yes, you would aggregate your deductible expenses and place these on your Schedule A. Instructions here. Good Luck. Edit: As Ben Miller pointed out in the comments, the deduction would be placed in either line 23 or 28 depending on the nature of the attorney (investment related or not).",
"title": ""
},
{
"docid": "b4510cf6016c180b947eab26ae6b837c",
"text": "\"Here's a very basic MySQL query I put together that does what I want for income/expense report. Basically it reports the same info as the canned income/expense report, but limits it those income/expenses associated with a particular account (rental property, in my case). My main complaint is the output \"\"report\"\" is pretty ugly. And modifying for a different rental property requires changing the code (I could pass parameters etc). Again, the main \"\"issue\"\" in my mind with GnuCash income/expense report is that there is no filter for which account (rental property) you want income/expenses for, unless you set up account tree so that each rental property has its own defined incomes and expenses (i.e. PropertyA:Expense:Utility:electric). Hopefully someone will point me to a more elegant solution that uses the report generator built into GnuCash. THanks! SELECT a2.account_type , a4.name, a3.name, a2.name, SUM(ROUND(IF(a2.account_type='EXPENSE',- s2.value_num,ABS(s2.value_num))/s2.value_denom,2)) AS amt FROM ( SELECT s1.tx_guid FROM gnucash.accounts AS a1 INNER JOIN gnucash.splits AS s1 ON s1.account_guid = a1.guid WHERE a1.name='Property A' ) AS X INNER JOIN gnucash.splits s2 ON x.tx_guid = s2.tx_guid INNER JOIN gnucash.accounts a2 ON a2.guid=s2.account_guid INNER JOIN gnucash.transactions t ON t.guid=s2.tx_guid LEFT JOIN gnucash.accounts a3 ON a3.guid = a2.parent_guid LEFT JOIN gnucash.accounts a4 ON a4.guid = a3.parent_guid WHERE a2.name <> 'Property A' # get all the accounts associated with tx in Property A account (but not the actual Property A Bank duplicate entries. AND t.post_date BETWEEN CAST('2016-01-01' AS DATE) AND CAST('2016-12-31' AS DATE) GROUP BY a2.account_type ,a4.name, a3.name, a2.name WITH ROLLUP ; And here's the output. Hopefully someone has a better suggested approach!\"",
"title": ""
},
{
"docid": "b80a4da09befcb5e2df91a2c39fd52a4",
"text": "\"You report it when the expense was incurred/accrued. Which is, in your case, 2014. There's no such thing as \"\"accounts payable\"\" on tax forms, it is an account on balance sheet, but most likely it is irrelevant for you since your LLC is probably cash-based. The reimbursement is a red-herring, what matters is when you paid the money.\"",
"title": ""
},
{
"docid": "bc9c200f6660dd9981ab887eb936190c",
"text": "I think the IRS doc you want is http://www.irs.gov/publications/p550/ch04.html#en_US_2010_publink100010601 I believe the answers are:",
"title": ""
},
{
"docid": "b86d06b83930b46c910d7c04b1b8f98e",
"text": "It should be reported as Miscellaneous Income. Congratulations for wanting to report this income.",
"title": ""
},
{
"docid": "78d14bc8caa8db04ea078cca3001630b",
"text": "You only need to report INCOME to the IRS. Money which you are paying to a landlord on behalf of someone else is not income.",
"title": ""
},
{
"docid": "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": "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": "efde1ab1a9035da2874810c95db67d9e",
"text": "\"I think you're on the right track. Your #2 journal entry is incorrect. It should be (I usually put the debit entry on top, but I followed your formatting) I'm assuming your employer uses an accountable reimbursement plan (reimbursing you when you turn in your payment bill/receipts). This is not salary. Reimbursements under the accountable plan in the US are not taxed as income. If you think about it though, \"\"phone expense\"\" isn't really your phone expense. So, instead of #1 entry, you could make an account receivable, or other current asset account, maybe call it Reimbursables - cellphone, and debit this account, and credit your cash account. When you receive the $30 back, you will reverse the entries on the day of payment. If you do it this way, you should be able to see a list of receivables outstanding (I'm not too familiar with GNUCash but I'm sure it has this type of report).\"",
"title": ""
},
{
"docid": "66521d7eba2dc3e6c79b450fbe8663f4",
"text": "Any such amount has to be reported by Skrill and the Bank to RBI. As long as your earnings are legitimate and you are paying the taxes you shouldn't be worried. If its for services rendered, you would have a contract and / or invoice ... ie some paper work. It is important to keep the paper work in order.",
"title": ""
}
] |
fiqa
|
73e68fa5c2320d9b0669bfed8f25fdc0
|
183 day rule in conjunction with expatriate
|
[
{
"docid": "708b0a0701ed4c6db8ded6937a20599b",
"text": "\"There's no \"\"183 days\"\" rule. As a US citizen you must pay taxes on all your income, where you live is irrelevant.\"",
"title": ""
}
] |
[
{
"docid": "fa0eedb94ddb41b43cf2a8632c031a89",
"text": "\"In this scenario the date of income is the date on which the contract has been signed, even if you received the actual money (settlement) later. Regardless of the NY special law for residency termination - that is the standard rule for recognition of income during a cash (not installments) sale. The fact that you got the actual money later doesn't matter, which is similar to selling stocks on a public exchange. When you sell stocks through your broker on a public exchange - you still recognize the income on the day of the sale, not on the day of the settlement. This is called \"\"the Constructive Receipt doctrine\"\". The IRS publication 538 has this to say about the constructive receipt: Constructive receipt. Income is constructively received when an amount is credited to your account or made available to you without restriction. You need not have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations. Once you signed the contract, the money has essentially been credited to your account with the counter-party, and unless they're bankrupt or otherwise insolvent - you have no restrictions over it. And also (more specifically for your case): You cannot hold checks or postpone taking possession of similar property from one tax year to another to postpone paying tax on the income. You must report the income in the year the property is received or made available to you without restriction. Timing wire transfer is akin to holding and not depositing a check, from this perspective. So unless there was a restriction that was lifted after you moved out of New York, I doubt you can claim that you couldn't have received it before moving out, i.e.: you have, in fact, constructively received it.\"",
"title": ""
},
{
"docid": "6681aab67e513952ed9e5130e3f33fcc",
"text": "\"If you're a US citizen, money earned while in the US is sourced to the US. So you can't apply FTC/FEIE to the amounts attributable to the periods of your work while in the US even if it is a short business trip. Tax treaties may affect this. Most tax treaties have explicit provisions to exclude short trips from the sourcing rules, however due to the \"\"saving clause\"\" these would probably not apply to you if you're a US citizen - you'll need to read the relevant treaty. Your home country should allow credit for the US taxes paid on the US-sourced income, and the double-taxation avoidance provision should apply in this case. The technicalities depend on your specific country. You would probably not just remove it from the taxable income, there probably is a form similar to the US form 1116 to calculate the available credit.\"",
"title": ""
},
{
"docid": "7da971f8aec74ab1da208c8d182c2eb1",
"text": "\"Context: My parents overseas (Japan) sent me a little over $100,000 to cover an expensive tuition payment and moderate living expenses in 2014. They are not US residents, Green card holders or citizens. They did not remit the tuition payment directly to the school. I am a resident (for tax). This is enough to answer yes. That's basically the set of requirements for filing: you received >$100K from a non-US person and you yourself are a US person. You have to report it, and unless it is taxable income - it is a gift. Taxable income is reported on the form 1040, gifts are reported on the form 3520. The fact that in Japan it is not considered a gift is irrelevant. Gift tax laws vary between countries, some (many) don't have gift taxes at all. But the reporting requirement is based on the US law and the US definition of \"\"gift\"\". As I said above, if it is not a gift per the US law, then it is taxable income (and then you report all of it regardless of the amount and pay taxes). Had they paid directly to the institution, you wouldn't need to count it as income/gift to you because you didn't actually receive the money (so no income) and it went directly to cover your qualified education expenses (so no gift), but this is not the case in your situation. Whether or not this will be reported by the IRS back to Japan - I don't know, but it was probably already reported to the authorities in Japan by the banks through which the transfers went through. As to whether it will trigger an audit - doesn't really matter. It was, most likely, reported to the IRS already by the receiving banks in the US, so not reporting it on your tax return (either as income or on form 3520) may indeed raise some flags.\"",
"title": ""
},
{
"docid": "8e274ec175a07406b483bff494df6ebd",
"text": "\"This may be relevant: it suggests that IRS is lenient with the attachment of the form with 1040. To paraphrase: \"\"The ruling involved a taxpayer who timely filed the election with the IRS within 30 days of the property transfer but who did not attach a copy of the election to his or her Form 1040 for the year of the transfer. Fortunately for the taxpayer in question, the ruling indicated that the submission of the election to the IRS within 30 days of the property transfer fulfilled the requirements for a valid election, and the failure to attach the copy to the tax return did not affect the validity of the election. The IRS requested that the taxpayer forward a copy of the election to the IRS to be associated with the processing of the tax return. - See more at: http://www.bnncpa.com/services/employee_benefit_plans/blog/irs_rules_that_failure_to_attach_83b_election_to_form_1040_did_not_invalida#sthash.0c3h2nJY.dpuf\"\" If someone wants to grok the IRS ruling: http://www.irs.gov/pub/irs-wd/1405008.pdf And this is the article where I saw the above referenced. www.bnncpa.com/services/employee_benefit_plans/blog/irs_rules_that_failure_to_attach_83b_election_to_form_1040_did_not_invalida\"",
"title": ""
},
{
"docid": "d9a780decda5c8e8bb9f5fa69add811c",
"text": "\"Even though you will meet the physical presence test, you cannot claim the FEIE because your tax home will remain the US. From the IRS: Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Having a \"\"tax home\"\" in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes. ... You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States. However, your abode is not necessarily in the United States while you are temporarily in the United States. Your abode is also not necessarily in the United States merely because you maintain a dwelling in the United States, whether or not your spouse or dependents use the dwelling. ... The location of your tax home often depends on whether your assignment is temporary or indefinite. If you are temporarily absent from your tax home in the United States on business, you may be able to deduct your away from home expenses (for travel, meals, and lodging) but you would not qualify for the foreign earned income exclusion. If your new work assignment is for an indefinite period, your new place of employment becomes your tax home, and you would not be able to deduct any of the related expenses that you have in the general area of this new work assignment. If your new tax home is in a foreign country and you meet the other requirements, your earnings may qualify for the foreign earned income exclusion. If you expect your employment away from home in a single location to last, and it does last, for 1 year or less, it is temporary unless facts and circumstances indicate otherwise. If you expect it to last for more than 1 year, it is indefinite. If you expect your employment to last for 1 year or less, but at some later date you expect it to last longer than 1 year, it is temporary (in the absence of facts and circumstances indicating otherwise) until your expectation changes. For guidance on how to determine your tax home refer to Revenue Ruling 93-86. Your main place of business is in the US and this will not change, because your business isn't relocating. If you are intending to work remotely while you are abroad, you should get educated on the relevant laws on where you are going. Most countries don't take kindly to unauthorized work being performed by foreign visitors. And yes, even though you aren't generating income or involving anyone in their country, the authorities still well may disapprove of your working. My answer to a very similar question on Expatriates.\"",
"title": ""
},
{
"docid": "d1adeee13e441c082a60e0b3e7fcad84",
"text": "Chase has a limit of $500,000 per day. A banker should be able to help you determine any immediate tax liabilities that will arise as a direct result of the transaction. You may wish to consult with a tax professional about any indirect implications the transfer may have. This transaction will be reported to the government but assuming that you are not involved in any illegitimate activities the likelihood of the US government taking any action on the notice is incredibly low. I have heard of 7 and 14 day holds being placed on out of character transfers but if you are buying property you should work with your bank to help facilitate. Bankers understand the business and can help you avoid any appearances of impropriety that the government flags. Should your account be flagged, I would retain a lawyer immediately. If you feel you have a reason to be concerned, then I would contact a lawyer in the US and Thailand before initiating the transfer. As they say an ounce of prevention is worth a pound of cure.",
"title": ""
},
{
"docid": "2edd5ed1295a57e68363c29b87c694a0",
"text": "\"If the wording is \"\"within 10 days\"\" then its 10 days. Calendar days. Otherwise they would put \"\"10 business days\"\", for example. Usually, if you need to do something within 10 days from today, the first day to count is today. I would expect \"\"within\"\" to mean that you can fund in any of the days up to the 10th. But that's me, trying to read English as English. Why don't you call the bank and ask them?\"",
"title": ""
},
{
"docid": "f0275cc6538a48f5f5155920d19db0f9",
"text": "Three points for you to keep in mind. 1. In the very first year, you should have 182 days outside India. So that in the year when you start your consultancy, you will not have any liability to pay tax on earning abroad. 2. Although you may be starting a consultancy abroad, if you do any services in India, there will be withholding tax depending on the country in which you have started the consultancy business. 3. Whatever money you repatriate is not taxable in India. However, if you you repatriate the money as gift to anyone who is not a relative, will be taxed in his/her hand.",
"title": ""
},
{
"docid": "a4bd83ee17b3aecbffeb30623c980184",
"text": "For information about the UK situation, check the government website at http://www.hmrc.gov.uk/incometax/tax-arrive-uk.htm It all depends on the time. If I read it right (but you should check yourself) you can stay almost six months at a time, but at most 3 months on average over 4 years. Above this limit, you should either avoid the situation, or get professional advice, because things will be complicated.",
"title": ""
},
{
"docid": "f395c55d7f9fd1f519a973966956ddbe",
"text": "The relevant IRS publication is pub 463. Note that there are various conditions and exceptions, but it all starts with business necessity. Is it necessary for you to work from the UK? If you're working from the UK because you wanted to take a vacation, but still have to work, and would do the same work without being in the UK - then you cannot deduct travel expenses. It sounds to me like this is the case here.",
"title": ""
},
{
"docid": "cf02d9afe89d760433501c750e5a1575",
"text": "Okay so I have just had a phone call with US Ambassy in CZ and they told me that ESTA is only for business trips without earning any money in US ... So that I will need a US entity (some company/person) to sign some kind of petition for my models before they travel to US and vouch for them ... Is that correct? Anybody knows how much that costs? Also they gave me this website: https://www.uscis.gov/ And said it has to be all arranged in US, that they can't do anything on their CZ part.",
"title": ""
},
{
"docid": "ac752fb104fc90705e42850f151aec14",
"text": "What I'm going to write is far too long for a comment, so I'll put it here even though its not an answer. That's the closest thing to an answer you'll get here, I'm afraid. I'm not a tax professional, and you cannot rely on anything I say, as you undoubtedly know. But I'll give you some pointers. Things you should be researching when you have international clients: Check if Sec. 402 can apply to the pension funds, if so your life may become much easier. If not, and you have no idea what you're doing - consider referring the client elsewhere. You can end up with quite a liability suit if you make a mistake here, because the penalties on not filing the right piece of paper are enormous.",
"title": ""
},
{
"docid": "18e04e697d83f44d2dcbe03dd7928152",
"text": "\"From what you've described, your spouse is a non-resident alien for US tax purposes. You have two choices: Use the Nonresident Spouse Treated As Resident election and file as Married Filing Jointly. Since your spouse doesn't have, and doesn't currently qualify for, an SSN, he/she will need to apply for an ITIN together with the tax filing. Note that by becoming a resident alien, your spouse's worldwide income the whole year would be subject to US taxes, and would need to be reported on your joint tax filing, though he/she will be able to use the Foreign Earned Income Exclusion to exclude $100k of her foreign earned income, since he/she will have been out of the US for 330 days in a 12-month period. Or, file as Married Filing Separately. You write \"\"NRA\"\" for your spouse's SSN on your tax return. As a nonresident alien, if your spouse doesn't have any US income, he/she doesn't have to file a US tax return, and doesn't need to apply for an ITIN. Which one is better is up to you to figure out.\"",
"title": ""
},
{
"docid": "28f92e26dcc503d4c07d8bac7f07e7a4",
"text": "\"The examples you provide in the question are completely irrelevant. It doesn't matter where the brokerage is or where is the company you own stocks in. For a fairly standard case of an non-resident alien international student living full time in the US - your capital gains are US sourced. Let me quote the following text a couple of paragraphs down the line you quoted on the same page: Gain or loss from the sale or exchange of personal property generally has its source in the United States if the alien has a tax home in the United States. The key factor in determining if an individual is a U.S. resident for purposes of the sourcing of capital gains is whether the alien's \"\"tax home\"\" has shifted to the United States. If an alien does not have a tax home in the United States, then the alien’s U.S. source capital gains would be treated as foreign-source and thus nontaxable. In general, under the \"\"tax home\"\" rules, a person who is away (or who intends to be away) from his tax home for longer than 1 year has shifted tax homes to his new location upon his arrival in that new location. See Chapter 1 of Publication 463, Travel, Entertainment, Gift, and Car Expenses I'll assume you've read this and just want an explanation on what it means. What it means is that if you move to the US for a significant period of time (expected length of 1 year or more), your tax home is assumed to have shifted to the US and the capital gains are sourced to the US from the start of your move. For example: you are a foreign diplomat, and your 4-year assignment started in May. Year-end - you're not US tax resident (diplomats exempt), but you've stayed in the US for more than 183 days, and since your assignment is longer than 1 year - your tax home is now in the US. You'll pay the 30% flat tax. Another example: You're a foreign airline pilot, coming to the US every other day flying the airline aircraft. You end up staying in the US 184 days, but your tax home hasn't shifted, nor you're a US tax resident - you don't pay the flat tax. Keep in mind, that tax treaties may alter the situation since in many cases they also cover the capital gains situation for non-residents.\"",
"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": ""
}
] |
fiqa
|
a536280a89131f63ae6fc460946dc3e1
|
Reporting software subscriptions
|
[
{
"docid": "90f61f5feed3b41449a720a09f583b32",
"text": "Generally prepaid services should be capitalized over the period prepaid. But if it is up to a year - you can just expense them. As to the technicalities - you can contact Intuit support, but you should be able to put it in the same area where you put all your other business expenses. If you're a sole proprietor - that would be Schedule C.",
"title": ""
}
] |
[
{
"docid": "1215709f7759651dfa4fa316b87bc917",
"text": "The websites of the most publicly traded companies publish their quarterly and annual financials. Check the investor relations sections out at the ones you want to look at.",
"title": ""
},
{
"docid": "07475e63cecd2d11c78cb1bde47e5b0b",
"text": "Is there really that many subscribers? It's about 10$ a month depending on what country you live in. 100m*10*12 = 12 b revenue per year. Unless I'm wrong, but this is the internet, I am sure someone will correct me.",
"title": ""
},
{
"docid": "9e3aeb1e220e254a1b835e73c9e24e8b",
"text": "\"Since this is a cooperative I'm guessing your partners may want to be able to view the books so another key point you may want to consider is collaboration. QuickBooks desktop has all of these same issues because it is meant to be used on a single desktop. We're in an age of mobile devices, and especially in a business like landscaping it would be nice if certain aspects of record keeping could be done at the point and time where they are incurred. I'd argue you want a Software as a Service (SaaS) accounting package as opposed to \"\"accounting software\"\" which might come on a CD in the form of QuickBooks, Sage and others. Additionally, most of these will also have guides to help make sure you are properly entering your records. Most of these SaaS products also have customer success teams to help you along should you need assistance. Depending on the level of your subscription you may get more sophisticated handling of taxes, customized invoices or integrated payroll. Your goal is to keep accurate records so you can better run your business and maintain obligations like filing taxes. You're not keeping the records just to have them. Keep them in a place where they will work for you and provide the insights and functionality that will help your business grow and become successful. Accounting software will always win in this scenario over a spreadsheet. FULL DISCLAIMER: I work for Kashoo, a simple cloud accounting product designed for small businesses. But the points I mention above are true for Xero, QuickBooks Online and Wave as well as Kashoo. And if you really want expertise to go with the actual software consider service providers with a platform like: Indinero, Bench, easyrecordbooks or Liberty Accounting.\"",
"title": ""
},
{
"docid": "df41d5435ebcc94a9d14c1308ac5656d",
"text": "I've been looking through annual reports of some Canadian insurance companies. Having serious trouble with their reporting; it varies widely. I've been trying to create a historic look at the combined ratios, and have been comparing income statements. Maybe that's the wrong place to look.",
"title": ""
},
{
"docid": "a589d967d83742869cd39a96735dd4fd",
"text": "The S&P report (aka STARS report) for each company has 10 years of financial data. These reports are available free at several online brokers (like E-Trade) if you have an account with the brokerage.",
"title": ""
},
{
"docid": "b528f29ebaead09e2665fc7058ec1a55",
"text": "Institute of Supply Management, specifically their Report on Business. Good forward looking indicator. As far as the weekly report, I'd probably read it, maybe even contribute, but I more of a lurker on this sub. I saw your question and have had some similar experiences so I thought I could help you out.",
"title": ""
},
{
"docid": "d867d1cd3efc5bd9c1b606b531d9a4dc",
"text": "Investigative journalism is another form of entertainment. Yes, it also happens to provide a service to the public. I have a budget and a family and I have to pick between different sources of entertainment. I *want* to give WaPo money for service, but I can't justify it at their current price. We don't go out to eat, we don't buy cable TV, and we don't go to the movies, so it's not like I can just give up a Big Mac to pay WaPo. At their current price point, they simply don't provide enough entertainment for me to give up a different source of entertainment to replace it with WaPo. I am a relatively poor person who wants to stay informed and contribute to supporting investigative journalism, but they've price themselves out of my reach.",
"title": ""
},
{
"docid": "c86cf4c13b5cedf554d0964b7b378467",
"text": "\"I use \"\"Money Manager Ex\"\" which is a Windows application I use on PC to log my transactions and for simple statistic. They have two versions, simple standlone application and self-hosted web app.\"",
"title": ""
},
{
"docid": "5c4f09f3e0a1e474cace9ec8845e120e",
"text": "Probably because it's a question of Excel vs Access, not VBA vs SQL. You probably don't need VBA for any of the calcs that the OP mentions. Excel is the one tool everyone uses in Finance. CR and SSRS require tools and permissions that the average guy simply won't have, and a level of expertise that is not useful for most front/middle-office analysis work. I usually see these done in Excel. SSRS and CR seem like way overkill for something done trivially and transparently in Excel, whose presentation will change frequently anyway. Depending on what OP is talking about, analysis is not reporting, and flexibility and transparency usually win. Especially when you want to poke around the underlying data and iterate with other people. SSRS and CR only make sense when you know what you're looking for, that the data is appropriate for it and you don't expect it to change.",
"title": ""
},
{
"docid": "032b93d19155e48a2fc27c23982cd9e1",
"text": "Sure - I honestly don't mind membership sites, and there are a bunch of sites that I do maintain active memberships to like the New Yorker, it's all about quality. I just have to keep an eye on my subscription credit card so I can make sure I'm not getting billed for a service that I've long since forgotten about.",
"title": ""
},
{
"docid": "d5d36aa93d645bdb557ed267224bcca5",
"text": "Are these estimates? I didn't see a link or source in there to actual financial statements. As a private company I'm not sure that information is public. A quick Google search didn't bring anything to light. Regardless, I'd be much more interested in seeing Spotify's cash flow statement. For startup companies that can be much more indicative of health.",
"title": ""
},
{
"docid": "58d1faa2f4156ea3d559119dac018463",
"text": "Moody's is now Mergent Online. It's no longer being printed, and must be accessed digitally. In order to browse the database, check with your local public library or university to see if you can get access. (A University will probably require you to visit for access). Another good tool is Value Line Reports. They are printed information sheets on public companies that are updated regularly, and are convenient for browsing and for comparing securities. Again, check your local libraries. A lot of the public information you may be looking for can be found on Yahoo Finance, for free, from home. Yahoo finance, will give financial information, ratios, news, filings, analysis, all in one place.",
"title": ""
},
{
"docid": "f7e7394ed4529b9612f9c18d47ed9348",
"text": "I get a subscription to WSJ through work and I use it everyday. What is the price of the subscription though? I find it useful and Barrons has a lot regarding business and the stock market. A lot of professionals have subscriptions to the WSJ. I prefer the WSJ over other services and I really like the market data they provide.",
"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": "60dead45ac5d12c75a443e96c680faa4",
"text": "\"Is there any particular area of business that you have interest? What free resources do you currently use (general web browsing)? Here are some magazines out there that I find interesting: * **Fast Company** - $12.99 / Year / 10 Issues - Magazine focused on tech, innovation, leadership and design. I don't subscribe, but I regularly purchase Fast Company, Entrepreneur,and Inc. when I am traveling. They make for a perfect airplane read and I typically find great takeaways or clip articles from it. * **Entrepreneur** - $11.97 / Year / 12 Issues - Obviously by the title this is catered to the entrepreneurial mindset. It provides informational and inspirational stories from entrepreneurs and for entrepreneurs. I enjoy reading this and probably read 3 or 4 issues per year. I'm not a regular reader, but at times I have felt like content may run lean at times. * **Inc** - $12.99 / Year / 10 Issues - Inc. feels like a blend of Fast Company and Entrepreneur. The articles are aimed at the business owner for starting and running operations. * **Businessweek** - $5 / Year / 12 Issues - I regularly read Businessweek, but primarily on their website. I have picked up issues occasionally which are great, but their web provides a fair amount of access. They seem to have a nice blend of news and unique stories about specific companies, products, and investment. Recently they had interesting articles with fair depth on the CEO of Burger King, and the history of Sriracha. * **Forbes** - $24.99 / Year / 26 Issues - I love the volume of content that Forbes provides and they seem to have a nice mix on a variety of subjects. I use Forbes as my frontpage of the internet for business in conjunction with several others. I actually feel like Forbes and Businessweek provide a perfect blend of business news with shocking little redundancy. * **Harvard Business Review** - Wasn't able to quickly see a price. I reference HBR a fair amount in regards to business discussions and think they provide excellent research material and information. The writing style and layout isn't quite as captivating as some of the other magazines such as Fast Company, but the quality is excellent, * **WSJ** - Obviously putting out a high volume of content, but you definitely pay for it. I know a fair number of people who read it, but I actually have never known anyone to subscribe to it if that makes sense. All the readers I know either receive a subscription through their work or university. I think that shows the content is valuable and quality, but it might not justify the cost you have to pay for it as an individual reader. I use a variety of websites to get business news, general education, and help me overall to understand the business world. Specifically from the ones listed above I check Businessweek and Forbes daily for morning or lunch reading. Forbes in particular does a solid job due to all of their external content contributors. Seems like an interesting way to provide content if you can curate it correctly. If you're more interested in the finance/investment world then I think Yahoo Finance and CNN Money are great. Focusing specifically on investments then I really enjoy the content I get from Motley Fool and Seeking Alpha. Some articles get pretty deep in regards to finance and investing, but overall I think they give great insight. I read BusinessInsider, but I'll be honest I feel dirty. Sometimes I find an interesting piece that leads me elsewhere to research more. The content is primarily distributed in a \"\"Buzzfeed\"\" style format which has some questionable headlines and less professional content (\"\"7 Crazy Facts That Sound Fake But Are Actually True\"\"). In Summary, I think you could learn a good amount on a variety of topics while staying plugged into news and developments in the business world for free. I'm sure a few other people will chime in with other great sources that I didn't capture and some that I didn't even know existed. I would start by reading a few of these sites I listed regularly and continue posting in this sub to help us keep the conversation going!\"",
"title": ""
}
] |
fiqa
|
ea2b1926c1ea40584c199a7daf132524
|
Can you lease a secondary residential apartment for a job in NYC, and declare it as expense in tax return?
|
[
{
"docid": "dbfa5b84cb673235e5bac207e7538d3e",
"text": "As I understand it... Generally housing can't be considered a business expense unless taken at your employer's explicit direction, for the good of the business rather than the employee. Temporary assignment far enough from you home office that commuting or occasional hotel nights are impractical, maybe. In other words, if they wouldn't be (at least theoretically) willing to let you put it on an expense account, you probably can't claim it here.",
"title": ""
}
] |
[
{
"docid": "68c4d6b201926c7dc2dbd6098be0d795",
"text": "\"It is definitely legal, however none of such expenses will be allowed as a tax deduction for the corporation. Basically, you'll end up paying more to maintain the entity and pay taxes on its income (the rent you're paying to yourself as a corporation) at corporate rates, for no apparent benefit. Being the director/executive in the corporation will make you liable for whatever the corporation is liable, so liability isn't going away. The reason corporation is considered \"\"limited liability\"\" for owners is because shareholders are shielded from the corporate liability. Not directors or executives (which are explicitly not shielded).\"",
"title": ""
},
{
"docid": "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": "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": "255ced4517b0b7d6b04e2db97cfaec4c",
"text": "The answer on the Canadian Government's website is pretty clear: Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as most tools and clothing. However, that is most likely related to a personal vehicle. There is a deduction related to Public Transportation: You can claim cost of monthly public transit passes or passes of longer duration such as an annual pass for travel within Canada on public transit for 2016. The second sleeping residence is hard to justify as the individual is choosing to work in this town and this individual is choosing to spent the night there - it is not currently a work requirement. As always, please consult a certified tax professional in your country for any final determinations on personal (and corporate) tax laws and filings.",
"title": ""
},
{
"docid": "b00dcf0b2faaae67c0b38a657cffcb20",
"text": "\"I'm not a tax professional, but as I understand it, you are not expected to commute from San Francisco to Boston. :) If your employer has not provided you with an external office, then yes, you have very likely met the \"\"convenience of the employer\"\" test. However, to take the home office deduction, there are many requirements that have to be met. You can read more at the Nolo article Can You Deduct Your Home Office When You're an Employee? (Thanks, keshlam) The home office deduction has many nuances and is enough of an IRS red flag that you would be well-advised to talk to an accountant about it. You need to be able to show that it is exclusively and necessarily used for your job. Another thing to remember: as an employee, the home office deduction, if you take it, will be deducted on Schedule A, line 21 (unreimbursed employee expenses), among other Miscellaneous Deductions. Deductions in this section need to exceed 2% of your adjusted gross income before you can start to deduct. So it will not be worth it to pursue the deduction if your income is too high, or your housing expenses are too low, or your office is too small compared to the rest of your house, or you don't itemize deductions.\"",
"title": ""
},
{
"docid": "61ca24fc9ed4a1d70bc253d5905a22d6",
"text": "\"If all of the relocation expenses are paid by your employer to the moving companies, then you should not have any tax liability for those payments. Relocation expenses should be treated as normal business expenses by your employer. Note I emphasize \"\"should\"\" because it's possible that your employer \"\"could\"\" consider it income to you, but companies generally do not go out of their way to classify normal business expenses as income since it costs both them and you more money in taxes. As a side note, the reason your company is paying these expenses directly is probably to lessen the likelihood of these expenses being questioned in an audit (in comparison to if they cut you a reimbursement check which could get more scrutiny).\"",
"title": ""
},
{
"docid": "fabde7d45795614312a71467bc92b461",
"text": "\"It is legal. They're probably going to give you a 1099-MISC, which is required of businesses for many cash payments over $600 in value to all sorts of counterparties. (Probably box 3 of 1099-MISC as is typical in \"\"cash for keys\"\" situations where one is paid to vacate early) A 1099-MISC is not necessarily pure income, but in this case, you do have money coming in. This money isn't a return of your security deposit or a gift. The payment could possibly be construed by you as a payment to make you whole, but the accounting for this would be on you. This is not a typical situation for IRS reporting. However, if you are uncomfortable with potentially explaining to the IRS how you implemented advice from strangers over the internet, the safest course is to report it all as income. Look at it this way: you did enter into a mutual contract, where you were paid consideration to release your leasehold interests in the property.\"",
"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": "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": "71bd8b7bb71148feb7f19174d08ae7fa",
"text": "\"When I have a question about my income taxes, the first place I look is generally the Giant Book of Income Tax Information, Publication 17 (officially called \"\"Your Federal Income Tax\"\"). This looks to be covered in Chapter 26 on \"\"Car Expenses and Other Employee Business Expenses\"\". It's possible that there's something in there that applies to you if you need to temporarily commute to a place that isn't your normal workplace for a legitimate business reason or other business-related travel. But for your normal commute from your home to your normal workplace it has this to say: Commuting expenses. You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. You cannot deduct commuting expenses even if you work during the commuting trip.\"",
"title": ""
},
{
"docid": "3a24e8c7fb56eacce57030b2d4d34c3c",
"text": "For stocks, bonds, ETF funds and so on - Taxed only on realised gain and losses are deductible from the gain and not from company's income. Corporate tax is calculated only after all expenses have been deducted. Not the other way around. Real estate expenses can be deducted because of repairs and maintenance. In general all expenses related to the operation of the business can be deducted. But you cannot use expenses as willy nilly, as you assume. You cannot deduct your subscription to Playboy as an expense. Doing it is illegal and if caught, the tours to church will increase exponentially. VAT is only paid if you claim VAT on your invoices. Your situation seems quite complicated. I would suggest, get an accountant pronto. There are nuances in your situation, which an accountant only can understand and help.",
"title": ""
},
{
"docid": "eb16551aaaa62f19ddaf2a03ef09ae10",
"text": "It is not a question of where you have your driver's license. It is a question of the states' tax related residency rules. (Though a driver's license can be a part of that question.) Since you likely have a residence in NYC and so can prove residency through a lease, bills, etc., you probably have to file as a NYS/NYC resident. I do have to question your maintaining a California driver's license if you are not a resident. If you are attempting to maintain dual-residency, look into both states' residency rules to see if you are liable for taxes in both states. California seems particularly picky about these types of situations, probably due to concerns that you may be trying to circumvent California taxes. That said, it usually revolves around income in the state. Of course, if you maintain residency in California as well, the argument can be made that you owe some taxes due to the fact that you take advantage of state services. (E.g. you drive on California roads.) I suggest you consult a tax professional knowledgeable in these issues to sort out the details.",
"title": ""
},
{
"docid": "00b414e442d21632884141ce59c4e87a",
"text": "\"You will need to see a tax expert. Your edited question includes the line For the short term, we will be \"\"renting\"\" it to my wife's grandmother at a deep discount. According to the instructions for schedule E If you rented out a dwelling unit that you also used for personal purposes during the year, you may not be able to deduct all the expenses for the rental part. “Dwelling unit” (unit) means a house, apartment, condominium, or similar property. For each property listed on line 1a, report the number of days in the year each property was rented at fair rental value and the number of days of personal use. A day of personal use is any day, or part of a day, that the unit was used by: I have no idea how this will work for Schedule C.\"",
"title": ""
},
{
"docid": "8c5aa064b387820dc05c7f309a1ffe17",
"text": "Schedule E is the form you'll use. It lists nearly all deductions you can take for a rental. TurboTax Deluxe will handle it and it includes State Filing.",
"title": ""
},
{
"docid": "3e24a6e13a1e5f4dc322457e582b1a34",
"text": "\"You owe taxes to the state where you earned the income, and also to the state where you physically live. Most, maybe all, states have laws that let you claim credits for taxes paid to other states so that you're not paying double taxes by living in one state while working in another. Most states have deals with all their neighboring states so that you only have to file taxes in one. For example, I live in Michigan, and Michigan borders Ohio. Lots of people who live near the border live in one state but work in the other. So the two have a deal that anyone who lives in Michigan but works in Ohio just has to file a Michigan tax return and pay Michigan taxes, and anyone who lives in Ohio and works in Michigan just has to pay Ohio taxes. Oh, I should note that these adjacent state deals apply only to employment income, not business income. If you own a business in another state, you'll still have to file taxes in that state. You still should get tax credits in your residence state. In general the fact that you use a server in another state doesn't make you liable for taxes in that state. I understand that New York says that if you work from home and the company headquarters is in New York, you have to pay New York taxes. Maybe there are a few other states who do this. But just because a server is in their state? I've never heard of this. If I order business supplies that are shipped from a warehouse in Arizona, that doesn't make me liable for Arizona income taxes, etc. You are legally a \"\"resident\"\" of the state where you actually live. If you have a home and live in it most of the time, then you are a resident of the state where that home is. A \"\"home\"\" doesn't have to be a house. It could be an apartment, an RV that you live in in a trailer park, a tent, etc. If you don't own any sort of fixed home and you travel around a lot, this could be tricky. You mentioned Oklahoma. Oklahoma defines \"\"resident\"\" as follows: An Oklahoma resident is a person domiciled in this state for the entire tax year. “Domicile” is the place established as a person’s true, fixed, and permanent home. It is the place you intend to return whenever you are away (as on vacation abroad, business assignment, educational leave or military assignment). A domicile, once established, remains until a new one is adopted. (https://www.ok.gov/tax/documents/511NRPkt-14.pdf) I'm not sure that that clears things up for you. You can't just pick a state with low taxes and claim that as your residence. No way is the state where you actually live going to accept that. If you are in an ambiguous situation, like you spend 6 months per year in state A and 6 months in state B and you have no fixed home in either -- maybe you stay at motels or live in your minivan -- you might get away with picking the state with the most favorable tax laws as your residence. But if you spend 7 months in state A and 5 months in state B, state A will almost surely claim you are a resident and owe them taxes. If you regularly wander the country, never spend more than a few days in any one place, and rarely come back to the same place twice, then you have a complicated situation and you probably need to talk to a tax lawyer.\"",
"title": ""
}
] |
fiqa
|
c95779c2192e64eac83e77b80bca4455
|
Does the low CAD positively or negatively impact Canadian Investors?
|
[
{
"docid": "c6f80f2cd50f3b106f8575fffc775665",
"text": "If you buy US stocks when the CAD is high and sell them when the CAD is lower you will make a currency gain on top of any profit or loss from the stock investments. If you buy US stocks when the CAD is low and sell when the CAD is higher any profits from gains from the stock investment will be reduced and any losses will be increased. If you are just starting out you may be better off investing in your own country to avoid any currency risk adding to your stock market risk.",
"title": ""
},
{
"docid": "07e19c760a476464c617d8cdf8002f85",
"text": "At the time of writing, the Canadian dollar is worth roughly $0.75 U.S. Now, it's not possible for you to accurately predict what it'll be worth in, say, ten years. Maybe it'll be worth $0.50 U.S. Maybe $0.67. Maybe $1.00. Additionally, you can't know in advance if the Canadian economy will grow faster than the U.S., or slower, or by how much. Let's say you don't want to make a prediction. You just want to invest 50% of your money in Canadian stocks, 50% in U.S. Great. Do that, and don't worry about the current interest rates. Let's say that you do want to make a prediction. You are firmly of the belief that the Canadian dollar will be worth $1.00 U.S. dollar in approximately ten years. And furthermore, the Canadian economy and the U.S. economy will grow at roughly equal rates, in their local currencies. Great. You should put more of your money in Canadian stocks. Let's say that you want to make a prediction. The Canadian economy is tanking. It's going to be worth $0.67 or less in ten years. And on top of that, the U.S. economy is primed for growth. It's going to grow far faster than the Canadian economy. In that case, you want to invest mostly in U.S. stocks. Let's get more complicated. You think the Canadian dollar is going to recover, but boy, maple syrup futures are in trouble. The next decade is all about Micky Mouse. Now what should you do? Well, it depends on how fast the U.S. economy expands, compared to the currency difference. What should you do? I can't tell you that because I can't predict the future. What did I do? I bought 25% Canadian stocks, 25% U.S. stocks, 25% world stocks, and 25% Canadian bonds (roughly), back when the Canadian dollar was stronger. What am I doing now? Same thing. I don't know enough about the respective economies to judge. If I had a firm opinion, though, I'd certainly be happy to change my percentages a little. Not a lot, but a little.",
"title": ""
},
{
"docid": "e6a3340c925cebe9771d4f0abb64fb8b",
"text": "When you want to invest in an asset denominated by a foreign currency, your investment is going to have some currency risk to it. You need to worry not just about what happens to your own currency, but also the foreign currency. Lets say you want to invest $10000 in US Stocks as a Canadian. Today that will cost you $13252, since USDCAD just hit 1.3252. You now have two ways you can make money. One is if USDCAD goes up, two is if the stocks go up. The former may not be obvious, but remember, you are holding US denominated assets currently, with the intention of one day converting those assets back into CAD. Essentially, you are long USDCAD (long USD short CAD). Since you are short CAD, if CAD goes up it hurts you It may seem odd to think about this as a currency trade, but it opens up a possibility. If you want a foreign investment to be currency neutral, you just make the opposite currency trade, in addition to your original investment. So in this case, you would buy $10,000 in US stocks, and then short USDCAD (ie long CAD, short USD $10,000). This is kind of savvy and may not be something you would do. But its worth mentioning. And there are also some currency hedged ETFs out there that do this for you http://www.ishares.com/us/strategies/hedge-currency-impact However most are hedged relative to USD, and are meant to hedge the target countries currency, not your own.",
"title": ""
}
] |
[
{
"docid": "fe938688353d8877de8a9b0627e67415",
"text": "Get used to it. This trend won't change while investors are 100% focused on quarterly results at the expense of long-term investment and growth strategies from companies. Successful businesses that don't need a large capital injection will stay the course knowing that in mid to long-term their net worth will be higher.",
"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": ""
},
{
"docid": "8a02739d91754ad5c91f0b4ccfd3b8bb",
"text": "I think the points that Edward Conard was making was that the higher the rate investors are taxed, the fewer investors are willing to take the risk. I think the point he should have brought up is that investors and innovators are completely separate. look at facebook, zuckerberg would probably innovate for the sake of innovating, but the people that put money with him would be more wary of the cost/benefit portion. while 2% may not be a big deal to zuckerberg, it might be to his investors.",
"title": ""
},
{
"docid": "99c560ff8a865296a2908cbc18ed8b0a",
"text": "As far as I read in many articles, all earnings (capital gains and dividends) from Canadian stocks will be always tax-free. Right? There's no withholding tax, ie. a $100 dividend means you get $100. There's no withholding for capital gains in shares for anybody. You will still have to pay taxes on the amounts, but that's only due at tax time and it could be very minor (or even a refund) for eligible Canadian dividends. That's because the company has already paid tax on those dividends. In contrast, holding U.S. or any foreign stock that yields dividends in a TFSA will pay 15% withholding tax and it is not recoverable. Correct, but the 15% is a special rate for regular shares and you need to fill out a W8-BEN. Your broker will probably make sure you have every few years. But if you hold the same stock in a non-registered account, this 15% withholding tax can be used as a foreign tax credit? Is this true or not or what are the considerations? That's true but reduces your Canadian tax payable, it's not refundable, so you have to have some tax to subtract it from. Another consideration is foreign dividends are included 100% in income no mater what the character is. That means you pay tax at your highest rate always if not held in a tax sheltered account. Canadian dividends that are in a non-registered account will pay taxes, I presume and I don't know how much, but the amount can be used also as a tax credit or are unrecoverable? What happens in order to take into account taxes paid by the company is, I read also that if you don't want to pay withholding taxes from foreign > dividends you can hold your stock in a RRSP or RRIF? You don't have any withholding taxes from US entities to what they consider Canadian retirement accounts. So TFSAs and RESPs aren't covered. Note that it has to be a US fund like SPY or VTI that trades in the US, and the account has to be RRSP/RRIF. You can't buy a Canadian listed ETF that holds US stocks and get the same treatment. This is also only for the US, not foreign like Europe or Asia. Also something like VT (total world) in the US will have withholding taxes from foreign (Europe & Asia mostly) before the money gets to the US. You can't get that back. Just an honourable mention for the UK, there's no withholding taxes for anybody, and I hear it's on sale. But at some point, if I withdraw the money, who do I need to pay taxes, > U.S. or Canada? Canada.",
"title": ""
},
{
"docid": "62339a39aa3dddc11a5e804af61e19a0",
"text": "\"Another factor to consider, beyond the fact that growth and volatility go together, is that the times when many people will need to liquidate their investments will correlate with the times that many other people need to liquidate their investments, and such correlation will push down the immediate value of those investments. While certificates of deposit have penalties for early withdrawal, one can establish up front what the worst-case penalty would be for cashing it in at the most inopportune time. By contrast, stocks offer no such assurance. Stocks sometimes have weird downward spikes that may be short-lived, but if life circumstances force one to liquidate stocks during such a downward spike the \"\"penalty\"\" can be much larger than on a CD.\"",
"title": ""
},
{
"docid": "3f8d64a7173e83e85807bda067af93aa",
"text": "If S&P crashes, these currencies will appreciate. Note that the above is speculation, not fact. There is definitely no guarantee that, say, the CHF/CAD currency pair is inversely linked to the performance of the US stock market when measured in USD, let alone to the performance of the US stock market as measured in CAD. How can a Canadian get exposure to a safe haven currency like CHF and JPY? I don't want a U.S. dollar denominated ETF. Three simple options come to mind, if you still want to pursue that: Have money in your bank account. Go to your bank, tell them that you want to buy some Swiss francs or Japanese yen. Walk out with a physical wad of cash. Put said wad of cash somewhere safe until needed. It is possible that the bank will tell you to come back later as they might not have the physical cash available at the branch office, but this isn't anything really unusual; it is often highly recommended for people who travel abroad to have some local cash on hand. Contact your bank and tell them that you want to open an account denominated in the foreign currency of your choice. They might ask some questions about why, there might be additional fees associated with it, and you'll probably have to pay an exchange fee when transferring money between it and your local-currency-denominated accounts, but lots of banks offer this service as a service for those of their customers that have lots of foreign currency transactions. If yours doesn't, then shop around. Shop around for money market funds that focus heavily or exclusively on the currency area you are interested in. Look for funds that have a native currency value appreciation as close as possible to 0%. Any value change that you see will then be tied directly to the exchange rate development of the relevant currency pair (for example, CHF/CAD). #1 and #3 are accessible to virtually anyone, no large sums of money needed (in principle). Fees involved in #2 may or may not make it a practical option for someone handling small amounts of money, but I can see no reason why it shouldn't be a possibility again in principle.",
"title": ""
},
{
"docid": "d74301c7507073d54fb71f94b4126d2d",
"text": "General advice for novice investors is to have the majority of your holdings be denominated in your home currency as this reduces volatility which can make people squeamish and, related to your second question, prevents all sorts of confusion. A rising CAD actually decreases the value (for you) of your current USD stock. After all, the same amount of USD now buys you less in CAD. An exception to the rule can be made if you would use USD often in your daily life yet your income is CAD. In this case owning stock denominated in USD can form a natural hedge in your life (USD goes up -> your relative income goes down but stock value goes up and visa versa). Keep in mind —as mentioned in the comments— that an US company with a listing in CAD is still going to be affected by price swings of USD.",
"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": "ce98800ddfa4c44fe836bcef62c53ab0",
"text": "\"The primary tax-sheltered investing vehicles in Canada include: The RRSP. You can contribute up to 18% of your prior year's earned income, up to a limit ($24,930 in 2015, plus past unused contribution allowance) and receive an income tax deduction for your contributions. In an RRSP, investments grow on a tax-deferred basis. No tax is due until you begin withdrawals. When you withdraw funds, the withdrawn amount will be taxed at marginal income tax rates in effect at that time. The RRSP is similar to the U.S. \"\"traditional\"\" IRA, being an individual account with pre-tax contributions, tax-deferred growth, and ordinary tax rates applied to withdrawals. Yet, RRSPs have contribution limits higher than IRAs; higher, even, than U.S. 401(k) employee contribution limits. But, the RRSP is dissimilar to the IRA and 401(k) since an individual's annual contribution allowance isn't use-it-or-lose-it—unused allowance accumulates. The TFSA. Once you turn 18, you can put in up to $5,500 each year, irrespective of earned income. Like the RRSP, contribution room accumulates. If you were 18 in 2009 (when TFSAs were introduced) you'd be able to contribute $36,500 if you'd never contributed to one before. Unlike the RRSP, contributions to a TFSA are made on an after-tax basis and you pay no tax when you withdraw money. The post-tax nature of the TFSA and completely tax-free withdrawals makes them comparable to Roth-type accounts in the U.S.; i.e. while you won't get a tax deduction for contributing, you won't pay tax on earnings when withdrawn. Yet, unlike U.S. Roth-type accounts, you are not required to use the TFSA strictly for retirement savings—there is no penalty for pre-retirement withdrawal of TFSA funds. There are also employer-sponsored defined benefit (DB) and defined contribution (DC) retirement pension plans. Generally, employees who participate in these kinds of plans have their annual RRSP contribution limits reduced. I won't comment on these kinds of plans other than to say they exist and if your employer has one, check it out—many employees lose out on free money by not participating. The under-appreciated RESP. Typically used for education savings. A lifetime $50,000 contribution limit per beneficiary, and you can put that all in at once if you're not concerned about maximizing grants (see below). No tax deduction for contributions, but investments grow on a tax-deferred basis. Original contributions can be withdrawn tax-free. Qualified educational withdrawals of earnings are taxed as regular income in the hands of the beneficiary. An RESP beneficiary is typically a child, and in a child's case the Canadian federal government provides matching grant money (called CESG) of 20% on the first $2500 contributed each year, up to age 18, to a lifetime maximum of $7200 per beneficiary. Grant money is subject to additional conditions for withdrawal. While RESPs are typically used to save for a child's future education, there's nothing stopping an adult from opening an RESP for himself. If you've never had one, you can deposit $50,000 of after-tax money to grow on a tax-deferred basis for up to 36 years ... as far as I understand. An adult RESP will not qualify for CESG. Moreover, if you use the RESP strictly as a tax shelter and don't make qualified educational withdrawals when the time comes, your original contributions still come out free of tax but you'll pay ordinary income tax plus 20% additional tax on the earnings portion. That's the \"\"catch\"\"*. *However, if at that time you have accumulated sufficient RRSP contribution room, you may move up to $50,000 of your RESP earnings into your RRSP without any tax consequences (i.e. also avoiding the 20% additional tax) at time of transfer. Perhaps there's something above you haven't considered. Still, be sure to do your own due diligence and to consult a qualified, experienced, and conflict-free financial advisor for advice particular to your own situation.\"",
"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": "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": "993793d6dcee694fa8034a12ea35d61e",
"text": "Can you isolate the market impact to just the Fed's quantitative easing? Can you rule out the future economic predictions of low growth and that there are reasons why the Fed has kept rates low and is trying its best to stimulate the economy? Just something to consider here. The key is to understand what is the greater picture here as well as the question of which stock market index are you looking at that has done so badly. Some stocks may be down and others may be up so it isn't necessarily bad for all equally.",
"title": ""
},
{
"docid": "162c3be73cdea6ccf43e6834a2533223",
"text": "There is a tax treaty between Canada and the US that recognizes RRSPs as retirement accounts. You won't be taxed on the gains in your RRSP like you would be if it was in a TFSA. So you don't really have to do anything (except fill out a form for the IRS every year). The problem that usually arises is if you want to buy something else. I don't know of any Canadian brokerage that will sell products to a US resident. It's a question of where they're licensed. However the SEC has issued an exemption so you can try to argue with your broker to get a trade done. Link to SEC order With such a small amount in the account you may be paying fees or have it invested in funds with higher fees. You will have to do the math on whether or not you should just withdraw the money and invest in cheaper funds and accounts in the US. When you withdraw the money Canada will withhold a flat rate of 25% or in some circumstances 15%. For more info go to Serbinski (a cross border tax specialist).",
"title": ""
},
{
"docid": "29f1a0668a3ff47e25354278cfa0aed8",
"text": "No. There is no indication that the recent decline will have an impact on the house market in the UK. The reason(s) for the downward move these last few weeks are mainly due to: The last two points caused the Chinese government to decide to devaluate the Yuan. This in turn triggered an unforeseen panic attack among investors and speculators around the globe starting with the Chinese that are trading on borrowed money (not only on margin but also by using loans). The UK house prices are not influenced by the above factors, not even indirectly. The most important factors for house prices are in general: If you keep the above points in mind you should be able to decide whether now is the right time to buy a house in your area. Given that a lot of central banks (incl. BoE) are maintaining a low interest rate policy (except fed soon), now is a good time to take a mortgage. Sources used: I know interest rates are determined by the BoE which looks at the global picture to determine these rates but the main directive of a central bank is to maintain an inflation close to but not exactly 2 % as to spur on economic growth. As such, the value of a company as valuated on the stock market is not or barely taken into account. The negligible impact is the reason why I stated that the crash in the summer of 2015 doesn't even have an indirect impact. Also such a crash is very short lived. It's more the underlying reason for the fears that could cause issues if they drag on.",
"title": ""
},
{
"docid": "a5395c1a16754bfaee969990f4e83e29",
"text": "Excise tax on the excess contribution is 6% a year on the amount of the contribution. In addition, gains will be taxable to you. By adding 20K over the limit, you added $1200 to your tax bill. Withdraw it ASAP. Whatever investment you have in your IRA - you can probably buy it (or a comparable) outside of the IRA.",
"title": ""
}
] |
fiqa
|
f65e3fa98acceb4bb4c9e36774b05780
|
1099 for settlement what about lawyer fees?
|
[
{
"docid": "77274bf8fc4eb5596d7e82304644c11d",
"text": "You report it as an expense against the 1099 income when you do your taxes. You will only be taxed on the amount after the lawyers fees (but if it cost you more in lawyers fees than you recover in damages, the loss is not deductible). Be sure to keep documentation of the lawyers bill and the contract. Compensatory damages are generally not taxable at all. You can see here for more information on that.",
"title": ""
}
] |
[
{
"docid": "8510a870bd602985400586f24d7396ab",
"text": "As littleadv says, if you're a sole proprietorship, you don't need to file a 1099 for money you pay yourself. You certainly will need to file a schedule C or schedule E to report the income. And don't forget SE to pay social security taxes on the income if you made a profit. If your company is a corporation, then -- I'm not a tax lawyer here, but I think the corporation would need to file a 1099 for the money that the corporation pays to you. Assuming that the amount is above the threshold that requires a 1099. That's normally $600, but it's only $10 for royalties.",
"title": ""
},
{
"docid": "11fb8e7e63dd941dffe0099876b5abc8",
"text": "If the money comes to you, then it's income. If the money goes out from you, it's an expense. You get to handle the appropriate tax documentation for those business transactions. You may also have the pleasure of filing 1099-MISC forms for all of your blogging buddies if you've paid them more than $600. (Not 100% sure on this one.) I was in a blog network that had some advertising deals, and we tried to keep the payments separate because it was cleaner that way. If I were you, I'd always charge a finder's fee because it is extra work for you to do what you're doing.",
"title": ""
},
{
"docid": "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": "87152821b6fc6caa36fd1df3dcc0b69c",
"text": "The 1099 income is subject to the same total limit on IRA deposits. If you are looking to shelter more than $5500, you might consider a Solo 401(k). It offers higher limits and other potential advantages.",
"title": ""
},
{
"docid": "44058a5a73a1b9ac12a69013e29be8d7",
"text": "In general, if this is in the United States, call your local bar association. Tell them you need a lawyer to help you collect a judgment. They will make a referral. The lawyer should know who can buy the judgment in return for cash. You don't need to give details to the bar association, but you should plan on giving more details to the lawyer about why you need the money. Since this is your ex-husband, your divorce lawyer might be able to help. It's unclear in your question whether you've already explored that option. The divorce lawyer might modify the divorce agreement to give you an asset instead of a monetary claim.",
"title": ""
},
{
"docid": "eb6a63bb1abd8ee6d5c4b1cde0087a9f",
"text": "I took littleadv's advice and talked to an accountant today. Regardless of method of payment, my US LLC does not have to withhold taxes or report the payment as payments to contractors (1099/1042(S)) to the IRS; it is simply a business expense. He said this gets more complicated if the recipient is working in the US (regardless of nationality), but that is not my case",
"title": ""
},
{
"docid": "0a73b83ef85d6ca73218ea60b4779a1a",
"text": "\"The OP does not explain \"\"what we pay for processing the transaction (cost of debiting the customer)\"\". Who exactly do you pay? Someone else, or your own employees/contractors? I will assume that $0.10 is paid to your own employees. Dr $10cash from money people give you Cr $10 liability to them because it is their money in your accounts. Dr $0.10 cash payment of paycheques or supplier invoices Cr $0.10 income statement Operating Eexpense Dr 0.20 liability to depositors for fees they pay, resulting in $9.80 remaining liability for their money you still have. Cr 0.20 income statement Fee Revenues\"",
"title": ""
},
{
"docid": "67d0933ebc414d7cc9167018cbc619f2",
"text": "I am not a tax professional, only an investment professional, so please take the following with a grain of salt and simply as informational guidance, not a personal recommendation or solicitation to buy/sell any security or as personal tax or investment advice. As Ross mentioned, you need to consult a tax advisor for a final answer concerning your friend's personal circumstances. In my experience advising hundreds of clients (and working directly with their tax advisors) the cost basis is used to calculate tax gain or loss on ordinary investments in the US. It appears to me that the Edward Jones description is correct. This has also been the case for me personally in the US with a variety of securities--stocks, options, futures, bonds, mutual funds, and exchange traded funds. From the IRS: https://www.irs.gov/uac/about-form-1099b Form 1099-B, Proceeds From Broker and Barter Exchange Transactions A broker or barter exchange must file this form for each person: Edward Jones should be able to produce a 1099b documenting the gains/losses of any investments. If the 1099b document is confusing, they might have a gain/loss report that more clearly delineates proceeds, capital returns, dividends, and other items related to the purchase and sale of securities.",
"title": ""
},
{
"docid": "804704bf65b956a332331b454fda5d42",
"text": "\"A lawyer might be overkill for recovering a judgment. Do a google search for \"\"judgment recovery service\"\" in your area. They specialize in what you're trying to do. The service will charge you a fee (usually 10%) for any monies recovered. What happens is that you assign the right to collect on the judgment to the service, and their staff can run with it from there. Whoever you contract with will get as much information as possible about your ex-husband: employment, businesses, and so forth. This information can be used to have levies issued by the state, wage garnishment and so forth. There is no given timetable for how long it takes. If your ex is indigent, it would be hard to collect by way a recovery service or an attorney, because you can't collect what he doesn't have.\"",
"title": ""
},
{
"docid": "aca39f8ec8b563bbf9236aa7db6e130b",
"text": "If you're so passionate about it you should have brought the case initially. If you hate the attorneys fees you should have gone to law school for 3 years (borrowed $150k to do it) then passed the bar and litigated this suit yourself with your own $2 million to fund it.",
"title": ""
},
{
"docid": "4c905e476e44668d0afc075120b9b448",
"text": "\"is there a legal service online where, for a modest fee, you could have someone fire off a \"\"fuck you, we have no intention of paying\"\" letter to these companies in case you're ever contacted and shaken down? The movie industry are reducing their legal fees by hiring companies to automate the whole process and process lawsuits in bulk. Can't people targetted by these clowns have their own equivalent? I'd consider $30-$40 as a reasonable fee to fire off a standard letter by registered mail. There's no reason it should cost as much as putting a lawyer on retainer.\"",
"title": ""
},
{
"docid": "052cdbc0b5131c019a97ef5aaafb1df6",
"text": "You need to clarify with Bob what your agreement is. If you and Bob are working together on these jobs as partners, you should get a written partnership agreement done by a lawyer who works with software industry entity formation. You can legally be considered a partnership if you are operating a business together, even if there is nothing in writing. The partnership will have its own tax return, and you each will be allocated 50% of the profits/losses (if that's what you agree to). This amount will be reported on your own individual 1040 as self-employment income. Since you have now lost all the expense deductions you would have taken on your Schedule C, and any home office deduction, it's a good idea to put language in the partnership agreement stating that the partnership will reimburse partners for their out-of-pocket expenses. If Bob is just hiring you as a contractor, you give him your SSN, and he issues you a 1099, like any other client. This should be a situation where you invoice him for the amount you are charging. Same thing with Joe - figure out if you're hiring him as an independent contractor, or if you have a partnership. Either way, you will owe income and self-employment tax on your profits. In the case of a partnership, the amount will be on the K-1 from the partnership return. For an independent contractor who's operating as a sole proprietor, you report the income you invoiced for and received, and deduct your expenses, including independent contractors that you hired, on your Schedule C. Talk to your tax guy about quarterly estimated payments. If you don't have a tax guy, go get one. Find somebody people in your city working in your industry recommend. A good tax person will save you more money than they cost. IRS Circular 230 Notice: Please note that any tax advice contained in this communication is not intended to be used, and cannot be used, by anyone to avoid penalties that may be imposed under federal tax law.",
"title": ""
},
{
"docid": "af504736fd19c5cd3ff3b7ffda83e9c1",
"text": "You decide on a cost bases attribution yourself, per transaction (except for averaging for mutual funds, which if I remember correctly applies to all the positions). It is not a decision your broker makes. Broker only needs to know what you've decided to report it to the IRS on 1099, but if the broker reported wrong basis (because you didn't update your account settings properly, or for whatever else reason) you can always correct it on form 8949 (columns f/g).",
"title": ""
},
{
"docid": "6794ad18ad2fa4de328253fa5f918bec",
"text": "While I might have to agree with PiratesSayARRR from below about missing case details, I have to say, your math seems to check out to me. Although the numbers aren't rouded off and pretty, they back out. $22,285.71 generates $334.28 of fees in a month; subtract from that the monthly cost of funds (.003333 x $22285.71)= $74.28... $334.28-74.28 = $260.00. Hate to say it, but maybe they didn't hire you for a different reason?",
"title": ""
},
{
"docid": "92ce680ef1738f5e0d4afad87c894b3d",
"text": "You should consider using a lawyer as your agent. We once talked to one who was willing to act as our agent for a fixed fee. Not all attorneys can do it where we live, but there are plenty that can. We ended up going another route, but since then we have found a seller's agent that charges us a fixed fee of one thousand dollars (a great deal for us). We are using her again right now. It's all about the contract. Whatever you can legally negotiate is possible - which is yet another reason to consider finding a real estate attorney.",
"title": ""
}
] |
fiqa
|
755f24a4bb8b92b8b12ddc4a04bb1ab0
|
Individual Client or Customer fining or charging a Company a penalty fee
|
[
{
"docid": "76ef434980e501e5c6eca6d295ecc6a9",
"text": "What's the primary factor keeping a consumer from handing out fees as liberally as corporations or small businesses do? Power. Can an individual, or more appropriately, what keeps an individual from being able to charge, fine or penalize a Business? If it could be accomplished, but at a high cost, let's assume it's based on principal and not monetary gain. And have a legal entitlement to money back? No. You are of course welcome to send your doctor a letter stating that you would like $50 to make up for your two hour wait last time around, but there's no legal obligation for him to pay up, unless he signed a contract stating that he would do so. Corporations also cannot simply send you a fine or fee and expect you to pay it; you must have either agreed to pay it in the past, or now agree to pay it in exchange for something. In these cases, the corporations have the power: you have to agree to their rules to play ball. However, consumers do have a significant power as well, in well-competed markets: the power to do business with someone else. You don't like the restocking fee? Buy from Amazon, which offers free shipping on returns. You don't like paying a no-show fee from the doctor? Find a doctor without one (or with a more forgiving fee), or with a low enough caseload that you don't have to make appointments early. Your ability to fine them exists as your ability to not continue to patronize them. In some markets, though, consumers don't have a lot of power - for example, cable television (or other utilities). The FCC has a list of Customer Service Standards, which cable companies are required to meet, and many states have additional rules requiring penalties for missed or late appointments tougher than that. And, in the case of the doctor, if your doctor is late - find one that is. Or, try sending him a bill. It does, apparently, work from time to time - particularly if the doctor wants to keep your business.",
"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": "fbd6ac6cbda12c87cde19f8666f25358",
"text": "Not exactly. From OP's X-post, this appears like textbook tortious interference. If it were me, I'd demonstrate to the customer why they are getting a better deal and at the same time, I'd have my attorney send a C&D to the offending competitor.",
"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": "a31942fd507f41537fdfedff821480a7",
"text": "A $2 fee to push customers towards setting up automatic bill pay is a very different thing than participating in writing legislation which would cripple the internet. BoA's fee was pure greed. GoDaddy has no sane reason for backing or even participating in SOPA. Verizon wanted people to use automatically bill pay, so they created a fee to punish those that didn't use have recurring payments. Do you really not see the difference between these 3? Verizon just screwed up by not offering an incentive to go along with the punishment. It was a PR blunder, not greed or maliciousness.",
"title": ""
},
{
"docid": "20f3dfd40cb1bb4f27f925cc604f4f6d",
"text": "Summarized article: The London-based investment bank Barclays Bank has agreed to pay penalties of $450 million to settle charges it attempted to manipulate key benchmark interest rates. The settlement is with the US Department of Justice, the U.S. Commodities Futures Trading Commission and the British Financial Services Authority (FSA). Investigators found that Barclays manipulated the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor) which measures how much banks will charge each other for loans, and in turn, affects the cost of loans and mortgages to consumers. Between 2005 and 2009, Barclays staff would base its estimates for the Libor on the requests of its derivatives traders, who wanted to manipulate the rate to benefit their trading positions. The traders would ask their Barclays colleagues to adjust their rate estimates up or down to post a profit for the bank. The FSA said that Barclays appeared to have a wide acceptance of its derivatives traders lobbying its colleagues and found evidence through a trail of emails and instant messages. Barclays has admitted its actions fell short of industry standards but it is unclear if there was any impact to consumers. The FSA is investigating several major banks for similar violations. * For more summarized news, subscribe to the [/r/SkimThat](http://www.reddit.com/r/SkimThat) subreddit",
"title": ""
},
{
"docid": "a6a1efbb3365189d832491c16e1d7abf",
"text": "It may be tempting to be financially lenient with your customers as you start to build business relationships, but doing so may ultimately jeopardize your profitability. Establish clear payment terms on all invoices and documents, including a reasonable penalty (start with eight percent) over the invoice amount if the total is not paid within the standard payment terms.",
"title": ""
},
{
"docid": "5ebc33c945d04ce9894335d8f7c958e3",
"text": "That would be lead to eveeel and wasteful litigation. Youre basically making a pro contingency fee structure argument. Those incentives exists in private rights of actions which have been whittled away. Look at the result.",
"title": ""
},
{
"docid": "9a4e7fc0bf4e90711a42264e05be3146",
"text": "I believe the appropriate recourse in this scenario is to bring a court case for breach of contract. The 1p repricing issue has been admitted as an error out of scope of the purpose of the software.",
"title": ""
},
{
"docid": "da71f9205f2e0eb7c6a2ce25a7af6eb4",
"text": "[This is a company's (TradingView.com) customer subscription levels.](https://i.imgur.com/1YIPzOn.gif) Why do they charge a higher price when customers pay monthly? Monthly increases short term cash flow, right? Why do you think they make prices in such a way that it incentivizes customers to be billed every 2 years?",
"title": ""
},
{
"docid": "386fd11dd18a3fd9cb22b2a151054c16",
"text": "As noted above, this is likely going to need (several) lawyers to straighten out. I am not a lawyer, but I think one should be retained ASAP. However, in the meantime: The authorized user should not be making any charges. Continuing to do so at this point may be a criminal offense. For the protection of any other heirs, this should be brought to the attention of the credit card issuer and law enforcement authorities. As it stands, the account holder's estate will be liable for the full debt, and the authorized user's estate would be untouched. Of course, all this could change if other heirs challenge the estate and file civil suits, in which case it's likely that both estates will be eaten up with legal fees anyway.",
"title": ""
},
{
"docid": "0a73b83ef85d6ca73218ea60b4779a1a",
"text": "\"The OP does not explain \"\"what we pay for processing the transaction (cost of debiting the customer)\"\". Who exactly do you pay? Someone else, or your own employees/contractors? I will assume that $0.10 is paid to your own employees. Dr $10cash from money people give you Cr $10 liability to them because it is their money in your accounts. Dr $0.10 cash payment of paycheques or supplier invoices Cr $0.10 income statement Operating Eexpense Dr 0.20 liability to depositors for fees they pay, resulting in $9.80 remaining liability for their money you still have. Cr 0.20 income statement Fee Revenues\"",
"title": ""
},
{
"docid": "8daec80263369110516fd14857c70b71",
"text": "\"MD-Tech answered: The answer is in your question: derivatives are contracts so are enforced in the same way as any other contract. If the counterparty refuses to pay immediately they will, in the first instance be billed by any intermediary (Prime Broker etc.) that facilitated the contract. If they still refuse to pay the contract may stipulate that a broker can \"\"net off\"\" any outstanding payments against it or pay out using deposited cash or posted margins. The contract will usually include the broker as an interested party and so they can, but don't need to, report a default (such that this is) to credit agencies (in some jurisdictions they are required to by law). Any parties to the trade and the courts may use a debt collection agency to collect payments or seize assets to cover payment. If there is no broker or the counterparty still has not paid the bill then the parties involved (the party to the trade and any intermediaries) can sue for breach of contract. If they win (which would be expected) the counterparty will be made to pay by the legal system including, but not limited to, seizure of assets, enforced bankruptcy, and prison terms for any contempts of court rulings. All of this holds for governments who refuse to pay derivatives losses (as Argentina did in the early 20th century) but in that case it may escalate as far as war. It has never done so for derivatives contracts as far as I know but other breaches of contract between countries have resulted in armed conflict. As well as the \"\"hard\"\" results of failing to pay there are soft implications including a guaranteed fall in credit ratings that will result in parties refusing to do business with the counterparty and a separate loss of reputation that will reduce business even further. Potential employees and funders will be unwilling to become involved with such a party and suppliers will be unwilling to supply on credit. The end result in almost every way would be bankruptcy and prison sentences for the party or their senior employees. Most jurisdictions allow for board members at companies in material breach of contract to be banned from running any company for a set period as well. edit: netting off cash flows netting off is a process whereby all of a party's cash flows, positive and negative, are used to pay each other off so that only the net change is reflected in account balances, for example: company 1 cash flows netting off the total outgoings are 3M + 500k = 3.5M and total incomings are 1.2M + 1.1M + 1.2M = 3.5M so the incoming cash flows can be used to pay the outgoing cash flows leaving a net payment into company1's account of 0.\"",
"title": ""
},
{
"docid": "6f0cc2e96060ea740329a49fafde29e6",
"text": "didn't pay the extra underpayment penalty on the grounds that it was an honest mistake. You seem to think a penalty applies only when the IRS thinks you were trying to cheat the system. That's not the case. A mistake (honest or otherwise) still can imply a penalty. While you can appeal just about anything, on any grounds you like, it's unlikely you will prevail.",
"title": ""
},
{
"docid": "5d545946ef6b8a16576c62ac289e4d7c",
"text": "No, if you can afford to enforce more rules, you alone pay for that enforcement *only on your own property*. Nobody else pays for your enforcement of rules that only you want enforced. Customer regulation keeps companies accountable. When you can stop buying from a company who screws over customers, that's accountability. Remember, integrity and honesty is the lifeblood of any company who wants to stay in business for longer than a short period. Those who provide the most value to customers, including the best quality for their money, get the most customers.",
"title": ""
},
{
"docid": "61330233f725180287780bf559b9d38d",
"text": "\"The answer is in your question: derivatives are contracts so are enforced in the same way as any other contract. If the counterparty refuses to pay immediately they will, in the first instance be billed by any intermediary (Prime Broker etc.) that facilitated the contract. If they still refuse to pay the contract may stipulate that a broker can \"\"net off\"\" any outstanding payments against it or pay out using deposited cash or posted margins. The contract will usually include the broker as an interested party and so they can, but don't need to, report a default (such that this is) to credit agencies (in some jurisdictions they are required to by law). Any parties to the trade and the courts may use a debt collection agency to collect payments or seize assets to cover payment. If there is no broker or the counterparty still has not paid the bill then the parties involved (the party to the trade and any intermediaries) can sue for breach of contract. If they win (which would be expected) the counterparty will be made to pay by the legal system including, but not limited to, seizure of assets, enforced bankruptcy, and prison terms for any contempts of court rulings. All of this holds for governments who refuse to pay derivatives losses (as Argentina did in the early 20th century) but in that case it may escalate as far as war. It has never done so for derivatives contracts as far as I know but other breaches of contract between countries have resulted in armed conflict. As well as the \"\"hard\"\" results of failing to pay there are soft implications including a guaranteed fall in credit ratings that will result in parties refusing to do business with the counterparty and a separate loss of reputation that will reduce business even further. Potential employees and funders will be unwilling to become involved with such a party and suppliers will be unwilling to supply on credit. The end result in almost every way would be bankruptcy and prison sentences for the party or their senior employees. Most jurisdictions allow for board members at companies in material breach of contract to be banned from running any company for a set period as well. edit: netting off cash flows netting off is a process whereby all of a party's cash flows, positive and negative, are used to pay each other off so that only the net change is reflected in account balances, for example: company 1 cash flows netting off the total outgoings are 3M + 500k = 3.5M and total incomings are 1.2M + 1.1M + 1.2M = 3.5M so the incoming cash flows can be used to pay the outgoing cash flows leaving a net payment into company1's account of 0.\"",
"title": ""
}
] |
fiqa
|
7e06e419a4418a8e1933f306f85cd8f9
|
Tax intricacies of MLP in a Roth IRA
|
[
{
"docid": "d0e33af16899c07299f5b262dde97990",
"text": "\"You seem to have it right. Unless you have a big position, having MLP shares in your IRA will not cause you any tax hassles. Your IRA will get a Schedule K from the MPL (which may be mailed to you), but you won't need to do anything with that unless you're over the UBI limit. Last I checked, that was $1000, and you probably won't exceed that. UBI in principle needs to be evaluated every year, so it's not necessarily a \"\"one-time\"\" event. If your IRA does go over the UBI limit, your IRA (not you) needs to file a return. In that case, contact your custodian and tell them about the Schedule K that you got. See also my answer here: Tax consequences of commodity ETF The question is about commodity ETFs in IRAs, but the part of my answer about UBI applies equally well.\"",
"title": ""
}
] |
[
{
"docid": "8459f004f4e0af10ecbb3300600c0704",
"text": "\"First - for anyone else reading - An IRA that has no beneficiary listed on the account itself passes through the will, and this eliminates the opportunity to take withdrawals over the beneficiaries' lifetimes. There's a five year distribution requirement. Also, with a proper beneficiary set up on the IRA account the will does not apply to the IRA. An IRA with me as sole beneficiary regardless of the will saying \"\"all my assets I leave to the ASPCA.\"\" This is also a warning to keep that beneficiary current. It's possible that one's ex-spouse is still on IRA or 401(k) accounts as beneficiary and new spouse is in for a surprise when hubby/wife passes. Sorry for the tangent, but this is all important to know. The funneling of a beneficiary IRA through a trust is not for amateurs. If set up incorrectly, the trust will not allow the stretch/lifetime withdrawals, but will result in a broken IRA. Trusts are not cheap, nor would I have any faith in any attorney setting it up. I would only use an attorney who specializes in Trusts and Estate planning. As littleadv suggested, they don't have to be minors. It turns out that the expense to set up the trust ($1K-2K depending on location) can help keep your adult child from blowing through a huge IRA quickly. I'd suggest that the trust distribute the RMDs in early years, and a higher amount, say 10% in years to follow, unless you want it to go just RMD for its entire life. Or greater flexibility releasing larger amounts based on life events. The tough part of that is you need a trustee who is willing to handle this and will do it at a low cost. If you go with Child's name only, I don't know many 18/21 year old kids who would either understand the RMD rules on IRAs or be willing to use the money over decades instead of blowing it. Edit - A WSJ article Inherited IRAs: a Sweet Deal and my own On my Death, Please, Take a Breath, an article that suggests for even an adult, education on how RMDs work is a great idea.\"",
"title": ""
},
{
"docid": "c8f4fabdc9a643077c75d688ca57939a",
"text": "According to Publication 590, broker's commissions for stock transactions within an IRA cannot be paid in addition to the IRA contribution(s), but they are deductible as part of the contribution, or add to the basis if you are making a nondeductible contribution to a Traditional IRA. (Top of Page 10, and Page 12, column 1, in the 2012 edition of Pub 590). On the other hand, trustees' administrative fees can be paid from outside the IRA if they are billed separately, and are even deductible as a Miscellaneous Deduction on Schedule A of your income tax return (subject to the 2% of AGI threshold). A long time ago, when my IRA account balances were much smaller, I used to get a bill from my IRA custodian for a $20 annual administrative fee which I paid separately (but never got to deduct due to the 2% threshold). My custodian also allowed the option of doing nothing in which case the $20 would be collected from (and thus reduce) the amount of money in my IRA. Note that this does not apply to the expenses charged by the mutual funds that you might have in your IRA; these expenses are treated the same as brokerage commissions and must be paid from within the IRA.",
"title": ""
},
{
"docid": "1e0b922039ba543428e9db345618ee83",
"text": "Straight line in this example should be just the $2MM per year. I don't think the author of the problem intended you to use anything in the actual tax code like MACRS. I think the goal of the problem is to get you to identify the value of the depreciation tax shield and how the depreciation does affect your cash flow by reducing your taxes, even though depreciation itself is not a cash event.",
"title": ""
},
{
"docid": "3b7de5e740d5094e8061e5b6424c1618",
"text": "\"Does your company offer a 401(k) and are you taking maximum advantage of it? 2015 limit is $18,000, an extra $5,500 if you are 50 or older. The RMD shouldn't be too large, it depends on your age, of course. You're in no worse shape than anyone hitting age 70-1/2 and having to start taking their RMDs. If you are younger, your RMDs start pretty low. If I look at Pub 590, I find a 50 year old starts with a 34.2 divisor, less than 3% each year. At 60, it's 25.2, just under 4%. Edit - someone around 30 will have a divisor around 53.3 the first year. Just under 2%. I don't know what you consider \"\"sizable,\"\" but much above $300K in that IRA and you'll have more come out than you can fund into a Roth. Regardless of the amount, the RMD is taxable. You just need to pay the tax from other funds if you wish to keep the money invested as it was. You will pay the tax at your marginal rate, and that's it. This is the one downside of the inherited IRA, unlike regular money, it doesn't escape taxes. But, your dad put it in pre-tax (right?) so the amount you got is larger for that fact. I'm sorry for your loss.\"",
"title": ""
},
{
"docid": "8695a5814a80c31a6f3d9818f78fec26",
"text": "\"The backdoor Roth IRA contribution has been possible for a few years now and is fairly widely known. The IRS hasn't said anything negative about it. An answer to my question here mentions that it could hypothetically be disallowed through the \"\"step transaction doctrine\"\", although that is the only time I have heard that possibility raised. For some background, the income limit on Roth conversions was removed as a \"\"revenue-offsetting provision\"\" of the Tax Increase Prevention and Reconciliation Act of 2005. They want people who have deducted contributions in Traditional IRAs to convert to Roth and pay taxes now rather than waiting many years until retirement. Conversely, people performing the backdoor Roth IRA contribution have already paid taxes on that money and it's just preventing them from having to pay taxes many years later. It's easy to see how Congress would find this a satisfactory exchange.\"",
"title": ""
},
{
"docid": "8b7f9c7c77f111780c108fef0c2696a8",
"text": "Interesting. When you say DIY you mean pencil and paper. For most of us the choice came down to using a professional vs using the software. Your second bullet really hits the point. The tax return is a giant spreadsheet with multiple cells depending on each other. Short of building my own spreadsheet to perform the task, I found the software, at $30-$50, to be the happy medium between the full DIY and the Pro at $400+. With a single W2, and no other items, the form is likely just a 1040-EZ, and there shouldn't be any recalculating so long as you have the data you need. Pencil/paper is fine. There's no exact time to say go with the software, except, perhaps, when you realize there are enough fields to fill out where the recalculating might be cumbersome, or the need to see the exact tax bracket has value for you. You are clearly in the category that can fill out the one form. At some point, you might have investment income (Schedule D) enough mortgage interest to itemize deductions (Schedule A) etc. You'll know when it's time to go the software route. Keep in mind, there are free online choices from each of the tax software providers. Good for simple returns up to a certain level. Thanks to Phil for noting this in comments. I'll offer an anecdote exemplifying the distinction between using the software as a tool vs having a high knowledge of taxes. I wrote an article The Phantom Tax Zone, in which I explained how the process of taxing Social Security benefits at a certain level created what I called a Phantom Tax Rate. I knew that $1000 more in income could cause $850 of the benefit to be taxed as well, but with a number of factors to consider, I wanted to create a chart to show the tax at each incremental $1000 of income added. Using the software, I simply added $1000, noted the tax due, and repeated. Doing this by hand would have taken a day, not 30 minutes. For you, the anecdote may have no value, Social Security is too far off. For others, who in March are doing their return, the process may hold value. Many people are deciding whether to make their IRA deposit be pre-tax or the Post tax Roth IRA. The software can help them quickly see the effect of +/- $1000 in income and choose the mix that's ideal for them.",
"title": ""
},
{
"docid": "42efcb7f8ad727a2bebe60b7750ebe56",
"text": "\"Keep in mind, there are too many variables to address in a single post. I could (and might) write a full book on the topic. One simple way to comprehend your perceived observation. In the 25% bracket, you have $1000 of income and two choices. Net out $750, and deposit to Roth, or deposit the full $1000 to the traditional IRA or 401(k). Sufficient time passes for the investment to grow 10 fold. For what it's worth, 8% at 30 years will do that. The Roth is now worth $7500 tax free. The traditional 401(k) is worth $10000 but subject to tax. At 25%, we're at the same $7500. For those looking to invest more than a gross $18,000, the Roth flavor is an effective $24,000, as post tax, this is $18,000. I wrote a bit more on this in the whimsically titled The Density of Your IRA. This is really a top 10%er issue, as it takes quite a bit of income for the $23,000 combined IRA and 401(k) limits to be a problem. In my writing, the larger case to be made is for taking advantage of the tax rate difference between the time of deposit and withdrawal. A look at the 2016 tax rates is in order. Let's stick with 25% while working. Now, at retirement, but before social security, as that's another story, the couple has $20,600 in standard deduction and exemption, and both the 10 and 15% brackets to enjoy. Ignoring any other deductions, potential credits, etc, let's look at a gross $80,000 withdrawal. The numbers happen to work out to an average 10%, with the couple being in a marginal 15% bracket. A full 25% or $20,000 tax would be the break-even to the \"\"same bracket in/out\"\" analysis, so this produces a $12,000 benefit. This issue is often treated as if there were 2 points in time, the deposit, and the withdrawal. For most people, that may be the case. Keep in mind, current law allows a conversion to Roth any time in between. This gives an opportunity to make a deposit while in the 25% bracket, and convert in any year the marginal rate drops back to 15% for whatever reason. Last - I can't ignore the Social Security problem. Simply put, when half of your Social Security benefits plus other income exceed $25,000 ($32,000 if married filing joint) your benefits start to become taxable, until 85% of your benefits are fully taxed. This issue is worthy of multiple posts by itself. It's not a deal killer, just another point to consider. A very high income earner might be beyond these levels already, in which case the point is moot. A low income earner, not impacted at all. It's those who are in the range to navigate this that would benefit to take advantage of the scenario I presented above and spend down pre-tax accounts, while planning to use the Roths when Social Security starts. This should make it clear - it's not all or none. Those retiring with $2M in 100% pretax, or $1.5M 100% in Roth have both missed the chance to have the optimal mix.\"",
"title": ""
},
{
"docid": "917d06f07b6ae6cb031bcbaebc4fe133",
"text": "\"Taxes are triggered when you sell the individual stock. The IRS doesn't care which of your accounts the money is in. They view all your bank and brokerage accounts as if they are one big account mashed together. That kind of lumping is standard accounting practice for businesses. P/L, balance sheets, cash flow statements etc. will clump cash accounts as \"\"cash\"\". Taxes are also triggered when they pay you a dividend. That's why ETFs are preferable to mutual funds; ETFs automatically fold the dividends back into the ETF's value, so it doesn't cause a taxable event. Less paperwork. None of the above applies to retirement accounts. They are special. You don't report activity inside retirement accounts, because it would be very hard for regular folk to do that reporting, so that would discourage them from taking IRAs. Taxes are paid at withdrawal time (or in Roth's, never.)\"",
"title": ""
},
{
"docid": "c2abb99f58db07dfbc1e973ac68053db",
"text": "\"One problem with this plan is that the individual must have earned income to contribute to a Roth IRA. If you have an infant, unless she is the new Gerber baby or something like that, there is probably no legitimate way for her to earn income. If you own a business and have kids who are older, you can employ them to do work for you, but they must really do work and earn around the market rate for that work. Otherwise, it is unlikely that they will be able to earn enough to fund an IRA until they are teenagers. When they are old enough to work, you can \"\"match\"\" their earnings by contributing the same amount to a Roth IRA on their behalf, but this will not give you the amount of contributions and growth time that you were counting on.\"",
"title": ""
},
{
"docid": "1e55b9e38a7bc2e8300c9d6d1f3214e7",
"text": "As I commented, there's confusion on withholding. The 20% pertains to 401(k) accounts, not IRAs.",
"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": "a4c0d2d16b3592e2800408a3cb76c312",
"text": "\"Yes, you can withdraw the excess contribution (or actually any amount you contributed for 2015, not necessarily an excess), plus earnings from that withdrawn contribution, by April 15, and not incur a penalty for the excess contribution. It would count as if you did not contribute that amount at all. The earnings would be taxed as regular income, and the earnings may incur a penalty. Yes, you can \"\"recharacterize\"\" (all or part of) your Roth IRA contribution as a Traditional IRA contribution (or vice versa) by April 15. Recharacterization means you pretend the contribution was originally made as a Traditional IRA contribution, and did not involve Roth IRA at all. (\"\"Conversion\"\" is something very different and can only go from Traditional to Roth, not the other way around.) You are likely not eligible to deduct that Traditional IRA contribution, so you will have to report it as a non-deductible Traditional IRA contribution on a 2015 Form 8606 Part 1. Note that after you've recharacterized it as a Traditional IRA contribution, you can also then \"\"convert\"\" that Traditional IRA money to a Roth IRA if you want, achieving the same state as what you have now. Contributing to a Traditional IRA and then converting to a Roth IRA is called a \"\"backdoor Roth IRA contribution\"\"; if you don't have any existing pre-tax money in Traditional IRA or other IRAs, then this achieves the same as a regular Roth IRA contribution except with no income limits. When you convert, the earnings you have made since contributing will be taxed as income. If you had done the backdoor originally to begin with (convert right after contributing), you would have had no earnings in between and no tax to pay, but since if you do the conversion now you have waited so long, you are disadvantaged by having to pay tax on the earnings in between. If you convert, you will have to fill out Form 8606 Part 2 for the year you convert (2016).\"",
"title": ""
},
{
"docid": "fd060d2aef53348ff65826ae2d2d0cb1",
"text": "You can withdraw the principal of your Roth IRA account (i.e.: the amounts after tax deposited there) without a tax. However, in case of conversion - you have to wait for five years before you can do that. Otherwise, 10% penalty will apply. It is actually mentioned in the article you linked to. Taxable portion in that context is the portion you paid tax on when converting. In the case you described (converting your 401k) that would be the whole amount of the conversion.",
"title": ""
},
{
"docid": "fca04554645e605e1908186d142ee401",
"text": "\"This does not apply to Roth IRAs. It defines the difference between the two depending on what your age is when this happens. If you are 59 or younger, you have a 10% penalty in addition to taxes. If you are between 59.5 and 70, there is no penalty, but you do have to pay taxes. If you are 70.5 or older, then you MUST withdraw money, and that withdrawal is called the \"\"required minimum distribution\"\" and you pay taxes on it as if it were income. In terms of investments, the two are the same in that the earnings you make on your investments grow tax free. Here is more information between the two. *Improvements are welcome for my answer.\"",
"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": ""
}
] |
fiqa
|
b7a433ebf6306441ebfe19ec27bb4ec4
|
I am a Resident Alien for tax purposes. Can I claim exemptions from the India - US Tax Treaty (21)?
|
[
{
"docid": "8af0641a100808169de7a38bde5ad96b",
"text": "I was able to find several references that claim that the Indo-US treaty provision is limited to five years: Here it says this (on page 20): Generally the treaty exemption for students is limited to the first five calendar years that the international student is in the U.S. However there is no set time limit for students from Belgium, Bulgaria, China, The Netherlands, and Pakistan. However, I couldn't find any specific time limit neither in the treaty nor in the technical explanation. The explanation says: Thus, for example, an Indian resident who visits the United States as a student and becomes a U.S. resident according to the Code, other than by virtue of acquiring a green card, would continue to be exempt from U.S. tax in accordance with this Article so long as he is not a U.S. citizen and does not acquire immigrant status in the United States. The saving clause does apply to U.S. citizens and immigrants. However, the treaty explicitly says this: The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken. The reason for this last paragraph is to ensure that you don't artificially prolong your student status, and the 5 year limit may come out of the interpretation of this specific paragraph. Similar paragraph exists in the US-China treaty, and the explanation for that treaty says this: These exemptions may be claimed only for the period reasonably necessary to complete the education or training. In some cases, the course of study or training may last less than year. For most undergraduate college or university degrees the appropriate period will be four years. For some advanced degrees, such as in medicine, the required period may be longer, e.g., seven years. Based on this, it is my personal impression that if you're an undergraduate student and studying the same degree (and not, for example, finished your BA, and started your MS) - you are no longer eligible for the treaty benefit. But I suggest you ask a professional (EA/CPA licensed in your State) for a more reliable tax advice on the matter. I'm not a tax professional and this is not a tax advice.",
"title": ""
}
] |
[
{
"docid": "18e04e697d83f44d2dcbe03dd7928152",
"text": "\"From what you've described, your spouse is a non-resident alien for US tax purposes. You have two choices: Use the Nonresident Spouse Treated As Resident election and file as Married Filing Jointly. Since your spouse doesn't have, and doesn't currently qualify for, an SSN, he/she will need to apply for an ITIN together with the tax filing. Note that by becoming a resident alien, your spouse's worldwide income the whole year would be subject to US taxes, and would need to be reported on your joint tax filing, though he/she will be able to use the Foreign Earned Income Exclusion to exclude $100k of her foreign earned income, since he/she will have been out of the US for 330 days in a 12-month period. Or, file as Married Filing Separately. You write \"\"NRA\"\" for your spouse's SSN on your tax return. As a nonresident alien, if your spouse doesn't have any US income, he/she doesn't have to file a US tax return, and doesn't need to apply for an ITIN. Which one is better is up to you to figure out.\"",
"title": ""
},
{
"docid": "c630aeb467186a71cce758e33cc14d9f",
"text": "ML is a brokerage firm. Tell them to sell. If you can't or don't know how to do it on-line - call them and do it over the phone. Your citizenship might come in effect when tax are withheld, you need to fill form W8-BEN if you haven't done so yet. If US taxes are withheld, you can file 1040NR to request refund, or get it credited against your local tax liabilities.",
"title": ""
},
{
"docid": "ec3d14f8d9e15d3aab6f98d3a9cf46fd",
"text": "If you are tax-resident in the US, then you must report income from sources within and without the United States. Your foreign income generally must be reported to the IRS. You will generally be eligible for a credit for foreign income taxes paid, via Form 1116. The question of the stock transfer is more complicated, but revolves around the beneficial owner. If the stocks are yours but held by your brother, it is possible that you are the beneficial owner and you will have to report any income. There is no tax for bringing the money into the US. As a US tax resident, you are already subject to income tax on the gain from the sale in India. However, if the investment is held by a separate entity in India, which is not a US domestic entity or tax resident, then there is a separate analysis. Paying a dividend to you of the sale proceeds (or part of the proceeds) would be taxable. Your sale of the entity containing the investments would be taxable. There are look-through provisions if the entity is insufficiently foreign (de facto US, such as a Subpart-F CFC). There are ways to structure that transaction that are not taxable, such as making it a bona fide loan (which is enforceable and you must pay back on reasonable terms). But if you are holding property directly, not through a foreign separate entity, then the sale triggers US tax; the transfer into the US is not meaningful for your taxes, except for reporting foreign accounts. Please review Publication 519 for general information on taxation of resident aliens.",
"title": ""
},
{
"docid": "d47cb9cea747de0f04b7c04a16ffc7ed",
"text": "No, you can not claim any sort of tax benefit. The main problem is that your parent is not living with you, though even if they were, they would also have to be dependent on you. I cannot find a good definition of 'dependant', but from what I can find, they must have only a trivial amount of income and must rely on you for at least 50% of their living expenses. Useful links include: Note that your parent may (but probably won't) be required to pay taxes on the money you submit to them. I have no experience whatsoever with Indian tax law, just pointing this out as a possibility.",
"title": ""
},
{
"docid": "28d7f93ee7c7ab730f251aa41b95bf28",
"text": "\"If you are a permanent resident (and it wasn't taken away or abandoned), then you are a resident alien for U.S. tax purposes. (One of the two tests for being a resident alien is the \"\"green card test\"\".) Being a resident alien means all your worldwide income is subject to U.S. taxes, regardless of where you live or work. That doesn't necessarily mean you need to actually pay taxes on your income again if you've already paid it -- you may be able to use the Foreign Tax Credit to reduce your taxes by the amount already paid to a foreign government -- but you need to report it on U.S. tax forms just like income from the U.S., and you can then apply any tax credits that you may qualify for. As a resident alien, you file taxes using Form 1040. You are required to file taxes if your income for a particular year is above a certain threshold. This threshold is described in the first few pages of the 1040 instructions for each year. For 2013, for Single filing status under 65, it is $10000. The only way you can legally not file is if your income the whole year was below this amount. You should go back and file taxes if you were required to but failed to. Having filed taxes when required is very important if you want to naturalize later on. It is also one component of demonstrating you're maintaining residency in the U.S., which you're required to do as a permanent resident being outside the U.S. for a long time, or else you'll lose your permanent residency. (Even filing taxes might not be enough, as your description of your presence in the U.S. shows you only go there for brief periods each year, not really living there. You're lucky you haven't lost your green card already; any time you go there you run a great risk of them noticing and taking it away.)\"",
"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": "63238e9d664cfacc3ece2a668d6ff64e",
"text": "The DTAA (Double Taxation Avoidance Agreement) Article 20 will apply to the Provident Fund money received while you were a resident in the US. Yes, you will add the Interest received on PF (Interest only for the year/s when you were a resident of US, and not when you were a Resident in India) in your 1040 and claim exemption under the treaty. Do not add all of your PF contribution for last 10 years or 10 years of interest to 1040, as this was not contributed/earned when you were a US Resident. Consider, just the Interest Earned in the year when you become a Resident of US and then claim exemption under the treaty.",
"title": ""
},
{
"docid": "866b5c9cc2f9d0044adca9577f629247",
"text": "\"You'll need to read carefully the German laws on tax residency, in many European (and other) tax laws the loss of residency due to absence is conditioned on acquiring residency elsewhere. But in general, it is possible to use treaties and statuses so that you end up not being resident anywhere, but it doesn't mean that the income is no longer taxed. Generally every country taxes income sourced to it unless an exclusion applies, so if you can no longer apply the treaty due to not being a resident - you'll need to look for general exclusions in the tax law. I don't know how Germany taxes scholarships under the general rules, you'll have to check it. It is possible that they're not taxed. Many people try to raise the argument of \"\"I'm not a resident\"\" to avoid income taxes altogether on earnings on their work - this would not work. But with a special kind of income like scholarship, which may be exempt under the law, it may. Keep in mind, that the treaty has \"\"who is or was immediately before visiting a Contracting State a resident of the other Contracting State\"\" language in some relevant cases, so you may still apply it in the US even if no longer resident in Germany.\"",
"title": ""
},
{
"docid": "8f17d26d70405153be4018dc0bcdf1e4",
"text": "Indian PF is a social security scheme, and as per the US India DTAA Article 20, is not taxable by the US. The exact text says as under - This clearly states that any social security benefit paid by any of the two contracting states to a resident of the other contracting state is taxable only in the first mentioned state. In other words, US cannot tax Indian social security benefits (and vice versa). Therefore, you are liable for taxes only in India even though you have to declare to the US that you were given the social security (PF) benefit by India.",
"title": ""
},
{
"docid": "8816a618963a106bc9a21f221dfce572",
"text": "Please find out whether you are considered to be a tax resident of the US from the date that you received the permanent immigrant visa or from the date that you first enter the US on that visa. If the former, and you received the visa after April 30, you might be a part-year resident of India for Indian Income Tax purposes for the current tax year. You need to convert your bank accounts including Fixed Deposits (the FDs that you mention) to NRO accounts as soon as possible. You will need to keep at least one NRO account open for a year or more to receive the final interest payments on your FDs as well as the proceeds of cashing in the FDs, not to mention any refunds of Indian Income Tax that may be due to you for last year or the current year. Once you are done with all these, follow the procedures outlined in this excellent answer by @Dheer to transfer the money to your US account. At this point, you can close the NRO account if you wish. As PeterK's comment says, it is not a good idea to bring a large sum of cash with you unless you are really really paranoid about banking channels. Note that if you insist on bringing cash (whether it is INR or USD) or negotiable instruments (checks or bank drafts) with you when you land in the US, these will have to be declared on entry if the total exceeds US$ 10K. There is no limit to how much you can bring with you as long as you declare it. Transfers of your own money from India to the US is not taxable income to you in the US, and income tax will already have been paid/withheld on that money in India, and so there is no income tax liability in India either on the sum transferred.",
"title": ""
},
{
"docid": "880ace788b1b7ff3798259e039ee6e5f",
"text": "From the UK-USA tax treaty.... ARTICLE 1 General Scope 1. Except as specifically provided herein, this Convention is applicable only to persons who are residents of one or both of the Contracting States. 2. This Convention shall not restrict in any manner any benefit now or hereafter accorded: a) by the laws of either Contracting State; or b) by any other agreement between the Contracting States... I'm not an expert but to me that sounds like the tax free advantage of an UK ISA would be respected by the IRS From the UK-USA tax treaty.... ARTICLE 7 7. Where under any provision of this Convention income or gains arising in one of the Contracting States are relieved from tax in that Contracting State and, under the law in force in the other Contracting State, a person, in respect of the said income or gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much of the income or gains as is taxed in the other Contracting State. This is very difficult to comprehend but suggets also that tax free status is upheld in the uSa",
"title": ""
},
{
"docid": "8de35a507e65ca679887497e347f9d74",
"text": "I keep visiting Dubai Not sure what kind of work it is, assuming it regular job. For the period mentioned above I was out of India for more than 182 days, If you were out of India for more than 182 days in a given financial year then you would NRI for tax purposes. till date I have not transferred any money from Dubai to my India account. Whether you have transferred the money or not is not relevant for tax purposes. Your status [NRI / Resident] is relevant. Do I need to declare the income I have earned in Dubai? No you are not required to as your status is NRI. You are required to file a return on the income [Salary/Interest/gains/etc] accruing in India. Do I need to change my residential status ? Not sure where you are wanting to change this. Will the income I have earned in Dubai is taxable ? As you are NRI, the income earned outside of India is not taxable in India. From a tax point of view, it does not matter whether you keep the funds in Dubai or transfer it back to India. Edit: The Income Tax rules are not very clear if your wife can claim for her father-in-law. Best consult a CA. For quite a few regulations, Wife's father-in-law are treated at par with father.",
"title": ""
},
{
"docid": "525af4c7a0373197b4a72adee488f3df",
"text": "The US will let you keep as much money as you want to within its borders regardless of your citizenship. You'll owe capital gains tax in the US unless you're subject to a tax treaty (which you would probably make as an election in the year of the transaction). I don't know if India has any rules about how it governs its citizens' foreign assets, but the US requires citizens to file a form annually declaring foreign accounts over $10,000. You may be subject to additional Indian taxes if India taxes global income like the US does.",
"title": ""
},
{
"docid": "c975c32bce14dd528d45a83fb4dff9a4",
"text": "\"US-Australian tax treaty limits the tax the US can levy on interest payments to Australian residents at 10%. However, that is the \"\"worst\"\" situation. There are several exempted situations which your specific example may fall into where you wouldn't need to deal with the US taxes at all. I suggest contacting a tax accountant proficient in that treaty and the Australian tax law. You will still be obviously paying taxes in Australia.\"",
"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": ""
}
] |
fiqa
|
98f7e68adeaa348cb979eefb0d3859f7
|
Mortgage implications if I were to quit my job shortly after being approved?
|
[
{
"docid": "0b4158af5e9614d1df98e6d6988ea694",
"text": "You mention that you would quit right after getting approved. But in the United States there would be one last check as a part of closing. Therefore it would be best to wait until after closing to quit your job. Waiting until after closing would also protect you from some hiccup that causes a delay in closing, thus requiring the need to reapply for the loan.",
"title": ""
}
] |
[
{
"docid": "07e123a177d889032a39a30591804b35",
"text": "These are your options: Unfortunately this will not be a quick process. You should note that until a potential lender goes through a detailed review of your finances you have only been pre-qualified. This is not as good as pre-approved. With pre-qualified they are basing the determination on what you told them, not what you can prove. Because you are aware of your short period of continuous employment you are best to be completely honest with a potential lender. That way you don't run into problems 30 days down the road when they realize the issue. The home seller will not be happy; and there was time and money wasted on down payments, credit checks, home inspections, and appraisals. In the US in most markets while there is a significant risk that a particular house will not be available in 5 months, there is a very slight risk that a neighborhood will not be available in 5 months.",
"title": ""
},
{
"docid": "cd40fec317928dc6104dc709adb7b007",
"text": "On $4K/mo gross about $1000/mo can go to the mortgage, and at today's rates, that's about $200K of mortgage the bank might lend you. Income is qualified based on gross, not net, so if $48,000/yr is wrong, please scale my guesstimate down a bit. In the end, today's rates allow a mortgage of nearly 4X one's gross income. This is too high, in my opinion. I'm answering what the bank would approve you at, not what I think is wise. Wise, in my opinion is 2.5-3X one's income, tops.",
"title": ""
},
{
"docid": "450c8ae1359a23cf337b1a1817dd9c03",
"text": "What options do I have? Realistically? Get a regular full time job. Work at it for a year or so and then see about buying a house. That said, I recently purchased a decent home. I am self-employed and my income is highly erratic. Due to how my clients pay me, my business might go a couple months with absolutely no deposits. However, I've been at this for quite a few years. So, even though my business income is erratic, I pay myself regularly once a month. In order to close the deal with the mortgage company I had to provide 5 years worth of statements on my business AND my personal bank accounts. Also I had about a 30% down payment. This gave the bank enough info to realize that I could absolutely make the payments and we closed the deal. I'd say that if you have little to no actual financial history, don't have a solid personal income and don't have much of a down payment then you probably have no business buying a house at this point. The first time something goes wrong (water heater, ac, etc) you'll be in a world of trouble.",
"title": ""
},
{
"docid": "ad0028567b8dc2822bbcb30238ef587a",
"text": "\"Concise answers to your questions: Depends on the loan and the bank; when you \"\"accelerate\"\" repayment of a loan by applying a pre-payment balance to the principal, your monthly payment may be reduced. However, standard practice for most loan types is that the repayment schedule will be accelerated; you'll pay no less each month, but you'll pay it off sooner. I can neither confirm nor deny that an internship counts as job experience in the field for the purpose of mortgage lending. It sounds logical, especially if it were a paid internship (in which case you'd just call it a \"\"job\"\"), but I can't be sure as I don't know of anyone who got a mortgage without accruing the necessary job experience post-graduation. A loan officer will be happy to talk to you and answer specific questions, but if you go in today, with no credit history (the student loan probably hasn't even entered repayment) and a lot of unknowns (an offer can be rescinded, for instance), you are virtually certain to be denied a mortgage. The bank is going to want evidence that you will make good on the debt you have over time. One $10,000 payment on the loan, though significant, is just one payment as far as your credit history (and credit score) is concerned. Now, a few more reality checks: $70k/yr is not what you'll be bringing home. As a single person without dependents, you'll be taxed at the highest possible withholdings rate. Your effective tax rate on $70k, depending on the state in which you live, can be as high as 30% (including all payroll/SS taxes, for a 1099 earner and/or an employee in a state with an income tax), so you're actually only bringing home 42k/yr, or about $1,600/paycheck if you're paid biweekly. To that, add a decent chunk for your group healthcare plan (which, as of 2014, you will be required to buy, or else pay another $2500 - effectively another 3% of gross earnings - in taxes). And even now with your first job, you should be at least trying to save up a decent chunk o' change in a 401k or IRA as a retirement nest egg. That student loan, beginning about 6 months after you leave school, will cost you about $555/mo in monthly payments for the next 10 years (if it's all Stafford loans with a 50/50 split between sub/unsub; that could be as much as $600/mo for all-unsub Stafford, or $700 or more for private loans). If you were going to pay all that back in two years, you're looking at paying a ballpark of $2500/mo leaving just $700 to pay all your bills and expenses each month. With a 3-year payoff plan, you're turning around one of your two paychecks every month to the student loan servicer, which for a bachelor is doable but still rather tight. Your mortgage payment isn't the only payment you will make on your house. If you get an FHA loan with 3.5% down, the lender will demand PMI. The city/county will likely levy a property tax on the assessed value of land and building. The lender may require that you purchase home insurance with minimum acceptable coverage limits and deductibles. All of these will be paid into escrow accounts, managed by your lending bank, from a single check you send them monthly. I pay all of these, in a state (Texas) that gets its primary income from sales and property tax instead of income, and my monthly payment isn't quite double the simple P&I. Once you have the house, you'll want to fill the house. Nice bed: probably $1500 between mattress and frame for a nice big queen you can stretch out on (and have lady friends over). Nice couch: $1000. TV: call it $500. That's probably the bare minimum you'll want to buy to replace what you lived through college with (you'll have somewhere to eat and sleep other than the floor of your new home), and we're already talking almost a month's salary, or payments of up to 10% of your monthly take-home pay over a year on a couple of store credit cards. Plates, cookware, etc just keeps bumping this up. Yes, they're (theoretically) all one-time costs, but they're things you need, and things you may not have if you've been living in dorms and eating in dining halls all through college. The house you buy now is likely to be a \"\"starter\"\", maybe 3bed/2bath and 1600 sqft at the upper end (they sell em as small as 2bd/1bt 1100sqft). It will support a spouse and 2 kids, but by that point you'll be bursting at the seams. What happens if your future spouse had the same idea of buying a house early while rates were low? The cost of buying a house may be as little as 3.5% down and a few hundred more in advance escrow and a couple other fees the seller can't pay for you. The cost of selling the same house is likely to include all the costs you made the seller pay when you bought it, because you'll be selling to someone in the same position you're in now. I didn't know it at the time I bought my house, but I paid about $5,000 to get into it (3.5% down and 6 months' escrow up front), while the sellers paid over $10,000 to get out (the owner got married to another homeowner, and they ended up selling both houses to move out of town; I don't even know what kind of bath they took on the house we weren't involved with). I graduated in 2005. I didn't buy my first house until I was married and pretty much well-settled, in 2011 (and yes, we were looking because mortgage rates were at rock bottom). We really lucked out in terms of a home that, if we want to or have to, we can live in for the rest of our lives (only 1700sqft, but it's officially a 4/2 with a spare room, and a downstairs master suite and nursery/office, so when we're old and decrepit we can pretty much live downstairs). I would seriously recommend that you do the same, even if by doing so you miss out on the absolute best interest rates. Last example: let's say, hypothetically, that you bite at current interest rates, and lock in a rate just above prime at 4%, 3.5% down, seller pays closing, but then in two years you get married, change jobs and have to move. Let's further suppose an alternate reality in which, after two years of living in an apartment, all the same life changes happen and you are now shopping for your first house having been pre-approved at 5%. That one percentage point savings by buying now, on a house in the $200k range, is worth about $120/mo or about $1440/yr off of your P&I payment ($921.42 on a $200,000 home with a 30-year term). Not chump change (over 30 years if you had been that lucky, it's $43000), but it's less than 5% of your take-home pay (month-to-month or annually). However, when you move in two years, the buyer's probably going to want the same deal you got - seller pays closing - because that's the market level you bought in to (low-priced starters for first-time homebuyers). That's a 3% commission for both agents, 1% origination, 0.5%-1% guarantor, and various fixed fees (title etc). Assuming the value of the house hasn't changed, let's call total selling costs 8% of the house value of $200k (which is probably low); that's $16,000 in seller's costs. Again, assuming home value didn't change and that you got an FHA loan requiring only 3.5% down, your down payment ($7k) plus principal paid (about another $7k; 6936.27 to be exact) only covers $14k of those costs. You're now in the hole $2,000, and you still have to come up with your next home's down payment. With all other things being equal, in order to get back to where you were in net worth terms before you bought the house (meaning $7,000 cash in the bank after selling it), you would need to stay in the house for 4 and a half years to accumulate the $16,000 in equity through principal payments. That leaves you with your original $7,000 down payment returned to you in cash, and you're even in accounting terms (which means in finance terms you're behind; that $7,000 invested at 3% historical average rate of inflation would have earned you about $800 in those four years, meaning you need to stick around about 5.5 years before you \"\"break even\"\" in TVM terms). For this reason, I would say that you should be very cautious when buying your first home; it may very well be the last one you'll ever buy. Whether that's because you made good choices or bad is up to you.\"",
"title": ""
},
{
"docid": "303588b49013c7679b9fa2bf9d544700",
"text": "\"From my experience, payments from banks and other financial entities, such as loyalty programs, generally aren't as large as payments that go the other direction from consumer to bank. Thus, keeping a bank account open simply for some reward/loyalty points may just be changing your behavior for the wrong reasons. The more important scenario is whether or not you have any automated ACH payments or whether your bank account is linked to other services. Perhaps the biggest tell that you're in the clear is when those transactions start occurring from your credit union account. For example: If you had a direct deposit to your BMO bank account, make sure you see deposits start to appear in the credit union account. If you're making automatic withdraws to an online savings or brokerage account, make sure those transfers are stopped and that you instead see them coming out of your new credit union account. You shouldn't need to move the auto loan, but you will need to make sure you can pay it from the new account. Some financial advisors, such as in this BankRate article titled, Lenders can tap bank account for mortgage, even recommend keeping liabilities and assets at different locations. If for whatever reason your financial situation turned bleak, it would be more difficult for the bank to help itself to what's in your checking account. To avoid getting nickel and dimed to death by \"\"payment processing fees\"\", I tend to pay insurance bills yearly or semi-annually. Thus, consider if there is anything that may be coming due in the next 6 months. If so, you might want to get your new account hooked up while you still have all the routing numbers and account numbers in your head. It's a pain to dig this stuff up while also rushing to not be late. If all that is in order, close the account.\"",
"title": ""
},
{
"docid": "a5a476e5354b28a79ba529d42d2dabdd",
"text": "When I was a contractor I prioritize this way. 6 months salary nest egg while contributing to tax deferred retirement then after that you can pre pay your mortgage. Remember you can't skip a month even if you prepay. So once you pay that extra to your mortgage you lose that flexibility.",
"title": ""
},
{
"docid": "50f8deed2522263fddbfeed7c4d1f20d",
"text": "Two principles in comparing different scenarios: 1) keep the two scenarios as equal as possible in amount and timing of payments; and 2) find the financial comparison at one particular point. So, your car loan, $10,000 for 35 months at 8% compounded monthly means you're paying $321.29 Suppose you make the switch and keep on paying the same, mortgage and $321.29 for the 35 months (see 1, above) Those extra payments, continued for 35 months at your mortgage rate of 5.59%, will pay off a mortgage of $10,354.10, which will more than pay off the $10,000 you added to the mortgage In other words, making the switch will benefit you to the tune of 354.10 as of the day of the switch. You could ask the mortgage company to give you the $10,000 and the $354.10, and all your payments and amortization would stay the same... (see 2 above) Of course, this is pretty much what Joe Taxpayer said...",
"title": ""
},
{
"docid": "c4b45818eefda5e3896fd0844e788727",
"text": "Take some of the commentary on home buying forums with a grain of salt. I too have read some of the commentary on these forums such as myFICO, Trulia, or Zillow and rarely is the right advice given or proper followup done. Typical 401k withdrawals for home purchase would not be considered a hardship. However, most employer 401k plans will allow you to take a loan for 401k as long as you provide suitable documentation: HUD-1 statement, Real Estate Contract, Good Faith Estimate, or some other form of suitable documentation as described by the plan administrator. For instance, I just took a 401k loan to pay for closing costs and I had to provide only the real estate contract. Could I not follow through with the contract? Sure, but what if I am found out for fraud? Then the plan administrator would probably end up turning the distribution into a taxable distribution. I wouldn't go to jail in this hypothetical situation - I am only stealing from myself. But the law states that certain loan situations are not liable for tax as long as that situation still exists. In the home loan situation, my employer allows for a low interest, 10 year loan. My employer also allows for a pre-approved loan for any purpose. This would be a low interest, 5 year loan. There is also the option to not do a loan at all. But normally that is only allowed after you have exhausted all your loan options and the government makes it intentionally harsh (30% penalty at least) to discourage people from dumping their tax free haven 401k accounts. That all being said, many plans offer no prepayment penalty. So like my employer has for us, I can pay it all back in full whenever I want or make micropayments every month. Otherwise, it comes out of my pay stub biweekly. So if it were to fall through, I could just put it all back like it never happened. Though with my plan, there is a cooling off period of 7 days before I can take another loan. Keep in mind that if you leave your employer then the full amount becomes a taxable distribution unless you pay it back within a certain period of time after leaving the employer. Whether this fits your financial situation is up to you, but a loan is definitely preferred over a partial or full withdrawal since you are paying yourself back for your rightly earned retirement which is just as important.",
"title": ""
},
{
"docid": "67c1f9a423ceb1f692cfb733a892d559",
"text": "From personal experience (I financed a new car from the dealer/manufacturer within weeks of graduating, still on an F1-OPT):",
"title": ""
},
{
"docid": "fd5609bb27cf8730ce7d33454f9284f8",
"text": "If you're planning to walk away from the house - don't invest any more money in it. Just be aware of the consequences. It may be worth considering a short sale if both the lenders will agree to erase the debt. If you're going to keep the house, then the fact that you're underwater now is irrelevant, and you should do your best to reduce the burden by paying off the higher rate loan. But, I personally think that accumulating enough cash to make you comfortable in case of a job loss for several months is a higher priority.",
"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": "6c83669580ab193c4f02820bf7fe54f9",
"text": "Great work so far, and good question. I think a lot of it depends on how risky your financial life is. For example lets say that you are working a temp or contract job that ends in 3 months. That is also the same month your savings and student loan will be equal. I think most would agree that it would be foolish to empty out your savings in such a risky month. Now same situation one month later. The company you were working for takes you on as a full time employee. I would go ahead and empty out my savings and make the student loan go away. There could be other risks to consider like needing a different car, moving to a new place, potential medical bills, or a needing to travel. Anything like that on the horizon I would hold off emptying out my savings. However, once it is smooth sailing GO FOR IT! Being debt free is wonderful and it is a worthy goal.",
"title": ""
},
{
"docid": "b4e9a2f80796f1308a9a454694083951",
"text": "No, it's a $10k withdrawal. You net what you net after federal and state taxes. IRA? It has a similar penalty free $10k withdrawal option for home purchase, so this might give faster access once you decide. Given the choice between a withdrawal and a loan, I'd take the loan. As soon as you are with the new employer, ask HR about the rules for participating in their 401(k) and rules for their loans. If, for whatever reason it won't work for you, take $10K and transfer to the IRA, and the rest into the 401(k), if the 401(k) has good investments and low cost.. My answer focuses on the desire to withdraw the money. A loan is better than a withdrawal. Better than both is a delay and saving all you can for the downpayment. After the closing, I'd be mindful of spending, save all you can to retirement accounts and pay this loan off over the time good for you.",
"title": ""
},
{
"docid": "d17ef9a66770652aa11692ef104a3cec",
"text": "When getting a mortgage it always depends on the bank and each bank may be more or less strict. With that being said there are rules and general guidelines which can help you understand how you fit in the world of mortgage approvals. If you can provide the same paper work as an employee of your company that you would normally provide from any other company then a bank may just accept that alone. However to me it seems like you will be looking at a new variation of what was known as a Self-certification mortgage A self-certification mortgage is basically a mortgage for those who cannot prove their income. As a result of the housing collapse, the rules on a traditional self-cert mortgages have changed. As someone who is self employed, it is more difficult today to get a mortgage but is still possible. This article provides some good information: Can the self employed still get a mortgage? I advise doing some research on this topic and speaking with a professional mortgage broker. Some Resources: Compare Self Cert Mortgages How to beat the mortgage famine in 2012 Can the self employed still get a mortgage?",
"title": ""
},
{
"docid": "f9b1bf923509f92cd18fa79c4a176dc8",
"text": "There are several things that are missing from your estimate: The terms for the mortgage for a rental property will be different. You may be required to have a larger down payment. When approving you for the mortgage they will not count all the rental income as income, they will assume periodic vacancies. This difference may impact other credit you will be getting in the near future.",
"title": ""
}
] |
fiqa
|
6b88062a2862249948ac6b3202287ae8
|
Can my U.S. company do work for a foreign company and get wire transfers to my personal account?
|
[
{
"docid": "6e5c72f2f75b888eb1f9b13f75672b55",
"text": "It seems that you're complicating things quite a bit. Why would you not create a business entity, open one or more bank accounts for it, and then have the money wired into those accounts? If you plan on being a company then set up the appropriate structure for it. In the U.S., you can form an S-corporation or an LLC and choose pass-through taxation so that all you pay is income tax on what you receive from the business as personal income. The business itself would not have tax liability in such a case. Co-mingling your personal banking with that of your business could create real tax headaches for you if you aren't careful, so it's not worth the trouble or risk.",
"title": ""
}
] |
[
{
"docid": "eabefe04b79362128f216635d428fa52",
"text": "Yes, However if you live in the USA a lot of companies will refuse to sent you any report and will not let you take part in “right issues” as they don’t wish to come under USA investment law.",
"title": ""
},
{
"docid": "149e6975ec0ef8dc8574c0e317133818",
"text": "\"For anyone that's curious, I had a number of chats with Quickbooks who recommended I import only the relevant business transactions from my personal account & personal credit card in order to lower the tax liability. This way money \"\"paid\"\" from the business account to myself rightly shows up as a transfer and not as income. This means when generating a tax report, it calculates the correct rate of tax to be paid based on income minus allowable expenses, regardless which account they came from.\"",
"title": ""
},
{
"docid": "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": "e58e8bd73ab445e1bda9431cafc7bc54",
"text": "\"Ally Bank $0 - from their website (emphasis mine): To receive a wire transfer from a non-U.S. bank: Incoming wire transfers from a non-US bank are processed by our designated receiving bank, JP Morgan Chase Bank, N.A. You'll need to provide the following information to the person or business sending the wire transfer to you: Receiving Bank: JP Morgan Chase Bank, N.A. ABA/Routing Number: 021000021 Address: 1 Chase Manhattan PLZ, New York, NY 10005 SWIFT Code or Bank Identification Code: CHASUS33 Beneficiary Account Number: 802904391 Beneficiary Name: List 'Ally Bank' since the wire is being processed by JP Morgan Chase Bank, N.A. Further Credit: Your Ally Bank Account Number and your name as it appears on your Ally Bank account. Note: We won't charge you to receive a wire transfer into your Ally account. https://www.ally.com/help/search.html?term=SWIFT&console=false&context=Help&domain=www.ally.com§ion=Help+%26+FAQs Alliant Credit Union $0 - from their website (emphasis mine): Direct international wire transfers International wire transfers are handled through our correspondent bank for processing. International wires can take up to 10 business days to be credited to the receiving institution. Funds should be wired to: Northern Trust ABA# 071000152 \"\"Note: US Banks do not use SWIFT codes. This ABA # is used in place of SWIFT codes for US Banks.\"\" 50 South La Salle Street, Chicago, IL 60603 For further credit: Alliant Credit Union Account Number 35101804 11545 W. Touhy Avenue, Chicago, IL 60666 For final credit: Member’s name and complete address (No P.O. Box) Member’s 14-digit account number Destination of funds (checking, savings or loan number) Incoming wire transfers: Wire transfers received Monday - Friday, 7:00am - 3:00pm, CT, will be credited to your account the same day. Wire transfers received after 3:00pm, CT, Monday - Friday and on the weekend will be credited the next business day. Fees: We do not charge a fee to receive incoming wire funds. However, the financial institution wiring the funds may charge for this service. http://www.alliantcreditunion.org/help/receiving-a-wire-transfer-to-your-alliant-account\"",
"title": ""
},
{
"docid": "fda178639a225301e4fd912273f847bb",
"text": "Most definitely all wire transfer above a significant amount would be flagged as a suspicious transaction. Nevertheless, as long you provide the Final beneficiary information (name and account number), the bank will process the remittance.",
"title": ""
},
{
"docid": "2190cf18cdde2e8a1cdaa6bdf6594688",
"text": "For most major banks, wire transfers are simple, if expensive, to arrange. For example, I can initiate an international wire transfer from my online banking portal.",
"title": ""
},
{
"docid": "69ba3ae6663acc704b2844e46809c81b",
"text": "U.S. citizens are allowed to own foreign bank and investment accounts. However, there are various financial and tax reporting requirements for owners of such accounts. Even when there is no foreign income involved. For example famous FBAR (Fincen Report Form 114), Form 8938, and even more forms if your assets/activities abroad become more complicated. Penalties, even for unintentional non-compliance can be Draconian. So just keep in mind, that once you start having foreign accounts, you will start having additional obligations and might spend more money and time on tax preparation. If you are ok with that, then its cool. But... assuming your gloomy predictions on Trump presidency come true. They might be accompanied by more strict capital control, reporting requirements, and may become even greater pain in the neck for people with foreign assets. Regarding recommendations, I am not sure about banks, but there are some foreign precious metal investing companies that are completely online based such as https://www.bullionvault.com/ and https://www.goldmoney.com/. These might also guard you from potential problems with US dollar.",
"title": ""
},
{
"docid": "7b0dc41bf94400529dd32c7640eb4b62",
"text": "Will it possible that they will credit my salary in my India bank account from US as normal process, If i work for them from here? There is no issue for an US based company to pay you a salary in India. You can get funds in your own savings account. You need to calculate and pay taxes on your own.",
"title": ""
},
{
"docid": "ac8abccf51bd6ddeaff31ce498e4be7b",
"text": "\"You are right in insisting upon a proper B2B contract in any business relationship. You wish to reduce your risk and be compensated fairly. In addition to the cost and complexity of international wire transfers, the US companies may also be considering the fact that as an international contractor in a relatively hard-to-reach jurisdiction, payments to you place the company at higher risk than payments to a domestic contractor. By insisting upon PayPal or similar transmitters, they are reducing their internal complexity and reducing their financial exposure to unfulfilled/disputed contract terms. Therefore, wire payments are \"\"hard\"\" in an internal business sense, as well as in a remittance transfer reporting sense. The internal business procedure will likely be the hardest to overcome--changing risk management is harder than filling out forms.\"",
"title": ""
},
{
"docid": "0b94911436e766d7e927bbe443605fb5",
"text": "tl;dr: Be patient, money is probably sitting somewhere, and it will eventually be credited back to your account. I had a similar problem about 10 years ago. I sent an international wire transfer, from my own bank account in Germany to my bank account in Central America. I had done this before, and there had been no issues, but in this case, even though all the information was correct, the bank rejected the wire because it was above $10K, and in that case, the bank needs written proof from the owner of the receiving account (me) , and so didn't know where the funds were coming from. I had to call the local Sparkasse bank in Germany, as well as an intermediary bank in London to sort it all out, and in total, had to wait about 3-4 weeks to get the money back in my Sparkasse bank account. At one point I thought I may never see that money back, especially since there was an intermediary bank to deal with, but it all worked out in the end.",
"title": ""
},
{
"docid": "821d67b4880b9cbc60185d4405f61476",
"text": "\"You should have separate files for each of the two businesses. The business that transfers money out should \"\"write check\"\" in its QB file. The business that receives money should \"\"make deposit\"\" in its QB file. (In QB you \"\"write check\"\" even when you make the payment by some other means like ACH.) Neither business should have the bank accounts of the other explicitly represented. On each side, you will also need to classify the payment as having originated from / gone to some other account - To know what's correct there, we'd need to know why your transferring the money in the first place and how you otherwise have your books established. I think that's probably beyond the scope of what's on-topic / feasible here. Money into your business from your personal account is probably owner's equity, unless you have something else going on. For example, on the S Corp you should be paying yourself a salary. If you overpay by accident, then you might write a check back to the company from your personal account to correct the mistake. That's not equity - It's probably a \"\"negative expense\"\" in some other account that tracks the salary payments.\"",
"title": ""
},
{
"docid": "28f92e26dcc503d4c07d8bac7f07e7a4",
"text": "\"The examples you provide in the question are completely irrelevant. It doesn't matter where the brokerage is or where is the company you own stocks in. For a fairly standard case of an non-resident alien international student living full time in the US - your capital gains are US sourced. Let me quote the following text a couple of paragraphs down the line you quoted on the same page: Gain or loss from the sale or exchange of personal property generally has its source in the United States if the alien has a tax home in the United States. The key factor in determining if an individual is a U.S. resident for purposes of the sourcing of capital gains is whether the alien's \"\"tax home\"\" has shifted to the United States. If an alien does not have a tax home in the United States, then the alien’s U.S. source capital gains would be treated as foreign-source and thus nontaxable. In general, under the \"\"tax home\"\" rules, a person who is away (or who intends to be away) from his tax home for longer than 1 year has shifted tax homes to his new location upon his arrival in that new location. See Chapter 1 of Publication 463, Travel, Entertainment, Gift, and Car Expenses I'll assume you've read this and just want an explanation on what it means. What it means is that if you move to the US for a significant period of time (expected length of 1 year or more), your tax home is assumed to have shifted to the US and the capital gains are sourced to the US from the start of your move. For example: you are a foreign diplomat, and your 4-year assignment started in May. Year-end - you're not US tax resident (diplomats exempt), but you've stayed in the US for more than 183 days, and since your assignment is longer than 1 year - your tax home is now in the US. You'll pay the 30% flat tax. Another example: You're a foreign airline pilot, coming to the US every other day flying the airline aircraft. You end up staying in the US 184 days, but your tax home hasn't shifted, nor you're a US tax resident - you don't pay the flat tax. Keep in mind, that tax treaties may alter the situation since in many cases they also cover the capital gains situation for non-residents.\"",
"title": ""
},
{
"docid": "fb5105cef9bf56d1edb545ff9441e282",
"text": "The data provided in your question is irrelevant. The data that you provided in the comments (that you're physically present in the US while doing the work) is the only relevant information needed to answer your question. You will need to pay taxes in the US for the earnings. The company invoicing the US client will also need to pay taxes in the US for its earnings from these invoices. You can transfer between bank accounts and deposit whatever you want anywhere you want, no-one cares (with respect to the US taxes, check with Indian tax accountant about Indian requirements).",
"title": ""
},
{
"docid": "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": "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": ""
}
] |
fiqa
|
c6e12847e12b75919fc1e4dc8fb19c21
|
What tax-free retirement accounts are available for self-employed individuals?
|
[
{
"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": "6fb93580c5457890126504ee2b5209bb",
"text": "You're misunderstanding the concept of retirement savings. IRA distributions are taxed, in their entirety, as ordinary income. If you withdraw before the retirement age, additional 10% penalty is added. Investment income has preferential treatment - long term capital gains and qualified dividends are taxed at lower rates than ordinary income. However, IRA contributions are tax deductible. I.e.: you don't pay taxes on the amounts contributed to the IRA when you earned the money, only when you withdraw. In the mean time, the money is growing, tax free, based on your investments. Anything inside the IRA is tax free, including dividends, distributions (from funds to your IRA, not from IRA to you), capital gains, etc. This is very powerful, when taking into account the compounding effect of reinvesting your dividends/sale proceeds without taking a chunk out for taxes. Consider you make an investment in a fund that appreciated 100% in half a year. You cash out to reinvest in something less volatile to lock the gains. In a regular account - you pay taxes when you sell, based on your brackets. In the IRA you reinvest all of your sale proceeds. That would be ~25-35% more of the gains to reinvest and continue working for you! However, if you decide to withdraw - you pay ordinary rate taxes on the whole amount. If you would invest in a single fund for 30 years in a regular account - you'd pay 20% capital gains tax (on the appreciation, not the dividends). In the IRA, if you invest in the same fund for the same period - you'll pay your ordinary income rates. However, the benefit of reinvesting dividends tax-free softens the blow somewhat, but that's much harder to quantify. Bottom line: if you want to plan for retirement - plan for retirment. Otherwise - IRA is not an investment vehicle. Also consider Roth IRA/conversions. Roth IRA has the benefit of tax free distributions at retirement. If your current tax bracket is at 20%, for example, contributing $5K to Roth IRA instead of a traditional will cost you $1K of taxes now, but will save you all the taxes during the retirement (for the distributions from the Roth IRA). It may be very much worth your while, especially if you can contribute directly to Roth IRA (there are some income limitations and phaseouts). You can withdraw contributions (but not earnings) from Roth IRA - something you cannot do with a traditional IRA.",
"title": ""
},
{
"docid": "19a1e61094eb1486190df772eaa119a6",
"text": "I'm not a big fan of tax-advantaged retirement accounts. The rules on tax-advantages accounts can change at any time. It's already painful to get money out before retirement (earnings or possibly contributions taxed as current income, plus 10% penalty). The rules could get worse. There's also the assumption that your taxes will be lower when you retire. I think this is a poor assumption. If you get free money from your employer for contribution to a 401(k), contribute up to what will get you all of the free money you can. Otherwise, pay your taxes and keep control of your assets. So short answer: Keep as much as you can out of tax-advantaged accounts unless you're turning down free money to do so.",
"title": ""
},
{
"docid": "5cdaa52d474132d754fe019be1855f8a",
"text": "\"The \"\"hire a pro\"\" is quite correct, if you are truly making this kind of money. That said, I believe in a certain amount of self-education so you don't follow a pro's advice blindly. First, I wrote an article that discussed Marginal Tax Rates, and it's worth understanding. It simply means that as your income rises past certain thresholds, the tax rate also will change a bit. You are on track to be in the top rate, 33%. Next, Solo 401(k). You didn't ask about retirement accounts, but the combined situations of making this sum of money and just setting it aside, leads me to suggest this. Since you are both employer and employee, the Solo 401(k) limit is a combined $66,500. Seems like a lot, but if you are really on track to make $500K this year, that's just over 10% saved. Then, whatever the pro recommends for your status, you'll still have some kind of Social Security obligation, as both employer and employee, so that's another 15% or so for the first $110K. Last, some of the answers seemed to imply that you'll settle in April. Not quite. You are required to pay your tax through the year and if you wait until April to pay the tax along with your return, you will have a very unpleasant tax bill. (I mean it will have penalties for underpayment through the year.) This is to be avoided. I offer this because often a pro will have a specialty and not go outside that focus. It's possible to find the guy that knows everything about setting you up as an LLC or Sole Proprietorship, yet doesn't have the 401(k) conversation. Good luck, please let us know here how the Pro discussion goes for you.\"",
"title": ""
},
{
"docid": "a67a6ab7b645e0b531b9bf3203845161",
"text": "\"You might consider working on getting your new employer to sponsor a 401k, there may be options where you can invest and they aren't required to add anything as a match (which gives you higher limits). If they don't match, they may just be liable for some administration fees. If you have any side business that you do, you might also be eligible for other \"\"self-employed\"\" options that have higher limits (SEP, Simple - I think they may go up to $15k) although, I'm not sure the nitty gritties of them.\"",
"title": ""
},
{
"docid": "bc84f95ad0536b59e4ace1dc8393f5d0",
"text": "mhoran answered the headline question, but you asked - Could someone shed some light on and differentiate between a retirement account and alternative savings plans? Retirement accounts can contain nearly anything that one would consider an investment. (yes, there are exception, not the topic for today). So when one says they have an S&P fund or ETF, and some company issued Bonds, etc, these may or may not be held in a retirement account. In the US, when we say 'retirement account,' it means a bit more than just an account earmarked for that goal. It's an account, 401(k), 403(b), IRA, etc, that has a special tax status. Money can go in pre-tax, and be withdrawn at retirement when you are in a lower tax bracket. The Roth flavor of 401(k) or IRA lets you deposit post-tax money, and 'never' pay tax on it again, if withdrawn under specific conditions. In 2013, a single earner pays 25% federal tax on taxable earnings over $36K. But a retiree with exactly $46K in gross income (who then has $10K in standard deduction plus exemption) has a tax of $4950, less than 11% average rate on that withdrawal. This is the effect of the deductions, 10% and 15% brackets. As with your other question, there's a lot to be said about this topic, no one can answer in one post. That said, the second benefit of the retirement account is the mental partitioning. I have retirement money, not to be touched, emergency money used for the broken down car or appliance replacement, and other funds it doesn't feel bad to tap for spending, vacations, etc. Nothing a good spreadsheet can't handle, but a good way to keep things physically separate as well. (I answered as if you are in US, but the answer works if you rename the retirement accounts, eg, Canada has similar tax structure to the US.)",
"title": ""
},
{
"docid": "a087862ebd93bef3b6d75993e9ced7e4",
"text": "As far as I know, there is no direct equivalent. An IRA is subject to many rules. Not only are there early withdrawal penalties, but the ability to deduct contributions to an IRA phases out with one's income level. Qualified withdrawals from an IRA won't have penalties, but they will be taxed as income. Contributions to a Roth IRA can be made post-tax and the resulting gains will be tax free, but they cannot be withdrawn early. Another tax-deductable investment is a 529 plan. These can be withdrawn from at any time, but there is a penalty if the money is not used for educational purposes. A 401K or similar employer-sponsored fund is made with pre-tax dollars unless it is designated as a Roth 401K. These plans also require money to be withdrawn specifically for retirement, with a 10% penalty for early withdrawal. Qualifying withdrawals from a regular retirement plan are taxed as income, those from a Roth plan are not (as with an IRA). Money can be made harder to get at by investing in all of the types of funds you can invest in using an IRA through the same brokers under a different type of account, but the contribution will be made with post-tax, non-deductable dollars and the gains will be taxed.",
"title": ""
},
{
"docid": "24b0b013a3385858eda59f1359a4f523",
"text": "You can't do what you would like to do, unless your business has another, unrelated investor or is willing to invest an equal amount of funds + .01 into a corporation which will employ you. You will then need to set up a self-directed IRA. Additionally, you will need a trustee to account for all the disbursements from your IRA.",
"title": ""
},
{
"docid": "6c7ca691ed2d32e8795ff763be3063fb",
"text": "What is the question? Are you just trying to confirm that for self-employed, a Solo 401(k) is flexible, and a great tool to level out your tax rates? Sure. A W2 employee can turn on and off his 401(k) deduction any time, and bump the holding on each check as high as 75% in some cases. So in a tight stretch, I'd save to the match, but later on, top off the maximum for the year. To the points you listed - Your observation is interesting, but a bit long for what you seem to be asking. Keep in mind, there are 2 great features that you don't mention - a Roth Solo 401(k) flavor which offers even more flexibility for variable income, and loan provisions, up to $50,000 available to borrow from the account. My fellow blogger The Financial Buff offered an article Solo 401k Providers and Their Scope of Services that did a great job addressing this.",
"title": ""
},
{
"docid": "0f370bf139ba17fef15ce4b63eea3f6f",
"text": "Read this. https://www.irs.gov/retirement-plans/one-participant-401k-plans The example makes it very clear.",
"title": ""
},
{
"docid": "088fc89a500d498fc4ea9e5fb306a759",
"text": "Whether an investment is pre-tax is determined by the type of account (i.e., tax-advantaged vs ordinary taxable account), but whether you can invest in individual stocks is determined by the provider (i.e., the particular bank where you have the account). These are orthogonal choices. If you want to invest in individual stocks, you need to look for a bank that offers an IRA/401k/other tax-advantaged account and allows you to invest in individual stocks with it. For example, this page suggests that Fidelity would let you do that. Obviously you should look into various providers yourself to find one that offers the mix of features you want.",
"title": ""
},
{
"docid": "7edfda479cd3187bb936a5557781d157",
"text": "I think it's great idea. Many large brokerages give customers access to a pretty sizable list of zero commission, zero load funds. In this list of funds will certainly be an S&P 500 index. So you can open your account for free, deposit your $1,000 for free and invest it in an S&P index for no cost. You'll pay a very negligible amount in annual expense fees and you'll owe taxes on your gain if you have to use the money. I don't follow the school of thought that all investment money should be in retirement account jail. But I think if you have your spending under control, you have your other finances in order and just want to place money somewhere, you're on the right track with this idea.",
"title": ""
},
{
"docid": "8439491878fa8722c81dcce170268652",
"text": "Your approach sounds solid to me. Alternatively, if (as appears to be the case) then you might want to consider devoting your tax-advantaged accounts to tax-inefficient investments, such as REITs and high-yield bond funds. That way your investments that generate non-capital-gain (i.e. tax-expensive) income are safe from the IRS until retirement (or forever). And your investments that generate only capital gains income are safe until you sell them (and then they're tax-cheap anyway). Of course, since there aren't really that many tax-expensive investment vehicles (especially not for a young person), you may still have room in your retirement accounts after allocating all the money you feel comfortable putting into REITs and junk bonds. In that case, the article I linked above ranks investment types by tax-efficiency so you can figure out the next best thing to put into your IRA, then the next, etc.",
"title": ""
},
{
"docid": "1403c0dc25f5e605961b289b5b269a59",
"text": "\"If you have already maxed your TSP contributions, the \"\"401k\"\" for military folks, you could consider a Traditional IRA contribution. They are tax-deductible, based on some limits, so it may reduce your tax liability. Many online services (Vanguard, Fidelity, etc.) offer quick and free setup of Traditional IRA accounts. If you have already maxed the Traditional IRA as well, you could look at making taxable investments through an online service. Like homer150mw, I would recommend low-cost funds. For reasons why, see this article by John Bogle.\"",
"title": ""
},
{
"docid": "7ef2977f65d04dc67aaf2fec39004624",
"text": "I looked a bit at the first 3, .24% expense. There's a direction to not discuss individual investments here, so the rest of my answer will need to lean generic. I see you have 5 funds. I'm surmising it's an attempt at 'diversifying'. I'll ask you - what do these five, when combined, offer that a straight S&P 500 index (or some flavor of extended market) doesn't? I've gone through the exercise of looking at portfolios with a dozen funds and found overlap so great that 2 or 3 funds would have been sufficient. There are S&P funds that are as low as .05%. this difference may not seem like much, but it adds over time. To your last point, I'd consider a Solo 401(k) as you're self employed. One that offers the Roth option if you are in the marginal 15% bracket.",
"title": ""
},
{
"docid": "77e9140c25e0ef55b3e9960805faf2dd",
"text": "A self-directed IRA could be a good solution for you and all IRAs are qualified IRAs the administrator must allow for alternative assets. However, if you're looking to do the ROBS (Roll Over Business Start-up) system, there are not very many administrators that can facilitate that. There is also a checkbook IRA (aka single member LLC) that more administrators are able to work with, but the rules are different from a ROBS plan. Check with your financial adviser, CPA, tax guru and ask which method would work best for what you're looking to accomplish.",
"title": ""
}
] |
fiqa
|
0e68ebae39ba740e8b94270242d6cd41
|
How to know more about my tax situation in the States
|
[
{
"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": "4867627f8a0ac6019c5a4cb6e87e0422",
"text": "Unfortunately, the tax system in the U.S. is probably more complicated than it looks to you right now. First, you need to understand that there will be taxes withheld from your paycheck, but the amount that they withhold is simply a guess. You might pay too much or too little tax during the year. After the year is over, you'll send in a tax return form that calculates the correct tax amount. If you have paid too little over the year, you'll have to send in the rest, but if you've paid too much, you'll get a refund. There are complicated formulas on how much tax the employer withholds from your paycheck, but in general, if you don't have extra income elsewhere that you need to pay tax on, you'll probably be close to breaking even at tax time. When you get your paycheck, the first thing that will be taken off is FICA, also called Social Security, Medicare, or the Payroll tax. This is a fixed 7.65% that is taken off the gross salary. It is not refundable and is not affected by any allowances or deductions, and does not come in to play at all on your tax return form. There are optional employee benefits that you might need to pay a portion of if you are going to take advantage of them, such as health insurance or retirement savings. Some of these deductions are paid with before-tax money, and some are paid with after tax money. The employer will calculate how much money they are supposed to withhold for federal and state taxes (yes, California has an income tax), and the rest is yours. At tax time, the employer will give you a form W-2, which shows you the amount of your gross income after all the before-tax deductions are taken out (which is what you use to calculate your tax). The form also shows you how much tax you have paid during the year. Form 1040 is the tax return that you use to calculate your correct tax for the year. You start with the gross income amount from the W-2, and the first thing you do is add in any income that you didn't get a W-2 for (such as interest or investment income) and subtract any deductions that you might have that are not taxable, but were not paid through your paycheck (such as moving expenses, student loan interest, tuition, etc.) The result is called your adjusted gross income. Next, you take off the deductions not covered in the above section (property tax, home mortgage interest, charitable giving, etc.). You can either take the standard deduction ($6,300 if you are single), or if you have more deductions in this category than that, you can itemize your deductions and declare the correct amount. After that, you subtract more for exemptions. You can claim yourself as an exemption unless you are considered a dependent of someone else and they are claiming you as a dependent. If you claim yourself, you take off another $4,000 from your income. What you are left with is your taxable income for the year. This is the amount you would use to calculate your tax based on the bracket table you found. California has an income tax, and just like the federal tax, some state taxes will be deducted from your paycheck, and you'll need to fill out a state tax return form after the year is over to calculate the correct state tax and either request a refund or pay the remainder of the tax. I don't have any experience with the California income tax, but there are details on the rates on this page from the State of California.",
"title": ""
},
{
"docid": "1905f1a693b1c56269cc40d19a4bc954",
"text": "Well, that's probably not even all of it. If that stranger did his taxes properly, then he already paid about a third of it to the government because wherever he got it from it was income for him and thus it must have been taxed. Now, the remainder is in your hands and yes, according to US law it is now your income and so now you too, must pay about a third of it to the government, and yes you are supposed to explain where it came from. Be careful giving it to somebody else or it'll be taxed yet again. disclaimer: I am not a US citizen",
"title": ""
},
{
"docid": "0dbe615376361cbe5aee13c01dac142b",
"text": "\"Hearing somewhere is a level or two worse than \"\"my friend told me.\"\" You need to do some planning to forecast your full year income and tax bill. In general, you should be filing a quarterly form and tax payment. You'll still reconcile the year with an April filing, but if you are looking to save up to pay a huge bill next year, you are looking at the potential of a penalty for under-withholding. The instructions and payment coupons are available at the IRS site. At this point I'm required to offer the following advice - If you are making enough money that this even concerns you, you should consider starting to save for the future. A Solo-401(k) or IRA, or both. Read more on these two accounts and ask separate questions, if you'd like.\"",
"title": ""
},
{
"docid": "afd0af4f530800a292b002e12d4917c2",
"text": "The IRS can direct your refund towards repayment of your unpaid taxes either on Federal or State/Local level. Whether it will depends on whether the State of New York will ask for it. Generally, if you owe taxes to New York for this year only, you would expect them to wait for you to file your State tax return and pay the taxes owed. If you don't - I'm pretty sure that the next year refund from the IRS will go directly to them.",
"title": ""
},
{
"docid": "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": "177452e08f5bcd1a5ccb6fada4720bcd",
"text": "\"(Insert the usual disclaimer that I'm not any sort of tax professional; I'm just a random guy on the Internet who occasionally looks through IRS instructions for fun. Then again, what you're doing here is asking random people on the Internet for help, so here goes.) The gigantic book of \"\"How to File Your Income Taxes\"\" from the IRS is called Publication 17. That's generally where I start to figure out where to report what. The section on Royalties has this to say: Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. In most cases, you report royalties in Part I of Schedule E (Form 1040). However, if you hold an operating oil, gas, or mineral interest or 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). It sounds like you are receiving royalties from a copyright, and not as a self-employed writer. That means that you would report the income on Schedule E, Part I. I've not used Schedule E before, but looking at the instructions for it, you enter this as \"\"Royalty Property\"\". For royalty property, enter code “6” on line 1b and leave lines 1a and 2 blank for that property. So, in Line 1b, part A, enter code 6. (It looks like you'll only use section A here as you only have one royalty property.) Then in column A, Line 4, enter the royalties you have received. The instructions confirm that this should be the amount that you received listed on the 1099-MISC. Report on line 4 royalties from oil, gas, or mineral properties (not including operating interests); copyrights; and patents. Use a separate column (A, B, or C) for each royalty property. If you received $10 or more in royalties during 2016, the payer should send you a Form 1099-MISC or similar statement by January 31, 2017, showing the amount you received. Report this amount on line 4. I don't think that there's any relevant Expenses deductions you could take on the subsequent lines (though like I said, I've not used this form before), but if you had some specific expenses involved in producing this income it might be worth looking into further. On Line 21 you'd subtract the 0 expenses (or subtract any expenses you do manage to list) and put the total. It looks like there are more totals to accumulate on lines 23 and 24, which presumably would be equally easy as you only have the one property. Put the total again on line 26, which says to enter it on the main Form 1040 on line 17 and it thus gets included in your income.\"",
"title": ""
},
{
"docid": "d2a3edb660d76b01f15c425908a9198a",
"text": "First, if you haven't seen it yet, check out the IRS Taxpayer Advocate Service's I Don't Have My Refund page. It discusses different things that can go wrong with receiving your refund and what to do about it. From your post, it sounds like you've tried all of the normal things to do, and you've tried calling in to the IRS. What you might not know is that there are local IRS offices that you can visit and talk to a real person face-to-face. Hopefully, you'll find someone helpful there who can either explain to you what is going on or put you in touch with someone who can help. To find your local IRS office, go to the Contact Your Local IRS Office page and click on the Office Locator button. Office visits are generally by appointment only, so you'll need to call the number for the office you want to visit and make an appointment. Alternatively, if you can't get anywhere with the IRS, you could contact the Taxpayer Advocate Service, which is an independent organization within the IRS that exists to help people with disputes with the IRS, and they have an office in every state. You could try contacting them and seeing if they can help you with your issue. To answer your question about this year's tax return: At least for the federal return, your refund from last year does not really affect this year's tax return. You should be able to file this year's return no matter what happens with last year's refund. That having been said, you should get the refund matter straightened out as soon as you can. Good luck.",
"title": ""
},
{
"docid": "fa5825450af7fba4836e5b9e31aa2c81",
"text": "You pay it this tax year. Whether that's now due to W-2 withholding, or later with your 1040 next year, or with your 1040-ES all depends on your particular situation.",
"title": ""
},
{
"docid": "1787961e896db69e5bb95c21983c12d5",
"text": "It's been a couple years since I worked on Transfer Pricing project. It makes sense though. I'd imagine that's why Texas and Florida are doing, tax wise, so much better than California and other high tax states.",
"title": ""
},
{
"docid": "f665108e75778d4633b077a1254a892a",
"text": "He should look into the Voluntary Disclosures Program. He will have to keep up to date with his taxes thereafter, but the outcome will likely be better than if they discover he hasn't been filing before he discloses it.",
"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": "1a03d16b327d83f757ce1680c3a11d3f",
"text": "\"I'll add a bit to Paul's excellent write up. Foreign Earned Income Exclusion (form 2555): notice the earned there. It doesn't exclude capital gains, interest, dividends, and basically everything that is not salary. You pay US taxes on it from the first cent. Foreign tax credit - foreign tax credit (form 1116) doesn't reduce your US tax dollar for dollar (even though it may appear that it does from the generic explanations). By using this form you may end up accumulating unused credit while still paying double taxes at the same time. Happened to me. Thank Congress for the logical and reasonable US tax laws. New FATCA form 8938: as opposed to FBAR (that goes to the FinCEN in the Treasury), this one goes to the IRS. it contains very similar info, but the threshold requirements are different. You may have to file FBAR, but not these, or you may have to file both. Being an American citizen, some European banks will refuse to provide services to you. Again, thank Congress for FATCA. It requires foreign banks to enforce US tax regulations on US citizens, and banks that won't will get penalized in the US. Many banks refuse to provide services to Americans because of that because what IRS requires is illegal in most countries. Some countries (like UK and some other EU countries) have signed treaties with the US to resolve this, but many haven't. Currency conversion - as I commented to Paul, you convert the amounts when you receive them, which may have your fixed EUR salary be converted to different dollar amounts every time. You need to make sure you do it right. Pensions, savings, investments - if you're doing these in non-US instruments prepare to be penalized. US taxes foreign investments much more aggressively than domestic. If you're investing in indexes/mutual funds, or you're a principle in a corporation, or you create a pension account - you'll get hit by additional reporting requirements and tax. Tax treaties - the US has tax treaties with many EU countries, and equalization treaties with some. The tax treaties affect the standard tax treatment by the US and some of the \"\"generic\"\" info you got here may not apply because of a tax treaty, and some other rules may apply. Equalization treaties work similarly with regards to the Social Security. Bottom line, and I know Paul disagrees with me on this - talk with a US-licensed adviser in the country you're going to. It is very important for your tax adviser to know the relevant treaty (and not read it the first time when you call him), and to understand each and every financial instrument in your country. Missing piece of paper in your tax return can cost you thousands of dollars in penalties (not exaggerating, not filing form 3520 triggers a $10000 penalty, even if there's no tax) and additional taxes.\"",
"title": ""
},
{
"docid": "49fcb429b4cc17c2db360a6d3770a84a",
"text": "Real world case: IRS: You owe us $x. You didn't report your income from job y. My mother: I didn't work for y. I don't even know who y is. IRS: If the W-2 is wrong, talk to them to get it fixed. My mother: I can't find y. Please give me an address or phone. IRS: We can't. You talk to them and get it fixed. I know this dragged on for more than a year, they never mentioned the final outcome and they're gone now so I can't ask.",
"title": ""
},
{
"docid": "11fc3a4ca5cbcec4e11b9f0e390475f4",
"text": "Using the advice of @user102008 , I read-through the booklet of State2, and it said the following: ... so I'm not going to include my State1 W-2s.",
"title": ""
},
{
"docid": "0152ba06545b89e5d1178360243f5d4b",
"text": "\"If you live outside the US, then you probably need to deal with foreign tax credits, foreign income exclusions, FBAR forms (you probably have bank account balances enough for the 10K threshold) , various monsters the Congress enacted against you like form 8939 (if you have enough banking and investment accounts), form 3520 (if you have a IRA-like local pension), form 5471 (if you have a stake in a foreign business), form 8833 (if you have treaty claims) etc ect - that's just what I had the pleasure of coming across, there's more. TurboTax/H&R Block At Home/etc/etc are not for you. These programs are developed for a \"\"mainstream\"\" American citizen and resident who has nothing, or practically nothing, abroad. They may support the FBAR/FATCA forms (IIRC H&R Block has a problem with Fatca, didn't check if they fixed it for 2013. Heard reports that TurboTax support is not perfect as well), but nothing more than that. If you know the stuff well enough to fill the forms manually - go for it (I'm not sure they even provide all these forms in the software though). Now, specifically to your questions: Turbo tax doesn't seem to like the fact that my wife is a foreigner and doesn't have a social security number. It keeps bugging me to input a valid Ssn for her. I input all zeros for now. Not sure what to do. No, you cannot do that. You need to think whether you even want to include your wife in the return. Does she have income? Do you want to pay US taxes on her income? If she's not a US citizen/green card holder, why would you want that? Consider it again. If you decide to include here after all - you have to get an ITIN for her (instead of SSN). If you hire a professional to do your taxes, that professional will also guide you through the ITIN process. Turbo tax forces me to fill out a 29something form that establishes bonafide residency. Is this really necessary? Again in here it bugs me about wife's Ssn Form 2555 probably. Yes, it is, and yes, you have to have a ITIN for your wife if she's included. My previous state is California, and for my present state I input Foreign. When I get to the state tax portion turbo doesn't seem to realize that I have input foreign and it wants me to choose a valid state. However I think my first question is do i have to file a California tax now that I am not it's resident anymore? I do not have any assets in California. No house, no phone bill etc If you're not a resident in California, then why would you file? But you might be a partial resident, if you lived in CA part of the year. If so, you need to file 540NR for the part of the year you were a resident. If you have a better way to file tax based on this situation could you please share with me? As I said - hire a professional, preferably one that practices in your country of residence and knows the provisions of that country's tax treaty with the US. You can also hire a professional in the US, but get a good one, that specializes on expats.\"",
"title": ""
}
] |
fiqa
|
ebdb35b56c4920d09ab77171a35c7041
|
Freelance trading of products in India
|
[
{
"docid": "12bd33797cc2aa55c458ee11ea08a57d",
"text": "For most goods there is no license required, unless you are trading in restricted goods. Remittance need to be routed via banks and they should comply with FMEA. Your Bank or a qualified CA can guide you.",
"title": ""
}
] |
[
{
"docid": "1d8f08c6246d4f181722de70f2775519",
"text": "Welcome To Shainex Relocation AN ISO 9001:2008 Certified Company SHAINEX PACKERS AND MOVERS is a proud service tax payee Professional Services Provider for Packers and Movers, packing and moving, Domestics Packing Moving, International Packers Movers, International Packing Moving, Car Transportation, Air Cargo, Sea Cargo, Custom Clearance, Warehousing and Insurance Facilities. We also export goods to all worldwide Destinations, we have a lot’s of another exporters export leather Accessories Ready made Garments and Personal Effects as a Baggage, household Items to different Country, International and Domestics. If you interested So Please. Contact us on our Email Shainex Packers and Movers is an ISO certified company and government certified Packers Movers Company. Shainex is a proud service tax payee. Shainex take pride in offering great Packing & Moving Services at reasonable prices. All our employees are well experienced, courteous and careful. We offer personalized service for any kind of relocation requirement whether it is domestic or International and we understand the importance of your belongings. Whether it is office relocation, commercial goods or household items etc, we offer safe packing and moving service. Under the supervision of our expert supervisors, we pack goods depending upon the nature of the item and use appropriate packaging material of best quality such as thermocols, cardboard sheets, gunny bags, plastic bubble sheet, cartons & wooden crates. & Plywood Box The material, which we use in our packing, is of best quality available in Packers Movers Delhi, Packers Movers Noida, Packers Movers Faridabad, Packers Movers Gurgaon, Packers Movers Ghaziabad, Packers Movers Chandigarh, Packers Movers Pune, Movers Packers Mumbai, Packers Movers Ahmadabad, Packers Movers Vadodara, Movers Packers Bangalore, Movers Packers Hyderabad, Movers Packers Chennai and Packers Movers in India. We ensure that all the goods are perfectly packed so that there is no chance of damage during transportation. The moving is with utmost ease and care. The goods are moved without any inconvenience and in a hassle free manner. The understanding of our packers & movers about every aspect of the business creates a facility that provides experienced packing and moving by crews and professionally trained drivers. We relieve you from all your trouble & anxiety by maintaining timely and intact delivery of your consignment, at your doorstep. We pack all your belongings as per the nature of the item and requirement with the help of our professional packing experts. All this leads to safe delivery of our client's goods to the desired destination.",
"title": ""
},
{
"docid": "b29f4c749de9bb0c2471827c0b57e9c4",
"text": "Manufacturer of Quartz Grit in India http://quartzpowdermanufacturers.com/supplier-of-quartz-grit-in-india.php#manufacturer-quartz-grit Supplier of Quartz Grit in India, Manufacturer of Quartz Grit in India - Shri Vinayak Industries is offering high grade Quartz Grit. We produce finely processed Quartz Grit by our super efficient production unit. We are dominant supplier, Manufacturer and exporter of Quartz Grit. Usage of Quartz Grit in tiles, Ferro alloys, Ferro silicon, Ferro chrome, oil drilling, artificial granites, and electrical industries. Other applications of quartz grit are in steel industries, sugar refining, dairy farms, paper industries, chemical industries and water treatment plants.",
"title": ""
},
{
"docid": "3f4550d72779d20e482043a4521b1a41",
"text": "\"I know its not legal to have open long and short position on specific security (on two stock exchanges - NSE/BSE) There is nothing illegal about it. There are prescribed ways on how this is addressed. In Cash Segment / Intra Day trades: One can short sell a security. If by end of day he does not buy the security; it goes into Auction. The said security is purchased on your behalf. Any profit or loss arising out of this is charged to you. Similarly one can buy a security; if one does not pay the amount by end of day; it would go into auction and sold. Any profit or loss arising out of this is charged to you. If you short sell a security on one exchange; you have to buy it on same exchange. If you buy on other exchange; it will not be adjusted against this short position. Also is it legal to have long position on stock and short its derivative (future/option)? There are no restrictions. Edit: @yety Party A shorts 10 shares of HDFC today in Intra-Day Cash Segment purchased by Party B. Rather than buying back 10 shares or allowing it to go into auction... Party A borrows 10 HDFC Shares from \"\"X\"\" via SLB for a period of say 6 months [1 month to 1 year]. This is recorded as Party A obligation to \"\"X\"\". These 10 borrowed shares are transferred to Party B. So Party \"\"X\"\" doesn't have any HDFC shares at this point in time. However in exchange, Party X receives fees for borrowing from Party A. If there is dividend, are declared, Company pays Party B. However SLB recovers identical amount from Party A and pays Party X. If there is 1:1 split, now party A owes Party X 20 HDFC Shares. On maturity [after 6 months], Party A has to buy these from market and given back the borrowed shares to Party X. If there are some other corporate actions, i.e. mergers / amalgamations ... the obligation of Party A to Party X is closed immediately and position settled. Of course there are provisions whereby party A can pay back the shares earlier or party X can ask for shares earlier and there are rules/trades/mechanisms to facilitate this.\"",
"title": ""
},
{
"docid": "f5fe7401c82da2dcab5d53853cd6b9cc",
"text": "I feel the need to separate my freelance accounts from my personal accounts. Yes, you should. Should I start another savings account or a current account? Do you need the money for daily spending? Do you need to re-invest in your business? Use a current account. If you don't need the money for business expenses, put it away in your savings account or even consider term deposits. Don't rule out a hybrid approach either (some in savings account, some in current account). What criteria should I keep in mind while choosing a bank? (I thought of SBI since it has a lot of branches and ATMs). If you are involved in online banking and that is sufficient for most of your needs, bank and ATM locations shouldn't matter all that much. If you are saving a good chunk of money, you want to at least have that keep up with inflation. Research bank term deposit interest rates. The tend to be higher than just having your money sit in a savings account. Again, it depends on how and when you expect to need the money. What do I keep in mind while paying myself? Paying yourself could have tax implications. This depends on how are set up to freelance. Are you a business entity or are you an individual? You should look in to the following in India: The other thing to consider is rewarding yourself for the good work done. Pay yourself a reasonable amount. If you decide to expand and hire people going forward, you will have a better sense of business expenses involved when paying salaries. Tips on managing money in the business account. This is a very generic question. I can only provide a generic response. Know how much you are earning and how much your are putting back in to the business. Be reasonable in how much you pay yourself and do the proper research and paperwork from a taxation point of view.",
"title": ""
},
{
"docid": "70772d40b7d6a28b23290a08fa72a915",
"text": "This is taxable in India. You need to declare the income and pay taxes accordingly",
"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": "0e4053acb1e733f586b9f290a5ea6ba3",
"text": "Supplier of Quartz Grit in India Best Price http://quartzpowdermanufacturers.com/supplier-of-quartz-grit-in-india.php Shri Vinayak Minerals has made a place amongst the most entrusted names in mineral business, and we are manufacturing offering an inclusive range of Quartz Grit. The whole range of Quartz Grits, provided by us is extensively appreciated all over the nation. We do supply our products in India and to other countries too. Vietnam, South Korea, UAE, Malaysia, Taiwan, Thailand, Saudi Arabia, and Indonesia are our prime international clients.",
"title": ""
},
{
"docid": "e4d9f1267819d3b2b983b80baa1d1671",
"text": "You will be categorized as self employed. Will I have to register myself as a company or can go on unregistered and work You can register a company or can use an umbrella company or work as a sole trader. Remember as a sole trader you are legally responsible for you company's activities, an if a company sues you for your work he can take compensation from your personal assets. As a company your liability ends with the company, if your company is sued. Your personal assets are outside the purview of the lawsuit, but the court can attach that also but those are rare. This doesn't matter if you use an umbrella company. If you intend to be doing this for a short time(maybe a year or so), go for an umbrella company. Else register a company. will take you 5 minutes to form one. Depending on your earning you might need to register for VAT too. A comprehensive guide for self employed on HMRC. what would i need to be sound in uk and to be fit to work online as a freelancer? The same as above. Will it include paying any tax or paying any insurance Yes you have register for National Insurance(NI), before you can pay yourself a salary. The benefit of a company is you pay yourself a minimum salary, below the limit above which you have to contribute for NI, and take the rest as dividends. And pay no tax on it, till you don't exceed the limits. When the money comes in my account, will i be accountable to government of uk, to tell the source of income? If you are operating through a company, yes you would need to show your income(including source) and expenditure when you do your annual returns. What should i be knowing, like health insurance and things that are necessities in uk for a freelancer ? No health insurance as NHS exists. You can take out health insurance if you don't want to get into queues in NHS.",
"title": ""
},
{
"docid": "c2fe5a2fd10180b48792906009b272fc",
"text": "I am a freelancer based in Europe and I want to tell you: - if you are a freelancer, then you INVOICE your Swizzerland based client The word salary is improper. - So your client will DEDUCE the invoice from its taxes, and NOT pay income tax on top of that invoice. Because invoice = expense. So, ONLY YOU pay income tax in India. Your client pays no tax at all, not in India, not in Swizzerland. As you are a freelancer and not employee, the company has no obligation to pay employer taxes for you. A company has financial benefits from working with a freelancer.",
"title": ""
},
{
"docid": "1e900bbb923d9b2d23cc9302a27faffc",
"text": "The Company M/s. I-Lace Fashion (Pvt) Ltd., was established on August 2007, as a leading exporter of Leather Garments and Textile Made-ups from Pakistan. It is part of a group of companies & the group is primarily engaged in the exportation of Textile, Fabrics, Garments, Bed Sheets, and Leather Jackets since 1984. I-Lace Fashion (Pvt) Ltd., is a quality conscious company and has a well-defined policy of provision of quality products at competitive market prices. Company pursues aggressive product marketing & is always endeavoring to explore new markets. The success of the marketing efforts is because of the policy of the company to maintain consistent quality of the products at low cost.",
"title": ""
},
{
"docid": "eb389b09b7bb394c4430165a6c427d6f",
"text": "Now today all small and big business depends on the internet. So businessman should be those business lists in the multiple online directories. In the USA maximum user buy product through the web. If you have a business, then you can list your business globaltradeconnect's Business directory online. Where you can get more customer, product information, business location and direction. It's awesome to list a business on other online website like Google, Facebook, Bing.",
"title": ""
},
{
"docid": "d268171091dd171b468c547cc8453f33",
"text": "You can receive funds from US Client as an individual. There is no legal requirement for you to have a company. If the transactions are large say more than 20 lacs in a year, its advisable to open a Private Ltd. Although its simple opening & Registering a company [A CA or a Laywer would get one at a nominal price of Rs 5000] you can do yourself. Whatever be the case, its advisable to have seperate accounts for this business / professional service transactions. Maintain proper records of the funds received. There are certain benefits you can claim, a CA can help you. Paying taxes in Advance is your responsibility and hence make sure you keep paying every quarter as advance tax. Related questions Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India? Freelancer in India working for Swiss Company Freelancing to UK company from India How do I account for money paid to colleagues out of my professional income?",
"title": ""
},
{
"docid": "700439131a5f6e8e7707d2c4d4046124",
"text": "GelomanIndianSpares is one of complete motorcycle spare parts resources for motorcycle enthusiasts. On our company website are available Indian motorcycle spare parts catalogs along with thousands of more parts. People who want to continue riding their Indian motorcycles should always try to buy the correct spare parts. You could also contact us anytime about all motorcycle spare parts and talk with our professional. We will very happy to help you with your queries.",
"title": ""
},
{
"docid": "c38e604bc989da8edc3fca2d3b347ffb",
"text": "The GlobalTradeConnect contains a Maximum number of wholesale product categories and you can choose from thousands of wholesale companies on our Business 2 Business directory. The expression business to business industry is used for an E-Commerce, which basically enhancement the businesses.From buying an item, then getting it all the way to ending the scope, everything occurs online without any actual connections.Hence, B2B market segments can principally be described as websites, which are made and used for business to business.",
"title": ""
},
{
"docid": "78757613590ad6c5198559f05ef3c9c1",
"text": "Most of the Indian Brokers started offering API's to retail client these days. And NSE Exchange also supports algo trading at retail level. Currently two levels of API are offered. 1)Semi-automatic or one touch trading (Retail Traders) 2)Fully Automatic ( Dealers) I had tested the API with a discount broker www.tradejini.com and it is good at retail level. But to make your trading systems fully automatic you need to pass NISM Series VIII certification (Dealer Certification) and have to take dealer terminals from the broker. You also have to register as a dealer and have to take permission from exchange to run your algos fully automated. Without Exchange permission it is illegal to involve in algo trading.",
"title": ""
}
] |
fiqa
|
40ff73f5ec2637a2dd0a314295aefee5
|
Cost is (maybe) part of basis for two assets
|
[
{
"docid": "72c48b31b6fa47b1f89fb4a960648aff",
"text": "For accounting purposes, consider the costs of acquisition as part of the cost of the asset as opposed to expensing. This will be important to consider if you need to amortise the asset for reporting or tax purposes. Dr. Land $250,000 Dr. Building: $250,000 Cr. Cash $500,000 The acquisition of the land from previous owners. And Dr. Land $12,500 Dr. Building $12,500 Cr. Cash $25,000 Fees paid to auctioneer who helped acquire the land. The basis for dividing the cost should be done at appraised prices. These appraised prices will appear in the first entry and should help you along.",
"title": ""
}
] |
[
{
"docid": "49f29b55b33e9105340e11bfb78539e9",
"text": "You also may want to consider how this interacts with the stepped up basis of estates. If you never sell the stock and it passes to your heirs with your estate, under current tax law the basis will increase from the purchase price to the market price at the time of transfer. In a comment, you proposed: Thinking more deeply though, I am a little skeptical that it's a free lunch: Say I buy stock A (a computer manufacturer) at $100 which I intend to hold long term. It ends up falling to $80 and the robo-advisor sells it for tax loss harvesting, buying stock B (a similar computer manufacturer) as a replacement. So I benefit from realizing those losses. HOWEVER, say both stocks then rise by 50% over 3 years. At this point, selling B gives me more capital gains tax than if I had held A through the losses, since A's rise from 80 back to 100 would have been free for me since I purchased at 100. And then later thought Although thinking even more (sorry, thinking out loud here), I guess I still come out ahead on taxes since I was able to deduct the $20 loss on A against ordinary income, and while I pay extra capital gains on B, that's a lower tax rate. So the free lunch is $20*[number of shares]*([my tax bracket] - [capital gains rates]) That's true. And in addition to that, if you never sell B, which continues to rise to $200 (was last at $120 after a 50% increase from $80), the basis steps up to $200 on transfer to your heirs. Of course, your estate may have to pay a 40% tax on the $200 before transferring the shares to your heirs. So this isn't exactly a free lunch either. But you have to pay that 40% tax regardless of the form in which the money is held. Cash, real estate, stocks, whatever. Whether you have a large or small capital gain on the stock is irrelevant to the estate tax. This type of planning may not matter to you personally, but it is another aspect of what wealth management can impact.",
"title": ""
},
{
"docid": "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": "998c6bb64e219b1c2a9fa3c93102ef7f",
"text": "If you were a business, all your assets would have a dollar value, so when you sold them you'd decrease the amount of assets by that amount and increase in cash, and if there was a profit on the sale it would go in as income, if there was loss it would count as a cost (or a loss)... so if there was a profit it would increase Equity, a loss then it would decrease Equity. Since it's not really worthwhile doing a estimated cost for everything that you have, I'd just report it as income like you are doing and let the amount of equity increase proportionately. So, implicitly you always had roughly that amount of equity, but some of it was in the form of assets, and now you're liquidating those assets so the amount shows up in GnuCash. When you buy new things you might sell later, you could consider adding them as assets to keep track of this explicitly (but even then you have problems-- the price of things changes with time and you might not want to keep up with those price changes, it's a lot of extra work for a family budget) -- for stuff you already have it's better to treat things as you are doing and just treat the money as income-- it's easier and doesn't really change anything-- you always had that in equity, some of it was just off the books and now you are bringing it into the books.",
"title": ""
},
{
"docid": "57d42b1bd6ae8d4e07c2ce05b6e3b1f1",
"text": "One thing to keep in mind is that with Roth accounts, there are different withdrawal considerations based on your contributions. For example, you can withdraw Roth IRA contributions whenever you want in the future. However this really has nothing to do with your cost basis and purely to do with the contribution amount vs balance.",
"title": ""
},
{
"docid": "98b07a3bada1706a14716f012eaff827",
"text": "\"Accounting for this properly is not a trivial matter, and you would be wise to pay a little extra to talk with a lawyer and/or CPA to ensure the precise wording. How best to structure such an arrangement will depend upon your particular jurisdiction, as this is not a federal matter - you need someone licensed to advise in your particular state at least. The law of real estate co-ownership (as defined on a deed) is not sufficient for the task you are asking of it - you need something more sophisticated. Family Partnership (we'll call it FP) is created (LLC, LLP, whatever). We'll say April + A-Husband gets 50%, and Sister gets 50% equity (how you should handle ownership with your husband is outside the scope of this answer, but you should probably talk it over with a lawyer and this will depend on your state!). A loan is taken out to buy the property, in this case with all partners personally guaranteeing the loan equally, but the loan is really being taken out by FP. The mortgage should probably show 100% ownership by FP, not by any of you individually - you will only be guaranteeing the loan, and your ownership is purely through the partnership. You and your husband put $20,000 into the partnership. The FP now lists a $20,000 liability to you, and a $20,000 asset in cash. FP buys the $320,000 house (increase assets) with a $300,000 mortgage (liability) and $20,000 cash (decrease assets). Equity in the partnership is $0 right now. The ownership at present is clear. You own 50% of $0, and your sister owns 50% of $0. Where'd your money go?! Simple - it's a liability of the partnership, so you and your husband are together owed $20,000 by the partnership before any equity exists. Everything balances nicely at this point. Note that you should account for paying closing costs the same as you considered the down payment - that money should be paid back to you before any is doled out as investment profit! Now, how do you handle mortgage payments? This actually isn't as hard as it sounds, thanks to the nature of a partnership and proper business accounting. With a good foundation the rest of the building proceeds quite cleanly. On month 1 your sister pays $1400 into the partnership, while you pay $645 into the partnership. FP will record an increase in assets (cash) of $1800, an increase in liability to your sister of $1400, and an increase in liability to you of $645. FP will then record a decrease in cash assets of $1800 to pay the mortgage, with a matching increase in cost account for the mortgage. No net change in equity, but your individual contributions are still preserved. Let's say that now after only 1 month you decide to sell the property - someone makes an offer you just can't refuse of $350,000 dollars (we'll pretend all the closing costs disappeared in buying and selling, but it should be clear how to account for those as I mention earlier). Now what happens? FP gets an increase in cash assets of $350,000, decreases the house asset ($320,000 - original purchase price), and pays off the mortgage - for simplicity let's pretend it's still $300,000 somehow. Now there's $50,000 in cash left in the partnership - who's money is it? By accounting for the house this way, the answer is easily determined. First all investments are paid back - so you get back $20,000 for the down payment, $645 for your mortgage payments so far, and your sister gets back $1400 for her mortgage payment. There is now $27,995 left, and by being equal partners you get to split it - 13,977 to you and your husband and the same amount to your sister (I'm keeping the extra dollar for my advice to talk to a lawyer/CPA). What About Getting To Live There? The fact is that your sister is getting a little something extra out of the deal - she get's the live there! How do you account for that? Well, you might just be calling it a gift. The problem is you aren't in any way, shape, or form putting that in writing, assigning it a value, nothing. Also, what do you do if you want to sell/cash out or at least get rid of the mortgage, as it will be showing up as a debt on your credit report and will effect your ability to secure financing of your own in the future if you decide to buy a house for your husband and yourself? Now this is the kind of stuff where families get in trouble. You are mixing personal lives and business arrangements, and some things are not written down (like the right to occupy the property) and this can really get messy. Would evicting your sister to sell the house before you all go bankrupt on a bad deal make future family gatherings tense? I'm betting it might. There should be a carefully worded lease probably from the partnership to your sister. That would help protect you from extra court costs in trying to determine who has the rights to occupy the property, especially if it's also written up as part of the partnership agreement...but now you are building the potential for eviction proceedings against your sister right into an investment deal? Ugh, what a potential nightmare! And done right, there should probably be some dollar value assigned to the right to live there and use the property. Unless you just want to really gift that to your sister, but this can be a kind of invisible and poorly quantified gift - and those don't usually work very well psychologically. And it also means she's going to be getting an awfully larger benefit from this \"\"investment\"\" than you and your husband - do you think that might cause animosity over dozens and dozens of writing out the check to pay for the property while not realizing any direct benefit while you pay to keep up your own living circumstances too? In short, you need a legal structure that can properly account for the fact that you are starting out in-equal contributors to your scheme, and ongoing contributions will be different over time too. What if she falls on hard times and you make a few of the mortgage payments? What if she wants to redo the bathroom and insists on paying for the whole thing herself or with her own loan, etc? With a properly documented partnership - or equivalent such business entity - these questions are easily resolved. They can be equitably handled by a court in event of family squabble, divorce, death, bankruptcy, emergency liquidation, early sale, refinance - you name it. No percentage of simple co-ownership recorded on a deed can do any of this for you. No math can provide you the proper protection that a properly organized business entity can. I would thus strongly advise you, your husband, and your sister to spend the comparatively tiny amount of extra money to get advice from a real estate/investment lawyer/CPA to get you set up right. Keep all receipts and you can pay a book keeper or the accountant to do end of the year taxes, and answer questions that will come up like how to properly account for things like depreciation on taxes. Your intuition that you should make sure things are formally written up in times when everyone is on good terms is extremely wise, so please follow it up with in-person paid consultation from an expert. And no matter what, this deal as presently structured has a really large built-in potential for heartache as you have three partners AND one of the partners is also renting the property partially from themselves while putting no money down? This has a great potential to be a train wreck, so please do look into what would happen if these went wrong into some more detail and write up in advance - in a legally binding way - what all parties rights and responsibilities are.\"",
"title": ""
},
{
"docid": "980e48c749e05c0432b46adffc11cd8a",
"text": "Imagine a poorly run store in the middle of downtown Manhattan. It has been in the family for a 100 years but the current generation is incompetent regarding running a business. The store is worthless because it is losing money, but the land it is sitting on is worth millions. So yes an asset of the company can be worth more than the entire company. What one would pay for the rights to the land, vs the entire company are not equal.",
"title": ""
},
{
"docid": "1a01e7ec0410e2e2eefa633c0b1db4cc",
"text": "Assuming no debt, as you've specified in the comments to your question, the assets should generally be distributed proportional to ownership share. BUT, without any sort of agreement, there might be contention on what each investor's share is and that might get fought out in court. With a corporation issuing shares, the corporate charter probably defines the relationship between different classes of shares (or specifies only one class). For a partnership though, you could conceivable have people making claims of ownership stake based on labor in addition to any cash that they put up. Messy if there's no up-front agreement.",
"title": ""
},
{
"docid": "301088bb910fa653719b6b302d15f778",
"text": "\"In this context, we're talking about terms of art in accounting, specifically double-entry book-keeping. In accounting lingo, an \"\"asset\"\" account represents an actual asset and it's value. So if you buy a car with a loan for $10,000, you apply a $10,000 debit to the asset account and a $10,000 credit to the loan. Debits and credits are confusing when you first start learning about accounting.\"",
"title": ""
},
{
"docid": "f469aad776f005ed531a025b282f05ad",
"text": "This is great! I'm not a CPA, but work in finance. As such, my course/professional work is focused more on the economic and profitability aspects of transfer pricing. As you might imagine, it tended to analyze corporate strategy decisions under various cost allocation models, which you thoroughly discuss. I would agree with the statement that it is based on the matching principle but would like to add that transfer pricing is interesting as it falls under several fields: accounting, finance, and economics. Fundamentally it is based on the matching principal, but it's real world applications are based on all three (it's often used to determine divisional and even individual sales peoples profitability; as is the case with bank related funds transfer pricing on stuff like time deposits). In this case, the correct accounting principal allows you to, when done properly, better understand the economics, strategy, and operations of an organization. In effect, when done correctly, it provides transparency for strategic decision making to executives. As I said, since my coursework tended to focus more on that aspect, I definitely have a natural tendency towards it. This is an amazing explanation (esp. about interest on M&A bridge loans, I get that) of the more detailed stuff! Truthfully, I'm not as familiar with it and was just trying to show more of the conceptual than nitty-gritty. Thanks for the reply!",
"title": ""
},
{
"docid": "76e2f1493af491c6de3ccbfff6b5a825",
"text": "What you're looking for is the 'Transaction Report'. When you're looking at the report (it comes up empty), open the options and click on the first tab 'Accounts'. Here you can highlight multiple source accounts in the top pane, and filter by the Expense accounts that you are interested in the bottom pane. Here's an example that goes over the process (there are many examples online, I just included the first one that came up in a search).",
"title": ""
},
{
"docid": "69c90279a1829fd8ce58e09cb7fd2a79",
"text": "No. If you didn't specify LIFO on account or sell by specifying the shares you wish sold, then the brokers method applies. From Publication 551 Identifying stock or bonds sold. If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. For more information about identifying securities you sell, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Pub. 550. The trick is to identify the stock lot prior to sale.",
"title": ""
},
{
"docid": "1679ed0311b0aed45606aa58c7616453",
"text": "You can get really nerdy with the EV calc, but I would just add that it's important to deduct any non-operating, non-consolidated assets in addition to the minority interest adjustment - e.g. unconsolidated subsidiaries, excess real estate, excess working capital, etc.",
"title": ""
},
{
"docid": "c89af4372c5a95e112336d2e3e9f3f8a",
"text": "\"This is an example from another field, real estate. Suppose you buy a $100,000 house with a 20 percent down payment, or $20,000, and borrow the other $80,000. In this example, your \"\"equity\"\" or \"\"market cap\"\" is $20,000. But the total value, or \"\"enterprise value\"\" of the house, is actually $100,000, counting the $80,000 mortgage. \"\"Enterprise value\"\" is what a buyer would have to pay to own the company or the house \"\"free and clear,\"\" counting the debt.\"",
"title": ""
},
{
"docid": "dcfb68ac04560cc5455ac9725a74c2d2",
"text": "You could think of points 1 and 3 combined to be similar to buying shares and selling calls on a part of those shares. $50k is the net of the shares and calls sale (ie without point 3, the investor would pay more for the same stake). Look up convertible debt, and why it's used. It's basically used so that both parties get 'the best of both world's' from equity and debt financing. Who is he selling his share to in point 2 back to the business or to outside investors?",
"title": ""
},
{
"docid": "00df1661bbb7f46e4761ef8d1b612ca9",
"text": "I don't understand the logic of converting a cost of funds of 4% to a monthly % and then subtracting that number from an annual one (the 1.5%). Unfortunately without seeing the case I really can't help you...there was likely much you have left out from above.",
"title": ""
}
] |
fiqa
|
d104c723eb22915238a3a61244b73f74
|
Obtaining California SOS number for out-of-state LLC
|
[
{
"docid": "6bb6a1a14e9041f629aaad59a6f59497",
"text": "\"SOS stands for Secretary of State. The California Department of State handles the business entities registration, and the website is here. See \"\"Forms\"\" in the navigation menu on the left. Specifically, you'll be looking for LLC-5.\"",
"title": ""
}
] |
[
{
"docid": "72684d4f21bf2b2b5d71ece186c61e17",
"text": "\"I'll answer in general terms, since I'm not familiar with the price ranges in Florida. The LLC formation costs $125 (state fee). In addition you'll need a registered agent. Registered agent could be your CPA/EA/bookkeeper/property manager/local friend, or you can pay firms specializing in providing registration and agents services such as NorthWestern or LegalZoom (there are many others). You'll need to pay an annual fee of ~$140 in Florida. If you are using someone to do the formation, they'll charge more (usually the on-line services are cheaper than a local CPA or attorney, by $100-$300). Bookkeeping will probably be charged by the hour, but some bookkeepers charge flat fees for small accounts. Per hour would be probably in the range of $40-$80. You'll have to pay taxes - both in Florida (where the property is) and on the Federal level to the IRS. You'll be paying them as a non-Resident individual. Your CPA/EA will charge you anywhere between $150 to $500 for that (if they charge more - run away, unless there's some specific complication that requires extra costs). You will need a ITIN for that, your CPA/EA can help you get one or you can apply yourself. Be careful with all those people selling cr@p about organizing in Delaware/Wyoming/Nevada (like CQM in his answer). Organizing in a state other than where the properties are located (or off-shore) won't save you a dime, and not only that - it will add to the costs. Because you'll have to pay to the state where you organized (CQM mentioned Wyoming - $50/year), keep registered agent in the state of organization (+$99) and also do all the things I've described above about Florida - as a \"\"Foreign\"\" (out of state) entity, which may mean higher fees. It won't save you any taxes as well, because you pay taxes to the state from which you derive income, which is Florida, either way. Remember that what you call LLC in Italy may be in fact a \"\"Corporation\"\" as defined in the US, and there's a huge difference. You should probably not put a real-estate property in a Corporation in the US. You must get a legal advice from a (Florida) lawyer ($0-$500/hr consultation), and a tax advice from a (Florida) CPA/EA ($0-$200/hr consultation). Do not consider anything I write here as a legal or tax advice, because it is not. You need a professional to help you because as an Italian, you don't know how things work exactly and relying on rumours and half-truths that you may find and get over the Internet may end up costing you significantly in damages. Also, talk to a reliable real estate agent and property manager before making any purchases.\"",
"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": "d8b09ee2638ceb7294e3fcb01aaeee55",
"text": "I realize this is a stale topic, but to anybody who may swing by looking for an answer to this question (on the recently revised W-8BEN), a foreign taxpayer can get an individual taxpayer identification number (ITIN) without being resident in the US. However, an ITIN will often not be necessary for W-8BEN purposes if you have a tax number from your local jurisdiction. Check the Form W-8BEN instructions for your specific situation, but some taxpayers will need neither a US-issued ITIN nor a foreign-issued TIN. Forming a Delaware or Nevada LLC would be expensive and generally subject to federal and state tax and filing obligations. It would also moot the need for a W-8BEN, which only applies to foreign taxpayers; the equivalent form for domestic taxpayers is Form W-9.",
"title": ""
},
{
"docid": "80de141bae5310195836a1fe30b59b0d",
"text": "This is more of a general answer about your situation than a specific answer to your question. You might consider getting a SIP telephone number based in the US, or an even easier to use IP based phone number. That way you can use it through your Internet connection and make eaiser calls to US companies that you still have a business relationship with.",
"title": ""
},
{
"docid": "769c576c16662129867297ce0d808f29",
"text": "We run into this all the time with our EU clients. As far as I can tell, the only requirements when it comes to invoicing have to do with sales tax, which is determined at the state level, and only in the case that items are taxable. It seems that the service provided to you is not taxable and so there is no obligation under Californian law to provide you with the invoice you need. That said, it would be nice to provide this information to you as a courtesy. We don't provide the information typically required by EU tax authorities on our receipts either, but whenever one of our EU clients requests a more formal invoice we gladly send them one.",
"title": ""
},
{
"docid": "98e4a30799ac22fdf632c7ade120ac85",
"text": "\"The decision whether this test is or is not met seems to be highly dependent on the specific situation of the employer and the employee. I think that you won't find a lot of general references meeting your needs. There is such a thing as a \"\"private ruling letter,\"\" where individuals provide specific information about their situation and request the IRS to rule in advance on how the situation falls with respect to the tax law. I don't know a lot about that process or what you need to do to qualify to get a private ruling. I do know that anonymized versions of at least some of the rulings are published. You might look for such rulings that are close to your situation. I did a quick search and found two that are somewhat related: As regards your situation, my (non-expert) understanding is that you will not pass in this case unless either (a) the employer specifies that you must live on the West Coast or you'll be fired, (b) the employer would refuse to provide space for you if you moved to Boston (or another company location), or (c) you can show that you could not possibly do your job out of Boston. For (c), that might mean, for example, you need to make visits to client locations in SF on short-notice to meet business requirements. If you are only physically needed in SF occasionally and with \"\"reasonable\"\" notice, I don't think you could make it under (c), although if the employer doesn't want to pay travel costs, then you might still make it under (a) in this case.\"",
"title": ""
},
{
"docid": "bca4fd8eebb48bd815866fbf47824e7e",
"text": "Forms for the Colorado LLCs are online. You can find the link to the dissolution form here, and instructions here. IRS instructions are here. That's what they want: To close your business account, send us a letter that includes the complete legal name of the entity, the EIN, the business address and the reason you wish to close your account. If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, include that when you write to us at: Internal Revenue Service Cincinnati, Ohio 45999 Everything is pretty straight forward. Note that you might be required to file a initial/final tax return if you had any transactions.",
"title": ""
},
{
"docid": "521ca52299c5af07b7cf3157b6a45764",
"text": "\"TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain). Unless you decide to have your LLC taxed as a corporation, there's no change in taxes. LLC, by default, is a pass-through entity and all income will flow to your respective tax returns. From tax perspective, the LLC will be treated as a partnership. It will file form 1065 to report its income, and allocate the income to the members/partners on schedules K-1 which will be given to you. You'll use the numbers on the K-1 to transfer income allocated to you to your tax returns and pay taxes on that. Being out of state, will she incur more taxes from the money being now filtered through the business? Your employee couldn't care less about your tax problems. She will continue receiving the same salary whether you are a sole proprietor or a LLC, or Corporatoin. What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now? Your contract counterparts couldn't care less about your tax problems. Unless you are a corporation, people who pay you more than $600 a year must file a 1099. Since you'll be a partnership, you'll need to provide the partnership EIN instead of your own SSN, but that's the only difference. Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says \"\"you must now pay four times per year\"\". Unless you choose to tax your LLC as a corporation, LLC will pay no taxes. You will need to make sure you have enough withholding to cover for the additional income, or pay the quarterly estimates. The magic number is $1000. If your withholding+estimates is $1000 less than what your tax liability is, you'll be penalized, unless the total withholding+estimates is more than 100% of your prior year tax liability (or 110%, depending on the amounts). The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership? Partnerships can be very flexible, and equity split doesn't have to be the same as income, loss or assets split. But, you'll need to have a lawyer draft your operational agreement which will define all these splits and who gets how much in what case. Make sure to cover as much as possible in that agreement in order to avoid problems later.\"",
"title": ""
},
{
"docid": "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": "8831f4e7c58254ff02b0311baf3833f4",
"text": "It's not so much about time but about intent. If your intent is to move there permanently, it would be when you arrive in the state for the purposes of living there (i.e. not from a while before that when you went to check a place out or for an interview). I believe that most (if not all) states expect you to get a Driver's License from that state within 30-days of moving there. Something like a Driver's License or State ID would be proof of your residency. These things vary greatly from state to state, so you'd have to research particular states. Or find someone who's done that already. A bit of searching, specifically for Texas, brought me to this forum thread: If you / he wish to establish residency here -- here being Texas -- get a Texas Driver's License and Voter Registration here. Government issued ID with a Texas address is pretty much bulletproof defense against being found to be a resident of elsewhere. Your battle, if there is one, will not be with Texas, but with your present home of record state and/or local government if there are income taxes associated with having been a resident there during the tax year. Which brings up the other question: You would need to make sure that California does not have some provision that would cause you issues. (This isn't so much a case of income from a company in the state as it about capital gains, but it is still prudent to check.)",
"title": ""
},
{
"docid": "01146864ca51d161601ebe09cd8359b9",
"text": "First of all, this is a situation when a consultation with a EA working with S-Corporations in California, CA-licensed CPA or tax preparer (California licenses tax preparers as well) is in order. I'm neither of those, and my answer is not a tax advice of any kind. You're looking at schedule CA line 17 (see page 42 in the 540NR booklet). The instructions refer you to form 3885A. You need to read the instructions carefully. California is notorious for not conforming to the Federal tax law. Specifically, to the issue of the interest attributable to investment in S-Corp, I do not know if CA conforms. I couldn't find any sources saying that it doesn't, but then again - I'm not a professional. It may be that there's an obscure provision invalidating this deduction, living in California myself - I wouldn't be surprised. So I suggest hiring a CA-licensed tax preparer to do this tax return for you, at least for the first year.",
"title": ""
},
{
"docid": "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": "a66e2ba2e6ba5930fb32bc8c755dc297",
"text": "California is very aggressive about enforcing LLC franchise taxes. The only correction I'd make to Kekito's answer is that the fee is $800 minimum or some percentage of the LLC's total business volume in the state. What's killer about it is that the tax is dependent not on what your LLC's profit is, but what its revenues are! Here's a good link explaining how the tax is calculated: California LLC Franchise Tax Rates Be very careful about making sure you comply with every dot in the California codes or else you really won't like what happens. It's one of the reasons so many companies avoid locating operations in California if at all possible. I hope this helps. Good luck!",
"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": ""
},
{
"docid": "d80a1f181bcb140f204904d92426bb01",
"text": "\"The legal term for this is \"\"intestate succession\"\". The 1990 Uniform Probate Code form the basis for intestate succession, though implementation and supplementary provisions will vary from state to state. Under the Probate Code, the estate will be distributed as follows : The Probate Code does not appear to state what happens if no such beneficiaries are found. I suspect the estate would be taken by the IRS after a suitable period of time has passed to allow for relatives to come forward. The source for this answer is the FindLaw website. The law will apply equally to US citizens and foreign nationals.\"",
"title": ""
}
] |
fiqa
|
a49043558ac2cb7a23ae546180b55356
|
Can an Indian citizen/resident invest in a US company and collect the profits in India?
|
[
{
"docid": "b6646ff19b07b11380f830d396ec304d",
"text": "Every month I will get a return in from my share of the profit which would be used for repayment of capital and interest in India. Not to sure what the business plan is. Please factor all the modalities, Exchange rate fluctuations, etc. My concern is regarding RBI rules and regulations, FEMA guidelines, and Income tax. Under the Liberalized Remittance Scheme; Funds can be transferred outside India. Any profit you make will be taxable in India. You will have to declare this pay tax in as per schedule.",
"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": "28f92e26dcc503d4c07d8bac7f07e7a4",
"text": "\"The examples you provide in the question are completely irrelevant. It doesn't matter where the brokerage is or where is the company you own stocks in. For a fairly standard case of an non-resident alien international student living full time in the US - your capital gains are US sourced. Let me quote the following text a couple of paragraphs down the line you quoted on the same page: Gain or loss from the sale or exchange of personal property generally has its source in the United States if the alien has a tax home in the United States. The key factor in determining if an individual is a U.S. resident for purposes of the sourcing of capital gains is whether the alien's \"\"tax home\"\" has shifted to the United States. If an alien does not have a tax home in the United States, then the alien’s U.S. source capital gains would be treated as foreign-source and thus nontaxable. In general, under the \"\"tax home\"\" rules, a person who is away (or who intends to be away) from his tax home for longer than 1 year has shifted tax homes to his new location upon his arrival in that new location. See Chapter 1 of Publication 463, Travel, Entertainment, Gift, and Car Expenses I'll assume you've read this and just want an explanation on what it means. What it means is that if you move to the US for a significant period of time (expected length of 1 year or more), your tax home is assumed to have shifted to the US and the capital gains are sourced to the US from the start of your move. For example: you are a foreign diplomat, and your 4-year assignment started in May. Year-end - you're not US tax resident (diplomats exempt), but you've stayed in the US for more than 183 days, and since your assignment is longer than 1 year - your tax home is now in the US. You'll pay the 30% flat tax. Another example: You're a foreign airline pilot, coming to the US every other day flying the airline aircraft. You end up staying in the US 184 days, but your tax home hasn't shifted, nor you're a US tax resident - you don't pay the flat tax. Keep in mind, that tax treaties may alter the situation since in many cases they also cover the capital gains situation for non-residents.\"",
"title": ""
},
{
"docid": "9b349f6a566fb61b24d8bf171a8c021b",
"text": "You should talk to a lawyer who's familiar with the matter. I'm not such a lawyer. For the best of my understanding, at least with regards to the US, the answer to all three of your questions is no. Legally, a US company cannot employ Iranian residents and transfer money to Iran. However, I know of Iranians working in the US. So if you manage to secure a H1b visa and move to the US - you can work and earn money here. What you do with it after you earned it - is your business.",
"title": ""
},
{
"docid": "ce5a9711abf6e3faffd048d87194ae7e",
"text": "\"Do I need to pay taxes in India in this scenario? For India tax purposes, you would still qualify as \"\"Resident Indian\"\". As a resident Indian you have to pay taxes on Global income. It is not relevant whether you transfer the money back to India to keep in US. The income is generated and taxable. Depending on your contract, presumably you are working as a free lance; certain expenses are allowed to be deducted from your income, for example if you purchase equipment to help carry out the work, stay / entertainment costs, etc. Consult a professional CA who should be able to guide you on what is eligible and what is not. The balance along with your other income will be taxed as per tax brackets. There is exemption for certain category of workers, mostly in entertainment industry where such income is not taxable. This does not apply to your case.\"",
"title": ""
},
{
"docid": "9bd6c9487986c28f0e9fc0e9a7a2627c",
"text": "I wouldn't think so. If you read the list of features listed on the page you referred to, notice: Track Stocks It looks like it is restricted to the major U.S. stock markets. No mention of India's NSE.",
"title": ""
},
{
"docid": "0c69177e47bd21ad594a45558a393d9f",
"text": "Assuming that the NRE (NonResident External) account is in good standing, that is, you are still eligible to have an NRE account because your status as a NonResident of India has not changed in the interim, you can transfer money back from your NRE account to your US accounts without any problems. But be aware that you bear the risk of getting back a much smaller amount than you invested in the NRE account because of devaluation of the Indian Rupee (INR). NRE accounts are held in INR, and whatever amounts (in INR) that you choose to withdraw will be converted to US$ at the exchange rate then applicable. Depending on whether it is the Indian bank that is doing the conversion and sending money by wire to your US bank, or you are depositing a cheque in INR in your US bank, you may be charged miscellaneous service fees also. To answer a question that you have not asked as yet, there is no US tax on the transfer of the money. The interest paid on your deposits into the NRE account are not taxable income to you in India, but are taxable income to you in the US, and so I hope that you have been declaring this income each year on Schedule B of your income tax return, and also reporting that you have accounts held abroad, as required by US law. See for example, this question and its answer and also this question and its answer.",
"title": ""
},
{
"docid": "a2e60f8415a32d01d2afd7d0347793a2",
"text": "foreign income, transfer it to my savings account in India Yes you can transfer to India. The right account would be NRO/NRE. As an NRI one should not hold a regular savings account. forum that foreign income is not taxable unless used to buy stocks, fds etc If you are an NRI, income earned outside of India is not taxable in India. However any income you generate in India is taxable, i.e. interest income, gains from shares etc. Do we need to pay taxes for the money transferred No tax if you are an NRI even if you transfer funds to India. Taxation does not depend on whether or not you transfer the money, it depends on your status used to pay home EMIs or principle amount? You can use the money for what ever you like.",
"title": ""
},
{
"docid": "a80bb132392aa7f218d0c1bb6b98ce37",
"text": "There are 2 questions here; My father, an NRI, sold inherited land in India ... This transaction is taxable in India. As its inherited land, and assuming its Non-Agricultural, your Dad will have to pay tax on gains, 20% with Indexation and 10% without indexation. He wants to move the money to the USA, with minimum tax. How to go about it? Money can be moved to US, there is a limit on the amount that can be freely repatriated, the limit is more if the funds are being moved for investment, like property etc outside India.",
"title": ""
},
{
"docid": "7c2718faab7ee5008d2257c0669ca216",
"text": "\"I'm assuming that by saying \"\"I'm a US resident now\"\" you're referring to the residency determination for tax purposes. Should I file a return in the US even though there is no income here ? Yes. US taxes its residents for tax purposes (which is not the same as residents for immigration or other purposes) on worldwide income. If yes, do I get credits for the taxes I paid in India. What form would I need to submit for the same ? I am assuming this form has to be issued by IT Dept in India or the employer in India ? The IRS doesn't require you to submit your Indian tax return with your US tax return, however they may ask for it later if your US tax return comes under examination. Generally, you claim foreign tax credits using form 1116 attached to your tax return. Specifically for India there may also be some clause in the Indo-US tax treaty that might be relevant to you. Treaty claims are made using form 8833 attached to your tax return, and I suggest having a professional (EA/CPA licensed in your State) prepare such a return. Although no stock transactions were done last year, should I still declare the value of total stocks I own ? If so what is an approx. tax rate or the maximum tax rate. Yes, this is done using form 8938 attached to your tax return and also form 114 (FBAR) filed separately with FinCEN. Pay attention: the forms are very similar with regard to the information you provide on them, but they go to different agencies and have different filing requirements and penalties for non-compliance. As to tax rates - that depends on the types of stocks and how you decide to treat them. Generally, the tax rate for PFIC is very high, so that if any of your stocks are classified as PFIC - you'd better talk to a professional tax adviser (EA/CPA licensed in your State) about how to deal with them. Non-PFIC stocks are dealt with the same as if they were in the US, unless you match certain criteria described in the instructions to form 5471 (then a different set of rules apply, talk to a licensed tax adviser). I will be transferring most of my stock to my father this year, will this need to be declared ? Yes, using form 709. Gift tax may be due. Talk to a licensed tax adviser (EA/CPA licensed in your State). I have an apartment in India this year, will this need to be declared or only when I sell the same later on ? If there's no income from it - then no (assuming you own it directly in your own name, for indirect ownership - yes, you do), but when you sell you will have to declare the sale and pay tax on the gains. Again, treaty may come into play, talk to a tax adviser. Also, be aware of Section 121 exclusion which may make it more beneficial for you to sell earlier.\"",
"title": ""
},
{
"docid": "e45082ebd31646e9466456f04258ad79",
"text": "\"Please declare everything you earn in India as well as the total amount of assets (it's called FBAR). The penalties for not declaring is jail time no matter how small the amount (and lots of ordinary people every 2-3 years are regularly sent to jail for not declaring such income). It's taken very seriously by the IRS - and any Indian bank who has an office in the US or does business here, can be asked by IRS to provide any bank account details for you. You will get deductions for taxes already paid to a foreign country due to double taxation, so there won't be any additional taxes because income taxes in US are on par or even lower than that in India. Using tricks (like transferring ownership to your brother) may not be worth it. Note: you pay taxes only when you realize gains anyway - both in India or here, so why do you want to take such hassles. If you transfer to your brother, it will be taxed only until you hold them. Make sure you have exact dates of gains between the date you came to US and the date you \"\"gifted\"\" to your brother. As long as you clearly document that the stocks transferred to your brother was a gift and you have no more claims on them, it should be ok, but best to consult a CPA in the US. If you have claims on them, example agreement that you will repurchase them, then you will still continue to pay taxes. If you sell your real estate investments in India, you have to pay tax on the gains in the US (and you need proof of the original buying cost and your sale). If you have paid taxes on the real estate gains in India, then you can get deduction due to double tax avoidance treaty. No issues in bringing over the capital from India to US.\"",
"title": ""
},
{
"docid": "fb5105cef9bf56d1edb545ff9441e282",
"text": "The data provided in your question is irrelevant. The data that you provided in the comments (that you're physically present in the US while doing the work) is the only relevant information needed to answer your question. You will need to pay taxes in the US for the earnings. The company invoicing the US client will also need to pay taxes in the US for its earnings from these invoices. You can transfer between bank accounts and deposit whatever you want anywhere you want, no-one cares (with respect to the US taxes, check with Indian tax accountant about Indian requirements).",
"title": ""
},
{
"docid": "e8426dce951f35375138937670093510",
"text": "In any case you need a CA. Please consult one. I am selling a plot of land that I own in India. This would be treated as capital gains event and you would owe taxes on the gains. I would like to purchase an apartment in India for my parents use. Yes you can. You maybe able to offset some gains on land sale against the apartment. Would like to gift part the money (about INR 20 lakhs) towards my US born son's college education in the US. As you are NRI; Under FEMA, you can transfer funds from your NRO account to US. A form 15CAB and 15CB need to be submitted to the bank to enable transer.",
"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": "9ef174b33606cc48292303fe2a920126",
"text": "This is a complicated question that relies on the US-India Tax Treaty to determine whether the income is taxable to the US or to India. The relevant provision is likely Article 15 on Personal Services. http://www.irs.gov/pub/irs-trty/india.pdf It seems plausible that your business is personal services, but that's a fact-driven question based on your business model. If the online training is 'personal services' provided by you from India, then it is likely foreign source income under the treaty. The 'fixed base' and '90 days' provisions in Article 15 would not apply to an India resident working solely outside the US. The question is whether your US LLC was a US taxpayer. If the LLC was a taxpayer, then it has an obligation to pay US tax on any worldwide income and it also arguably disqualifies you from Article 15 (which applies to individuals and firms of individuals, but not companies). If you were the sole owner of the US LLC, and you did not make a Form 8832 election to be treated as subject to entity taxation, then the LLC was a disregarded entity. If you had other owners, and did not make an election, then you are a partnership and I suspect but cannot conclude that the treaty analysis is still valid. So this is fact-dependent, but you may be exempt from US tax under the tax treaty. However, you may have still had an obligation to file Forms 1099 for your worker. You can also late-file Forms 1099 reporting the nonemployee compensation paid to your worker. Note that this may have tax consequences on the worker if the worker failed to report the income in those years.",
"title": ""
},
{
"docid": "bbc830aab6f767674a4253f0588992bc",
"text": "\"Here is what we do. We use YNAB to do our budgeting and track our expenses. Anything that gets paid electronically is tracked to the penny. It really needs to be, because you want your transaction records to match your bank's transaction records. However, for cash spending, we only count the paper money, not the coins. Here is how it works: If I want a Coke out of a vending machine for 75 cents, and I put a dollar bill in and get a quarter back as change, I record that as a $1.00 expense. If, instead, I put 3 quarters in to get the Coke, I don't record that expense at all. Spending coins is \"\"free money.\"\" We do this mainly because it is just easier to keep track of. I can quickly count the cash in my wallet and verify that it matches the amount that YNAB thinks I have in my wallet, and I don't need to worry about the coins. Coins that are in my car to pay for parking meters or coins in the dish on my dresser don't need to be counted. This works for us mainly because we don't do a whole lot of cash spending, so the amount we are off just doesn't add up to a significant portion of our spending. And, again, bank balances are exact to the penny.\"",
"title": ""
}
] |
fiqa
|
7ac1be21fe1063a2781401bdfe4bfa28
|
What would happen if the Euro currency went bust?
|
[
{
"docid": "d47d1d96b13fb1d436e6802cf96bb61c",
"text": "Each country would have to go back to its own currency, or the rich countries would just kick the poor ones out of the EU. It would be bad for the poor countries, and the global economy would suffer, but it really wouldn't be a big deal.",
"title": ""
},
{
"docid": "aab8bfc32c55710d1b90338183b1a0fc",
"text": "These rumors are here just to help dollar stay alive. Euro have problems, but they are rather solvable, unlike dollar situation. Even if something wrong would happen - countries would return to their national currencies, mainly Germany & France are important here. This does not means that EuroUnion would be destroyed - some countries live in EU without Euro and they are just fine.",
"title": ""
},
{
"docid": "6e3ceaab19aa92b952daca64edf09669",
"text": "If the Euro went bust then it would be the 12th government currency to go belly up in Europe (according to this website). Europe holds the record for most failed currencies. It also holds the record for the worst hyperinflation in history - Yugoslavia 1993. I'm not sure what would happen if the Euro failed. It depends on how it fails. If it fails quickly (which most do) then there will be bank runs, bank holidays, capital controls, massive price increases, price controls, and just general confusion as people race to get rid of their Euros. Black markets for everything will pop up if the price controls remain in place. Some countries may switch to a foreign currency (i.e. the US dollar if it is still around) until they can get their own currency in circulation.",
"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": "9068374da97395610198f6d0ad280764",
"text": "Krugman (Nobel prize in Economy) has just said: Greek euro exit, very possibly next month. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany. 3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals. 3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing. 4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy — basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or: 4b. End of the euro. And we’re talking about months, not years, for this to play out. http://krugman.blogs.nytimes.com/2012/05/13/eurodammerung-2/",
"title": ""
},
{
"docid": "8ff08107bbfa13cbfeed8f5187580bce",
"text": "\"The result would be catastrophic. The almost-reserve currency would collapse which would produce a medium sized depression, perhaps same with with 2008-now, or even larger, since don't forget, that one was produced from a housing bubble existing in only a part of the american economy; imagine what would happen if almost the full size of the economy (Europe) would collapse, even if Europe isn't as much \"\"connected\"\". But reality here is, there's no chance to that. The real reason you hear those rumors is that America (along with minor partners like the British Sterling) want to bring down the Euro for medium-term benefit. e.g. Several economists get on Bloomberg announcing they are short selling the Euro. Irony is, all this is helping the Euro since selling and short-selling and selling and short-selling helps massively its liquidity. It's like several nay sayers actually making a politician famous with their spite.\"",
"title": ""
}
] |
[
{
"docid": "23dcb346982a8bdcf2ec460e8c272c4c",
"text": "There are many different things that can happen, all or some. Taking Russia and Argentina as precedence - you may not be able to withdraw funds from your bank for some period of time. Not because your accounts will be drained, but because the cash supply will be restricted. Similar thing has also happened recently in Cyprus. However, the fact that the governments of Russia and Argentina limited the use of cash for a period of time doesn't mean that the US government will have to do the same, it my choose some other means of restraint. What's for sure is that nothing good will happen. Nothing will probably happen to your balance in the bank (Although Cyprus has shown that that is not a given either). But I'm not so sure about FDIC maintaining it's insurance if the bank fails (meaning if the bank defaults as a result of the chain effect - you may lose your money). If the government is defaulting, it might not have enough cash to take over the bank deposits. After the default the currency value will probably drop sharply (devaluation) which will lead to inflation. Meaning your same balance will be worth much less than it is now. So there's something to worry about for everyone.",
"title": ""
},
{
"docid": "53a33eed609d2c59d67a43cc281aea4f",
"text": "There are various indexes on the stock market that track the currencies. Though it is different than Forex (probably less leverage), you may be able to get the effects you're looking for. I don't have a lot of knowledge in this area, but looked some into FXE, to trade the Euro debt crisis. Here's an article on Forex, putting FXE down (obviously a biased view, but perhaps will give you a starting point for comparison, should you want to trade something specific, like the current euro/dollar situation).",
"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": "6cc7e456751c9ae6e555519de100de88",
"text": "In many countries in Europe the prices shot through the roof, so it is not all positive. Also the switching country gives out lot of monetary control that is not welcomed by many. I think that UK is not going to change to euro for a long long time.",
"title": ""
},
{
"docid": "776a0fad3abfce8445dedec1de473ff6",
"text": "Short the Pound and other English financial items. Because the English economy is tied to the EU, it will be hit as well. You might prefer this over Euro denominated investments, since it's not exactly clear who your counterpart is if the Euro really crashes hard. Meaning suppose you have a short position Euro's versus dollars, but the clearing house is taken down by the crash.",
"title": ""
},
{
"docid": "cef4fa3efefe86f85f703ff4e020704f",
"text": "\"If there is a very sudden and large collapse in the exchange rate then because algorithmic trades will operate very fast it is possible to determine “x” immediately after the change in exchange rate. All you need to know is the order book. You also need to assume that the algorithmic bot operates faster than all other market participants so that the order book doesn’t change except for those trades executed by the bot. The temporarily cheaper price in the weakened currency market will rise and the temporarily dearer price in the strengthened currency market will fall until the prices are related by the new exchange rate. This price is determined by the condition that the total volume of buys in the cheaper market is equal to the total volume of sells in the dearer market. Suppose initially gold is worth $1200 on NYSE or £720 on LSE. Then suppose the exchange rate falls from r=0.6 £/$ to s=0.4 £/$. To illustrate the answer lets assume that before the currency collapse the order book for gold on the LSE and NYSE looks like: GOLD-NYSE Sell (100 @ $1310) Sell (100 @ $1300) <——— Sell (100 @ $1280) Sell (200 @ $1260) Sell (300 @ $1220) Sell (100 @ $1200) ————————— buy (100 @ $1190) buy (100 @ $1180) GOLD-LSE Sell (100 @ £750) Sell (100 @ £740) ————————— buy (200 @ £720) buy (200 @ £700) buy (100 @ £600) buy (100 @ £550) buy (100 @ £530) buy (100 @ £520) <——— buy (100 @ £500) From this hypothetical example, the automatic traders will buy up the NYSE gold and sell the LSE gold in equal volume until the price ratio \"\"s\"\" is attained. By summing up the sell volumes on the NYSE and the buy volumes on the LSE, we see that the conditions are met when the price is $1300 and £520. Note 800 units were bought and sold. So “x” depends on the available orders in the order book. Immediately after this, however, the price of the asset will be subject to the new changes of preference by the market participants. However, the price calculated above must be the initial price, since otherwise an arbitrage opportunity would exist.\"",
"title": ""
},
{
"docid": "72bad22ce0b9a53d90e41eec6a0b3030",
"text": "\"Why will they find financing when they leave the Euro? Why would their currencies not simply hyperinflate due to excessive issuance in an attempt to devalue? Which is worse for unemployment, austerity or hyperinflation? >they'd be expelled by Germany This is a union correct? Why do you assume Germany holds all the cards? I've read that Gonzalo Lira essay and have read Mish about everyday since 2009, yet still do not think it is so obvious that the Euro will collapse. I gained quite a bit of skepticism from Barry Eichengreen's paper on the [Breakup of the Euro Area.](http://www.nber.org/papers/c11654.pdf?new_window=1) What I see right now is that so far the ECB has only acted in such a way as to prevent outright deflation and meet its 2% inflation target, but not to continuously outright fund the profligate governments. They let the bond markets force those governments into contraction or into default whereas the fed, with its dual mandate, will always buy the US bonds and eventually will inflate the currency as opposed to having a sovereign default. So I think we will see the ECB continue to print as much is needed to meet its mandate but at the same time there will be defaults, bank nationalizations and failures, and a continued lack of growth in the Euro area until eventually the austerity measures bring revenue and spending in line at which point the countries under heavy debt would be stupid not to default because they can self finance. Whereas in the US we are so dependent on deficit financing that as foreigners move further away from holding treasuries we become more susceptible to bond vigilantes taking the reigns which will force the feds hand into outright monetization. Then I think we will see our own government exacerbate inflation by bidding on the same goods that those dollars which no longer are going into treasuries are bidding on. Then I think we'll finally see bad inflation in the US. Of course as long as there is hoards of money fleeing Europe for the US \"\"safe haven,\"\" the lack of foreign treasury investment is pretty moot. *spelling\"",
"title": ""
},
{
"docid": "cd99462a2beb0902adf9f5e34c303db6",
"text": "I suppose they still could risk hyperinflation? Anyways, if they got their own currency that would probably be positive for their exports. Still, what are they going to export? Buying any raw materials would be super expensive with their devalued currency. What is your thought about their exporting with devalued currency?",
"title": ""
},
{
"docid": "a316b4e61c79499efab27a0de2c74573",
"text": "I am going to clone an answer from another question that I wrote ;) and refer you to an article in the Wall Street Journal that I read this morning, What's at Stake in the Greek Vote, summarizing the likely outcome of the situation if a Euro exit looks likely after the election: ... we will see a full-fledged bank run. Greek banks would collapse ... The market exchange-rate would likely be two or three drachmas to the euro, which would double or triple the Greek price of imported goods within a few days. Prices of assets, including real-estate assets, would crumble. Those who moved their deposits abroad would be able to buy these assets cheaply, leading to a significant, regressive redistribution of Greek wealth. In short, you'd lose about two-thirds of your savings unless you were storing them somewhere safe from the conversion. The article also predicts difficulty importing goods (other nations will demand to be paid in euro, not drachma) leading to disruption of trade and various supply shortages.",
"title": ""
},
{
"docid": "ed038e26e5efea7e3bd88d6f5689b257",
"text": "> The European economy was not utterly doomed before the Euro, therefore the fall of the Euro does not doom their economy. I'm not sure how that's related at all. Just because at some random point in time, the European economy was doing OK, doesn't mean that it will definitely be ok again in the future after a jarring multi-national currency shift. There are tons of other factors in play. First of all, who's going to accept drachma again? What is it worth? What about pesata and lira? These currencies haven't been used in over a decade. Who is going to value them? Who is going to accept them? What happens when the Greeks default? When their pension checks start bouncing? This is what Germany is fearing. Who is going to buy their products when there is a major currency crisis going on?",
"title": ""
},
{
"docid": "7cdaadc6c03da77b13a3596a89844273",
"text": "Rising rates is going to counteract the asset bubble and Draghi & the rest of the ECB are well aware of this. Now that Spain & Italy got their shit together they're going to go full steam ahead. Also Germany specifically is in trouble given its large companies such as BASF and others are threatened as companies on countries globally are consolidating and a focus by domestic experts on the trade deficit the U.S. holds with Germany. The European economy will be fine. Certain European assets too, but do not be too sure on the DAX.",
"title": ""
},
{
"docid": "652a441b503ccae88a469cfbf4f0a0d6",
"text": "I can't think of any specifically, but if you haven't already done so it would be worthwhile reading a textbook on macro-economics to get an idea of how money supply, exchange rates, unemployment and so on are thought to relate. The other thing which might be interesting in respect of the Euro crisis would be a history of past economic unions. There have been several of these, not least the US dollar (in the 19C, I believe); the union of the English and Scottish pound (early 1600s); and the German mark. They tend to have some characteristic problems, caused partly by different parts of the union being at different stages in an economic cycle. Unfortunately I can't think of a single text which gathers this together.",
"title": ""
},
{
"docid": "c4d799f952082cf6768813a8df4b3127",
"text": "The Swiss franc has appreciated quite a bit recently against the Euro as the European Central Bank (ECB) continues to print money to buy government bonds issues by Greek, Portugal, Spain and now Italy. Some euro holders have flocked to the Swiss franc in an effort to preserve the savings from the massive Euro money printing. This has increased the value of the Swiss franc. In response, the Swiss National Bank (SNB) has tried to intervene multiple times in the currency market to keep the value of the Swiss franc low. It does this by printing Swiss francs and using the newly printed francs to buy Euros. The SNB interventions have failed to suppress the Swiss franc and its value has continued to rise. The SNB has finally said they will print whatever it takes to maintain a desired peg to the Euro. This had the desired effect of driving down the value of the franc. Which effect will this have long term for the euro zone? It is now clear that all major central bankers are in a currency devaluation war in which they are all trying to outprint each other. The SNB was the last central bank to join the printing party. I think this will lead to major inflation in all currencies as we have not seen the end of money printing. Will this worsen the European financial crisis or is this not an important factor? I'm not sure this will have much affect on the ongoing European crisis since most of the European government debt is in euros. Should this announcement trigger any actions from common European people concerning their wealth? If a European is concerned with preserving their wealth I would think they would begin to start diverting some of their savings into a harder currency. Europeans have experienced rapidly depreciating currencies more than people on any other continent. I would think they would be the most experienced at preserving wealth from central bank shenanigans.",
"title": ""
},
{
"docid": "9436fc2ca722cf39549c45710f53c2c0",
"text": "It's slightly more complicated than that. Usually a country that was in Greece's situation would be able to use inflation to devalue their currency which would have the effect of lowering the value of the government's debts and also of making Greek prices more competitive in the international market. Or they could use quantitative easing to inject cheap cash into the economy to help stimulate it. Because Greece is on the Euro, however, they have no control over their own currency and their options are highly limited. Additionally, when you join the EU, especially the Eurozone, that's supposed to come with additional internal responsibilities, but it's also supposed to come with additional external ones as well. Greece has a responsibility to get its shit together, but the whole point is that more financially stable countries have a responsibility to help them. Right now that means Germany; they're the ones with the greatest control over the Euro and they're shying away from their duties. If the rest of Europe didn't want to risk ending up in this position they shouldn't have let Greece into the Eurozone.",
"title": ""
},
{
"docid": "3e27dbab65c841fe330d918640d3b114",
"text": "\"> Just because at some random point in time, the European economy was doing OK, doesn't mean that it will definitely be ok I'm not claiming it will be \"\"definitely be ok\"\". definitely ok != utterly doomed. > What happens when the Greeks default? If they were paying in drachma, they wouldn't default. They'd print more drachma and inflation would occur. That's how currency imbalances adjust. Germany wants it both ways. They want a stable Europe-wide currency but they don't want a Europe-wide economy, they want their economy isolated from the problems in the rest of Europe. Germany should leave the Euro.\"",
"title": ""
}
] |
fiqa
|
94d24bc4f78390f334b8e7ac361890e7
|
How does LLC ownership work in relation to U.S. tax law?
|
[
{
"docid": "43bdaa58a8294a11126f9f82315e045b",
"text": "It really depends. If it is offered as compensation (ie in leiu of, or in addition to salary or cash bonus) then it would be reportable income, and if sold later for a profit then that would be taxable as gains. If this share is purchased as an investment at current value then it would be treated like other securities most likely gains realized at sale. Any discount could be considered income but there are some goofy rules surrounding this enacted to prevent tax evasion and some to spur growth. That is the answer in a nut shell. It is far more complicated in reality as there are somewhere around 2000 pages of regulations deal with different exceptions and scenerios.",
"title": ""
}
] |
[
{
"docid": "6b80141754cd9c7da3082116071ec001",
"text": "\"S-Corp are taxed very different. Unlike LLC where you just add the profit to your income with S-Corp you have to pay yourself a \"\"reasonable\"\" salary (on w-2) which of course is a lot more paperwork. I think the advantage (but don't hold me accountable for this) is if your S-Corp makes a lot more than a reasonable salary, then the rest of the money can be passed through on your personal return at a lower (corp) rate.\"",
"title": ""
},
{
"docid": "eb6a63bb1abd8ee6d5c4b1cde0087a9f",
"text": "I took littleadv's advice and talked to an accountant today. Regardless of method of payment, my US LLC does not have to withhold taxes or report the payment as payments to contractors (1099/1042(S)) to the IRS; it is simply a business expense. He said this gets more complicated if the recipient is working in the US (regardless of nationality), but that is not my case",
"title": ""
},
{
"docid": "706f67d0d5dc56796e24af80837f47ae",
"text": "Here is the solution: any money made inside the United States will be taxed under US tax law. You want to do business here, open up a US headquarters that handles all the sales tracking and reporting. No tax dollars, no operations inside the US. The united states carries such bulk buying power that companies will be forced to abide by its rules.",
"title": ""
},
{
"docid": "4c34950d70128d7f29add7428d89fdbf",
"text": "If I understand you right, people are giving the LLC money for an ownership share. That is NOT income - it would go under equity on the balance sheet. It is analogous to getting a loan from the bank. It is not income - you get cash (an asset) and have an increase to debt (a liability)",
"title": ""
},
{
"docid": "4286585f14be963a8f314ca32f310036",
"text": "\"This is actually quite a complicated issue. I suggest you talk to a properly licensed tax adviser (EA/CPA licensed in your State). Legal advice (from an attorney licensed in your State) is also highly recommended. There are many issues at hand here. Income - both types of entities are pass-through, so \"\"earnings\"\" are taxed the same. However, for S-Corp there's a \"\"reasonable compensation\"\" requirement, so while B and C don't do any \"\"work\"\" they may be required to draw salary as executives/directors (if they act as such). Equity - for S-Corp you cannot have different classes of shares, all are the same. So you cannot have 2 partners contribute money and third to contribute nothing (work is compensated, you'll be getting salary) and all three have the same stake in the company. You can have that with an LLC. Expansion - S-Corp is limited to X shareholders, all of which have to be Americans. Once you get a foreign partner, or more than 100 partners - you automatically become C-Corp whether you want it or not. Investors - it would be very hard for you to find external investors if you're a LLC. There are many more things to consider. Do not make this decision lightly. Fixing things is usually much more expensive than doing them right at the first place.\"",
"title": ""
},
{
"docid": "662573bb6e4c7fa0c1481bfb27440a7f",
"text": "An LLC is a pass-through entity in the USA, so profits and losses flow through to the individual's taxes. Thus an LLC has a separate TIN but the pass-through property greatly simplifies tax filings, as compared to the complicated filings required by C-corps.",
"title": ""
},
{
"docid": "c9d9db846af1c499fad68e351b194adb",
"text": "I realize this is a dated question, but for anyone interested in this subject please be aware of the availability of IRC § 1235 and capital gain treatment for the sale of patents. When the holder of a patent transfers all substantial rights to an unrelated person, it can qualify for long-term capital gain treatment. That can be a meaningful tax savings relative to ordinary income treatment. There are a number of specific provisions and requirements to access § 1235. The holder must be the creator or someone unrelated (and not the creator's employer) who purchased the patent from the creator. The holder must transfer all substantial rights to the patent (not a licensing), or sell an undivided portion of all substantial rights (partial sale, again not a license). The benefit of § 1235 is that long-term treatment will apply even for patents with holding periods under 1 year. Other rules and permutations of course also apply. Those who fail § 1235 may still qualify their assets as capital under § 1221 or § 1231. A patent held by its creator will often qualify as a capital asset. It may not make any sense to sell your business as a whole, particularly if all a purchaser wants is a patent or group of patents. Of course, if the patent was held by its creator in a single-member LLC or other disregarded entity sold to a buyer, then the tax treatment is still treated as the sale of a long-term capital asset.",
"title": ""
},
{
"docid": "73476d4891f0c410c689123c015f63e0",
"text": "\"Assuming you are talking about an LLC in the United States, there are no tax repercussions on the LLC itself, because LLCs use pass-through taxation in the U.S., meaning that the LLC does not pay taxes. Whatever you take out of the LLC in the form of distributions goes onto your personal income tax as ordinary income, and you pay personal income tax on it. See this link on the subject from the Nolo.com web site: Tax treatment of an LLC from the Nolo.com web site Repayment of your loan by the LLC would just be another business expense for the business itself. I guess the question would then turn on what your personal tax repercussion would be for payments received from the LLC on the loan. I would guess (and I emphasize \"\"guess\"\") that you would pay tax on any interest gain from the loan payments, which makes the assumption you made the loan to include interest. If not (in other words, if you made this an interest-free loan) then it would be considered a wash for tax purposes and you would have no tax liability for yourself. To reiterate, the LLC (if it is a U.S.. entity) does not pay taxes. Taxation of LLC income is based on whatever distributions the principals take out of it, which is then claimed as taxable personal income. My apologies to littleadv for not making my prior answer (I deleted it) more clear about my answer assuming you were speaking of a U.S.-chartered LLC. I hope this helps. Good luck!\"",
"title": ""
},
{
"docid": "fb4538721131cc3f19655a02ffa66286",
"text": "\"If you start an LLC with you as the sole member it will be considered a disregarded entity. This basically means that you have the protection of being a company, but all your revenues will go on your personal tax return and be taxed at whatever rate your personal rate calculates to based on your situation. Now here is the good stuff. If you file Form 2553 you can change your sole member LLC to file as an S Corp. Once you have done this it changes the game on how you can pay out what your company makes. You will need to employ yourself and give a \"\"reasonable\"\" salary. This will be reported to the IRS and you will file your normal tax returns and they will be taxed based on your situation. Now as the sole member you can then pay yourself \"\"distribution to share holders\"\" from your account and this money is not subject to normal fica and social security tax (check with your tax guy) and MAKE SURE to document correctly. The other thing is that on that same form you can elect to have a different fiscal year than the standard calendar IRS tax year. This means that you could then take part of profits in one tax year and part in another so that you don't bump yourself into another tax bracket. Example: You cut a deal and the company makes 100,000 in profit that you want to take as a distribution. If you wrote yourself a check for all of it then it could put you into another tax bracket. If your fiscal year were to end say on sept 30 and you cut the deal before that date then you could write say 50,000 this year and then on jan 1 write the other check.\"",
"title": ""
},
{
"docid": "d76bbc43cd3bf93b8b9e3ae212e99e7b",
"text": "\"Depends on the State. In California, for example, you pay a franchise tax of $800 every year just for having LLC, and in addition to that - income tax on gross revenue. But in other States (like Wyoming, for example) there's no taxes at all, only registration fees (which may still amount to ~$100-300 a year). IRS doesn't care about LLC's at all (unless you chose to treat is as a corporation). You need to understand that in the US we have the \"\"Federal Government\"\" (IRS is part of that) and the \"\"State Government\"\" that deals with business entities, in each of the 50 States. Since you're talking about Italy, and not EU, you should similarly be talking about the relevant State, and not US.\"",
"title": ""
},
{
"docid": "fe5cfb09968ac4444f604fac9e9b16c9",
"text": "According to the W9 instructions you are considered a U.S. person if: According to the following section, it looks like a C corporation may be easier then an LLC: All of this information can be found here: http://www.irs.gov/pub/irs-pdf/fw9.pdf Hope this helps!",
"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": "3c240eb80447171c476c7943200e8042",
"text": "One possibility that I use: I set up an LLC and get paid through that entity. Then I set up a payroll service through Bank of America and set up direct deposit so that it is free. I pay myself at 70% of my hourly rate based on the number of hours I work, and the payroll service does all the calculations for me and sets up the payments to the IRS. Typically money is left over in my business account. When tax time rolls around, I have a W2 from my LLC and a 1099 from the company I work for. I put the W2 into my personal income, and for the business I enter the revenue on the 1099 and the payroll expenses from paying myself; the left over in the business account is taxed as ordinary income. Maybe it's overkill, but setting up the LLC makes it possible to (a) set up a solo 401(k) and put up to $51k away tax-free, and (b) I can write off business expenses more easily.",
"title": ""
},
{
"docid": "51b98857496db91ad880cc721db0c57c",
"text": "\"That's a very clear explanation, thanks! So a few additional things if anyone will humor my curiosity... 1. By \"\"one-time\"\" tax, does that mean a company that has, say, $5B overseas could bring that back into the US and just be taxed $500M, then keep the remaining $4.5B? 2. Could a company choose a percentage of their overseas money to transfer into the US? Like, only bring in 8% of that $5B ($400M) and be taxed $40M, while keeping all the rest outside the US? Or would it be mandatory to bring it all over? 3. Would most companies just start that same practice of routing to tax havens again after this tax is implented?\"",
"title": ""
},
{
"docid": "3952f02414674a677415876312af53fe",
"text": "First, yes, your LLC has to file annual taxes to the US government. All US companies do, regardless of where their owners live. Second, you will also probably be liable to personally file a return in the US and unless the US has a tax treaty with India (which I don't believe it does) you may end up paying taxes on your same income to both countries. Finally, opening a US bank account as a foreign citizen can be very tricky. You need to talk to a US accountant who is familiar with Indian & US laws.",
"title": ""
}
] |
fiqa
|
5f85a456c51c2dd77749e2c475ee7453
|
S Corp with Straddles Income
|
[
{
"docid": "fb414b1e79d8fdd778db07757e7e593d",
"text": "If this activity were to generate let's say 100K of profit, and the other corporate activities also generate 100K of revenue, are there any issues tax-wise I need to be concerned about? Yes. Having 25% or more of passive income in 3 consecutive years will invalidate your S-Corp status and you'll revert to C-Corp. Can I deduct normal business expenses from the straddles (which are taxed as short term capital gains) profit? I don't believe you can. You can deduct investment expenses from the investment income. On your individual tax return it will balance out, but you cannot mix types of income/expense on the corporate return or K-1.",
"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": "15ad22bcdc1ba71d64e2cdba622599e3",
"text": "Do not mix personal accounts and corporate accounts. If you're paid as your self person - this money belongs to you, not the corporation. You can contribute it to the corporation, but it is another tax event and you should understand fully the consequences. Talk to a tax adviser (EA/CPA licensed in your State). If they pay to you personally (1099) - it goes on your Schedule C, and you pay SE taxes on it. If they pay to your corporation, the corporation will pay it to you as salary, and will pay payroll taxes on it. Generally, payroll through corporation will be slightly more expensive than regular schedule C. If you have employees/subcontractors, though, you may earn money which is not from your own performance, in which case S-Corp may be an advantage.",
"title": ""
},
{
"docid": "3ef191bd6b7281c763458553dff54681",
"text": "First, the annual report is just that, a snapshot that shows value at the beginning and end of the period. Beginning = Aug 08 = $105B End = Aug 09 = $89B Newsletter date May 10 = $96B Odd they chose end of August as it's not even a calendar quarter end. The $16B was market loss during that period. Nearly half of that seemed to be recovered by the time this newsletter came out. The balance sheet also has to show deposits and payments made to existing retirees. I haven't looked at the S&P numbers for those dates, but my gut says this is right. The market tanked and the plan was down, but not too bad. Protect? The PBGC guarantees pensions up to a certain limit. I believe that in general, teachers are below the limit and are not at risk of a reduced benefit. You do need to check that your plan is covered. If not, I believe the state would take over directly. I hope this helps.",
"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": "e65f6a428a57a6e3118afe397365a752",
"text": "There are two parts in this 1042-S form. The income/dividends go into the Canada T5 form. There will be credit if 1042-S has held money already, so use T2209 to report too.",
"title": ""
},
{
"docid": "45315a7f2e7a30b391efa8918d80a94a",
"text": "\"We will bill our clients periodically and will get paid monthly. Who are \"\"we\"\"? If you're not employed - you're not the one doing the work or billing the client. Would IRS care about this or this should be something written in the policy of our company. For example: \"\"Every two months profits get divided 50/50\"\" They won't. S-Corp is a pass-through entity. We plan to use Schedule K when filing taxes for 2015. I've never filled a schedule K before, will the profit distributions be reflected on this form? Yes, that is what it is for. We might need extra help in 2015, so we plan to hire an additional employee (who will not be a shareholder). Will our tax liability go down by doing this? Down in what sense? Payroll is deductible, if that's what you mean. Are there certain other things that should be kept in mind to reduce the tax liability? Yes. Getting a proper tax adviser (EA/CPA licensed in your State) to explain to you what S-Corp is, how it works, how payroll works, how owner-shareholder is taxed etc etc.\"",
"title": ""
},
{
"docid": "73cccbaae914b8dac683a086c810dac6",
"text": "These are all factually correct claims. S-Corporation is a pass-through entity, so whatever gain you have on the corporate level - is passed to the shareholders. If your S-Corp has capital gains - you'll get your pro-rata share of the capital gains. Interest? The same. Dividends? You get it on your K-1. Earned income? Taxed as such to you. I.e.: whether you earn income as a S-Corp or as a sole proprietor - matters not. That's the answer to your bottom line question. The big issue, however, is this: you cannot have more than 25% passive income in your S-Corp. You pass that limit (three consecutive years, one-off is ok) - your S-Corp automatically converts to C-Corp, and you're taxed at the corporate level at the corporate rates (you then lose the capital gains rates, personal brackets, etc). This means that an S-Corp cannot be an investment company. Most (75%+) of its income has to be earned, not passive. Another problem with S-Corp is that people who work as self-proprietors incorporated as S-Corp try to abuse it and claim that the income they earned by the virtue of their own personal performance shouldn't be taxed as self-employed income. IRS frowns upon such a position, and if considerable amounts are at stake will take you all the way up to the Tax Court to prove you wrong. This has happened before, numerously. You should talk to a licensed tax adviser (EA/CPA/Attorney licensed in your state) to educate you about what S-Corp is and how it is taxed, and whether or not it is appropriate for you.",
"title": ""
},
{
"docid": "f22a212586d8b23b70bd6ceb830ee793",
"text": "I'm not sure why you think that it matters that the distribution goes to an S-Corp vs an individual tax payer. You seem to think it has any relevance to your question, but it doesn't. It only confuses your readers. The situation is like this: LLC X is deriving income in State #2. It has two members (I and S) residents of State #1. Members I and S pay all their taxes to State #1, and don't pay taxes to State #2. State #2 audited member I and that member now needs to pay back taxes and penalties to State #2 on income derived from that State. Your question: Does that mean that member S should be worried, since that member was essentially doing the exact same thing as member I? My answer: Yes.",
"title": ""
},
{
"docid": "62d275defac8a06f8d6040c5a24625cd",
"text": "LLC is not a federal tax designation. It's a state-level organization. Your LLC can elect to be treated as a partnership, a disregarded entity (i.e., just report the taxes in your individual income tax), or as an S-Corp for federal tax purposes. If you have elected S-Corp, I expect that all the S-Corp rules will apply, as well as any state-level LLC rules that may apply. Disclaimer: I'm not 100% familiar with S-corp rules, so I can't evaluate whether the statements you made about proportional payouts are correct.",
"title": ""
},
{
"docid": "69e8cf25bf58024f78f81217793e48ad",
"text": "\"Disclaimer: I'm not a tax professional, or an expert on S-Corps. However, I do have my own S-Corp, and my decision process for taking a distribution has nothing (directly) to do with K-1 past or present, or profit and loss. If I have \"\"extra\"\" cash in my S-Corp, I take a distribution. Assuming I do my taxes correctly, the money will be taxed whether I take a distribution or leave it in the business. So it really comes down to how much cash the business requires to continue operating and meeting its expenses.\"",
"title": ""
},
{
"docid": "de92587f4c34d0733ffc73a07c95127c",
"text": "FICA/SE taxes are not 30%. They are at most ~15%, including the employer portion. Employer also pays FUTA tax, and has additional payroll expenses (like fees and worker compensation insurance). The employee's FICA portion is limited up to a certain level of earnings (110100 this year, IIRC). Above it you only pay medicare taxes, not social security. S-Corp earnings are not taxed at 15%, these are not dividends. They're taxed at your ordinary income rate. You don't pay SE taxes on it, that's the only difference. I hope you're talking about tax treatment decision, because there are entirely different factors to keep in mind when you're organizing a business and making a decision between being it a LLC or a corporation. I believe you should pay some money to get a real advice that would apply to you, from a EA/CPA who would be doing the number-crunching (hopefully correctly). I'm a tax practitioner, and this answer was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.",
"title": ""
},
{
"docid": "57fb897c059fe117bf76781c5306adb8",
"text": "\"Thanks for the response. I am using WRDS database and we are currently filtering through various variables like operating income, free cash flow etc. Main issue right now is that the database seems to only go up to 2015...is there a similar database that has 2016 info? filtering out the \"\"recent equity issuance or M&A activity exceeding 10% of total assets\"\" is another story, namely, how can I identify M&A activity? I suppose we can filter it with algorithm stating if company's equity suddenly jumps 10% or more, it get's flagged\"",
"title": ""
},
{
"docid": "bbf48adc1557e2e46c2031c34e371115",
"text": "SXL is a Master Limited Partnership so all of the income is pass-through. Your equity purchase entitles you to a fraction of the 66% of the company that is not owned by Energy Transfer Partners. You should have been receiving the K-1s from SXL from the time that you bought the shares. Without knowing your specific situation, you will likely have to amend your returns for at most 6 years (if the omitted amount of gross income exceeds 25% of your gross income originally stated as littleadv has graciously pointed out in the comments) and include Schedule E to report the additional income (you'll also be able to deduct any depreciation, losses etc. that are passed through the entity on that form, so that will offset some of the gains). As littleadv has recommended, speak with a tax professional (CPA/EA or attorney) before you take any further steps, as everyone's situation is a bit different. This Forbes article has a nice overview of the MLP. There's a click-through to get to it, but it's not paywalled.",
"title": ""
},
{
"docid": "bf38dce82645ae04c92ffe7f51c40d0a",
"text": "An S-corp doesn't pay income tax -- taxation is pass-through. This being the case, there are no tax deductions it could take for charitable giving. The solution would be for you to make the contribution out of your own pocket and then personally claim the deduction on your own taxes.",
"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": ""
}
] |
fiqa
|
646251ab6cb4cde5eba07ac1859991ee
|
Executor of will
|
[
{
"docid": "51ff210841af2772f24754daf33e7bf7",
"text": "I strongly doubt that being executor will make the assets of the estate vulnerable to a suit against him personally. The estate is it's own separate legal entity with its own TIN. Only creditors against the estate itself can make claims against it and after all creditors are paid, then the balance is distributed in accordance with the terms of the will. Unless he has commingled assets and treated estate assets as his own, the legal separation should be quite strong. Whether his personal assets are at risk, remember that the opposition will likely overstate their case to try to scare him into settling. If the business was organized as an LLP or LLC, his personal assets should be pretty safe. If it was a sole proprietorship, he has occasion to worry.",
"title": ""
},
{
"docid": "3ba7b1537bb00067114a615e14ae35df",
"text": "The creditors will not be able to go after his father's estate (assuming the father had nothing to do with the business), but at some point, the estate will be divided up. At that point, any money or assets that your husband inherits will be fair game, as they are now your husband's money or assets. I want to be clear; it's nothing to do with your husband being executor (or co-executor) of the estate. This does not contradict zeta-band's earlier answer; Zeta-band is talking about the estate before it is divided up, I'm just pointing out that there may be issues after it is divided up.",
"title": ""
}
] |
[
{
"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": "cb05f6bd4266febbe04bb556dcf2a73a",
"text": "Stephen G. Price is knowledgeable in handling asset division issues while ensuring that you meet all legal obligations. Allow us to assist you in going through the complex financial issues you will have to face, such as pension entitlements and capital gains. http://stephengprice.com/divorce-separation/",
"title": ""
},
{
"docid": "7d62d84853dcd1a2c31e36d5c397c1a6",
"text": "The company may not permit a transfer of these options. If they do permit it, you simply give him the money and he has them issue the options in your name. As a non-public company, they may have a condition where an exiting employee has to buy the shares or let them expire. If non-employees are allowed to own shares, you give him the money to exercise the options and he takes possession of the stock and transfers it to you. Either way, it seems you really need a lawyer to handle this. Whenever this kind of money is in motion, get a lawyer. By the way, the options are his. You mean he must purchase the shares, correct?",
"title": ""
},
{
"docid": "83bcfd9f7e47e783ee4a4e77f866f9dd",
"text": "I agree with the comments so far. Access doesn't equal ownership. There are also different levels of access. E.g. your financial advisor can have access to your retirement account via power of attorney, but only ability to add or change things, not withdraw. Another consideration is when a creditor tries to garnish wages / bank accounts, it needs to find the accounts first. This could be done by running a credit report via SSN. My guess is an account with access-only rights won't show up on such a report. I suppose the court could subpoena bank information. But I'm not an attorney so please check with a professional.",
"title": ""
},
{
"docid": "dbb486e7aafdd3b2a1b9f27d3f74672b",
"text": "There are two possible scenarios, relating to slightly different definitions of 'pension'. The most normal definition of 'pension' is that you are paid a defined amount each week or month by some company, or the government. If so, that is not part of the estate. You won't be able to take it as a lump sum (probably). It isn't affected by whatever your husband wrote in his will. If, on the other hand, you and your husband had a big sum of money, which you were drawing on to pay your expenses and still are, then the big sum of money would have been part of the estate. The right person to ask about this is the lawyer who dealt with your husband's will. None of this is any help in deciding what you should do with the pension.",
"title": ""
},
{
"docid": "2663ac52e0b08439c2b736ddc3fd573d",
"text": "\"Here's another example of such a practice and the problem it caused. My brother, who lived alone, was missing from work for several days so a co-worker went to his home to search for him and called the local Sheriff's Office for assistance. The local fire department which runs the EMS ambulance was also dispatched in the event there was a medical emergency. They discovered my brother had passed away inside his home and had obviously been dead for days. As our family worked on probate matters to settle his estate following this death, it was learned that the local fire department had levied a bill against my brother's estate for $800 for responding with their ambulance to his home that day. I tried to talk to their commander about this, insisting my brother had not called them, nor had they transported him or even checked his pulse. The commander insisted theirs was common practice - that someone was always billed for their medical response. He would not withdraw his bill for \"\"services\"\". I hate to say, but the family paid the bill in order to prevent delay of his probate issues and from receiving monies that paid for his final expenses.\"",
"title": ""
},
{
"docid": "e4d718f0c2b682fc282de53f9ebdaef6",
"text": "\"If the person has prepared (\"\"put your affairs in order\"\") then they will have a will and an executor. And this executor will have a list of the life insurance policies and will contact the companies to arrange payouts to the beneficiaries. It's not really the beneficiary's job to do that. If the person hasn't made a list of their policies, but has a will and an executor, then the executor can try things like looking at recently paid bills (you're sending $100 a month to \"\"Friendly Life Insurance Company\"\"? Bet it's a life insurance policy) or paperwork that is in the person's home or their safety deposit boxes. Even if you don't have the key to those boxes, a copy of the will and the death certificate will get the box drilled out for you. If you don't know what bank they might have SD boxes at, again your paperwork will get the manager to find out for you if there is a box at that particular branch, so a day spent visiting branches can be fruitful. (Something I know from personal experience with someone whose affairs were nowhere near in order.) Generally you find out you're a beneficiary of a will because the executor tells you. I suppose it's possible that a person might name you beneficiary of their life insurance without telling you or anyone else, and without writing a will, but it's pretty unlikely. If you're worried, I suggest you encourage your parents, grandparents, and other likely namers of you to write up some paperwork and keep it somewhere family is likely to find it. (Not hidden inside a book on a bookcase or in the back of the wool cupboard.)\"",
"title": ""
},
{
"docid": "92812525244dd89b668832ef75619a77",
"text": "I second all of this. It’s worth noting that not all estates require wealth advice. Unless it’s in the millions of dollars and you have no prior experience, I wouldn’t waste time with wealth advisors. ML is a broker dealer, not a fiduciary.",
"title": ""
},
{
"docid": "8f24262d85763d04793cef4baeaff785",
"text": "The kraemerlaw is a business, tax, and immigration law company in United States. which provides Real Estate Donation empty land, house, mechanical, private, business property and gives the way to appreciate what might be a generous assessment reasoning all at the cost of helping other people. a magnanimous land gift remains as a sensible move for people and corporate benefactors alike. The value from your land gift helps Giving Center proceed with its main goal and bolster numerous noble motivations that need our assistance.",
"title": ""
},
{
"docid": "36dc4003aa8566c138d2964fa3226125",
"text": "There are two different possible taxes based on various scenarios proposed by the OP or the lawyer who drew up the OP's father's will or the OP's mother. First, there is the estate tax which is paid by the estate of the deceased, and the heirs get what is left. Most estates in the US pay no estate tax whatsoever because most estates are smaller than $5.4M lifetime gift and estate tax exemption. But, for the record, even though IRAs pass from owner to beneficiary independent of whatever the will might say about the disposition of the IRAs, the value of the deceased's IRAs is part of the estate, and if the estate is large enough that estate tax is due and there is not enough money in the rest of the estate to pay the estate tax (e.g. most of the estate value is IRA money and there are no other investments, just a bank account with a small balance), then the executor of the will can petition the probate court to claw back some of the IRA money from the IRA beneficiaries to pay the estate tax due. Second, there is income tax that the estate must pay on income received from the estate's assets, e.g. mutual fund dividends paid between the date of death and the distribution of the assets to the beneficiaries, or income from cashing in IRAs that have the estate as the beneficiary. Now, most of OP's father's estate is in IRAs which have the OP's mother as the primary beneficiary and there are no named secondary beneficiaries. Thus, by default, the estate is the IRA beneficiary should the OP's mother disclaim the IRAs as the lawyer has suggested. As @JoeTaxpayer says in a comment, if the OP's mother disclaims the IRA, then the estate must distribute all the IRA assets to the three beneficiaries by December 31 of the year in which the fifth anniversary of the death occurs. If the estate decides to do this by itself, then the distribution from the IRA to the estate is taxable income to the estate (best avoided if possible because of the high tax rates on trusts). What is commonly done is that before December 31 of the year following the year in which the death occurred, the estate (as the beneficiary) informs the IRA Custodian that the estate's beneficiaries are the surviving spouse (50%), and the two children (25% each) and requests the IRA custodian to divide the IRA assets accordingly and let each beneficiary be responsible for meeting the requirements of the 5-year rule for his/her share. Any assets not distributed in timely fashion are subject to a 50% excise tax as penalty each year until such time as these monies are actually withdrawn explicitly from the IRA (that is, the excise tax is not deducted from the remaining IRA assets; the beneficiary has to pay the excise tax out of pocket). As far as the IRS is concerned, there are no yearly distribution requirements to be met but the IRA Custodial Agreement might have its own rules, and so Publication 590b recommends discussing the distribution requirements for the 5-year rule with the IRA Custodian. The money distributed from the IRA is taxable income to the recipients. In particular, the children cannot roll the money over into another IRA so as to avoid immediate taxation; the spouse might be able to roll over the money into another IRA, but I am not sure about this; Publication 590b is very confusing on this point. All this is assuming that the deceased passed away before well before his 70.5th birthday so that there are no issues with RMDs (the interactions of all the rules in this case is an even bigger can of worms that I will leave to someone else to explicate). On the other hand, if the OP's mother does not disclaim the IRAs, then she, as the surviving spouse, has the option of treating the inherited IRAs as her own IRAs, and she could then name her two children as the beneficiaries of the inherited IRAs when she passes away. Of course, by the same token, she could opt to make someone else the beneficiary (e.g, her children from a previous marriage) or change her mind at any later time and make someone else the beneficiary (e.g. if she remarries, or becomes very fond of the person taking care of her in a nursing home and decides to leave all her assets to this person instead of her children, etc). But even if such disinheritances are unlikely and the children are perfectly happy to wait to inherit till Mom passes away, as JoeTaxpayer points out, by not disclaiming the IRAs, the OP's mother can delay taking distributions from the IRAs till age 70.5, etc. which is also a good option to have. The worst scenario is for the OP's mother to not disclaim the IRAs, cash them in right away (huge income tax whack on her) or at least 50% of them, and gift the OP and his sibling half of what she withdrew (or possibly after taking into account what she had to pay in income tax on the distribution). Gift tax need not be paid by the OP's mother if she files Form 709 and reduces her lifetime combined gift and estate tax exemption, and the OP and his sibling don't owe any tax (income or otherwise) on the gift amount. But, all that money has changed from tax-deferred assets to ordinary assets, and any additional earnings on these assets in the future will be taxable income. So, unless the OP and his sibling need the cash right away (pay off credit card debt, make a downpayment on a house, etc), this is not a good idea at all.",
"title": ""
},
{
"docid": "7f3d41dab345f9102c1cf5ff38976689",
"text": "Okay, I went through a similar situation when my mother died in March of this year. The estate still needs to go into probate. Especially if there was a will. And when you do this, your husband will be named as the executor. Then what he will need to do is produce both of their death certificates to the bank, have the account closed, and open an estate account with both of their names on it. Their debts & anything like this should be paid from this account as well. Then what you can do is endorse the check as the executor and deposit it into this account. After all debts are paid, the money can be disbursed to the beneficiaries (your husband). Basically, as long as they didn't have any huge debts to pay, he will see the money again. It just may be a couple of months. And you will have to pay some filing fees.",
"title": ""
},
{
"docid": "86b4d220316cd9c0bdd01efe77d8ae5a",
"text": "Make sure you have sufficient insurance. Luckily, my wife and I had insurance on our mortgage, and term life insurance on both of us. Statistically speaking, insurance is a poor investment. However, when my wife was killed 263 days after our wedding, I was very happy to have it. Note that it took almost five months to pay out, though this was partly due to a Canada Post strike earlier this year; as such, you'll need sufficient emergency funds. I was able to continue working (just about), but still needed approximately $30,000. $10,000 within 24 hours, another $10,000 within 7 days, and the remainder sometime later, to cover funeral expenses. You may also want to consider a will. Neither of us had one as we both had made the decision that we were fine with the other partner receiving the entire estate. If you are not happy with this, or if your situation is more complex, you'll need a will.",
"title": ""
},
{
"docid": "127a6a24cda39e7ef42bb5093636183c",
"text": "Yes. If the deceased owned the policy, the proceeds are considered part of the estate. In the specific case where the estate is worth (this year 2011) more than $5M, there may be estate taxes due and the insurance would be prorated to pay its portion of that estate tax bill. Keep in mind, the estate tax itself is subject to change. I recall when it was a simple $1M exemption, and if I had a $1M policy and just say $100K in assets, there would have been tax due on the $100K. In general, if there's any concern that one's estate would have the potential to owe estate tax, it's best to have the insurance owned by the beneficiary and gift them the premium cost each year.",
"title": ""
},
{
"docid": "09b48a9451787d6330c32cdb45fff1de",
"text": "If your primary goal is no / minimized fees, there are 3 general options, as I see it: Based on the fact that you want some risk, interest-only investments would not be great. Consider - 2% interest equals only $1,500 annually, and since the trust can only distribute income, that may be limited. Based on the fact that you seem to have some hesitation on risk, and also limited personal time able to govern the trust (which is understandable), I would say keep your investment mix simple. By this I mean, creating a specific portfolio may seem desirable, but could also become a headache and, in my opinion, not desirable for a trust executor. You didn't get into the personal situation, but I assume you have a family / close connection to a young person, and are executor of a trust set up on someone's death. That not be the case for you, but given that you are asking for advice rather than speaking with those involved, I assume it is similar enough for this to be applicable: you don't want to set yourself up to feel emotionally responsible for taking on too much risk, impacting the trustee(s)'s life negatively. Therefore, investing in a few limited index funds seems to match what you're looking for in terms of risk, reward, and time required. One final consideration - if you want to maximize annual distributions to the trustee(s)'s, consider that you may be best served by seeking high-dividend paying stock (although again, probably don't do this on a stock-by-stock basis unless you can commit the time to fully manage it). Returns in the form of stock increases are good, but they will not immediately provide income that the trust can distribute. If you also wish to grow the corpus of the trust, then stock growth is okay, but if you want to maximize immediate distributions, you need to focus on returns through income (dividends & interest), rather than returns through value increase.",
"title": ""
},
{
"docid": "dd309655aa90943cc7b78f7413c835ec",
"text": "\"how is this new value determined? According to Publication 551: Inherited Property The basis of property inherited from a decedent is generally one of the following. The FMV of the property at the date of the individual's death. The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. For information on the alternate valuation date, see the Instructions for Form 706. The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. This method is discussed later. FMV is Fair Market Value - which is the price that a willing buyer would pay for the property with reasonable knowledge of all the facts of the property. The rest generally apply to farmland or other special-purpose land where the amount of income it generates is not properly reflected in the market value. One or more real estate professionals will run \"\"comps\"\" that show you recent sales in the same area for similar houses to get a rough estimate of fair market value. Does it go off of the tax appraised value? Tax assessment may or may not be accurate depending on tax laws (e.g. limits to tax increases) and consistency with the actual market. Should you, prior to your death, get an independent appraiser to appraise the value of the property and include that assessment of the properties value with the will or something? That should not be necessary - another appraisal will likely be done as part of the estate process after death. One reason you might do one is if you are distributing different assets to different heirs, and you want to make sure that the estate is divided equitably.\"",
"title": ""
}
] |
fiqa
|
f2f397f1efe378847ad4a34850791dd1
|
Online streaming video/audio financial/stock programs
|
[
{
"docid": "5dcf17dd5e6e1b166ddf63d551af3eb9",
"text": "The CNBC site is littered with videos. Whenever I click a link to one of their articles, it seems to be a video instead. Not like having the channel streamed, but most of the top stories.",
"title": ""
}
] |
[
{
"docid": "9f726f42e288957f12902d0dad5d50bf",
"text": "\"There is probably a better way, but you can do the following: (1) Right click on the right pointing arrow next to the \"\"1-20 of xx rows\"\" message at the bottom right of the table, and select \"\"Copy link location\"\" (2) Paste that into the location (3) At the end of the pasted text there is a \"\"&output=json\"\", delete that and everything after it. (4) hit enter What you get is a page that displays the set of securities returned by and in a very similar display to the \"\"stock screener\"\" without the UI elements to change your selections. You can bookmark this page.\"",
"title": ""
},
{
"docid": "1e5211b469edeb470c91b8271c090ca9",
"text": "\"TDAmeritrade, an online stock broker, provides banking services within their brokerage accounts. The service offers all of what you are looking for. HOWEVER, this service is only available for free with their \"\"Apex\"\" qualification. Here is a tariff of their fees and services.\"",
"title": ""
},
{
"docid": "e853758f05e570fe21d8ba61816753d6",
"text": "Yes, there are plenty of sites that will do this for you. Yahoo, and MarketWatch are a few that come to mind first. I'm sure you could find plenty of others.",
"title": ""
},
{
"docid": "8be84e4133969ba6462f5fa6309b578b",
"text": "About 10 years ago, I used to use MetaStock Trader which was a very sound tool, with a large number of indicators, but it has been a number of years since I have used it, so my comments on it will be out of date. At the time it relied upon me purchasing trading data myself, which is why I switched to Incredible Charts. I currently use Incredible Charts which I have done for a number of years, initially on the free adware service, now on the $10/year for EOD data access. There are quicker levels of data access, which might suit you, but I can't comment on these. It is web-based which is key for me. The data quality is very good and the number of inbuilt indicators is excellent. You can build search routines on the basis of specific indicators which is very effective. I'm looking at VectorVest, as a replacement for (or in addition to) Incredible Charts, as it has very powerful backtesting routines and the ability to run test portfolios with specific buy/sell criteria that can simulate and backtest a number of trading scenarios at the same time. The advantage of all of these is they are not tied to a particular broker.",
"title": ""
},
{
"docid": "7503085ce49c8242851ea5cf345ffa1f",
"text": "\"You can have a look at betabrokers. It's an simulated stock trading platform which is entirely email-based. You start with 10 000$ and you make transactions with commands in the subject line of the email (e.g. \"\"buy 250$ AAPL\"\" or \"\"cover 20 shares of AAPL\"\"). It should be straightforward to add an email interface to your python script.\"",
"title": ""
},
{
"docid": "48d391288ce8b4c9ec0f9744f83bcef9",
"text": "In general I would recommend to stay away from any video from a successful trader, at least those that claim to share their secrets. If they were that successful, why would they want company? What they have most likely discovered is that they can make more money through videos and seminars than they can through trading. While not a video, GetSmarterAboutMoney has a good basic section on Stock markets without being purely Canada centric (as I see from your profile you are in NY). I know that also in our city, there are continuing education courses that often go over the basics like this, if you have a college nearby they might have something. Cheapest of all would be to hit your local library. The fundamentals don't change that quickly that you need the latest and greatest - those are much more likely to be get-poor-quick schemes. Good Luck",
"title": ""
},
{
"docid": "5eebfa5b35609300c38071d7255ea7fb",
"text": "I have maintained that traditional TV will be obsolete for years now... it seems a certain inevitability, since the invention of the internet. Even assuming it is certain, there are some things to consider: 1) Time Frame: It is taking way longer than I had expected for people to switch away from traditional subscriptions/packaging. Many people refuse to adopt/adapt to new technology and like the comfortable familiarity of TV. It is hard to say exactly when 'the big shift' will happen. 2) The companies making billions of dollars are likely monitoring their revenues/market very closely, and will probably know better than you when their current business model is about to fail. They may develop a plan to switch to internet based distribution, production of shows, or any number of other alternatives, which might not cause their share price to drop as drastically as one might predict. Profiting from this idea (as with any strategy) relies on you to identify the stocks that will be affected, and time your short position on them better than the rest of the market. Doing it now, or at an arbitrary date, means you will incur the opportunity cost of holding the instrument over a period when another investment would yield better returns (potentially even a long position on these same companies).",
"title": ""
},
{
"docid": "c7e85b5175eb7557058a06f4ece1e8e9",
"text": "Sort of unrelated to the main post here, but I've been hoping to buy a few shares that would motivate me to follow the market and get a bit of hands on experience to better understand it all. What trading program would you recommend for a few simple trades like that? Thanks!",
"title": ""
},
{
"docid": "ee000eda9fda8d9a922a0c33865f3118",
"text": "There can be the question of what objective do you have for buying the stock. If you want an income stream, then high yield stocks may be a way to get dividends without having additional transactions to sell shares while others may want capital appreciation and are willing to go without dividends to get this. You do realize that both Pfizer and GlaxoSmithKline are companies that the total stock value is over $100 billion yes? Thus, neither is what I'd see as a growth stock as these are giant companies that would require rather large sales to drive earnings growth though it may be interesting to see what kind of growth is expected for these companies. In looking at current dividends, one is paying 3% and the other 5% so I'm not sure either would be what I'd see as high yield. REITs would be more likely to have high dividends given their structure if you want something to research a bit more.",
"title": ""
},
{
"docid": "4eeeb700522713da024781f45893656f",
"text": "Interactive Brokers provides historical intraday data including Bid, Ask, Last Trade and Volume for the majority of stocks. You can chart the data, download it to Excel or use it in your own application through their API. EDIT: Compared to other solutions (like FreeStockCharts.com for instance), Interactive Brokers provides not only historic intraday LAST**** trades **but also historic BID and ASK data, which is very useful information if you want to design your own trading system. I have enclosed a screenshot to the chart parameter window and a link to the API description.",
"title": ""
},
{
"docid": "9b42ee8b333f4eda0048aaa07d6c5a1c",
"text": "Edgar Online is the SEC's reporting repository where public companies post their forms, these forms contain financial data Stock screeners allow you to compare many companies based on many financial metrics. Many sites have them, Google Finance has one with a decent amount of utility",
"title": ""
},
{
"docid": "7e6a30f5616e94418f406aebfface37b",
"text": "Have you looked into GnuCash? It lets you track your stock purchases, and grabs price updates. It's designed for double-entry accounting, but I think it could fit your use case.",
"title": ""
},
{
"docid": "7c3ce52de9c86c161b7c8be72e8139b4",
"text": "Yes, http://shares.telegraph.co.uk/stockscreener/ has what you're looking for.",
"title": ""
},
{
"docid": "ad11f81020bb2f35e29d20631bdeb059",
"text": "Sort of. I mean that even though TV generally sucks, and there are better alternatives, the average human may not be smart enough to care. TV is easy, something they're used to, and requires no energy to watch or make any changes. So, they may eventually catch on, but the TV industry will probably be able to stay a step or two ahead of them simply because it's not too hard to do, and nothing will happen too fast. I learned about investing back in the dot com days. I invested too heavily in high tech thinking it was really happening, and I was somewhat right, but it just didn't happen as quickly as we all thought, and a lot of companies went broke because they had no short-term income or plan, and ran out of capital. Now I know there's more to it than simply knowing which way the wind blows. You also need to know about butterflies and hurricanes so to speak. Timing is important, and shorting stocks can be profitable unless it takes too long, and you end up being forced to act before you're ready.",
"title": ""
},
{
"docid": "23fa93ff5c1d0cd50c7e10115d36dfb3",
"text": "Crown Equity Holdings Inc., together with its digital network, currently provides electronic media services specializing in online publishing, which brings together targeted audiences and advertisers. Crown Equity Holdings Inc. (CRWE) announced that it has launched CRWE Tube, www.crwetube.com, a video sharing site that allows billions of people around the world to upload, watch and share original videos.",
"title": ""
}
] |
fiqa
|
7ce046d26c429a6fd2e8ea1a4e01bc1d
|
What does this statement regarding put options mean?
|
[
{
"docid": "71abadf909286b1f642408f3d9ddf0d8",
"text": "The trader has purchased 1095 options, each of which is a contract which entitles him to sell 100 shares of Cisco stock for $16 a share. He paid $71 for each contract (71 cents a share x 100) which is roughly $78k total. He will get $109,500 for each dollar below $16 Cisco's stock is when he exercises it (he can buy the stock for the going rate and then sell it for $16 immediately), or he can sell the option itself to someone else for a similar gain (usually a little more, especially if the option has a long time until it expires). If the option expires when the stock is over $16/share, he gets nothing; i.e. the original $78k is lost. For reference, Cisco's stock was trading at $17.14/share as of market close on March 18, 2010. The share price had recently been boosted by the recent news that they would be paying a quarterly dividend. It has been heading mostly downward since February 9, after they announced that they're not expecting profits to be as good as the analysts thought they would be: they claim that people aren't buying too much networking equipment just now, and they're also facing mounting competition from the likes of HP and Juniper for switches, and Aruba / HP / Motorola for wireless devices. They may lose market share or need to cut prices, hurting profits. Either way, there's certainly a real possibility of their stock going below $16 in the next few months, so people are willing to pay for those options. (Disclosure: I work for Aruba, who competes with Cisco. I also own shares of Aruba, possess assorted stock options and similar equity grants, and participate in the employee stock purchase program. I also own shares in Cisco indirectly through various mutual funds and ETFs.)",
"title": ""
},
{
"docid": "5647ff51faca34bb74459ad4f3d56779",
"text": "\"fennec has a very good answer but i feel it provides too much information. So i'll just try to explain what that sentence says. Put option is the right to sell a stock. \"\"16 puts on Cisco at 71 cents\"\", means John comes to Jim and says, i'll give you 71 cent now, if you allow me to sell one share of Cisco to you at $16 at some point in the future ( on expiration date). NYT quote says 1000 puts that means 1000 contracts - he bought a right to sell 100,000 shares of Cisco on some day at $16/share. Call option - same idea: right to buy a stock.\"",
"title": ""
}
] |
[
{
"docid": "b6a90c268daabff60f9717e9e8d84869",
"text": "Options, both puts and calls, are typically written/sold at different strike prices. For example, even though the stock of XYZ is currently trading at $12.50, there could be put options for prices ranging from $0.50 to $30.00, just as an example. There are several factors that go into determining the strike prices at which people are willing to write options. The writer/seller of an option is the person on the other side of the trade that has the opposite opinion of you. If you are interested in purchasing a put on a stock to hedge your downside, that means the writer/seller of the put is betting that you are wrong and that the stock price will rise instead.",
"title": ""
},
{
"docid": "617a7517cb417ed7ce90bb074959be08",
"text": "On the US markets, most index options are European style. Most stock and ETF options are, as you noted, American style.",
"title": ""
},
{
"docid": "1d353d5aea6ca0469893b26ab93ca89f",
"text": "> But, it seems like the pool is adding value out of nowhere! Options don't simply exercise in the void. There are proceeds from the exercise (option-holders must pay into the company). This amount is an additional investment in the company that hasn't precisely materialized yet, but is generally expected to (and is difficult to alter, as it's likely part of an employment contract).",
"title": ""
},
{
"docid": "37b135e4dca1a8ccbea2e58b9507de8c",
"text": "No, it means what it says. Prices change, hence price of the derivative can go down even if the price of the underlying doesn't change (e.g. theta decay in options).",
"title": ""
},
{
"docid": "24741103ebc1802d83207a30facc9852",
"text": "\"I have traded options, but not professionally. I hadn't come across this terminology, but I expect it counts how far in-the-money, as an ordinal, an option is relative to the distinct strike prices offered for the option series — a series being the combination of underlying symbol, expiration date, and option type (call/put); e.g., all January 2015 XYZ calls, no matter the strike. For instance, if stock XYZ trades today at $11 and the available January 2015 XYZ calls have strike prices of $6, $8, $10, $12, $14, and $16, then I would expect the $10 call could be called one strike in the money, the $8 two strikes in the money, etc. Similarly, the $12 and $14 calls would be one and two strikes out of the money, respectively. However, if tomorrow XYZ moves to $13, then the $10 previously known as one strike in the money would now be two strikes in the money, and the $12 would be the new one strike in the money. Perhaps this terminology arose because many option strategies frequently involve using options that are at- or near-the-money, so the \"\"one strike in\"\" (or out) of the money contracts would tend to be those employed frequently? Perhaps it makes it easier for people to describe strategies in a more general sense, without citing specific examples. However, the software developer in me dislikes it, given that the measurement is relative to both the current underlying price (which changes quickly), and the strike prices available in the given option series. Hence, I wouldn't use this terminology myself and I suggest you eschew it, too, in favor of something concrete; e.g. specify your contract strikes in dollar terms — especially when it matters.\"",
"title": ""
},
{
"docid": "c41e61f063420043ec5dd6378082c882",
"text": "\"As I understand it, Implied Volatility represents the expected gyrations of an options contract over it's lifetime. No, it represents that expected movement of the underlying stock, not the option itself. Yes, the value of the option will move roughly in the same direction the value of the stock, but that's not what IV is measuring. I even tried staring at the math behind the Options pricing model to see if that could make more sense for me but that didn't help. That formula is correct for the Black-Scholes model - and it is not possible (or at least no one has done it yet) to solve for s to create a closed-form equation for implied volatility. What most systems do to calculate implied volatility is plug in different values of s (standard deviation) until a value for the option is found that matches the quoted market value ($12.00 in this example). That's why it's called \"\"implied\"\" volatility - the value is implied from market prices, not calculated directly. The thing that sticks out to me is that the \"\"last\"\" quoted price of $12 is outside of the bid-ask spread of $9.20 to $10.40, which tells me that the underlying stock has dropped significantly since the last actual trade. If the Implied Vol is calculated based on the last executed trade, then whatever algorithm they used to solve for a volatility that match that price couldn't find a solution, which then choose to show as a 0% volatility. In reality, the volatility is somewhere between the two neighbors of 56% and 97%, but with such a short time until expiry, there should be very little chance of the stock dropping below $27.50, and the value of the option should be somewhere around its intrinsic value (strike - stock price) of $9.18.\"",
"title": ""
},
{
"docid": "d35cff4fb7363e321d88241932eab2a0",
"text": "\"If I really understood it, you bet that a quote/currency/stock market/anything will rise or fall within a period of time. So, what is the relationship with trading ? I see no trading at all since I don't buy or sell quotes. You are not betting as in \"\"betting on the outcome of an horse race\"\" where the money of the participants is redistributed to the winners of the bet. You are betting on the price movement of a security. To do that you have to buy/sell the option that will give you the profit or the loss. In your case, you would be buying or selling an option, which is a financial contract. That's trading. Then, since anyone should have the same technic (call when a currency rises and put when it falls)[...] How can you know what will be the future rate of exchange of currencies? It's not because the price went up for the last minutes/hours/days/months/years that it will continue like that. Because of that everyone won't have the same strategy. Also, not everyone is using currencies to speculate, there are firms with real needs that affect the market too, like importers and exporters, they will use financial products to protect themselves from Forex rates, not to make profits from them. [...] how the brokers (websites) can make money ? The broker (or bank) will either: I'm really afraid to bet because I think that they can bankrupt at any time! Are my fears correct ? There is always a probability that a company can go bankrupt. But that's can be very low probability. Brokers are usually not taking risks and are just being intermediaries in financial transactions (but sometime their computer systems have troubles.....), thanks to that, they are not likely to go bankrupt you after you buy your option. Also, they are regulated to insure that they are solid. Last thing, if you fear losing money, don't trade. If you do trade, only play with money you can afford to lose as you are likely to lose some (maybe all) money in the process.\"",
"title": ""
},
{
"docid": "6507e8f241b4987bd91346cf5ee8cd93",
"text": "\"Being \"\"Long\"\" something means you own it. Being \"\"Short\"\" something means you have created an obligation that you have sold to someone else. If I am long 100 shares of MSFT, that means that I possess 100 shares of MSFT. If I am short 100 shares of MSFT, that means that my broker let me borrow 100 shares of MSFT, and I chose to sell them. While I am short 100 shares of MSFT, I owe 100 shares of MSFT to my broker whenever he demands them back. Until he demands them back, I owe interest on the value of those 100 shares. You short a stock when you feel it is about to drop in price. The idea there is that if MSFT is at $50 and I short it, I borrow 100 shares from my broker and sell for $5000. If MSFT falls to $48 the next day, I buy back the 100 shares and give them back to my broker. I pocket the difference ($50 - $48 = $2/share x 100 shares = $200), minus interest owed. Call and Put options. People manage the risk of owning a stock or speculate on the future move of a stock by buying and selling calls and puts. Call and Put options have 3 important components. The stock symbol they are actionable against (MSFT in this case), the \"\"strike price\"\" - $52 in this case, and an expiration, June. If you buy a MSFT June $52 Call, you are buying the right to purchase MSFT stock before June options expiration (3rd Saturday of the month). They are priced per share (let's say this one cost $0.10/share), and sold in 100 share blocks called a \"\"contract\"\". If you buy 1 MSFT June $52 call in this scenario, it would cost you 100 shares x $0.10/share = $10. If you own this call and the stock spikes to $56 before June, you may exercise your right to purchase this stock (for $52), then immediately sell the stock (at the current price of $56) for a profit of $4 / share ($400 in this case), minus commissions. This is an overly simplified view of this transaction, as this rarely happens, but I have explained it so you understand the value of the option. Typically the exercise of the option is not used, but the option is sold to another party for an equivalent value. You can also sell a Call. Let's say you own 100 shares of MSFT and you would like to make an extra $0.10 a share because you DON'T think the stock price will be up to $52/share by the end of June. So you go to your online brokerage and sell one contract, and receive the $0.10 premium per share, being $10. If the end of June comes and nobody exercises the option you sold, you get to keep the $10 as pure profit (minus commission)! If they do exercise their option, your broker makes you sell your 100 shares of MSFT to that party for the $52 price. If the stock shot up to $56, you don't get to gain from that price move, as you have already committed to selling it to somebody at the $52 price. Again, this exercise scenario is overly simplified, but you should understand the process. A Put is the opposite of a Call. If you own 100 shares of MSFT, and you fear a fall in price, you may buy a PUT with a strike price at your threshold of pain. You might buy a $48 June MSFT Put because you fear the stock falling before June. If the stock does fall below the $48, you are guaranteed that somebody will buy yours at $48, limiting your loss. You will have paid a premium for this right (maybe $0.52/share for example). If the stock never gets down to $48 at the end of June, your option to sell is then worthless, as who would sell their stock at $48 when the market will pay you more? Owning a Put can be treated like owning insurance on the stock from a loss in stock price. Alternatively, if you think there is no way possible it will get down to $48 before the end of June, you may SELL a $48 MSFT June Put. HOWEVER, if the stock does dip down below $48, somebody will exercise their option and force you to buy their stock for $48. Imagine a scenario that MSFT drops to $30 on some drastically terrible news. While everybody else may buy the stock at $30, you are obligated to buy shares for $48. Not good! When you sold the option, somebody paid you a premium for buying that right from you. Often times you will always keep this premium. Sometimes though, you will have to buy a stock at a steep price compared to market. Now options strategies are combinations of buying and selling calls and puts on the same stock. Example -- I could buy a $52 MSFT June Call, and sell a $55 MSFT June Call. I would pay money for the $52 Call that I am long, and receive money for the $55 Call that I am short. The money I receive from the short $55 Call helps offset the cost of buying the $52 Call. If the stock were to go up, I would enjoy the profit within in $52-$55 range, essentially, maxing out my profit at $3/share - what the long/short call spread cost me. There are dozens of strategies of mixing and matching long and short calls and puts depending on what you expect the stock to do, and what you want to profit or protect yourself from. A derivative is any financial device that is derived from some other factor. Options are one of the most simple types of derivatives. The value of the option is derived from the real stock price. Bingo? That's a derivative. Lotto? That is also a derivative. Power companies buy weather derivatives to hedge their energy requirements. There are people selling derivatives based on the number of sunny days in Omaha. Remember those calls and puts on stock prices? There are people that sell calls and puts based on the number of sunny days in Omaha. Sounds kind of ridiculous -- but now imagine that you are a solar power company that gets \"\"free\"\" electricity from the sun and they sell that to their customers. On cloudy days, the solar power company is still on the hook to provide energy to their customers, but they must buy it from a more expensive source. If they own the \"\"Sunny Days in Omaha\"\" derivative, they can make money for every cloudy day over the annual average, thus, hedging their obligation for providing more expensive electricity on cloudy days. For that derivative to work, somebody in the derivative market puts a price on what he believes the odds are of too many cloudy days happening, and somebody who wants to protect his interests from an over abundance of cloudy days purchases this derivative. The energy company buying this derivative has a known cost for the cost of the derivative and works this into their business model. Knowing that they will be compensated for any excessive cloudy days allows them to stabilize their pricing and reduce their risk. The person selling the derivative profits if the number of sunny days is higher than average. The people selling these types of derivatives study the weather in order to make their offers appropriately. This particular example is a fictitious one (I don't believe there is a derivative called \"\"Sunny days in Omaha\"\"), but the concept is real, and the derivatives are based on anything from sunny days, to BLS unemployment statistics, to the apartment vacancy rate of NYC, to the cost of a gallon of milk in Maine. For every situation, somebody is looking to protect themselves from something, and somebody else believes they can profit from it. Now these examples are highly simplified, many derivatives are highly technical, comprised of multiple indicators as a part of its risk profile, and extremely difficult to explain. These things might sound ridiculous, but if you ran a lemonade stand in Omaha, that sunny days derivative just might be your best friend...\"",
"title": ""
},
{
"docid": "524afee62b9dc9c8606c83b85562b9b0",
"text": "Put options are basically this. Buying a put option gives you the right but not the obligation to sell the underlying security at a certain date for a fixed price, no matter its current market value at that time. However, markets are largely effective, and the price of put options is such that if you bought them to cover you the whole time, you would on average pay more than you'd gain from the underlying security. There is no such thing as a risk-free investment.",
"title": ""
},
{
"docid": "6a036dd6f6514c29d721f7415141b6b3",
"text": "I'll just copypasta out of the book for the sake of clarity: * If you think about it, you see that the only brokers who touch the switch for light bulb number 64 are those whose numbers are divisors of 64. That is, light bulb 64 has its state changed by brokers whose numbers are factors of 64. This means brokers 1, 2, 4, 8, 16, 32, 64. Because light bulb 64 is originally off, it must be after this odd number of switches that it is on. * You want to be short a put if you expect a price rise. In this case, you expect to keep the option premium when the option expires worthless. There are a few pages worth of questions for the options, so the explanation for the IBM one is somewhat limited.",
"title": ""
},
{
"docid": "d1791a006cbced74f19d94ae64a7dc2e",
"text": "Since near-term at-the-money (ATM) options are generally the most liquid, the listed implied vol for a stock is usually pretty close to the nearest ATM volatility, but there's not a set convention that I'm aware of. Also note that for most stocks, vol skew (the difference in vol between away-from-the-money and at-the-money options) is relatively small, correct me if I'm wrong, IV is the markets assessment that the stock is about 70% likely (1 Standard Deviation) to move (in either direction) by that percent over the next year. Not exactly. It's an annualized standard deviation of the anticipated movements over the time period of the option that it's implied from. Implied vol for near-term options can be higher or lower than longer-term options, depending on if the market believes that there will be more uncertainty in the short-term. Also, it's the bounds of the expected movement in that time period. so if a stock is at $100 with an implied vol of 30% for 1-year term options, then the market thinks that the stock will be somewhere between $70 and $130 after 1 year. If you look at the implied vol for a 6-month term option, half of that vol is the range of expected movement in 6 months.",
"title": ""
},
{
"docid": "fe2d92ad24ac168a27b7be79ec6c04e9",
"text": "\"You're forgetting the fundamental issue, that you never have to actually exercise the options you buy. You can either sell them to someone else or, if they're out of the money, let them expire and take the loss. It isn't uncommon at all for people to buy both a put and call option (this is a \"\"straddle\"\" when the strike price of both the put and call are the same). From Investopedia.com: A straddle is an options strategy in which the investor holds a position in both a call and put with the same strike price and expiration date, paying both premiums. This strategy allows the investor to make a profit regardless of whether the price of the security goes up or down, assuming the stock price changes somewhat significantly. Read more: Straddle http://www.investopedia.com/terms/s/straddle.asp#ixzz4ZYytV0pT\"",
"title": ""
},
{
"docid": "a41b28962081b4bb521da2ee9f30c4f8",
"text": "Options are an indication what a particular segment of the market (those who deal a lot in options) think will happen. (and just because people think that, doesn't mean it will) Bearing in mind however that people writing covered-calls may due so simply as part of a strategy to mitigate downside risk at the expense of limiting upside potential. The presence of more people offering up options is to a degree an indication they are thinking the price will fall or hold steady, since that is in effect the 'bet' they are making. OTOH the people buying those options are making the opposite bet.. so who is to say which will be right. The balance between the two and how it affects the price of the options could be taken as an indication of market sentiment (within the options market) as to the future direction the stock is likely to take. (I just noticed that Blackjack posted the forumula that can be used to model all of this) To address the last part of your question 'does that mean it will go lower' I would say this. The degree to which any of this puts actual pressure on the stock of the underlying instrument is highly debatable, since many (likely most) people trading in a stock never look at what the options for that stock are doing, but base their decision on other factors such as price history, momentum, fundamentals and recent news about the company. To presume that actions in the options market would put pressure on a stock price, you would need to believe that a signficant fraction of the buyers and sellers were paying attention to the options market. Which might be the case for some Quants, but likely not for a lot of other buyers. And it could be argued even then that both groups, those trading options, and those trading stocks, are both looking at the same information to make their predictions of the likely future for the stock, and thus even if there is a correlation between what the stock price does in relation to options, there is no real causality that can be established. We would in fact predict that given access to the same information, both groups would by and large be taking similar parallel actions due to coming to similar conclusions regarding the future price of the stock. What is far MORE likely to pressure the price would be just the shear number of buyers or sellers, and also (especially since repeal of the uptick rule) someone who is trying to actively drive down the price via a lot of shorting at progressively lower prices. (something that is alleged to have been carried out by some hedge fund managers in the course of 'bear raids' on particular companies)",
"title": ""
},
{
"docid": "a21796cb81d0fc3f257f941646965b13",
"text": "The put will expire and you will need to purchase a new one. My advise will be that the best thing is to sell more calls so your delta from the short call will be similr to the delta from the equity holding.",
"title": ""
},
{
"docid": "150b659334d280ebad2c703db5e3618f",
"text": "At this point the cost of borrowing money is very low. For the sake of argument, say it is 1% per year for a large institution. I can either go out and find a client to invest 100,000$ and split profit and loss with them. Or, I could borrow 50,000$, pay 500$/year in interest, and get the same return and loss, while moving the market half as much (which would let me double my position!) In both cases the company is responsible for covering all fixed costs, like paying for traders, trades, office space, branding, management, regulatory compliance, etc. For your system to work, the cost to gather clients and interact with them has to be significantly less than 1% of the capital they provide you per year. At the 50% level, that might actually be worth it for the company in question. Except at the 50% level you'd have really horrible returns even when the market went up. So suppose a more reasonable level is the client keeps 75% of the returns (which compares to existing companies which offer larger investors an 80% cut on profits, but no coverage on losses). Now the cost to gather and interact with clients has to be lower than 2500$ per million dollars provided to beat out a simple loan arrangement. A single sales employee with 100% overhead (office, all marketing, support, benefits) earning 40,000$/year has to bring in 32 million dollar-years worth of investment every year to break even. Cash is cheap. Investment houses sell cash management, and charge for it. They don't sell shared investment risk (at least not to retail investors), because it would take a lot of cash for it to be worth their bother. More explicitly, for this to be viable, they'd basically have to constantly arrange large hedges against the market going down to cover any losses. That is the kind of thing that some margin loans may require. That would all by itself lower their profits significantly, and they would be exposed to counter-party risk on top of that. It is much harder to come up with a pile of cash when the markets go down significantly. If you are large enough to be worthwhile, finding a safe counterparty may be nearly impossible.",
"title": ""
}
] |
fiqa
|
9c102b33a2ace4b289b13d1ffaa1e1bd
|
Is a robo-adviser worth the risk?
|
[
{
"docid": "87a9f1d455a99760f43c4389b1a0863d",
"text": "If you are looking for an advisor to just build a portfolio and then manage it, a robo-advisor can be beneficial (especially if the alternative is doing it your self, assuming that you are not well versed in the markets). The primary risk with one is that it does not build a portfolio that accurately represents your needs and risk tolerance. Some firms base the number of questions they ask you on sign up based not on what is needed to get a good profile, but on how many before people decide that it is too much hassle and bail. That usually results in poorer profiles. Also a live advisor may be better at really getting at your risk tolerance. Many of day our risk tolerance is one thing but in reality we are not so risk tolerant. Once the profile is built. The algorithms maintain your portfolio on a day by day basis. If rebalancing opportunities occur they take advantage of it. The primary benefit of a robo-advisor is lower fees or smaller minimum account balances. The downside is the lack of human interaction and financial advise outside of putting together a portfolio.",
"title": ""
},
{
"docid": "29629cf2cb765542ac0bf5c48c75910f",
"text": "They've been around long enough now for there to be past performance figures you can google for. I think you'll find the results aren't very encouraging. I personally don't think there's a huge risk that the robots will lose all your money, but there's every reason to expect they aren't likely to perform better than traditional managers or beat the market. At the end of the day the robots are employing a lot of analysis and management techniques that traditional managers have been using, and since traditional managers use computers to do it efficiently there's not much gain IMO. Yes in theory labour is expensive so cutting it out is good, but in practise, in this case, the amount of money being managed is huge and the human cost is pretty insignificant. I personally don't believe that the reduced fees represent the cost of the human management, I think it's just marketing. There might be some risk that the robots can be 'gamed' but I doubt the potential is very great (your return might in theory be a fraction of a percent less over time because it's going on). The problem here is that the algorithms are functionally broadly known. No doubt every robo adviser has its own algorithms that in theory are the closely guarded secret, but in reality a broad swath of the functional behaviour will be understood by many people in the right circles, and that gives rise to predictability, and if you can predict investment/trading patterns you can make money from those patterns. That means humans making money (taking margin away) from the robots, or robots making money from other robots that are behind the curve. If robo advisers continue to take off I would expect them to under perform more and more.",
"title": ""
}
] |
[
{
"docid": "934db7ebe0f517eaa0042ab40cbaf8e8",
"text": "Totally agree. Autonomous cars can **increase margins** in the insurance industry since there will be fewer claims. **for Geico - less administration and higher margins. Buffet is probably ecstatic.** Edit: Not saying that this is in the best interests of the public, but if insurers can get away with it I'm sure they'll try.",
"title": ""
},
{
"docid": "55baf837a5adacbc1887364ddc7a650d",
"text": "As a 22 year old planning for your financial life, it is obvious to say that saving as much as you can to invest for the long run is the smartest thing to do from a financial point of view. In general, at this point, aged 22, you can take as much risk as you'll ever will. You're investing for the very long term (+30/+40 years). The downside of risk, the level of uncertainty on returns (positive or negative), is most significant on the short term (<5years). While the upside of risk, assuming you can expect higher returns the more risk you take, are most significant on the long term. In short: for you're financial life, it's smart to save as much as you can and invest these savings with a lot of risk. So, what is smart to invest in? The most important rule is to keep your investment costs as low as possible. Risk and returns are strongly related, however investment costs lower the returns, while you keep the risk. Be aware of the investment industry marketing fancy investment products. Most of them leave you with higher costs and lower returns. Research strongly suggests that an lowcost etf portfolio is our best choice. Personally, i disregard this new smart beta hype as a marketing effort from the financial industry. They charge more investment costs (that's a certain) and promise better returns because they are geniuses (hmmm...). No thanks. As suggested in other comments, I would go for an low cost (you shouldn't pay more than 0.2% per year) etf portfolio with a global diversification, with at least 90% in stocks. Actually that is what I've been doing for three years now (I'm 27 years old).",
"title": ""
},
{
"docid": "55b1341a3a982569d7c490daba32c0b2",
"text": "\"I don't think blanket answers are very helpful. You are asking the right question when you are young! You have a large number of investment options and Australia has the Superannuation system that you can extract significant tax value from. I've not attempted to grade these with regard to \"\"risk\"\", as different people will rate various things with different levels, depending on their experience and knowledge. Consider the following factors for you:-\"",
"title": ""
},
{
"docid": "5cadac83c625dea37ac879fa77f3d6ce",
"text": "If you think you can manage the risk and the spread is ultimately worth it to you, there's nothing stopping you. I know in the U.S., in CA specifically, you need to have $85,000 annual income or net worth over some threshold to be able to loan more than $2,500 via peer-to-peer loan investing. I've had an account at prosper since around 2010, it does pretty well. It's made my taxes a bit more complicated each year, but it's been profitable for me. I wouldn't lever up on it though. My Prosper Experience My experience with Prosper has generally been positive. My real motivation for starting the account was generating a dataset that I could analyze, here's some of that analysis. I started the account by trickling $100 /month in to buy four $25 loans. Any payments received from these loans were used to buy more $25 loans. I've kept my risk to an average of about A- (AA, A, B, C, D, E, HR are the grades); though the interest rates have reduced over time. At this point, I have a few hundred loans outstanding in various stages of completion. In calendar 2015 I had a monthly average of 0.75% of my loans charged-off and about 3% of loans at some stage of delinquency. I receive about 5.5% of my principle value in receipts on average each month, including loan pay-offs and charge-offs. Interest and other non-principle payments comprise just shy of 20% of my monthly receipts. Prosper's 1% maintenance fee translates to about 8% of my monthly non-principle receipts. It's all a pretty fine line, it wouldn't take many defaults to turn my annual return negative; though in 5 years it hasn't happened yet. Considering only monthly charge-offs against monthly non-principle receipts I had two net negative months in 2015. I made about a net 4.5% annual return on my average monthly outstanding principle for calendar 2015. When I log in to my Prosper account it claims my return is closer to 7.5% (I'm not sure how that number is calculated). The key is diversifying your risk just like a bank would. I don't know how the other services function at a nuts and bolts level. With prosper I choose which loans to fund which means I determine my risk level. I assume the other services function similarly. Regarding collection of charged-off loans. I don't know how much real effort is expended by Prosper. I've had a few notes sold for about 10% of the outstanding balance; and I don't know who they were sold to. Comically, I have loan that's made more payments in collections than when it was in good standing. There is definitely more to this than handing over $15,000 and receiving 6% on it.",
"title": ""
},
{
"docid": "f1182b37a245e09836037c4d1d97fecb",
"text": "First--and I'm only repeating what has been said already--roboadvisors are a great way to avoid paying high MERs and still not have to do much yourself. The Canadian Couch Potato method is great IF you are disciplined and spend the time every few months to regularly re-balance your portfolio. However, any savings you gain in low MERs is going to very likely be lost if you aren't re-balancing or if you aren't patient and disciplined in your investing. For that reason, the Couch Potato way isn't appropriate for 97% of the general population in my opinion. But if you are reading this, you probably already aren't a member of the general population. For myself, life seems always too busy and I've got a kid on the way. I see a huge value in using a robo-advisor (or alternatively Tangerine) and saving time in my day. The next question, which robo-advisor is best? I did a bunch of research here and my conclusion is that they are all fairly similar. My final three came down to Wealthbar/Wealthsimple/NestWeatlh. Price structures vary, but minus a few dollars here or there, there isn't a lot of difference in costs. What made WealthSimple stick out was that they provide some options for US citizens that help me prevent tax headaches. They also got back to me by email with really detailed answers when I had questions, which was really appreciated. Their site and monthly updates are minimalist and intuitive to navigate. Great user experience all around (I do web design myself). My gut feeling is that they have their act together and will stick around as a company for a long while.",
"title": ""
},
{
"docid": "6733d9bb2f5cf453abc85a901eb8cb9f",
"text": "It's a good question, I am amazed how few people ask this. To summarise: is it really worth paying substantial fees to arrange a generic investment though your high street bank? Almost certainly not. However, one caveat: You didn't mention what kind of fund(s) you want to invest in, or for how long. You also mention an “advice fee”. Are you actually getting financial advice – i.e. a personal recommendation relating to one or more specific investments, based on the investments' suitability for your circumstances – and are you content with the quality of that advice? If you are, it may be worth it. If they've advised you to choose this fund that has the potential to achieve your desired returns while matching the amount of risk you are willing to take, then the advice could be worth paying for. It entirely depends how much guidance you need. Or are you choosing your own fund anyway? It sounds to me like you have done some research on your own, you believe the building society adviser is “trying to sell” a fund and you aren't entirely convinced by their recommendation. If you are happy making your own investment decisions and are merely looking for a place to execute that trade, the deal you have described via your bank would almost certainly be poor value – and you're looking in the right places for an alternative. ~ ~ ~ On to the active-vs-passive fund debate: That AMC of 1.43% you mention would not be unreasonable for an actively managed fund that you strongly feel will outperform the market. However, you also mention ETFs (a passive type of fund) and believe that after charges they might offer at least as good net performance as many actively managed funds. Good point – although please note that many comparisons of this nature compare passives to all actively managed funds (the good and bad, including e.g. poorly managed life company funds). A better comparison would be to compare the fund managers you're considering vs. the benchmark – although obviously this is past performance and won't necessarily be repeated. At the crux of the matter is cost, of course. So if you're looking for low-cost funds, the cost of the platform is also significant. Therefore if you are comfortable going with a passive investment strategy, let's look at how much that might cost you on the platform you mentioned, Hargreaves Lansdown. Two of the most popular FTSE All-Share tracker funds among Hargreaves Lansdown clients are: (You'll notice they have slightly different performance btw. That's a funny thing with trackers. They all aim to track but have a slightly different way of trading to achieve it.) To hold either of these funds in a Hargreaves Lansdown account you'll also pay the 0.45% platform charge (this percentage tapers off for portolio values higher than £250,000 if you get that far). So in total to track the FTSE All Share with these funds through an HL account you would be paying: This gives you an indication of how much less you could pay to run a DIY portfolio based on passive funds. NB. Both the above are a 100% equities allocation with a large UK companies weighting, so won't suit a lower risk approach. You'll also end up invested indiscriminately in eg. mining, tobacco, oil companies, whoever's in the index – perhaps you'd prefer to be more selective. If you feel you need financial advice (with Nationwide) or portfolio management (with Nutmeg) you have to judge whether these services are worth the added charges. It sounds like you're not convinced! In which case, all the best with a low-cost passive funds strategy.",
"title": ""
},
{
"docid": "659d1634090f51bdf8cbd058f18116fd",
"text": "One can never be too cautious when when choosing a financial adviser. For example, has the company your adviser claims to represent ever been sanctioned by the local financial authorities? Does your adviser reside in the country in which he purports to operate? Have you thoroughly researched his background? It is also important to bear in mind what venues a company uses for advertising - if the company resorts to advertising by spamming, then their overall business practices are likely unethical and this could lead to trouble down the line. Finally, one should also research how the company's clientele has been built up. Was it through word of mouth or was the client data acquired by other means?",
"title": ""
},
{
"docid": "25bdde789ef49986a26dd7005d9afb1f",
"text": "\"For starters, the risk-free rate has nothing to do with stocks. It would be independent of anything. It pays out the same return in all states of nature. The definition of a risk-free asset is that regardless of how the universe turns out, including a meteor striking the Earth killing everyone but the recipient, then the payout would happen exactly as planned. One could imagine a computer still being on, connected to a power supply and printing a check. Most people use the 90-day t-bill as the risk-free rate. A beta greater than one implies it is more volatile than the market, not that it moves more perfectly. The CAPM should not be used for this. Cryptocurrencies should not be used with this model because they have valuation dynamics related to the new issue of coins. In other words, they have non-market price movements as well as market price movements. In general, you should not use the CAPM because it doesn't work empirically. It is famous, but it is also wrong. A scientific hypothesis that is not supported by the data is a bad idea. My strong recommendation is that you read \"\"The Intelligent Investor,\"\" by Benjamin Graham. It was last published in 1972, and it is still being printed. I believe Warren Buffett wrote the current forward for it. Always go where the data supports you and never anywhere else, no matter how elegant. Finally, unless you are doing this like a trip to Vegas, for fun and willing to take the losses, I would avoid cryptocurrencies because you don't know what you are doing yet. It is obvious from the posting. I have multiple decades working in every type of financial institution and at every level, bottom to top. I also have a doctorate, and I am an incredible researcher. I am professionally qualified in three different disciplines. If you want to learn how to do this, start with the \"\"Intelligent Investor.\"\" Get a basic book on accounting and learn basic accounting. Pick up economics textbooks at least through \"\"Intermediate\"\" for both microeconomics and macroeconomics. Get William Bolstad's book \"\"Introduction to Bayesian Statistics.\"\" You will need them for reasons that go very far beyond this post. Trust me; you want to master that book. Find a statistician and ask them to teach it to you as a special topics course. It will help you as both either a Marine officer or a Naval officer. Then after that pick up a copy of \"\"Security Analysis.\"\" Either the 1943 copy (yes it is in print) by Benjamin Graham if you feel good about accounting, or the 1987 copy by Cottle under the Graham/Dodd imprimatur. Then, if you are still interested in cryptocurrencies and they will be blasé by then, then pick up an economics textbook on money. If I were you, I would learn about Yap money, commodity money, and prison money first, then you might understand why a cryptocurrency may not be an investment for you.\"",
"title": ""
},
{
"docid": "9ed2cb593ee57de5f9f887f837964aa8",
"text": "A CDIC-insured high-interest savings bank account is both safe and liquid (i.e. you can withdraw your money at any time.) At present time, you could earn interest of ~1.35% per year, if you shop around. If you are willing to truly lock in for 2 years minimum, rates go up slightly, but perhaps not enough to warrant loss of liquidity. Look at GIC rates to get an idea. Any other investments – such as mutual funds, stocks, index funds, ETFs, etc. – are generally not consistent with your stated risk objective and time frame. Better returns are generally only possible if you accept the risk of loss of capital, or lock in for longer time periods.",
"title": ""
},
{
"docid": "01bfef7eb36808691beb9f1d8e5b1480",
"text": "\"In the UK there are Premium Bonds, http://www.nsandi.com/. In simple terms these get you a \"\"raffle ticket\"\" for each £1 you invest. Each month multiple tickets are drawn and they each win between £25 and £1m. Your capital does not go down but you aren't guaranteed to win. So you can't lose your money but there's potential to not make any either.\"",
"title": ""
},
{
"docid": "686113d3d16706ed6ffe900f4d461adf",
"text": "\"If your financial needs aren't complex, and mostly limited to portfolio management, consider looking into the newish thing called robo-advisers (proper term is \"\"Automated investing services\"\"). The difference is that robo-advisers use software to manage portfolios on a large scale, generating big economy of scale and therefore offering a much cheaper services than personal advisor would - and unless your financial needs are extremely complex, the state of the art of scaled up portfolio management is at the point that a human advisor really doesn't give you any value-add (and - as other answers noted - human advisor can easily bring in downsides such as conflict of interest and lack of fiduciary responsibility). disclaimer: I indirectly derive my living from a company which derives a very small part of their income from a robo-adviser, therefore there's a possible small conflict of interest in my answer\"",
"title": ""
},
{
"docid": "a6840bb77480d78d9db4803102ba102e",
"text": "I will attempt to answer three separate questions here: The standard answer is that an emergency fund should not be in an investment that can lose value. The safest course of action is to put it in a savings account or other very low risk investment somewhere. This question becomes: can a reasonable and low risk investment in Sweden be comparable to or better than a low risk investment in Brazil? Inflation in Brazil has averaged a little less than 6% over the last 10 years with a recent spike up above 8%. A cursory search indicates interest rates on savings accounts in Brazil are outpacing inflation so you might still expect a positive return on money in a savings account there. By contrast, Sweden's inflation rate has been around 1% over the last 10 years and has hovered around 0 or even deflation in recent years. Swedish interest rates for savings accounts right now are very low, nearly 0%. Putting money in a savings account in Sweden would likely hold its value or lose a slight amount of value. Based on this, you might be better off leaving your emergency fund invested in BRL in Brazil. The answer to this a little unclear. The Brazilian stock market has been all over the place in the last 10 years, with a slight downard trend in recent years. In comparison, Sweden's stock market has shown fairly consistent growth in spite of the big dip in 2008. Given this, it seems like the fairest comparison would your current 13% ROI investment in Brazil vs. a fund or ETF that tracks the Swedish stock market index. If we assume a consistent 13% ROI on your investment in Brazil and a consistent inflation rate of 6%, your adjusted ROI there would be around 7% per year. The XACT OMS30 ETF that tracks the Swedish OMS 30 Index has a 10 year annualized return of 9.81%. If you subtract 0.8% inflation, you get an adjusted ROI 9%. Based on this, Sweden may be a safer place for longer term, moderate risk investments right now.",
"title": ""
},
{
"docid": "96d0479db259b1d1bbc57b467acf8cf2",
"text": "\"If you read Joel Greenblatt's The Little Book That Beats the Market, he says: Owning two stocks eliminates 46% of the non market risk of owning just one stock. This risk is reduced by 72% with 4 stocks, by 81% with 8 stocks, by 93% with 16 stocks, by 96% with 32 stocks, and by 99% with 500 stocks. Conclusion: After purchasing 6-8 stocks, benefits of adding stocks to decrease risk are small. Overall market risk won't be eliminated merely by adding more stocks. And that's just specific stocks. So you're very right that allocating a 1% share to a specific type of fund is not going to offset your other funds by much. You are correct that you can emulate the lifecycle fund by simply buying all the underlying funds, but there are two caveats: Generally, these funds are supposed to be cheaper than buying the separate funds individually. Check over your math and make sure everything is in order. Call the fund manager and tell him about your findings and see what they have to say. If you are going to emulate the lifecycle fund, be sure to stay on top of rebalancing. One advantage of buying the actual fund is that the portfolio distributions are managed for you, so if you're going to buy separate ETFs, make sure you're rebalancing. As for whether you need all those funds, my answer is a definite no. Consider Mark Cuban's blog post Wall Street's new lie to Main Street - Asset Allocation. Although there are some highly questionable points in the article, one portion is indisputably clear: Let me translate this all for you. “I want you to invest 5pct in cash and the rest in 10 different funds about which you know absolutely nothing. I want you to make this investment knowing that even if there were 128 hours in a day and you had a year long vacation, you could not possibly begin to understand all of these products. In fact, I don’t understand them either, but because I know it sounds good and everyone is making the same kind of recommendations, we all can pretend we are smart and going to make a lot of money. Until we don’t\"\" Standard theory says that you want to invest in low-cost funds (like those provided by Vanguard), and you want to have enough variety to protect against risk. Although I can't give a specific allocation recommendation because I don't know your personal circumstances, you should ideally have some in US Equities, US Fixed Income, International Equities, Commodities, of varying sizes to have adequate diversification \"\"as defined by theory.\"\" You can either do your own research to establish a distribution, or speak to an investment advisor to get help on what your target allocation should be.\"",
"title": ""
},
{
"docid": "abfe341af61637ca246e2c5f0a6d6b15",
"text": "\"First of all, congratulations on being in an incredible financial position. you have done well. So let's look at the investment side first. If you put 400,000 in a decent index fund at an average 8% growth, and add 75,000 every year, in 10 years you'll have about $1.95 Million, $800k of which is capital gain (more or less due to market risk, of course) - or $560k after 30% tax. If you instead put it in the whole life policy at 1.7% you'll have about $1.3 Million, $133k of which is tax-free capital gain. So the insurance is costing you $430K in opportunity cost, since you could have done something different with the money for more return. The fund you mentioned (Vanguard Wellington) has a 10-year annualized growth of 7.13%. At that growth rate, the opportunity cost is $350k. Even with a portfolio with a more conservative 5% growth rate, the opportunity cost is $178k Now the life insurance. Life insurance is a highly personal product, but I ran a quick quote for a 65-year old male in good health and got a premium of $11,000 per year for a $2M 10-year term policy. So the same amount of term life insurance costs only $110,000. Much less than the $430k in opportunity cost that the whole life would cost you. In addition, you have a mortgage that's costing you about $28K per year now (3.5% of 800,000). Why would you \"\"invest\"\" in a 1.7% insurance policy when you are paying a \"\"low\"\" 3.5% mortgage? I would take as much cash as you are comfortable with and pay down the mortgage as much as possible, and get it paid off quickly. Then you don't need life insurance. Then you can do whatever you want. Retire early, invest and give like crazy, travel the world, whatever. I see no compelling reason to have life insurance at all, let alone life insurance wrapped in a bad investment vehicle.\"",
"title": ""
},
{
"docid": "4fb93947461cf2614b37f4ea50bbec9b",
"text": "Googling vanguard target asset allocation led me to this page on the Bogleheads wiki which has detailed breakdowns of the Target Retirement funds; that page in turn has a link to this Vanguard PDF which goes into a good level of detail on the construction of these funds' portfolios. I excerpt: (To the question of why so much weight in equities:) In our view, two important considerations justify an expectation of an equity risk premium. The first is the historical record: In the past, and in many countries, stock market investors have been rewarded with such a premium. ... Historically, bond returns have lagged equity returns by about 5–6 percentage points, annualized—amounting to an enormous return differential in most circumstances over longer time periods. Consequently, retirement savers investing only in “safe” assets must dramatically increase their savings rates to compensate for the lower expected returns those investments offer. ... The second strategic principle underlying our glidepath construction—that younger investors are better able to withstand risk—recognizes that an individual’s total net worth consists of both their current financial holdings and their future work earnings. For younger individuals, the majority of their ultimate retirement wealth is in the form of what they will earn in the future, or their “human capital.” Therefore, a large commitment to stocks in a younger person’s portfolio may be appropriate to balance and diversify risk exposure to work-related earnings (To the question of how the exact allocations were decided:) As part of the process of evaluating and identifying an appropriate glide path given this theoretical framework, we ran various financial simulations using the Vanguard Capital Markets Model. We examined different risk-reward scenarios and the potential implications of different glide paths and TDF approaches. The PDF is highly readable, I would say, and includes references to quant articles, for those that like that sort of thing.",
"title": ""
}
] |
fiqa
|
94729273a9c4a2c2ac805bc592325409
|
How do I determine if sale proceeds from an asset are taxable?
|
[
{
"docid": "4902a1a39912a3dd74a0f67c18da2907",
"text": "\"If it's fully expensed, it has zero basis. Any sale is taxable, 100%. To the ordinary income / cap gain issue raised in comment - It's a cap gain, but I believe, as with real estate, special rates apply. This is where I am out of my area of expertise, and as they say - \"\"Consult a professional.\"\"\"",
"title": ""
},
{
"docid": "ebc5f2817ff75145777b6ba991c49cc5",
"text": "Profit = Sale price - Basis Basis = Purchase price - any depreciation taken, including expensing it.",
"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": "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": "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": "b7976020809b0020375b57fb5be4dbcb",
"text": "Is the remaining amount tax free? As in, if the amount shown (which I can sell) on etrade is $5000 then if I sell the entire shares will my bank account be increased by $5000? The stocks they sell are withholding. So let's say you had $7000 of stock and they sold $2000 for taxes. That leaves you with $5000. But the actual taxes paid might be more or less than $2000. They go in the same bucket as the rest of your withholding. If too much is withheld, you get a refund. Too little and you owe them. Way too little and you have to pay penalties. At the end of the year, you will show $7000 as income and $2000 as withheld for taxes from that transaction. You may also have a capital gain if the stock increases in price. They do not generally withhold on stock sales, as they don't necessarily know what was your gain and what was your loss. You usually have to handle that yourself. The main point that I wanted to make is that the sale is not tax free. It's just that you already had tax withheld. It may or may not be enough.",
"title": ""
},
{
"docid": "ab7f5a778746d1d70965a41d7655bc53",
"text": "This doesn't sound very legal to me. Real estate losses cannot generally be deducted unless you have other real estate income. So the only case when this would work is when that person has bunch of other buildings that do produce income, and he reduces that income, for tax purposes, by deducting the expenses/depreciation/taxes for the buildings that do not. However, depreciation doesn't really reduce taxes, only defers them to the sale. As mhoran_psprep said - all the rest of the expenses will be minimal.",
"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": "b3bb25844cb10bfb674a0e794e241cf7",
"text": "Capital gains taxes for a year are calculated on sales of assets that take place during that year. So if you sell some stock in 2016, you will report those gains/losses on your 2016 tax return.",
"title": ""
},
{
"docid": "306bbfcbeb9d36a4dfe629c06c6049d9",
"text": "\"A nondividend distribution is typically a return of capital; in other words, you're getting money back that you've contributed previously (and thus would have been taxed upon in previous years when those funds were first remunerated to you). Nondividend distributions are nontaxable, so they do not represent income from capital gains, but do effect your cost basis when determining the capital gain/loss once that capital gain/loss is realized. As an example, publicly-traded real estate investment trusts (REITs) generally distribute a return of capital back to shareholders throughout the year as a nondividend distribution. This is a return of a portion of the shareholder's original capital investment, not a share of the REITs profits, so it is simply getting a portion of your original investment back, and thus, is not income being received (I like to refer to it as \"\"new income\"\" to differentiate). However, the return of capital does change the cost basis of the original investment, so if one were to then sell the shares of the REIT (in this example), the basis of the original investment has to be adjusted by the nondividend distributions received over the course of ownership (in other words, the cost basis will be reduced when the shares are sold). I'm wondering if the OP could give us some additional information about his/her S-Corp. What type of business is it? In the course of its business and trade activity, does it buy and sell securities (stocks, etc.)? Does it sell assets or business property? Does it own interests in other corporations or partnerships (sales of those interests are one form of capital gain). Long-term capital gains are taxed at rates lower than ordinary income, but the IRS has very specific rules as to what constitutes a capital gain (loss). I hate to answer a question with a question, but we need a little more information before we can weigh-in on whether you have actual capital gains or losses in the course of your S-Corporation trade.\"",
"title": ""
},
{
"docid": "de72f00da7d0938ab1e7d83d752d9162",
"text": "\"Is this legal? Why not? But you might have trouble deducting losses on your taxes, especially if you sell to someone related to you in some way (which is indeed what you're doing). See the added portion below regarding dealing with \"\"related person\"\" (which a sibling is). The state of Maryland has a transfer/recordation tax of 1.5% for each, the buyer and seller. Would this be computed on the appraised or sale value? You should check with the State. In California property taxes are assessed based on sale value, but if the sale value is bogus the assessors have the right to recalculate. Since you're selling to family, the assessors will likely to intervene and set a more close to \"\"fair market\"\" value on the transaction, but again - check the local law. Will this pose any problem if the buyer needs financing? Likely, banks will be suspicious.Since you're giving a discount to your sibling, it will likely not cause a problem for financing. If it was an unrelated person getting such a discount, it would likely to have raised some questions. Would I be able to deduct a capital loss on my tax return? As I said - it may be a problem. If the transaction is between related people - likely not. Otherwise - not sure. Check with a professional tax adviser (EA or CPA licensed in Maryland). You mentioned in the comment that the buyer is a sibling. IRS Publication 544 has a list of what is considered \"\"related person\"\", and that includes siblings. So the short answer is NO, you will not be able to deduct the loss. The tax treatment is not trivial in this case, and I suggest to have a professional tax adviser guide you on how to proceed. Here's the definition of \"\"related person\"\" from the IRS pub. 544: Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.). An individual and a corporation if the individual directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Two corporations that are members of the same controlled group as defined in section 267(f) of the Internal Revenue Code. A trust fiduciary and a corporation if the trust or the grantor of the trust directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. A grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Fiduciaries of two different trusts, and the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. A tax-exempt educational or charitable organization and a person who directly or indirectly controls the organization, or a member of that person's family. A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest. Two partnerships if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. A person and a partnership if the person directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership.\"",
"title": ""
},
{
"docid": "f85decf61df3ddc2d9eb1cea5820a19c",
"text": "Simply transferring money you own from overseas to Canada will not mean you need to pay tax on it. However if you sell property at a profit - I.e. sell it for more than you paid for it - you may have to pay tax on any gains. This is true whether or not you transfer the money to Canada. Calculating the amount is quite complicated. You might consider getting a tax expert.",
"title": ""
},
{
"docid": "8cf8b0da9f9bd690eec82a6dad9df298",
"text": "You pay taxes on capital gains when you realize your gains by selling the investment property. Also, in the US, taxes on capital gains are computed at special rates depending on your current income level, and so when you realize your gains two years from now, you will pay taxes on the gains at the special rate then applicable to your income level for the year of sale. Remember also that the US Congress can change the tax laws at any time between now and the time you sell your stocks, and so the rates you are looking at now may have changed too.",
"title": ""
},
{
"docid": "afafec3ae79fa797fcb2e00de3988080",
"text": "For reporting purposes, I would treat the purchase and sale of gold like a purchase and sale of a stock. The place to do so is Schedule D. (And if it's the wrong form, but you reported it, there is might not be a penalty, whereas there is a penalty for NOT reporting.) The long term gain would be at capital gains rates. The short term gain would be at ordinary income rates. And if you have two coins bought at two different times, you get to choose which one to report (as long as you report the OTHER one when you sell the second coin).",
"title": ""
},
{
"docid": "6210d2897e4211bf4057a4113912c180",
"text": "The question seems to be from the point of view actual sales and not its impact on one's taxation. In case you just want to sell, why brokers will respond differently each times. Either there may be issues with ownership and/or the company whose shares it is? In case you feel that the issues lies with brok",
"title": ""
},
{
"docid": "a286e4563e4d15f6300f7e8ac67849fd",
"text": "\"Yes, you're correct and yes they will. Note that it will be considered as \"\"sale\"\" with gains being taxable income to you.\"",
"title": ""
},
{
"docid": "f281ca5432ea04eed56f4a9c836e0d55",
"text": "The article speaks about how pieces of the pie have shrunk. I'm also curious to know if the pie's growth has maintained or shrunk as well. All the women starting full time jobs from the 60's would have to have some impact on the overall salaries. That's inevitable. And how have the demographics changed in the top 5%? Could a divergence there justify a portion of the diverging rates?",
"title": ""
}
] |
fiqa
|
4f04e7150a1988bda8417d173af3db88
|
What tax laws apply to Meetup group income?
|
[
{
"docid": "d0c0141b1a1208270b2418dc9a48bd67",
"text": "\"In the United States tax law, a group of people who are neither an individual nor an incorporated entity is called \"\"partnership\"\". Here's the IRS page on partnerships. Income derived by such a \"\"meetup.com\"\" group is essentially a partnership income with the group members being the partners. However, as you can see from the questions in the comments, the situation can become significantly more complex if this partnership is not managed properly.\"",
"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": "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": "b5ee1e17e8e4b943fe7322831dec28f6",
"text": "\"Imagine two restaurants. One has prices 15% higher than the other, and the owner pays this 15% to his wait staff in the form of higher wages. The other has lower prices, but the average customer gifts 15% to their waiter. Clearly, in the first restaurant, the 15% the wait staff receives is taxable income. It is traditional salary. What legitimate, economic justification is their for treating the second restaurant any differently? Imagine a grocery store in a small town that offered long-time customers a \"\"pay nothing\"\" option but made it clear that they'd be subject to social ostracism and no longer welcome in the store if they didn't gift 85% of the usual cost of the items. The customers would save on sales tax and the grocer would argue that all that money was gifts, not income. Of course this doesn't work. The IRS, and the laws, don't care very much about what you call things. They care about the underlying economic reality. If the money was part of the payment for the services rendered, regardless of how it was delivered, what the parties called it, or whether the obligation to pay was legal or social, it's still a payment for the service and it's still taxable. You would have to be able to argue to the IRS that it really was a gift and wasn't any form of payment for the service received. Otherwise, it's just a scheme to evade taxes.\"",
"title": ""
},
{
"docid": "86376543a6c5ea3be9031394552c401b",
"text": "In many cases yes. In the case of an employer handing employees a credit card to use, that is clearly income if the card is used for something other than a business expense. Generally speaking, if you're receiving something with a significant value without strings attached, it is likely taxable. Google no doubt has an army of tax attorneys, so perhaps they are able to exploit loopholes of some sort.",
"title": ""
},
{
"docid": "e8b29d1d8d203cca384029d4d16bc1f8",
"text": "Generally it is a taxable transaction. Basic principle of taxation everywhere is that the mean of payment doesn't matter. If the income is taxable - it is taxable regardless of the unit of currency you used. It can be a strawberry, a bitcoin, a gold nugget, or a dollar, it doesn't change a thing about how it is taxed. If you look at the United States tax code definition of taxable income, for example, you will find no mention whatsoever of any currency. Similarly with other tax laws I'm familiar with. I'm sure there's no such limitation in Australia.",
"title": ""
},
{
"docid": "13ab33ce88815758683978479ee0009f",
"text": "\"Companies often provide cafeteria, or catering services, to employees tax-free at subsidized rates. I'll use \"\"cafeteria\"\" as an illustration. The IRS says that in order to avoid lunch being taxed as income, the employees must pay the \"\"direct costs\"\" of the lunch, food and labor. In addition to those costs, cafeterias add two more items to come up with the total tab; \"\"overhead,\"\" (the cost of renting the space), and of course, profit. The company can waive the last two, and charge employees only materials and labor. That's why subsidized cafeteria food can cost as little as half of what it would cost elsewhere.\"",
"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": "7ad5b8a7665f87f4c1a7685590461e7f",
"text": "This is tax fraud, plain and simple. I recently wrote an article The Step Transaction Doctrine, in which I explain that a series of events may each be legal, but aggregate to one transaction and the individual steps are ignored. In this case, it goes beyond that, by accepting $5/mo you are already outside the tax code. As littleadv noted, you can't work for a legitimate business for free and not expect to have some kind of issue. The $14K/yr gift isn't a bona fide gift, but ties to that work.",
"title": ""
},
{
"docid": "78afcaa1e3f306174cdd0ed42651cd2e",
"text": "how does a single employee LLC bring in 500k? I mean if you want to have it in a low-tax environment, you can probably invest it in something and then pull them out? I don't think you can put away pre-tax earnings to then use on salary costs.",
"title": ""
},
{
"docid": "e9b1750861a184a70777dda66fa97951",
"text": "\"Be careful here: If ACME were in California, I would pay taxes on USD 17,000 because I had revenue of 20,000 and expenses of 3,000. To CALIFORNIA. And California taxes S-Corps. And, in addition, you'd pay $800 for the right of doing business in the State. All that in addition to the regular Federal and State taxes to the State where you're resident. Suppose that ACME is in Britain (or anywhere else for that matter). My revenue and expenses are the same, but now my money has been earned and my expenses incurred in a foreign country. Same thing exactly. Except that you'll have to pay taxes to the UK. There may be some provision in the tax treaty to help you though, so you may end up paying less taxes when working in the UK than in California. Check with a licensed tax adviser (EA/CPA licensed in your State) who won't run away from you after you say the words \"\"Tax Treaty\"\". Does it even make sense to use my S-Corporation to do business in a foreign country? That should be a business decision, don't let the tax considerations drive your business.\"",
"title": ""
},
{
"docid": "d737b1ec367bd04433444f7c48e9571f",
"text": "It is totally legal but it just has to be reported like income. Granted the IRS will probably not catch it. I work for a large company I get little gift cards all the time and they add the dollar value as income for taxes on my paycheck. It is a little annoying because I think it is kind of shit that a dollar value of a gift card is treated as the same value as real money, but they are amazon gift cards so better than cash to me.",
"title": ""
},
{
"docid": "fb34f2e5de976f061f43e82136d3aead",
"text": "\"I'm going to post this as an answer because it's from the GoFundMe website, but ultimately even they say to speak with a tax professional about it. Am I responsible for taxes? (US Only) While this is by no means a guarantee, donations on GoFundMe are simply considered to be \"\"personal gifts\"\" which are not, for the most part, taxed as income in the US. However, there may be particular, case-specific instances where the income is taxable (dependent on amounts received and use of the monies, etc.). We're unable to provide specific tax advice since everyone's situation is different and tax rules can change on a yearly basis. We advise that you maintain adequate records of donations received, and consult with your personal tax adviser. Additionally, WePay will not report the funds you collect as earned income. It is up to you (and a tax professional) to determine whether your proceeds represent taxable income. The person who's listed on the WePay account and ultimately receives the funds may be responsible for taxes. Again, every situation is different, so please consult with a tax professional in your area. https://support.gofundme.com/hc/en-us/articles/204295498-Am-I-responsible-for-taxes-US-Only- And here's a blurb from LibertyTax.com which adds to the confusion, but enforces the \"\"speak with a professional\"\" idea: Crowdfunding services have to report to the IRS campaigns that total at least $20,000 and 200 transactions. Money collected from crowdfunding is considered either income or a gift. This is where things get a little tricky. If money donated is not a gift or investment, it is considered taxable income. Even a gift could be subject to the gift tax, but that tax applies only to the gift giver. Non-Taxable Gifts These are donations made without the expectation of getting something in return. Think of all those Patriots’ fans who gave money to GoFundMe to help defray the cost of quarterback Tom Brady’s NFL fine for Deflategate. Those fans aren’t expecting anything in return – except maybe some satisfaction -- so their donations are considered gifts. Under IRS rules, an individual can give another individual a gift of up to $14,000 without tax implications. So, unless a Brady fan is particularly generous, his or her GoFundMe gift won’t be taxed. Taxable Income Now consider that same Brady fan donating $300 to a Patriots’ business venture. If the fan receives stock or equity in the company in return for the donation, this is considered an investment and is not taxable . However, if the business owner does not offer stock or equity in the company, the money donated could be considered business income and the recipient would need to report it on a tax return. https://www.libertytax.com/tax-lounge/two-tax-rules-to-know-before-you-try-kickstarter-or-gofundme/\"",
"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": "fb7402a0c252a922705eff1a0d2f4e71",
"text": "\"I worked in the service industry for over 10 years and this came up every now and again. Mostly in hypothetical situations. I'm not a tax expert, but my general understanding is that it is viewed as income by the IRS if you performed a service of any kind in exchange for the money. In other words, if you waited on the table, and they left you a gift for doing so, it is taxable. You'll probably also find that if you pool tips with other employees or have to tip out the bartenders, cooks or dishwashers, they'll generally agree with the IRS that you clearly received a tip and want their fair share. While the concept of \"\"gifting\"\" money to others in a situation like this is intriguing, especially in the service industry, it really doesn't meet the definition of a gift in the eyes of the IRS. For it to truly be a gift, the person would have had to intend to gift you the money even if they hadn't come into your restaurant at all that night. That clearly is not the case here.\"",
"title": ""
},
{
"docid": "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": ""
}
] |
fiqa
|
825513bb9890de5d5ba58d1d1e840546
|
Self employed, putting away tax money
|
[
{
"docid": "0dbe615376361cbe5aee13c01dac142b",
"text": "\"Hearing somewhere is a level or two worse than \"\"my friend told me.\"\" You need to do some planning to forecast your full year income and tax bill. In general, you should be filing a quarterly form and tax payment. You'll still reconcile the year with an April filing, but if you are looking to save up to pay a huge bill next year, you are looking at the potential of a penalty for under-withholding. The instructions and payment coupons are available at the IRS site. At this point I'm required to offer the following advice - If you are making enough money that this even concerns you, you should consider starting to save for the future. A Solo-401(k) or IRA, or both. Read more on these two accounts and ask separate questions, if you'd like.\"",
"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": "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": "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": "ca75b97e085b17ef6c1513cfadd48375",
"text": "The Government self-assessment website states you can ask HMRC to reduce your payments on account if your business profits or other income goes down, and you know your tax bill is going to be lower than last year. There are two ways to do this:",
"title": ""
},
{
"docid": "bfb3bb9c58961c4994b6fef8d7252358",
"text": "I heard that a C-Corp being a one person shop (no other employees but the owner) can pay for the full amount 100% of personal rent if the residence is being used as a home office. Sure. Especially if you don't mind being audited. Technically, it doesn't matter how the money gets where it goes as long as the income tax filings accurately describe the tax situation. But the IRS hates it when you make personal expenses from a business account, even if you've paid the required personal income tax (because their computers simply aren't smart enough to keep up with that level of chaos). Also, on a non-tax level, commingling of business and personal funds can reduce the effectiveness of your company's liability protection and you could more easily become personally liable if the company goes bankrupt. From what I understand the 30% would be the expense, and the 70% profit distribution. I recommend you just pay yourself and pay the rent from your personal account and claim the allowed deductions properly like everyone else. Why & when it would make sense to do this? Are there any tax benefits? Never, because, no. You would still have to pay personal income tax on your 70% share of the rent (the 30% you may be able to get deductions for but the rules are quite complicated and you should never just estimate). The only way to get money out of a corporation without paying personal income tax is by having a qualified dividend. That's quite complicated - your accounting has to be clear that the money being issued as a qualified dividend came from an economic profit, not from a paper profit resulting from the fact that you worked hard without paying yourself market value.",
"title": ""
},
{
"docid": "90bf0c014b7268f7f6404fa099240da9",
"text": "This may not exactly answer your question but, as a small business owner, I would highly recommend having a professional handle your taxes. It is worth the money to have it done correctly rather than doing something wrong and getting audited or worse having penalties assessed and owing more than you thought would be possible. I would recommend this especially if this is how you make your primary income, you can always write it off as a business expense.",
"title": ""
},
{
"docid": "785d81e7e261c8f73ca537ce8b2c9d75",
"text": "\"There are a couple of things that are missing from your estimate. In addition to your standard deduction, you also have a personal exemption of $4050. So \"\"D\"\" in your calculation should be $6300 + $4050 = $10,350. As a self-employed individual, you need to pay both the employee and employer side of the Social Security and Medicare taxes. Instead of 6.2% + 1.45%, you need to pay (6.2% + 1.45%) * 2 = 15.3% self-employment tax. In addition, there are some problems with your calculation. Q1i (Quarter 1 estimated income) should be your adjusted annual income divided by 4, not 3 (A/4). Likewise, you should estimate your quarterly tax by estimating your income for the whole year, then dividing by 4. So Aft (Annual estimated federal tax) should be: Quarterly estimated federal tax would be: Qft = Aft / 4 Annual estimated self-employment tax is: Ase = 15.3% * A with the quarterly self-employment tax being one-fourth of that: Qse = Ase / 4 Self employment tax gets added on to your federal income tax. So when you send in your quarterly payment using Form 1040-ES, you should send in Qft + Qse. The Form 1040-ES instructions (PDF) comes with the \"\"2016 Estimated Tax Worksheet\"\" that walks you through these calculations.\"",
"title": ""
},
{
"docid": "9ecb660de546fa64db71ef3827ab31ee",
"text": "For 2014/15 it looks something like this: To make it a bit clearer, let's also plot the difference in net income for self-employment and a single person company compared to employment: Self-employment is slightly worse between £5885 and about £10,500 because Class 2 NI kicks in before the employed person starts paying any tax. After that, self-employment is better because you pay 9% Class 4 NI rather than 12% Class 1 NI. Once higher rate tax kicks in, the saving stops growing. The single-person company is most tax-efficient at all points, ignoring any accountancy costs it incurs. Strange things happen between £100k and about £135k because the withdrawal of the personal allowance kicks in at a different point when receiving dividends. We can also plot the percentage of income paid as tax for each case: The strange kink for self-employment below £10k is caused by Class 2 NI again. Employment and self-employment both gradually tend towards paying 47%, reaching 46.5% for £2m gross income. The company tends towards 44.44%, reaching 43.6% for £2m gross income.",
"title": ""
},
{
"docid": "ed074af8df6c82582056af6264b514f1",
"text": "\"What you're asking about is called a \"\"distribution\"\" when it comes to an LLC. It's basically you paying yourself some or all of the proceeds of the business, depending on how you're set up. You can pay yourself distributions on a regular schedule, say monthly, or you can do it at the end of the year. Whatever you do in this regard, what you take out as distributions is reported on your personal income tax as taxable income. LLCs in the U.S. use pass-through taxation (unless you intentionally elect to have the LLC treated as a corporation for tax purposes, which some people do), so whatever the principals receive in distribution is personally taxable. Keep in mind that you'll have to pay ALL of the taxes normally covered by an employer, such as self-employment tax (usually about 15%), social security tax, and so on. This is in addition to income tax, so remember that. I hope this helps. Good luck!\"",
"title": ""
},
{
"docid": "614098cccc7c2833b8fc3c2452d2e12c",
"text": "\"Ditto @GradeEhBacon, but let me add a couple of comments: But more relevantly: GradeEhBacon mentioned transaction costs. Yes. Many tax shelters require setting up accounts, doing paperwork, etc. Often you have to get a lawyer or accountant to do this right. If the tax shelter could save you $1 million a year in taxes, it makes sense to pay a lawyer $10,000 to set it up right. If it could save you $100 a year in taxes, paying $10,000 to set it up would be foolish. In some cases the tax savings would be so small that it wouldn't be worth the investment of spending $20 on a FedEx package to ship the paperwork. Inconvenience. Arguably this is a special case of transaction costs: the cost of your time. Suppose I knew that a certain tax shelter would save me $100 a year in taxes, but it would take me 20 hours a year to do the paperwork or whatever to manage it. I probably wouldn't bother, because my free time is worth more than $5 an hour to me. If the payoff was bigger or if I was poorer, I might be willing. Complexity. Perhaps a special case of 3. If the rules to manage the tax shelter are complicated, it may not be worth the trouble. You have to spend a bunch of time, and if you do it wrong, you may get audited and slapped with fines and penalties. Even if you do it right, a shelter might increase your chance of being audited, and thus create uncertainty and anxiety. I've never intentionally cheated on my taxes, but every year when I do my taxes I worry, What if I make an honest mistake but the government decides that it's attempted fraud and nails me to the wall? Qualification. Again, as others have noted, tax shelters aren't generally, \"\"if you fill out this form and check box (d) you get 50% off on your taxes\"\". The shelters exist because the government decided that it would be unfair to impose taxes in this particular situation, or that giving a tax break encourages investment, or some other worthy goal. (Sometimes that worthy goal is \"\"pay off my campaign contributors\"\", but that's another subject.) The rules may have unintended loopholes, but any truly gaping ones tend to get plugged. So if, say, they say that you get a special tax break for investing in medical research, you can't just declare that your cigarette and whiskey purchases are medical research and claim the tax break. Or you talked about off-shore tax havens. The idea here is that the US government cannot tax income earned in another country and that has never even entered the US. If you make $10 in France and deposit it in a French bank account and spend it in France, the US can't tax that. So American companies sometimes set up bank accounts outside the US to hold income earned outside the US, so they don't have to bring it into the US and pay the high US tax rate. (US corporate taxes are now the highest of any industrialized country.) You could, I suppose, open an account in the Caymans and deposit the income you earned from your US job there. But if the money was earned in the US, working at a factory or office in the US, by a person living in the US, the IRS is not going to accept that this is foreign income.\"",
"title": ""
},
{
"docid": "6e823a2231fe80ac405b0c2fe35a9cf4",
"text": "You can file a revised W-4 with your employer claiming more allowances than you do now. More allowances means less Federal tax and (if applicable and likely with a separate form) less state tax. This doesn't affect social security and Medicare with holding, though. That being said, US taxes are on a pay-as-you-go system. If the IRS determines that you're claiming more allowances than you're eligible for and not paying the proper taxes throughout the year, they will hit you with an underpayment penalty fee, which would likely negate the benefits of keeping that money in the first place. This is why independent contractors and self-employed people pay quarterly or estimated taxes. Depending on the employer, they may require proof of the allowances for adjustment before they accept the revised W-4.",
"title": ""
},
{
"docid": "76246cbce6901461cc98c63b501f8cf5",
"text": "Not only what you mentioned about the tax deductions, but cutting marketing expenses is potentially dangerous advice. Evaluating your marketing efforts and making adjustments that make sense for your business seems to be a much better bit of advice.",
"title": ""
},
{
"docid": "0dae50b5d6c8199652419e5dd726b2aa",
"text": "I will answer this question broadly for various jurisdictions, and also specifically for the US, given the OP's tax home: Generally, for any tax jurisdiction If your tax system relies on periodic prepayments through the year, and a final top-up/refund at the end of the year (ie: basically every country), you have 3 theoretical goals with how much you pre-pay: Specifically, for the U.S. All information gathered from here: https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes. In short, depending on your circumstance, you may need to pay quarterly estimated tax payments to avoid penalties on April 15th. Even if you won't be penalized, you, may benefit from doing so anyway (to force yourself to save the money necessary by April 15th). I have translated the general goals above, into US-specific advice:",
"title": ""
},
{
"docid": "7af6de2300ef6bb4adbd025f53c0dfad",
"text": "\"Do you have other income that you are not considering? Interest and dividends would be an example, but there are all sorts of options. Also with your witholding is it set up such that your employers have any idea of your tax bracket ultimately based on your combined incomes? Usually what they do is take out money assuming you will be in the tax bracket of any given paycheck spread out over the course of a year. For example, for federal I had an option to select (in an online form that fills out my W4 for me) \"\"married: withold at higher single rate\"\" and did to try and cover this fact. Eventually I may end up having to calculate my own witholding to fix a too-low problem like yours.\"",
"title": ""
},
{
"docid": "cba1425be952a8c31d88fddb317ac8f0",
"text": "I've had zero taxable income for the past 2 years and yet the calculations say I owe the government $250 for each year for the Self Employment tax. How can they charge a non-zero tax on my income when my taxable income is zero? That is theft. That demands reform.",
"title": ""
}
] |
fiqa
|
a95c52ce8dd5740f0cf765965662f3ce
|
Where on schedule C should a PO Box Rental fee go?
|
[
{
"docid": "96b8fbf19e0d9bba77b45d071ea95197",
"text": "\"Turbotax community had a similar question. They claim you just put it into \"\"Office Expense\"\". I never understood why there are so many categories when they are just summed up and subtracted from your income. How can you possibly get in trouble for putting something in a wrong column if the final tax liability doesn't change.\"",
"title": ""
}
] |
[
{
"docid": "6ef443450b7a2e0334cec2673e52f06d",
"text": "\"You would put your earnings (and expenses, don't forget) on Schedule C, and then do a Schedule SE for self-employment tax. http://www.irs.gov/businesses/small/article/0,,id=98846,00.html 1040ES isn't used to compute taxes, it's used to pay taxes. Generally you are supposed to pay taxes as you go, rather than when you file. There are exceptions where you won't be penalized for paying when you file, \"\"most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller\"\" from http://www.irs.gov/taxtopics/tc306.html i.e. there's a safe harbor as long as you pay as much as you owed the year before. If you owe a lot at the end of the year a second time in a row, then you get penalized.\"",
"title": ""
},
{
"docid": "fcb2df2969c498e8cc9787fb8e1c130e",
"text": "I was only able to find Maryland form 1 to fit your question, so I'll assume you're referring to this form. Note the requirement: Generally all tangible personal property owned, leased, consigned or used by the business and located within the State of Maryland on January 1, 201 must be reported. Software license (whether time limited or not, i.e.: what you consider as rental vs purchase) is not tangible property, same goes to the license for the course materials. Note, with digital media - you don't own the content, you merely paid for the license to use it. Design books may be reportable as personal tangible property, and from your list that's the only thing I think should be reported. However, having never stepped a foot in Maryland and having never seen (or even heard of) this ridiculous form before, I'd suggest you verify my humble opinion with a tax adviser (EA/CPA) licensed in the State of Maryland to confirm my understanding of this form.",
"title": ""
},
{
"docid": "1825e83130b1923ee7a39e59931a3532",
"text": "I've actually had the same problem several years running, and it's solved by filing my corporate taxes, then taking those schedules, and applying them to my 1040, along with a Schedule C You'll want to work with an accountant on this, but basically you're going to take the total set of business expenses as 1 chunk, then write them off your income (as one chunk). I always recommend an accountant for this, but that's the general idea that I've used, and for the last 10 years, it's worked great.",
"title": ""
},
{
"docid": "794a9e429812ce4060a9161d64a9670b",
"text": "I wasn't making an argument to shutter the PO but that they are in a declining market and have to adapt. They can't meet their pension obligation and they will have to prune their urban services and curtail their most costly routes. Tax payers will not tolerate an antiquated business just for the sake of tradition or the convenience of a minority. I live on a rural route and can live with once a week mail service. I can also live with a half day post office. Let the cutting commence.",
"title": ""
},
{
"docid": "03792a462f43c1ce0f904af9dabfad36",
"text": "A basement unit would typically rent for less than similar space on a higher floor. Taxwise, you should be claiming the income, and expenses via schedule E, as if it were legal. Keep in mind, Al Capone was convicted on tax evasion not his other illegal activities. As long as you treat it as a legitimate business, a rental unit, you will be good with the IRS. The local building department will fine you if they find out.",
"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": "652321ec91a929624a156d39b09d148f",
"text": "While I'm not an accountant, this is how I do this for my personal accounting: Note, if you don't want the expense to take effect right away meaning it'll affect your Profits, then the transaction date here needs to be something in the future, then when you hit that date and the bill is still not paid, you just unpost the bill and repost again with a new date . So you end up with something like the following: 4. Now you post the invoice to Liabilities:Accounts Payable:The Cable Company, the invoice due date should reflect what you had in the invoice. This is important as gnucash will warn you that your bill is due if you want to pay it every time it starts: When you're ready to pay the bill, just find the bill and click pay invoice. If it's already paid and you imported transactions from your bank, find the transaction then right click and click assign as payment then choose your invoice. Note: I've being using this to also record cheques that are given to people but not cashed yet. I hope that helps.",
"title": ""
},
{
"docid": "5aa15dc16f13f6e5780c55aa815a7dde",
"text": "This sounds like a rental fee as described in the instructions for the 1099-MISC. Enter amounts of $600 or more for all types of rents, such as any of the following. ... Non-Employee compensation does not seem appropriate because you did not perform a service. You mention that your tax-preparer brought this up. I think you will need to consult with a CPA to receive a more reliable opinion. Make sure to bring the contract that describes the situation with you. From there, you may need to consult a tax attorney, but the CPA should be able to help you figure out what your next step is.",
"title": ""
},
{
"docid": "dd19288b9fa9daea043139afb9f8ad08",
"text": "\"From the IRS perspective, there's no difference between \"\"your taxes\"\" and \"\"your sole proprietorship's taxes\"\", they're all just \"\"your taxes\"\". While I could see it being very useful and wise to track your business's activities separately, and use separate bank accounts and the like, this is just a convenience to help you in your personal accounting, and not something that needs to relate directly to how tax forms are completed or taxes are paid. When calculating your taxes, if you want to figure out how much \"\"you\"\" owe vs. how much \"\"your business\"\" owes, you'll have to do so yourself. One approach might be just to take the amount that your Schedule C puts as income on your return and multiply by your marginal tax rate. Another approach might be to have your tax software run the calculations as though you had no business income, and see what just \"\"your personal\"\" taxes would have been without the business. If you think of the business income as being \"\"first\"\" and should use up the lower brackets rather than your personal income, maybe do it the other way around and have your software run the calculations as though you had only the business income and no other personal/investment income, and see what the amount of taxes would be then. Once you've figured out a good allocation, the actual mechanics of paying some \"\"personal tax amount\"\" from your personal bank account and some \"\"business tax amount\"\" from your business bank account are up to you. I'd probably just transfer the money from my business account to my personal account and pay all the taxes from the personal account. Writing two separate checks, one from each account, that total to the correct amount, I'm sure would work just fine as well. You can probably make separate payments from each account electronically through Direct Pay or EFTPS as well. As long as all taxes are paid by the deadline, I don't think the IRS is too picky about the details of how many payments are made.\"",
"title": ""
},
{
"docid": "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": "32eeaa85f8cf441c5a65496f8d88bf0d",
"text": "On line 21 of Schedule D, you write the smaller of So, in your case, since your Line 16 shows a loss of more than $3000 on Line 21, you write 3000 on Line 21 (the parentheses indicating that is it a negative number are already included on the form). Also, you write (3000) on Form 1040 Line 13. The rest of the loss is a carryover to next year (be sure to fill out the Capital Loss Carryover Worksheet where the carryover to next year is computed). Summary: you cannot write 0 on Line 21 of Schedule D and carry over the entire loss to next year. You must deduct $3000 this year and carry over the rest of the loss to next year.",
"title": ""
},
{
"docid": "300c2b236171618b127627cb296130ad",
"text": "Through your question and then clarification through the comments, it looks like you have a U.S. LLC with at least two members. If you did not elect some other tax treatment, your LLC will be treated as a partnership by the IRS. The partnership should file a tax return on Form 1065. Then each partner will get a Schedule K-1 from the partnership, which the partner should use to include their respective shares of the partnership income and expenses on their personal Forms 1040. You can also elect to be taxed as an S-Corp or a C-Corp instead of a partnership, but that requires you to file a form explicitly making such election. If you go S-Corp, then you will file a different form for the company, but the procedure is roughly the same - Income gets passed through to the owners via a Schedule K-1. If you go C-Corp, then the owners will pay no tax on their own Form 1040, but the C-Corp itself will pay income tax. As far as whether you should try to spend the money as business expense to avoid paying extra tax - That's highly dependent on your specific situation. I'd think you'd want to get tailored advice for that.",
"title": ""
},
{
"docid": "b716bade03dd6b48d556e5f54e846855",
"text": "It depends on the structure of your business. Are you a sole proprietor filing Schedule C on your 1040, or an S-corp, or part of a partnership? The treatment of a home office will differ depending on business entity.",
"title": ""
},
{
"docid": "6a52d1b7bf78322f735fdfe93ad1477d",
"text": "The most important thing to do when moving is to change your address with the post office. This will forward most mail for a year, and even automatically send change of address notices to many businesses that send mail to you. If you do this, and the IRS needs to send you something over the next year, you'll get it. The IRS does have a procedure for changing your address, and you would want to do this if you are expecting something from the IRS and are unable to do a change of address with the post office for some reason. But if you do forward your mail and you aren't expecting a refund check, I don't think it is necessary. The IRS will get your new address when you file your return next year.",
"title": ""
},
{
"docid": "6fdb10d3eb915b4a852e9c5f6aee1d2e",
"text": "i prepaid roughly $400 at closing into escrow. that's my minimum allowable balance. paid in all year, and now taxes and insurance are paid in december. after december, they're projecting a $200 balance, which is $200 too low. homeowners insurance hasn't changed, pmi hasn't changed, property taxes are virtually identical to estimate at closing. the difference is that the $400 initial payment didn't factor in timing of those payments out of escrow. pretty lame if you ask me.",
"title": ""
}
] |
fiqa
|
242244af0bc6298c5043bb1d0a223d45
|
Switching Accountants - who does the audit review for past years?
|
[
{
"docid": "1ff7ff77c27135f1c844d712bc5d1580",
"text": "It depends on what you paid for, but usually audit support is an unrelated engagement to the return preparation. If the accountant made a professional mistake, you can request correction and compensation from that accountant, other than that any accountant can help you with audit regardless of who prepared the return. The original accountant would probably be better informed about why you reported each number on the return and how it was calculated, but if you kept all the docs, it can be recalculated again. That's what happens in the audit anyway.",
"title": ""
}
] |
[
{
"docid": "d90b94d9577b58a3b59c9ed199cb1d43",
"text": "In the US, auditors are selected and fees are set by the Audit Committee of the BoD. The Audit Committee is made up of independent directors, at least one of which is a financial expert. Also, finding something fishy leads to extra billings much more often than it causes an auditor to lose a client.",
"title": ""
},
{
"docid": "e5d3f0e0a1b880afa3dcb267594e6ea3",
"text": "Assuming the US, if a human assessor audited you, could you show a future profit motive or will they conclude you are expensing a hobby? If you answer yes, you are likely to only be deducting limited expenses this year, carrying forward losses to your profitable years. See the examples in pub 535: http://www.irs.gov/publications/p535/ch01.html#en_US_2014_publink1000208633",
"title": ""
},
{
"docid": "2c471849f109297f8aa0872aaa94b4cd",
"text": "I am not an accountant, but I have a light accounting background, despite being primarily an engineer. I also have a tiny schedule C business which has both better and worse years. I am also in the United States and pay US taxes. I assume you are referring to the US Form 1040 tax return, with the attached Schedule C. However little I know about US taxes, I know nothing about foreign taxes. You are a cash-basis taxpayer, so the transactions that happen in each tax year are based on the cash paid and cash received in that year. You were paid last year, you computed your schedule C based on last year's actual transactions, and you paid taxes on that income. You can not recompute last years schedule C based on the warranty claim. You might want to switch to an accrual accounting method, where you can book allowances for warranty claims. It is more complex, and if your business is spotty and low volume, it may be more trouble than it is worth. At this point, you have two months to look for ways to shift expenses into next year or being income into this year, both of which help offset this loss. Perhaps a really aggressive accountant would advise otherwise (and remember, I am not an accountant), but I would take the lumps and move on. This article on LegalZoom (link here) discusses how to apply a significant net operating loss (NOL) in this year to the previous two years, and potentially carry it forward to the next two years. This does involve filing amended returns for the prior two years, showing this year's NOL. For this to be relevant, your schedule C loss this year must exceed your other W2 and self-employment income this year, with other tests also applied. Perhaps a really aggressive accountant would advise otherwise (and remember, I am not an accountant), but I would take the lumps and move on.",
"title": ""
},
{
"docid": "0b6e1b0e8dfdea7a3a59e17fe6c97057",
"text": "I just switched CPA's and I am glad I did. My new CPA has made my life A LOT easier. If you're up for it, I can have my CPA call you. He's from California but works with many businesses in different states.",
"title": ""
},
{
"docid": "b684811210679ca9ab82c9ab2b31de94",
"text": "I work for a Big4 and there are no shared audit and consulting clients. We go through pretty extreme independence controls to make sure we don't even have personal relationships with clients. I know people who had to refinance their house because the mortgage company became an audit or consulting client. It's a common misconception that big4s audit and provide consulting services to the same firm, but this is not true.",
"title": ""
},
{
"docid": "e7e811dc686db34ea83ccc6787d733ca",
"text": "\"The short answer is that the IRS knows this is an issue, so they are prepared to deal with the \"\"discrepancies.\"\" The filer does not need to something special to call it to their attention. Keep good records and consistently report according to your accounting processes. Exactly how the IRS resolves / flags this, I don't know. Maybe someone else can answer, but you can imagine that if they track you for multiple years they should have some idea of how many dollars are rolling over and whether you might have \"\"forgotten\"\" to report something from a few years ago that happened at a year-end break.\"",
"title": ""
},
{
"docid": "ecee48966e5afa4be10a044574cde76f",
"text": "\"Note: Specific to UK. I can't recommend anything higher than Crunch - they act as your accountant and have their own cloud accounting software, so it's more expensive than just using cloud accounting software, but if you use an accountant to do your year-end anyway, then they cost about the same as using cloud accounting software plus using an accountant to do your year-end. The thing I like (as a software development contractor) is that I don't have to know or worry about different ledger accounts, or journal entries, or any of the other weird accounting things, etc. Most cloud accounting software claim to simplify accounting \"\"so that you can concentrate on running your business\"\" whereas the reality is that you still have to spend ages learning how to be an accountant just to fill it in correctly. With Crunch that's actually true, it does actually make it simple. I've used Crunch, Sage, and Xero, so my sample-set isn't very big - just thought I'd share my experiences. If you value your time and get annoyed by having to create multiple internal transfers between different ledgers just to do something simple, it's for you. This probably sounds like a sales pitch, but I have nothing to do with them and nothing to gain by recommending them. The only reason I'm so passionate is I started a new business to do an online shop and tried to use Crunch, but they don't do retail businesses. Only contractors/freelancers or simple service-based businesses (their software is geared up specifically for that which I guess is why it's more simple than the others). Anyway, so now I'm annoyed at having to use the more complicated ones.\"",
"title": ""
},
{
"docid": "0967f047ab5468c6fdd71b94d8397c67",
"text": "\"This link: http://www.ifs.org.uk/fs/articles/ewgm_feb93.pdf (from 1996, describing the proposals for the change) seems to answer the question in its description of \"\"the current system\"\" - they had to file business accounts and it was calculated by the Inland Revenue from that.\"",
"title": ""
},
{
"docid": "df3ae682151bf7decc3ace1a6a499e22",
"text": "I work at a public accounting firm. It's in tax, but I know the audit side of the house pretty well as well. >Without public confidence in the profession, CPA firms wouldn't exist. It's truly an incentive to do a good job and continually gain confidence. They incidentally make money along the way. That's really the heart of the argument. During my schooling we talked about ethics pretty much constantly. In almost every state now, you're required to take a 3 credit hour ethics class prior to sitting for the CPA exam, and you're required to do continuing education. How much depends on the state, but 40-60 hours every three years is par for the course. Of those hours, typically 4-5 of them have to be approved ethics courses. There's also a whole litany of codes of conduct that a CPA must follow. For example, I, as a tax person am bound to follow the codes of conduct of: * The SEC * The PCAOB * The IRS * The AICPA * My State Board of Accountancy * My Firm A serious violation of any one of those codes can lead to a suspension of my license. e.g. I won't ever be able to work in public accounting again. As a profession, most of the CPA's that I've met are above board, but there will always be a few bad apples. On the audit side, the PCAOB (a government agency) audits all the public accounting firms that do assurance work something like every 3 years. The SEC can get involved as well if they think something fishy is going on.",
"title": ""
},
{
"docid": "7d12a52d03a621e3d9f0f92a4ca323b5",
"text": "Your CPA doesn't need to file anything, so don't worry about him being sidetracked. You are the one doing the filing. Since the amended returns have to be filed on paper, you'll actually go and mail a package to the IRS (each return in a separate envelope). The reason the CPA suggests to file the amended returns after the current one, is to ensure the NOL is registered in the system before the amended returns are processed. The IRS doesn't have to automatically accept the amended returns, and if there's no NOL on the current year they may just bounce the amended returns back to you. Keep in mind that since you haven't filed your return by the due date (including extensions), you're now unable to forego the carry-back. I don't know if you discussed this with your CPA, but you're allowed, if you chose so, to not apply the NOL to prior years, and instead to apply it forward for the next 20 years (or until it runs out). Depending on your income pattern, that might have been something you could have considered, but you can only chose this if you file a statement before the due date (with extensions), which is now passed.",
"title": ""
},
{
"docid": "f469aad776f005ed531a025b282f05ad",
"text": "This is great! I'm not a CPA, but work in finance. As such, my course/professional work is focused more on the economic and profitability aspects of transfer pricing. As you might imagine, it tended to analyze corporate strategy decisions under various cost allocation models, which you thoroughly discuss. I would agree with the statement that it is based on the matching principle but would like to add that transfer pricing is interesting as it falls under several fields: accounting, finance, and economics. Fundamentally it is based on the matching principal, but it's real world applications are based on all three (it's often used to determine divisional and even individual sales peoples profitability; as is the case with bank related funds transfer pricing on stuff like time deposits). In this case, the correct accounting principal allows you to, when done properly, better understand the economics, strategy, and operations of an organization. In effect, when done correctly, it provides transparency for strategic decision making to executives. As I said, since my coursework tended to focus more on that aspect, I definitely have a natural tendency towards it. This is an amazing explanation (esp. about interest on M&A bridge loans, I get that) of the more detailed stuff! Truthfully, I'm not as familiar with it and was just trying to show more of the conceptual than nitty-gritty. Thanks for the reply!",
"title": ""
},
{
"docid": "8abf2a3264e7f55ce05a5f76d498e9b4",
"text": "After completing 4 years of undergrad in accounting, I was planning to complete my CA. But I haven't been able to get a job with one of the big four here in Canada. Currently working in corporate sales. I think having a CPA/CA/CMA/CGA whatever is quite beneficial in the finance industry. Of course it's not mandatory for the most part and CFA makes a lot more sense, but it gives you a better understanding of how numbers/ratios are actually created. If anything it will give you a leg up from other people. It certainly won't hurt to have. Do you mind me asking which firm you're with?",
"title": ""
},
{
"docid": "34f8f0edf2cfaba1c8696efc52352976",
"text": "\"Whether you do decide to go with a tax advisor or not, be sure to do some research on your own. When we moved to the US about 5 years ago, I did find the taxes here pretty complicated and confusing. I went ahead and read up all different tax documents and did some calculations of my own before hiring a CPA (at that point, I just wanted a second opinion to make sure I got the calculations right). However, when the office of the CPA was finished with my taxes, I found they had made a mistake! When I went back to their office to point it out, the lady just shrugged, corrected her numbers on the form and said \"\"You seem to know a lot about this stuff already. Why are you here?\"\" I swore to never use them again - not this particular CPA at least. Now, I am not saying all CPAs are the same - some of them are pretty darn good at their job and know what they are doing. All I am saying is it helps to be prepared and know some basic stuff. Just don't go in all blind. After all, they are also humans prone to mistakes and your taxes are your liability in the end. My suggestion is to start with a good tool that supports tax filing for non-residents. Most of them provide a step-by-step QA based tool. As you go through the steps, Google each question you don't understand. It may take more time than hiring a tax advisor directly but in the end it will all be worth it.\"",
"title": ""
},
{
"docid": "6f35493317b0fa9767a0827ede4a4505",
"text": "I appreciate it. I didn't operate under selling the asset year five but other than that I followed this example. I appreciate the help. These assignments are just poorly laid out. Financial management also plays on different calculation interactions so it is difficult for me to easily identify the intent at times. Thanks again.",
"title": ""
},
{
"docid": "7fefe5d57ca155e34ee38078fa8baeb9",
"text": "\"Yes, so much for audit. We are audited yearly by one of big-4 and me being in IT Management was asked by the Auditors prove that \"\"the system will not allow to enter an order for a customer that does not exist.\"\" ?!?!?! As for finance, I was once asked to setup credit card processing of a new type of orders. Done and tested! I then asked them to tell me when they start accepting the new orders, because I need to setup a job to send the charges to the bank. They did not inform me and accepted orders for $100,000s. Suddenly, after a year they discovered that we do not get paid by the bank. You would think that one of the basic jobs of accounting it to make sure Total Sales = Total Payments. We had write off $100,000s because I can only charge customers for orders in the last 30 days, before their credit card authorizations expires.\"",
"title": ""
}
] |
fiqa
|
7f2d84badd399b5bf8b3e7d6c656dc6d
|
How much house can I afford, waiting around 3 years or so
|
[
{
"docid": "cd40fec317928dc6104dc709adb7b007",
"text": "On $4K/mo gross about $1000/mo can go to the mortgage, and at today's rates, that's about $200K of mortgage the bank might lend you. Income is qualified based on gross, not net, so if $48,000/yr is wrong, please scale my guesstimate down a bit. In the end, today's rates allow a mortgage of nearly 4X one's gross income. This is too high, in my opinion. I'm answering what the bank would approve you at, not what I think is wise. Wise, in my opinion is 2.5-3X one's income, tops.",
"title": ""
}
] |
[
{
"docid": "b68e494bf8a664103589c1f240d388f4",
"text": "The $3K includes property tax, right? It looks like the mortgage alone will be about $2150 or so. If your (cal) state tax is enough to put you into itemized deductions, your mortgage and property tax are a write off, and the $3k will actually be closer to the $2K you are considering for rent. The wild card as I see it is that your budget is so tight that any unforeseen expenses will be charged. As a long time homeowner, I know these expenses sometime appear to be high, and regular, despite their random nature. The money earmarked for credit card payments will go a long way to cover the tight budget you seem to have. This and your decreasing support makes this look tight but not impossible. The condition of the house would make or break the deal, in my opinion.",
"title": ""
},
{
"docid": "37eefec0f97bf0090dbd8ec66afcbf52",
"text": "\"A bank may not like loaning money to you for this. That is one snag. You listed 500,000-600,000$ for a monster of a house (3000 sqft is over three times the average size of homes a hundred years ago). Add in the price of the land at 60K (600K divided ten ways). Where I live, there is a 15% VAT tax on new homes. I can't find out if California imposes a VAT tax on new homes. Anyway, returning back to the topic, because of the risk of loaning you 660K for a piece of land and construction, the bank may only let you borrow half or less of the final expected cost (not value). Another huge snag is that you say in a comment to quid \"\"I came up with this conclusion after talking to someone who had his property built in early 2000s in bay area for that average price\"\". Let's apply 3% inflation over 15 years to that number of 200$/sqft. That brings the range for construction costs to 780K-930K. Even at 2% inflation 670K-810K. Edit: OP later expanded the question making it an inquiry on why people don't collaborate to buy a plot of land and build their homes. \"\"Back in the day\"\" this wasn't all that atypical! For example, my pastor's parents did just this when he was a young lad. Apart from the individual issues mentioned above, there are sociological challenges that arrive. Examples: These are the easy questions.\"",
"title": ""
},
{
"docid": "6f1b552b43e9e3554e8bd9f59be8ab45",
"text": "Should I seek a house on limited income? No. my income in intermittent Lenders want consistent income. And a down payment. a little over 10 grand a year That's less than $1,000/month. (I won't even ask whether or not it's after taxes.) https://www.investopedia.com/terms/d/dti.asp A debt-to-income ratio smaller than 36%, however, is preferable, with no more than 28% of that debt going towards servicing a mortgage. Thus, you could hypothetically afford a $300 mortgage payment, which means -- ignoring mortgage insurance -- you can afford a $27,000 house.",
"title": ""
},
{
"docid": "932da761aed6d1f0a6fa2e8efc6af74f",
"text": "If you expect a significant increase in future income, then you should wait until that future income is assured, and then buy based on that decision. Buying more house than you can afford is what caused you to have to sell; you don't want to do that again. Instead of buying more house now, buy the right house for what you have now. Better yet, though, you might rent instead of buying until the future income comes onboard. Then you can get the best of both worlds - you get to buy the house you can afford in a year or two, but also don't overspend your income.",
"title": ""
},
{
"docid": "88b10fa224e349b5f108f802f30c4b58",
"text": "If you are still paying off debt, then you should have about $1000 in savings and put all you can towards non-mortgage debt. If you don't have any debt besides your mortgage, then add up all of your monthly expenses including food, gas, utilities and keep 3-6 months in liquid savings. Whether you keep 3 or 6 months depends on how safe your income is. If you have a steady safe job, you might be safe with 3 months. But, if your employer is cutting back or you are in a commission based job or self employed - then lean more towards 6 months expenses. Congrats on your new home!",
"title": ""
},
{
"docid": "20066787147b6ee9c8164b361abcc108",
"text": "The monthly payment difference isn't that great On a $300K loan, the 30 year monthly payment (at 4%) is $1432, the 15 year (at 3.5%) is $2145, that $712 per month, or 50% higher payment. $712 is the total utility or food bill for a couple. If that $1432 represents 25% of income (a reasonable number) then $2145 is over 35%. I'd rather use that money for something else and not obligate myself at the start of the mortgage. Given how little we save as a country, the $712 is best put into a matched 401(k) in the US or other retirement account if elsewhere.",
"title": ""
},
{
"docid": "4577731b949a0dece0a8ed46a0bc96d8",
"text": "\"I recently moved out from my parents place, after having built up sufficient funds, and gone through these questions myself. I live near Louisville, KY which has a significant effect on my income, cost of living, and cost of housing. Factor that into your decisions. To answer your questions in order: When do I know that I'm financially stable to move out? When you have enough money set aside for all projected expenses for 3-6 months and an emergency fund of 4-10K, depending on how large a safety net you want or need. Note that part of the reason for the emergency fund is as a buffer for the things you won't realize you need until you move out, such as pots or chairs. It also covers things being more expensive than anticipated. Should I wait until both my emergency fund is at least 6 months of pay and my loans in my parents' names is paid off (to free up money)? 6 months of pay is not a good measuring stick. Use months of expenses instead. In general, student loans are a small enough cost per month that you just need to factor them into your costs. When should I factor in the newer car investment? How much should I have set aside for the car? Do the car while you are living at home. This allows you to put more than the minimum payment down each month, and you can get ahead. That looks good on your credit, and allows refinancing later for a lower minimum payment when you move out. Finally, it gives you a \"\"sense\"\" of the monthly cost while you still have leeway to adjust things. Depending on new/used status of the car, set aside around 3-5K for a down payment. That gives you a decent rate, without too much haggling trouble. Should I get an apartment for a couple years before looking for my own house? Not unless you want the flexibility of an apartment. In general, living at home is cheaper. If you intend to eventually buy property in the same area, an apartment is throwing money away. If you want to move every few years, an apartment can, depending on the lease, give you that. How much should I set aside for either investment (apartment vs house)? 10-20K for a down payment, if you live around Louisville, KY. Be very choosy about the price of your house and this gives you the best of everything. The biggest mistake you can make is trying to get into a place too \"\"early\"\". Banks pay attention to the down payment for a good reason. It indicates commitment, care, and an ability to go the distance. In general, a mortgage is 30 years. You won't pay it off for a long time, so plan for that. Is there anything else I should be doing/taking advantage of with my money during this \"\"living at home\"\" period before I finally leave the nest? If there is something you want, now's the time to get it. You can make snap purchases on furniture/motorcycles/games and not hurt yourself. Take vacations, since there is room in the budget. If you've thought about moving to a different state for work, travel there for a weekend/week and see if you even like the place. Look for deals on things you'll need when you move out. Utensils, towels, brooms, furniture, and so forth can be bought cheaply, and you can get quality, but it takes time to find these deals. Pick up activities with monthly expenses. Boxing, dancing, gym memberships, hackerspaces and so forth become much more difficult to fit into the budget later. They also give you a better credit rating for a recurring expense, and allow you to get a \"\"feel\"\" for how things like a monthly utility bill will work. Finally, get involved in various investments. A 401k is only the start, so look at penny stocks, indexed funds, ETFs or other things to diversify with. Check out local businesses, or start something on the side. Experiment, and have fun.\"",
"title": ""
},
{
"docid": "8b78afbabf2868c3b3696cd8d667bcb1",
"text": "I am answering this in light of the OP mentioning the desire to buy a house. A proper mortgage uses debt to income ratios. Typically 28/36 which means 28% of monthly gross can go toward PITI (principal, interest, tax, insurance) and the total debt can go as high as 36% including credit cards and car payment etc. So, if you earn $5000/mo (for easy math) the 8% gap (between 28 and 36) is $400. If you have zero debt, they don't let you use it for the mortgage, it's just ignored. So a low interest long term student loan should not be accelerated if you are planning to buy a house, better put that money to the down payment. But for credit cards, the $400/mo carries $8000 (banks treat it as though the payment is 5% of debt owed). So, I'd attack that debt with a vengeance. No eating out, no movies, beer, etc. Pay it off as if your life depended on it, and you'll be happier in the long run.",
"title": ""
},
{
"docid": "049447e698bc3a74b9f5938b8d8f921e",
"text": "No. As long as you live in the house for 3 years, it's yours to keep. Financing has nothing to do with that.",
"title": ""
},
{
"docid": "58ef13596490800da6f197ed332a44d6",
"text": "If you don't think you're necessarily going to stay in this area for five years, consider another option: renting. Five years is often quoted as the minimum length of time for buying (over renting), as the costs of the house purchase and the mortgage are significant - and if you're buying a new house every 5 years you're putting several thousand dollars of fees up front each time. If you don't assume that house prices will increase (as they won't necessarily), then you can consider these costs - say, $5000-$6000 for a $500k house - an extra 1% or so of interest that first year. If you are there 5 years, then you're paying 0.2% extra (more or less); that's reasonable, but if you're there only 2 years, you're adding 0.5% to your rate, which is pretty significant. You won't necessarily come out ahead here (versus renting). Renting for a year or two gives you enough time to find out if you do like the area, and if you do, you buy then - with more knowledge of the area and a chance to make a purchase at the right time for you. You pay off your loans, or at least a chunk of them, now, save some of the rest, and then rethink in a couple of years. If you then don't qualify for a doctor's mortgage anymore, you just save up the rest of the 20% before making the purchase.",
"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": "e6bafc178dad29c3bf694d00227deaf5",
"text": "\"If I were you, I would rent. Wait to buy a home. Here is why: When you say that renting is equal in cost to a 30-year mortgage, you are failing to consider several aspects. See this recent answer for a list of things that need to be considered when comparing buying and renting. You have no down payment. Between the two of you, you have $14,000, but this money is needed for both your emergency fund and your fiancée's schooling. In your words: \"\"we can’t reeaallllly afford a home.\"\" A home is a big financial commitment. If you buy a home before you are financially ready, it will be continuous trouble. If you need a cosigner, you aren't ready to buy a home. I would absolutely advise whoever you are thinking about cosigning for you not to do so. It puts them legally on the hook for a house that you can't yet afford. You aren't married yet. You should never buy something as big as a home with someone you aren't married to; there are just too many things that can go wrong. (See comments for more explanation.) Wait until you are married before you buy. Your income is low right now. And that is okay for now; you've been able to avoid the credit card debt that so many people fall into. However, you do have student loans to pay, and taking on a huge new debt right now would be potentially disastrous for you. Your family income will eventually increase when your fiancée gets her degree and gets a job, and at that time, you will be in a much better situation to consider buying a house. You need to move \"\"ASAP.\"\" Buying a house when you are in a hurry is a generally a bad idea. When you look for a home, you need to take some time looking so you aren't rushed into a bad deal that you will regret. Even if you decide you want to buy, you should first find a place to rent; then you can take your time finding the right house. To answer your question about escrow: When you own a house, two of the required expenses that you will have besides the mortgage payment are property taxes and homeowner's insurance. These are large payments that are only due once a year. The bank holding the mortgage wants to make sure that they get paid. So to help you budget for these expenses and to ensure that these expenses are paid, the bank will add these to your monthly mortgage payment, and set them aside in a savings account (called an escrow account). Then when these bills come due once a year, they are paid for out of the escrow account.\"",
"title": ""
},
{
"docid": "fc667cc46903d9bf2c8fd48ffd853d9e",
"text": "\"I'll start by focussing on the numbers. I highly recommend you get comfortable with spreadsheets to do these calculations on your own. I assume a $200K loan, the mortgage for a $250K house. Scale this up or down as appropriate. For the rate, I used the current US average for the 30 and 15 year fixed loans. You can see 2 things. First, even with that lower rate to go 15 years, the payment required is 51% higher than with the 30. I'll get back to that. Second, to pay the 30 at 15 years, you'd need an extra $73. Because now you are paying at a 15 year pace, but with a 30 year rate. This is $876/yr to keep that flexibility. These are the numbers. There are 2 camps in viewing the longer term debt. There are those who view debt as evil, the $900/mo payment would keep them up at night until it's gone, and they would prefer to have zero debt regardless of the lifestyle choices they'd need to make or the alternative uses of that money. To them, it's not your house as long as you have a mortgage. (But they're ok with the local tax assessor having a statutory lien and his hand out every quarter.) The flip side are those who will say this is the cheapest money you'll ever see, and you should have as large a mortgage as you can, for as long as you can. Treat the interest like rent, and invest your money. My own view is more in the middle. Look at your situation. I'd prioritize In my opinion, it makes little sense to focus on the mortgage unless and until the first 5 items above are in place. The extra $459 to go to 15? If it's not stealing from those other items or making your cash flow tight, go for it. Keep one subtle point in mind, risk is like matter and energy, it's not created or destroyed but just moved around. Those who offer the cliche \"\"debt creates risk\"\" are correct, but the risk is not yours, it's the lender's. Looking at your own finances, liquidity is important. You can take the 15 year mortgage, and 10 years in, lose your job. The bank still wants its payments every month. Even if you had no mortgage, the tax collector is still there. To keep your risk low, you want a safety net that will cover you between jobs, illness, new babies being born, etc. I've gone head to head with people insisting on prioritizing the mortgage payoff ahead of the matched 401(k) deposit. Funny, they'd prefer to owe $75K less, while that $75K could have been deposited pretax (so $100K, for those in the 25% bracket) and matched, to $200K. Don't make that mistake.\"",
"title": ""
},
{
"docid": "fae978c812a104583716ba6b0d6ed86d",
"text": "If you can't afford it don't buy it, the next perfect house is just around the corner. The more time you spend researching and looking at houses, the increased chance you will find the perfect house you can afford. Also, here in Australia, we (the banks as well) factor in an interest rate rise of 2% above current rates to see if repayments can still be afforded at this increased rate.",
"title": ""
},
{
"docid": "8b839d729f83a276ef9f64f6ca8539a4",
"text": "A $250K earner might have $4M in retirement savings and $500K in available funds, but doesn't wish to spend all his liquidity on the house. In general, a house might cost 2-3 times one's annual income. It would take many years to get that saved up. They might want to have the house sooner. It all goes back to choice, priorities, personal preference.",
"title": ""
}
] |
fiqa
|
24314f12194980fe7e22039299cef75d
|
What are the tax implications if I do some work for a company for trade, rather than pay?
|
[
{
"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": "f348457c71a3f110b33448af70a9348d",
"text": "Yes, the business can count that as an expense but you will need to count that as income because a computer = money.",
"title": ""
},
{
"docid": "2cd90409b08fcc132c07d7a7e6bf9286",
"text": "Bartering is a tricky discussion. Yes, it definitely applies when you are self-employed and do a job that you would charge anyone else for, but what if you are helping a friend in your spare time? If you receive something in exchange, the value of the item you received would be your income, but what if you don't receive anything in exchange? If the company bought a computer that they loan to you to do occasional work for them, there's no reason you couldn't take the computer home and have that company retain ownership of the property. They could still expense the depreciation of the computer without giving it to you. If it were a car though, you would have to count mileage for personal use as income. What if you exchange occasional tech support for the use of an empty desk and Internet connection? As long as they aren't renting desks for money to others, there's probably no additional marginal cost to them if they allow you to use the space, so the fair market value question breaks down.",
"title": ""
}
] |
[
{
"docid": "0226b7567718747b0c30a8e2c96cdcd7",
"text": "There are two totally different things: There is your limited company, and there is yourself. Your limited company will absolutely have to pay 20% corporation tax on all its profits. The profits are the income of the limited company (you say it's £5,000 a year) minus all expenses. Usually you would pay yourself a salary, which immediately reduces your profits. And of course the payment to the accountant will reduce the profits. If the limited company is your only source of income, the usual method is to pay yourself £10,600 salary a year, possible pay money into a pension for yourself which is tax free and reduces the company's profits, pay 20% corporation on the rest, and pay yourself a dividend twice a year. Unless you have another job where you make a lot of money, you should have paid all that money to yourself as income and paid zero corporation tax. And may I say that if you made £5,000 a year, then there is most likely not enough going on to justify that an accountant charges you £600. You should be able to find someone doing it cheaper; I cannot imagine that he or she had to do a lot of work for this.",
"title": ""
},
{
"docid": "6210d2897e4211bf4057a4113912c180",
"text": "The question seems to be from the point of view actual sales and not its impact on one's taxation. In case you just want to sell, why brokers will respond differently each times. Either there may be issues with ownership and/or the company whose shares it is? In case you feel that the issues lies with brok",
"title": ""
},
{
"docid": "2cb5e43eba512b55cfa5d13bc941d656",
"text": "In Australia, any income you earn is taxable despite where it came from. Using your example your taxable income is $70,000. Keep in mind that with a business even as a sole trader any business expenses that contribute to the earning of your business income is deductible, reducing the final amount of tax you'll have to pay. The ATO website has lots of good information and examples to look at including tax rates. If your total income is pushing into a higher tax bracket over 30c tax per $1 earned, it may be worth looking at shifting your business to operate under a company structure that just has a fixed tax rate around 30c per $1. That said, for me, I don't want the paperwork overhead of a company yet so I'm running my side business as a sole trader too. I'd rather do that and keep it easy for now while my business gets profitable that waste time on admin structures for tax reasons even if in the shortterm it may mean slightly higher tax. In the end, you only pay tax on profit (income minus expenses) as opposed to raw/gross income. For more info there are good books in the bookshops or local library (to read free) on starting a business on the side while still working. They discuss these issues too.",
"title": ""
},
{
"docid": "f3c752b7e4060a65536d5e2b969ce60e",
"text": "There are ups and downs to doing this. This isn't a taxable gain, because it's borrowed money that will be repaid. Whether there are restrictions or not depends upon your contract with the seller and your bank. If the concessions are for health & safety related repairs, your bank may require you to complete the work before closing or within a certain period of time. Overall: Upsides Downsides",
"title": ""
},
{
"docid": "b0c8d3728efd4fd11889096f3baabf9f",
"text": "\"Your wages are an expense to your employer and are therefore 100% tax deductible in the business income. The company should not be paying tax on that, so your double-tax scenario, as described, isn't really correct. [The phrase \"\"double taxation\"\" with respect to US corporations usually comes into play with dividends. In that case, however, it's the shareholders (owners) that pay double. The answer to \"\"why?\"\" in that case can only be \"\"because it's the law.\"\"]\"",
"title": ""
},
{
"docid": "bd2b59be1209888981f7fe29cf6b6e0d",
"text": "\"Your \"\"average company and taxpayer\"\" generally wouldn't have significant off-shore/foreign income. In the U.S., for example, even if you have your employer deposit all of your salary to an account at a foreign bank, they would still report it to the IRS as income. Removing the money from your home country isn't what gets it out of being taxed, it's that the money was never in your home country.\"",
"title": ""
},
{
"docid": "907ee8efbd546f4e8397b7965b65f39d",
"text": "Eeeeeeh... No, you don't. In Canada, and pretty much any country with common sense they will rarely charge you for income made outside its borders. In the worst case scenario you're taxed on income deemed resulting from investment (stocks, bonds, etc.), but the general rule is... You don't pay taxes on income made abroad.",
"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": "8f710fd6dbc5785f5ee8dd817323e99c",
"text": "Yes, you would have to report the gain. It is not relevant that you traded the stock previously, you still made a profit on the trade-at-hand. Imagine if for some reason this type of trade were exempt. Investors could follow the short term swings of volatile stocks completely tax-free.",
"title": ""
},
{
"docid": "f44b20011b4c0ef83ce99bfe19e6e1ca",
"text": "It's not quite clear what you are asking, so I'll answer a few possible interpretations. Businesses pay taxes on their profits. So if your business took a million pounds in revenue (e.g. sold a million pounds worth of stuff) then you would subtract (roughly speaking) everything the business spent on making and selling that stuff, and pay taxes only on the profit. VAT however is a different matter, and you would have to pay VAT on all of that income (technically the VAT portion isn't even income - it's tax you are forced to collect on behalf of the government). If your business made a million pounds pounds profit, it would pay tax on all of that million (subject to what a tax accountant can do to reduce that, which ought to be considerable). You can't subtract your personal living expenses like that. However the company can pay you a salary, which counts as an expense and the company doesn't pay tax on that. You might also take some money from the company as dividends. Both salary and dividends count as personal income to yourself, and you will need to pay personal income tax on them. As for the Ferrari, it depends on whether you can justify it as a business expense. A lot of companies provide cars for their employees so that they can use them for business - however you have to be able to show that IS for business, otherwise they are taxed like salary. The rules for company cars are quite complicated, and you would need an accountant. If this is a real rather than hypothetical situation, definitely get a tax accountant involved.",
"title": ""
},
{
"docid": "730f045c86fb1fd0f70292b5f620bc95",
"text": "\"I'm not 100% certain on boats, since they aren't typically sold for a gain, but the tax base of an asset is typically the cost of the asset plus the cost of any improvements, so your $15,000 gain looks right (check with a CPA to be certain, though, if you can). Your \"\"cost basis\"\" would be $50,000 + $25,000 = $75,000, and your net gain would be $90,000 - $75,000 = $15,000. The result is the same, but the arithmetic is organized a little differently. I am fairly confident you cannot include your time in the \"\"cost of improvements\"\". If you incorporated and \"\"paid yourself\"\" for the time, then the payment would be considered income (and taxed), if it was even allowed. Depending on your tax bracket that may be a WORSE option for you. You can look at it this way - you only pay the tax on the $15k gain versus paying someone else $15k to do the labor.\"",
"title": ""
},
{
"docid": "5d6566768c428287ad67c19f059a13f8",
"text": "\"Keep in mind that all of the information below assumes: That being said, here are some examples of national tax laws relating to barter transactions. Obviously this isn't an exhaustive list, but based on my grossly non-representative sample, I think it's fairly safe to assume that barter transactions are more likely taxable than not. You're referring to a barter system; in the United States, the IRS is very specific about this (see the section titled Bartering). Bartering is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included on Form 1040 in the income of both parties. The IRS also provides more details: Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. You must include in gross income in the year of receipt the fair market value of goods and services received in exchange for goods or services you provide or may provide under the bartering arrangement. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business or Form 1040, Schedule C-EZ (PDF), Net Profit from Business. If you failed to report this income, correct your return by filing a Form 1040X (PDF). Refer to Topic 308 for amended return information. So yes, the net value of bartered goods or services is most likely taxable. According to the Australian Tax Office: Barter transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions. Her Majesty's Revenue and Customs states that: If you supply services or goods (new or second-hand) and receive other goods or services in payment, there are two separate supplies: You must account for VAT, and so must your customer if they're VAT-registered. The VAT treatment is the same as for part-exchanges. You must both account for VAT on the amounts you would each have paid for the goods or services if there had been no barter and they had been paid for with money. Searching the website of the Federal Tax Service for the Russian/Cryllic word for barter (бартер) doesn't yield any results, but that might be because even between Google Translate and the rest of the internet, I don't speak Russian. That being said, I did manage to find this (translated from the first full paragraph of the Russian, beginning with \"\"Налог на доходы...\"\": The tax on personal income is paid by citizens of the Russian Federation with all types of income received by them in the calendar year, either in cash or in kind. Since bartering would probably qualify as an in kind transaction, it would likely be taxable. The South African Revenue Service includes barter transactions in the supply of goods taxed under the VAT. The term “supply” is defined very broadly and includes all forms of supply and any derivative of the term, irrespective of where the supply is effected. The term includes performance in terms of a sale, rental agreement, instalment credit agreement or barter transaction. Look for section 3.6, Supply and Taxable Supply, found on p17 of the current version of the linked document.\"",
"title": ""
},
{
"docid": "2b20f947365127fa9960e94eccba69e3",
"text": "\"In simple terms, it is a business operation when it becomes a profit-making enterprise. It is a grey area, but there is a difference between selling occasional personal items on eBay and selling for profit. I would imagine the sort of considerations HM Revenue & Customs would take into account are the size of your turnover, the extent to which you are both buying and selling, and whether you are clearly specialising in one particular commodity as opposed of disposing of unwanted presents or clearing the loft. http://www.ebay.co.uk/gds/When-does-eBay-selling-become-taxable-/10000000004494855/g.html I don't believe that you selling your personal camera gear will be taxable, but as the link says, it is a grey area. They also recommend to do this It's far better than having to deal with an investigation a few years down the line. When it comes to completing your tax return, there is a section which is headed \"\"other income\"\", and it is here where you will enter the net earnings from the web business. \"\"Net\"\" here means your additional income, less all expenses associated with it. If you are still worried I would always encourage people to take a cautious approach and discuss their position with HMRC via its helpline on 08454 915 4515.\"",
"title": ""
},
{
"docid": "57c85116fa6f02f0bab8fc45b9a0cfe6",
"text": "If your net profit is $0, then no, you will not owe income tax as a result of providing this service. But there's a lot more to consider than just that... Before you begin you'll need to decide if this is a business or a hobby. Based on the fact that you don't intend to make a profit, you are probably going to be calling it a hobby for tax purposes. Regardless of whether it is a business or a hobby, since you will be accepting payments from people, you will need to report the income on your tax return. As both a business and a hobby you can deduct all of your expenses to bring your profit down to $0. (Assuming all the expenses are legitimate business/hobby expenses.) The main differences between business and hobby are: If you choose to run as a business you'll likely save quite a bit of money by avoiding the 2% rule, and also by being able to deduct any non-specific-customer expenses and take a loss. Be careful though that you don't go too many years with a business loss or the IRS may re-classify it as a hobby, which may include an audit. If you decide to run as a business you may need to charge a little more than just expenses to attempt to turn a profit, or at least break even.",
"title": ""
},
{
"docid": "cb395b811f4c257b09458cef702f4711",
"text": "Yes, this extra income would be taxed at your marginal rate because it is increasing your total income. This does not necessarily apply to all income, however. Capital gains are taxed at a different rate. Depending on the amount of extra work, you may wish to consider setting up a corporation. Corporations are taxed entirely differently. This would also give you the opportunity to write off far more of your expenses, but be aware of double taxation. Investopedia has a good article on double taxation. The issue is that the corporation must pay taxes on the revenue and then, when you take out the money either as salary or dividends, you personally will pay tax. It may leave you better off, even with the double taxation. Dividends are taxed at a lower rate than your marginal tax rate, generally. And you can write off much more inside a corporation. If considering this, talk to an accountant and discuss your expected revenue from consulting. The accountant should be able to quantify the costs and benefits.",
"title": ""
}
] |
fiqa
|
60673bcd3a408c6f10b49cf85f4b7666
|
why the currency data(such as USD/JPY) is different from different source
|
[
{
"docid": "d65931bcdd9257af1f8355851a61b1f3",
"text": "A day is a long time and the rate is not the same all day. Some sources will report a close price that averages the bid and ask. Some sources will report a volume-weighted average. Some will report the last transaction price. Some will report a time-weighted average. Some will average the highest and lowest prices for the interval. Different marketplaces will also have slightly different prices because different traders are present at each marketplace. Usually, the documentation will explain what method they use and you can choose the source whose method makes the most sense for your application.",
"title": ""
}
] |
[
{
"docid": "79d5438b0c557a93e7157a96506906bf",
"text": "I work on a buy-side firm, so I know how these small data issues can drive us crazy. Hope my answer below can help you: Reason for price difference: 1. Vendor and data source Basically, data providers such as Google and Yahoo redistribute EOD data by aggregating data from their vendors. Although the raw data is taken from the same exchanges, different vendors tend to collect them through different trading platforms. For example, Yahoo, is getting stock data from Hemscott (which was acquired by Morningstar), which is not the most accurate source of EOD stocks. Google gets data from Deutsche Börse. To make the process more complicated, each vendor can choose to get EOD data from another EOD data provider or the exchange itself, or they can produce their own open, high, low, close and volume from the actual trade tick-data, and these data may come from any exchanges. 2. Price Adjustment For equities data, the re-distributor usually adjusts the raw data by applying certain customized procedures. This includes adjustment for corporate actions, such as dividends and splits. For futures data, rolling is required, and back-ward and for-warding rolling can be chosen. Different adjustment methods can lead to different price display. 3. Extended trading hours Along with the growth of electronic trading, many market tends to trade during extended hours, such as pre-open and post-close trading periods. Futures and FX markets even trade around the clock. This leads to another freedom in price reporting: whether to include the price movement during the extended trading hours. Conclusion To cross-verify the true price, we should always check the price from the Exchange where the asset is actually traded. Given the convenience of getting EOD data nowadays, this task should be easy to achieve. In fact, for professional traders and investors alike, they will never reply price on free providers such as Yahoo and Google, they will most likely choose Bloomberg, Reuters, etc. However, for personal use, Yahoo and Google should both be good choices, and the difference is small enough to ignore.",
"title": ""
},
{
"docid": "e8fb271efafbf0a477901f22bb9c94d3",
"text": "\"The answer from littleadv perfectly explains that the mere exchange ratio doesn't say anything. Still it might be worth adding why some currencies are \"\"weak\"\" and some \"\"strong\"\". Here's the reason: To buy goods of a certain country, you have to exchange your money for currency of that country, especially when you want to buy treasuries of stocks from that country. So, if you feel that, for example, Japanese stocks are going to pick up soon, you will exchange dollars for yen so you can buy Japanese stocks. By the laws of supply and demand, this drives up the price. In contrast, if investors lose faith in a country and withdraw their funds, they will seek their luck elsewhere and thus they increase the supply of that currency. This happened most dramatically in recent time with the Icelandic Krona.\"",
"title": ""
},
{
"docid": "c974fce2e0de21ef5938bef66aad614f",
"text": "\"Using your example link, I found the corresponding chart for a stock that trades on London Stock Exchange: https://ca.finance.yahoo.com/echarts?s=RIO.L#symbol=RIO.L;range=1d As you can see there, the chart runs from ~8:00am to ~4:30pm, and as I write this post it is only 2:14pm Eastern Time. So clearly this foreign chart is using a foreign time zone. And as you can see from this Wikipedia page, those hours are exactly the London Stock Exchange's hours. Additionally, the closing price listed above the graph has a timestamp of \"\"11:35AM EST\"\", meaning that the rightmost timestamp in the graph (~4:30pm) is equal to 11:35AM EST. 16:30 - 11:30 = 5 hours = difference between London and New York at this time of year. So those are two data points showing that Yahoo uses the exchange's native time zone when displaying these charts.\"",
"title": ""
},
{
"docid": "ff8c228fa00407ba410e26d425901054",
"text": "\"For the purposes of report generation, I would recommend that you present the data in the currency of the user's home country. You could present another indicator, if needed, to indicate that a specific transaction was denominated in a foreign currency, where the amount represents the value of the foreign-denominated transaction in the user's home country Currency. For example: Airfare from USA to London: $1,000.00 Taxi from airport to hotel: $100.00 (in £) In terms of your database design, I would recommend not storing the data in any one denomination or reference currency. This would require you to do many more conversions between currencies that is likely to be necessary, and will create additional complexity where in some cases, you will need to do multiple conversions per transaction in and out of your reference currency. I think it will be easier for you to store multiple currencies as themselves, and not in a separate reference currency. I would recommend storing several pieces of information separately for each transaction: This way, you can create a calculated Amount for each transaction that is not in the user's \"\"home\"\" currency, whereas you would need to calculate this for all transactions if you used a universal reference currency. You could also get data from an external source if the user has forgotten the conversion rate. Remember that there are always fees and variations in the exchange rate that a user will get for their home country's currency, even if they change money at the same place at two different times on the same day. As a result, I would recommend building in a simple form that allows a user to enter how much they exchanged and how much they got back to calculate the exchange rate. So for example, let's say I have $ 200.00 USD and I exchanged $ 100.00 USD for £ 60.00, and there was a £ 3.00 fee for the exchange. The exchange rate would be 0.6, and when the user enters a currency conversion, your site could create three separate transactions such as: USD Converted to £: $100.00 £ Received from Exchange: £ 60.00 Exchange Fee: £ 3.00 So if the user exchanged currency and then ran a balance report by Currency, you could either show them that they now have $ 100.00 USD and £ 57.00, or you could alternatively choose to show the £ 57.00 that they have as $95.00 USD instead. If you were showing them a transaction report, you could also show the fee denominated in dollars as well. I would recommend storing your balances and transactions in their own currencies, as you will run into some very interesting problems otherwise. For example, let's say you used a reference currency tied to the dollar. So one day I exchange $ 100.00 USD for £ 60.00. In this system I would still have 100 of my reference currency. However, if the next day, the exchange rate falls and $ 1.00 USD is only worth £ 0.55, and I change my £ 60.00 back into USD, I will get approxiamately $ 109.09 USD back for my £ 60.00. If I then go and buy something for $ 100.00 USD, the balance of the reference currency would be at 0, but I will still have $ 9.09 USD in my pocket as a result of the fluctuating currency values! That is why I'd recommend storing currencies as themselves, and only showing them in another currency for convenience using calculations done \"\"on the fly\"\" at report runtime. Best of luck with your site!\"",
"title": ""
},
{
"docid": "500aba91d79281094dbadba775df5b7a",
"text": "I'm using iBank on my Mac here and that definitely supports different currencies and is also supposed to be able to track investments (I haven't used it to track investments yet, hence the 'supposed to' caveat).",
"title": ""
},
{
"docid": "6b0fa8c314404e4ce8dd329fb6961701",
"text": "Assuming the data you're referring to is this line: the difference might be related to the different exchanges on which the stock trades. FINRA could be listing the reported volume from one exchange, while the NASDAQ data might be listing the volume on all exchanges. This is an important distinction because AAV is a Canadian company that is listed on the Toronto Stock Exchange and the NYSE. The Q at the end of the line stands for NASDAQ, according to FINRA's codebook for those data. My guess is that the FINRA data is only reporting the volume for the NASDAQ exchange and not the total volume for all exchanges (Toronto, NASDAQ, NYSE, etc.) while the data straight from NASDAQ, oddly enough, is reporting the total volume. However, FINRA could also face reporting discrepancies, since it's a regulatory body and therefore might not have the most up-to-date volume data that the various exchanges can access. I don't know if it's related or not, but looking at the NASDAQ historical data, it looks like the volume on March 6, the day you're asking about, was much lower than the volume in most of the days immediately before or after it. For all I know, something might have happened that day concerning that particular stock or the market as a whole. I don't remember anything in particular, but you never know.",
"title": ""
},
{
"docid": "c293eedb83f25dabcb22559f40ee799b",
"text": "\"The basic idea is that money's worth is dependent on what it can be used to buy. The principal driver of monetary exchange (using one type of currency to \"\"buy\"\" another) is that usually, transactions for goods or services in a particular country must be made using that country's official currency. So, if the U.S. has something very valuable (let's say iPhones) that people in other countries want to buy, they have to buy dollars and then use those dollars to buy the consumer electronics from sellers in the U.S. Each country has a \"\"basket\"\" of things they produce that another country will want, and a \"\"shopping list\"\" of things of value they want from that other country. The net difference in value between the basket and shopping list determines the relative demand for one currency over another; the dollar might gain value relative to the Euro (and thus a Euro will buy fewer dollars) because Europeans want iPhones more than Americans want BMWs, or conversely the Euro can gain strength against the dollar because Americans want BMWs more than Europeans want iPhones. The fact that iPhones are actually made in China kind of plays into it, kind of not; Apple pays the Chinese in Yuan to make them, then receives dollars from international buyers and ships the iPhones to them, making both the Yuan and the dollar more valuable than the Euro or other currencies. The total amount of a currency in circulation can also affect relative prices. Right now the American Fed is pumping billions of dollars a day into the U.S. economy. This means there's a lot of dollars floating around, so they're easy to get and thus demand for them decreases. It's more complex than that (for instance, the dollar is also used as the international standard for trade in oil; you want oil, you pay for it in dollars, increasing demand for dollars even when the United States doesn't actually put any oil on the market to sell), but basically think of different currencies as having value in and of themselves, and that value is affected by how much the market wants that currency.\"",
"title": ""
},
{
"docid": "b69187cb5be0290794bbdd55916a4d36",
"text": "Gold is traded on the London stock exchange (LSE) and the New York stock exchange (NYSE) under various separate asset tickers, mainly denominated in sterling and US dollars respectively. These stocks will reflect FX changes very quickly. If you sold LSE gold and foreign exchanged your sterling to dollars to buy NYSE gold you would almost certainly lose on the spreads upon selling, FX'ing and re-buying. In short, the same asset doesn't exist in multiple currencies. It may have the same International Securities Identification Number (ISIN), but it can trade with different Stock Exchange Daily Official List (SEDOL) identifiers, reflecting different currencies and/or exchanges, each carrying a different price at any one time.",
"title": ""
},
{
"docid": "a41efbee5c826099835787e354a813b0",
"text": "I just tried doing that on my PP which is in the Netherlands, I have added a USD bank account (from my dutch bank) and they sent the verification amount in Euros, I called the bank and wonder why they didn't let me choose account currency they said it's not possible and if I cashout Dollars that I have in my PP (cause we usually do international business so we set it to dollars) it will be changed to Euros, So we decided to keep the dollars in account to pay our bills instead of getting ripped off by PayPal in xchange rates.",
"title": ""
},
{
"docid": "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": "f5bc73aa50634a8e28447a7f2f5f2eb9",
"text": "My instinct says that there should be no difference. Your instincts are right. Your understanding of math is not so much. You sold $100K at the current price of 7500000RUB, but ended up buying at 3500000, you earned 3500000RUB. That's 100% in USD (50% in RUB). You bought 7500000RUB for the current price of $100K, but sold later for $200K. You earned $100K (100% in USD), which at that time was equal 3500000RUB. You earned 3500000RUB. That's 50% in RUB. So, as your instincts were saying - no difference. The reason percentages are different is because you're coming from different angles. For the first case your currency is RUB, for the second case your currency is USD, and in both cases you earned 100%. If you use the same currency for your calculations, percentages change, but the bottom line - is the same.",
"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": "560106099cf6c6936b0ff47fe5ac7342",
"text": "Much as I hate to agree with you (because my personal bias is towards the belief China is cooking the books in a significant way) we should consider that this is the most likely explanation. Reconciling exactly a superset of data against hard-to-measure subsets is near impossible and, in an economy as dynamic as China's, it would be very difficult to get this right to such a small margin.",
"title": ""
},
{
"docid": "45faf5c8e5f8721d6d3e17915f55e55b",
"text": "\"the Yen is *the source* of **\"\"carry trades\"\"**. It means whichever savvy people with means who want to borrow money to invest on a leveraged basis anywhere in the world, come running to borrow in yen. Why? Because (1) Japan is an advanced economy whose currency is freely convertible to many many currencies/countries who are happy to convert yen back and forth. (2) Japanese interest rates are low, lower than in the west b/c of their earlier deflationary crises due to too much debt and due to west requiring Yen to be too strong after the Plaza accords; so it's cheap to borrow there. So a lot of investment around the world has, in origin, come from borrowing in japan. As long as that investment is \"\"on\"\", the loan to japan remains outstanding. But the investor earns the \"\"carry\"\": the rate of difference between the cost of borrowing in Yen, and earning the return from whatever investment it is. When scary things happen (like war, disaster, coups etc) the big money bags/investors pull their money out of their investments and put it in their banks. This means they sell their investments, wherever they are, convert some of that money back into yent ( BUY YEN ) to return their yen loans. yen goes up.\"",
"title": ""
},
{
"docid": "099eac91527a5d69a45d7fc1555ee08c",
"text": "No. Getting more credit lowers your credit utilization ratio (if you don't use it), which raises your credit rating, this can also be done by asking for a higher limit on your existing credit card. Also, there is a chance that the company you got your first card from won't pull your credit a second time when they go to the underwriter. As any extensions of credit lower your credit score, although the credit utilization ratio is weighted more heavily.",
"title": ""
}
] |
fiqa
|
ea21b86e9a2715bcbe8888b8d58e03a7
|
Ghana scam and direct deposit scam?
|
[
{
"docid": "c6a286121301ab403c1d42fc914feb21",
"text": "Of course, it is a scam. Regardless of how the scam might work, you already know that the person on the other end is lying, and you also know that people in trouble don't contact perfect strangers out of the blue by e-mail for help, nor do they call up random phone numbers looking for help. Scammers prey on the gullibility, greed, and sometimes generosity of the victims. As to how this scam works, the money that the scammer would be depositing into your father's account is not real. However, it will take the bank a few days to figure that out. In the mean time, your father will be sending out real money back to the scammer. When the bank figures out what is going on, they will want your father to pay back this money.",
"title": ""
},
{
"docid": "3f6fecac229bcd296171bb6fa391b5dd",
"text": "It used to be Nigerian royalty, now it's Ghanaian porn stars. Great. This is a bog-standard 419 scam. It's probably the most lucrative single swindle in the world. It's always hard to get people to believe they have been tricked, but don't let your dad participate.",
"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": "63150d6fd53dd58cb07bc5b8179d25db",
"text": "\"It's a scam. Here's someone who paid \"\"Josie\"\" 2000 pounds and lost it all Here's a Google search result list of how this softcore porn actor, Josie Ann Miller, is being used as the face and name of scams\"",
"title": ""
},
{
"docid": "ab9633b8bb5589385a1b46fef10d3e82",
"text": "Yes, this is a scam. Tell your dad not to pay any money. There will likely be a large deposit in his account, but if he withdraws the money from his account, the bank will come after him looking for the money when the transfer to his account is reversed.",
"title": ""
},
{
"docid": "0a6306b3a33df765c82807a5bf555c00",
"text": "\"So Linda/Josie's initial plan was to have your dad pay money to (supposedly) help her get the gold chest. After he would have paid, there would have been another complication, and more yet (someone to bribe, a plane ticket to buy, transport to arrange, customs to handle, whatever, the list would last as long as there's money to take). Even if he does not have much money, the appeal of his share of the treasure could have been enough to tempt him to spend money he can't, or borrow, etc. Once \"\"she\"\" found out that he doesn't have any money and/or is apparently not willing to send any, \"\"she\"\" switched to a different scam: she would send him a large check, have him deposit it on his bank account, transfer most of the money (minus his generous share) to \"\"her\"\". Once the money is irreversibly transferred, the check will bounce. End result: 0 in the account before the transaction, minus a lot afterwards. It's quite simple: if an e-mail from a perfect stranger includes any of the following keywords, it's a scam:\"",
"title": ""
},
{
"docid": "3bafb5a6c4773091b7cbd9410d95ff0e",
"text": "Sadly, people with millions of dollars rarely give it away to complete strangers that they found at random on the Internet in exchange for trivial efforts. Anyone who claims to be willing to give you millions of dollars for just about nothing in return is almost certainly pulling a scam. It doesn't matter if you can't figure out how they're going to cheat you. They have plan. Just because your father has no money doesn't mean he can't be robbed. The scammer is almost surely planning to move some money around, and leave your father with a debt that he will be legally obligated to pay. She'll then take off with the money. (Of course you figured out that the picture is fake. It may not even be a pretty young girl -- that may well just be a persona the scammer created to appeal to your father. It might really be a fat, balding old man.) Your father would be smarter to sit in his back yard and wait for money to fall from the sky.",
"title": ""
},
{
"docid": "3455b56dba1e6486b0bcb33787840b82",
"text": "The scammer is definitely up to something fishy. He (it's certain that the she is a he) may deposit some money into your father's account to gain his trust. After which, he will propose to come meet your dad. That's where the scamming begins. He will come up with a story about flight, VISA issues, or a problem he has to solve before coming over. Another is that he can use your dad's empty account to receive monies he scammed off people. That way there's no direct link with him and his other victim.",
"title": ""
}
] |
[
{
"docid": "d635984a635dec13512306ce3bb4a1c1",
"text": "He said he would need my first and last name and my online banking information not my date of birth, SSN, Address, Bank Address, Routing number, or checking account number This is a scam. No one needs online Banking User name and password. If you have already given this info, close your account and disable internet banking. not my date of birth, SSN, Address, Giving your date of birth and SSN is also dangerous. So my question for you is it a scam or could he really be wanting to put money into my account? Oh yeah and also he said they'll send it through my account I'll send half BACK through money gram or western union. There is no legit reason for doing this. This is 100% scam, one would only loose money. Just walk away before any damage can be done",
"title": ""
},
{
"docid": "c35b1396f4e0fd04e0bd3fc58ed4ad64",
"text": "If they have your account numbers (which are necessary for direct deposits) they could possibly initiate ACH withdrawals from your accounts too (requires some setup but they may have accomplices). Note that even if you didn't have money there, depending on the local bank rules you may be still on the hook for overdrafts they create, at least by default. You may be able to prove later that this was fraud but the burden of proof will be on you, and in the meantime they might be gone with the money. They could use your documents to either establish other accounts in your name (identity theft) or take over your accounts (e.g. by contacting customer service of the bank and claiming to be you, and presenting the documents you sent as a proof), request credits under your identity (possibly using the money on the account as a collateral since the bank may not know where the money is from), etc. This is even easier given you will give them all the documents and information needed for a loan, your signature, etc. And the fact that they ask you to send documents to a specific address doesn't mean they could be found at that address when the problems start - it may be rented short-term, belong to either knowing or unknowing accomplice, be a forwarding service, etc. Could be money laundering of course too. That's just what comes to mind after a short while thinking about it.",
"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": "dba2b8b6ff34a67ab2d2fc51c37304d6",
"text": "You should talk to your bank and explain what happened. Your bank may contact vendor bank to discuss the account, but really that is up to them. Then you should contact your police department and report the fraud. Realistically, your chances of recovering any money is negligible. I think your best chance is convincing your bank to work with vendor bank on a reversal(if it was a domestic transfer), although it is more likely that the vendor bank account is already empty and closed.",
"title": ""
},
{
"docid": "75c4f6840c9c634feb441c398ad5ac39",
"text": "There are lots of red flags here that point to an obvious scam. First, no one, not even people close to you, ever have a valid reason to get your password or security questions. EVER. The first thing they will do is clean out the account you gave them. The second thing they will do is clean out any account of yours that uses the same password. Second, no one ever needs to run money through your account for any reason. If its not your money, don't take it. Third, this person is in the army but was deported to Africa (not to any particular country, just Africa), and is still in the army? This doesn't really make sense at all. This is a blatant obvious scam.",
"title": ""
},
{
"docid": "be720b49f07f495d82524d97b3f910dc",
"text": "\"The [BBC article](http://www.bbc.com/news/business-40338220?ns_mchannel=social&ns_campaign=bbc_breaking&ns_source=twitter&ns_linkname=news_central) is rather better on this topic: >The first charge, conspiracy to commit fraud, relates to \"\"advisory\"\" fees paid to Qatar. The second - \"\"unlawful assistance\"\" - could be more serious. >It relates to a £2bn loan advanced to Qatar after the fundraisings were negotiated, the implication being that there was a money-go-round at work - Barclays was handing Qatar some of the money it was using to support the British bank.\"",
"title": ""
},
{
"docid": "af187814bd6060f3c39ca5ee90a05872",
"text": "I would have asked for the intended recipient's account number and pursue sending the money there. If it's the same as yours (except for one digit) that would be a good sign. But even here, the crook could send money to dozens of different accounts, all off by one digit, just to make it look authentic. I'm going with scam just to be safe. As for the checksum, it's used on paper checks (next to the last digit) but not necessarily the actual account. Credit card accounts use an algorithm, but online tools create as many legitimate character strings as you want. I used to work at a credit union, and when the time was just right, I opened account number 860000 (actual account number except for the second digit). All their account numbers were sequential, so the oldest account number was 000001. Sadly, many important systems are set up to meet the simple needs of the masses, and are easy to beat if you really want to. Check out If you dare hackers to hack you, they'll hack you good.",
"title": ""
},
{
"docid": "b8118a2a42ce71b5da832a00656bc4d6",
"text": "The problem is, I don't understand, how such sites work. Is that scam or not? Some of my friends told me that they've actually received the revenue after they deposited a bit of money to similar sites, and I don't have any evidence not to trust them. Yes there are scam. Stay away. Quite likely people got real money back into Bank Account. Or more likely it shows that there is more [notional] money in the sites account. If such sites really 'work', then how and why? These sites work, because there are quite a few people who believe in free / easy money. The site could be classic pyramid / Ponzi scheme. They could also be involved in some kind of Money Laundering. Why would anyone trust them so much to give them money for absolutely no reason? Okay, I'm not so clever, but they can't make profit only because of stupid people, can they? The same way you did, at times just for fun to experiment. At times because they believe there is easy get rich way. There is a reward that works so that if you see 120 you start believing in it. If you try and withdraw, there will be quite a few obstacles; under the pretext of holding period, withdrawal fees etc... but mostly they will encourage you to keep depositing small amounts and see it grow. This of it this way; if one can make 20% day on day ... one does not need someone else's money. The power of compounding would mean very quickly $ 100 would become 88 BILLION in 120 days!",
"title": ""
},
{
"docid": "9f293c3173d07543b8ffd67b7f3a5569",
"text": "The typical scam is that they overpay you - 'accidentially', or for some obscure reason they claim, and they ask you to wire the extra money either back or to someone else. Because you wire it, that money is gone for sure. Then they undo the original transaction (or it turns out it was fake anyway), and you end up with a loss. Maybe he claims that he wants to buy some more stuff, and the fees are high, so he sends you all the payments in one amount, and you pay the other sellers from it, something like that. There are honest nigerians though, actually most of them. Either way, the real problem is that the original payment is fake. Whichever way it comes to you, you need to make sure that it cannot be reversed or declared invalid after you think you have it. Wire transfer is the only way I know that is not reversible. Bank transfers are reversible; don't think you have it just because it arrives in your bank account. Talk to your bank about what all can happen. If you make the deal, when you send the bike, think about insuring it (and make him pay for that too). That way, you are out of any loss risk.",
"title": ""
},
{
"docid": "ec9bbffb3de74756544e9883b0955746",
"text": "Just FYI for the benefit of future users. Haven't been paid yet nor have I paid but some interesting facts. I decided to sign the contract with the person who approached me. The contract seemed harmless whereby I only transfer money once I retrieve the funds. Thanks to your comments here I also understood that I must make sure the funds really cleared in my account and can never be cancelled before I transfer anything. He gave me the information of the check that matched my previous employer and made sense as it was a check issues just after I had left my job and the state. I did not used the contact details he provided me, but rather found the direct contact details of the go to person in my last institution and contacted them. I still haven't been able to reclaim the funds, but that is due to internal problems between the state comptroller and my institution. Will come back to update if I am ever successful, but the bottom line is that it is probably not a scam. I am waiting for the final resolution of the case before I post the name of the company which approached me (if it is at all OK per the discussion board rules)",
"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": "e516dd34e861b00147c7041c992f1ee1",
"text": "I went to the bank with my friends and told them that I saw the money in my account, that it's not mine, and that they should investigate and send it back to wherever it came from Right thing to do. Did you give this in writing? Do you have a stamped copy of the letter from Bank that they accepted your complaint? he has been calling with different phone number threatening me, saying that he will kill me, he will make sure I don't return to my country alive, and all. Lodge a formal police complaint. And also I have not heard from the bank at all. What should I do? Ensure that all your communication and follow-up is in writing. Even email is fine. But periodically send this via certified post with tracking number. Even when you call up the bank, keep a track of calls. After a day or two, send a email saying further to calls 1, calls 2, calls 3 etc you are still awaiting a response from Bank. Even after face to face visits, record all your follow-up and periodically send via email and after few email take a print of everything [even if its 10 pages] and send via certified mail. The reason it is very important to have a written trail is if things go wrong, Law enforcement can accuse you to be part of fraud/scam. It will be difficult to establish you were the one who complained about it. If not too difficult, change you phone numbers. Yes definitely open the new Bank Account; and don't give this to a random stranger on Internet.",
"title": ""
},
{
"docid": "0eaf708a9f3cb485d263fcb56eb42614",
"text": "This is a typical scam. Yes, you just got listed with the terrorists as trying to launder money internationally. Terrorist organizations will try to find someone in the US who will accept deposits from overseas sources then send that money to one of their operatives. Cooperate with whichever police force comes knocking on your door. Pray that it isn't Homeland Security. They do not need warrants.",
"title": ""
},
{
"docid": "a8a34d5de6f3676427fdea0189bc6428",
"text": "It would be quite the trick for (a) the government to run all year and get all its revenue in April when taxes are due and (b) for people to actually save the right amount to be able to cut that check each year. W2 employers withhold the estimated federal and state taxes along with the payroll (social security) tax from each paycheck. Since the employer doesn't know how many kids you have, or how much mortgage interest, etc you will take deductions for, you can submit a W4 form to adjust withholdings. The annual Form 1040 in April is to reconcile exact numbers, some people get a refund of some of what they paid in, others owe some money. If one is self-employed, they are required to pay quarterly estimated taxes. And they, too, reconcile exact numbers in April.",
"title": ""
},
{
"docid": "2ae58a5ff9a42bcaf480458f040d5444",
"text": "By paying the $11,000 into the 2.54% loan you will save $23.30 in interest every month. By paying the $11,000 into the 3.625% loan you will save $33.20 in interest every month. If your objective is to get rid of one loan quicker so repayments can go to the other loan to pay off sooner, I would put the $11,000 into the 2.54% loan and pay that off as quick as possible, then put any extra payments into the mortgage at 3.625%. Pay only the minimum amounts into the 0% car loan as this is not costing you anything.",
"title": ""
}
] |
fiqa
|
c98bfc141f6131171cb77c22f35e4802
|
Can anybody explain the terms “levered beta riders”, “equity long-short” and “the quant process driven discipline” for me, please?
|
[
{
"docid": "a363dc606b8f75dc5fba7f9e4c16aa95",
"text": "\"Leverage here is referring to \"\"financial leverage\"\". This is the practice of \"\"levering\"\" [ie increasing, like the use of a lever to increase the amount of weight you can lift] the value of your investment by taking on debt. For example: if you have 100k in cash, you can buy a 100k rental property. Assume the property makes 10k a year, net of expenses [10%]. Now assume the bank will also give you a 100k mortgage, at 3%. You could take the mortgage, plus your cash, and buy a 200k rental property. This would earn you 20k from the rental property, less 3k a year in interest costs [the 3%]. Your total income would be 17k, and since you only used 100k of your own money, your rate of return would now be 17% instead of 10%. This is financial leveraging. Note that this increases your risk, because if your investment fails not only have you lost your own money, you now need to pay back the bank. \"\"Beta riders\"\" appears to be negative commentary on investors who use Beta to calculate the value of a particular stock, without regard to other quantitative factors. Therefore \"\"leveraged beta riders\"\" are those who take on additional risk [by taking on debt to invest], and invest in a manner that the author would perhaps considered \"\"blindly\"\" following Beta. However, I have never seen this term before, and it appears tainted by the author's views on Quants. A \"\"quant process driven discipline\"\" appears to be positive commentary on investors who use detailed quantitative analysis to develop rules which they rigorously follow to invest. I have never seen this exact phrasing before, and like the above, it appears tainted by the author's views on Quants. I am not providing any opinion on whether \"\"beta riding\"\" or \"\"quant processes\"\" are good or bad things; this is just my attempt to interpret the quote as you presented it. Note that I did not go to the article to get context, so perhaps something else in the article could skew the language to mean something other than what I have presented.\"",
"title": ""
},
{
"docid": "3749bd9223d2080c026d8c67c9ac9201",
"text": "\"Translation : Funds managers that use traditionnal methods to select stocks will have less success than those who use artificial intelligence and computer programs to select stocks. Meaning : The use of computer programs and artificial intelligence is THE way to go for hedge fund managers in the future because they give better results. \"\"No man is better than a machine, but no machine is better than a man with a machine.\"\" Alternative article : Hedge-fund firms, Wall Street Journal. A little humour : \"\"Whatever is well conceived is clearly said, And the words to say it flow with ease.\"\" wrote Nicolas Boileau in 1674.\"",
"title": ""
}
] |
[
{
"docid": "f4644d808e6ad59b2b32bb273f916605",
"text": "Just adding on a touch, when market participants refer to swaps they are talking about the fixed leg. So for example, if I said a 5y Receiver, it means I am receiving fixed, paying floating. Ie I want yields to fall. Opposite for a Payer. Swaption is just an option on these swaps, so basic swaptions: Long Payer Short Payer Long Receiver Short Receiver",
"title": ""
},
{
"docid": "72fd6e652e8b3d14b6257d864896e856",
"text": "Citing the Yahoo Finance Help page, Beta: The Beta used is Beta of Equity. Beta is the monthly price change of a particular company relative to the monthly price change of the S&P500. The time period for Beta is 3 years (36 months) when available. Regarding customised time periods, I do not think so.",
"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": "3539d10c4d9b8ee4cb6d011696498707",
"text": "If you have your long positions established and are investing responsibly (assuming you know the risks and can accept them), the next step IMO is typically learning hedging - using options or option strategies to solidify positions. Collars (zero cost) and put options are a good place to start your education and they can be put to use to both speculate (what you are effectively doing with short-position trading) or long-term oriented edging. Day trading equites can be lucrative but it is a difficult game to play - learning options (while more complex on speculation) can provide opportunities to solidify positions. Options trading is difficult grounds. I just think the payoff long term to knowing options is much greater than day-trading tactics (because of versatility)",
"title": ""
},
{
"docid": "0836a633f7ed214595e07c085c93713a",
"text": "Finance noob here. Am I reading the article right that he's saying MPT bad, active management good? If so, what is that saying about how I should manage my portfolio (assuming I am only dedicating a few hours a month)? >he suggests that if you don't have an edge, no one needs to play the game So what do I do then? Are there specific strategies? Also, could you suggest a good explanation of why MPT is bad?",
"title": ""
},
{
"docid": "e4d57b940f6bcc3cb7b72f3bb209aefc",
"text": "This isn't totally wrong- there are hedge funds that are long 150% of AUM and short 50%. However, Rentech has said that holding a position for 8 seconds is long for them, so that's not what they're doing. I'd assume the 4X leverage most just refers to option positions that have delta 4 on average. They also may be borrowing money, which they can probably do extremely cheaply since they have a 35 year track record showing they're essentially risk-free.",
"title": ""
},
{
"docid": "408604a92de5c1ef2ea8333597a02c7b",
"text": "\"A straddle is an options strategy in which one \"\"buys\"\" or \"\"sells\"\" options of the same maturity (expiry date) that allow the \"\"buyer\"\" or \"\"seller\"\" to profit based on how much the price of the underlying security moves, regardless of the direction of price movement. IE: A long straddle would be: You buy a call and a put at the same strike price and the same expiration date. Your profit would be if the underlying asset(the stock) moves far enough down or up(higher then the premiums you paid for the put + call options) (In case, one waits till expiry) Profit = Expiry Level - Strike Price - (Premium Paid for Bought Options) Straddle\"",
"title": ""
},
{
"docid": "4856d07c8eb94bd28097da5edfd84770",
"text": "long deep ITM calls is equivalent to owning the equity. You're going to pay alot and hence will start off in a hole already, and you aren't getting too much leverage there at all depending how deep ITM you go. Covariance scales, but assuming B-S in order to get nice scaling and ignoring the risks you are actually taking with options (unlimited down-size ie you can lose your entire investment in the option, people forget this) will screw you unless you really know what you are dong. Leverage means increasing your risk. long dep ITM is not obtaining much leverage and therefore not risking too much. but you aren't going ot get 3-4x leverage this way. you get leverage by saying: oh, i have 100, i could invest in 1 share of stock OR I could buy 100 worth of some option. If I pick a deep ITM (think strike = 0) it's identical to owing the stock. If i pick ATM, i have a ~50/50 chance of wining, so i should be able to double my upside. If I go OTM, i can increase my exposure to the upside while increasing hte chance that my options expire worthless. So really, i have no idea why deep ITM do what you are trying to do. and If you don't either, you probably shouldn't do it.",
"title": ""
},
{
"docid": "faa8b56eb94acc86948a4221b8a79aa5",
"text": "Assuming you were immersed in math with your CS degree, the book **'A Non-Random Walk Down Wall Street' by Andrew Lo** is a very interesting book about the random walk hypothesis and it's application to financial markets and how efficient markets might not necessarily imply complete randomness. Lots of higher level concepts in the book but it's an interesting topic if you are trying to branch out into the quant world. The book isn't very specific towards algorithmic trading but it's good for concept and ideas. Especially for general finance, that will give you a good run down about markets and the way we tackle modern finance. **A Random Walk Down Wall Street** (which the book above is named after) by **Burton Malkiel** is also supposed to be a good read and many have suggested reading it before the one I listed above, but there really isn't a need to do so. For investing specifically, many mention **'The Intelligent Investor' by Benjamin Graham** who is the role model for the infamous Warren Buffet. It's an older book and really dry and I think kind of out dated but mostly still relevant. It's more specifically about individual trading rather than markets as a whole or general markets. It sounds like you want to learn more about markets and finance rather than simply trading or buying stocks. So I'd stick to the Andrew Lo book first. --- Also, since you might not know, it would be a good idea to understand the capital asset pricing model, free cash flow models, and maybe some dividend discount models, the last of which isn't so much relevant but good foundations for your finance knowledge. They are models using various financial concepts (TVM is almost used in every case) and utilizing them in various ways to model certain concepts. You'd most likely be immersed in many of these topics by reading a math-oriented Finance book. Try to stay away from those penny stock trading books, I don't think I need to tell a math major (who is probably much smarter than I am) that you don't need to be engaging in penny stocks, but do your DD and come to a conclusion yourself if you'd like. I'm not sure what career path you're trying to go down (personal trading, quant firm analyst, regular analyst, etc etc) but it sounds like you have the credentials to be doing quant trading. --- Check out www.quantopian.com. It's a website with a python engine that has all the necessary libraries installed into the website which means you don't have to go through the trouble yourself (and yes, it is fucking trouble--you need a very outdated OS to run one of the libraries). It has a lot of resources to get into algorithmic trading and you can begin coding immediately. You'd need to learn a little bit of python to get into this but most of it will be using matplotlib, pandas, or some other library and its own personal syntax. Learning about alpha factors and the Pipeline API is also moderately difficult to get down but entirely possible within a short amount of dedicated time. Also, if you want to get into algorithmic trading, check out Sentdex on youtube. He's a python programmer who does a lot of videos on this very topic and has his own tool on quantopian called 'Sentiment Analyzer' (or something like that) which basically quantifies sentiment around any given security using web scrapers to scrape various news and media outlets. Crazy cool stuff being developed over there and if you're good, you can even be partnered with investors at quantopian and share in profits. You can also deploy your algorithms through the website onto various trading platforms such as Robinhood and another broker and run your algorithms yourself. Lots of cool stuff being developed in the finance sector right now. Modern corporate finance and investment knowledge is built on quite old theorems and insights so expect a lot of things to change in today's world. --- With a math degree, finance should be like algebra I back in the day. You just gotta get familiar with all of the different rules and ideas and concepts. There isn't that much difficult math until you begin getting into higher level finance and theory, which mostly deals with statistics anyways like covariance and regression and other statistic-related concepts. Any other math is simple arithmetic.",
"title": ""
},
{
"docid": "ab52113ec7e01f75d7dbf10acd3beb4c",
"text": "\"I'm searching for a master's thesis topic in equity investment or portfolio management and I'd be grateful if someone could tell me what are the hot \"\"trends\"\" going on right now on the market? Any new phenomenons (like the rise of blockchain, etf... but more relate to the equity side) or debates ( the use of the traditional techniques such as Beta to calculate WACC for example ...) ?\"",
"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": "43531848555bdaee1aff5d1e8f3c3af6",
"text": "Yeah, the past 4-5 years have been rough on fundamental guys (not to say companies like AAPL didn't fare well), but EVERYTHING has been macro. When correlations go to 1 across the board and central bank legislation has have a bigger impact on earnings than new products/good mgmt/etc. it's hard to be a fundamentalist. Like your style, this market environment is ripe for HF's though that can use leverage/hedges/and short-term positioning to create alpha while the mutual funds are stuck in long-term structured investment objective ruts and reduced risk. Not to say you can't create alpha through selecting better/undervalued stocks, it's just been damn near impossible the last 5 years to do it.",
"title": ""
},
{
"docid": "f585b0f2748cd5f1f356a01f1d3886fa",
"text": "\"Let me start by hedging a little bit: our industry (finance, I mean) is cyclical, and disciplines tend to surge, to fall, then to rise reborn from the ashes. Fixed income was dead, then fixed income was the place to be, then everyone got laid off, then there was a huge rally, etc. etc. BUT... if you get into the wrong area at the wrong time, well it doesn't really matter if it recovers in 20 years, does it? As the great man wrote: **\"\"in the long run, we're all dead.\"\"** Regarding equity research (and here I especially mean **sell side** equity research), the super-volatile markets have made it harder for traditional equity funds to eke out a living, much less to meet investor expectations, so margins have gotten thinner. The increased correlations and increased volatility has just made stock picking less productive as a strategy. As a result, traditional equity funds have cut back on their trading activity, have consolidated their business to one or two brokers, and have stopped explicitly paying for research. This means fewer soft and hard dollars flowing to less research. Furthermore, sell side research is less productive these days, it was just easier in the \"\"old\"\" bull market, there was more room to find value and pick stocks. All of these factors are contributing to a decline in the research business, as evidenced by the layoffs we can all find by searching google news. All that having been said, buy side research is a different story, but the strategies are more complex and you really have to deliver value to your PM in a timely manner.\"",
"title": ""
},
{
"docid": "37fe0e231579670b8da116d8a164aff4",
"text": "great example of levered tracking error is any 2x/3x VIX etf. during periods of high volatility (like last week) you will be able to realize much higher returns on the underlying index as the levered and inverse ETFs are unable to replicate their intended performance using market securities. it is not uncommon to see the VIX up ~30% with levered ETFs only netting ~10-12% as opposed to the intended 60 or 90%, for example",
"title": ""
},
{
"docid": "496276d9042f9d98e6d75a68adff302b",
"text": "CFDs (Contracts for Difference) are basically a contract between you and the broker on the difference in price of the underlying between the time you open a position and close a position. You are not actually buying the underlying. With share CFDs, the outcome is a bit like buying the underlying shares on margin. You pay interest for every day you hold the CFDs overnight for long CFDs. However, with short positions, you get paid interest for every day you hold your short position overnight. Most people use CFDs for short term trading, however they can be used for medium to longer term trading just as you would hold a portfolio on margin. What you have to remember is that because you are buying on margin you can lose more than your initial contract amount. A way to manage this risk is by using position sizing and stop loses. With your position sizing, if you wanted to invest $10,000 in a particular share trading at $10 per share, you would then buy 1000 shares or 1000 CFDs in that share. Your initial expense with the CFDs might be only $1000 (at a margin rate of 10%). So instead of increasing your risk by having an initial outlay of $10,000 with the CFDs you limit your risk to the same as you were buying the shares directly.",
"title": ""
}
] |
fiqa
|
ce839ec2aad86104dff7fa96848c0bae
|
The formula equivalent of EBITDA for personal finance?
|
[
{
"docid": "3c18936134dd50e460e05e862adfbb23",
"text": "This should not be taken to be financial advice or guidance. My opinions are my own and do not represent professional advice or consultation on my part or that my employer. Now that we have that clear... Your idea is a very good one. I'm not sure about the benefits of a EBITDA for personal financial planning (or for financial analysis, for that matter, but we will that matter to the side). If you have a moderate (>$40,000) income, then taxes should be one the largest, if not the largest chunk of your paycheck out the door. I personally track my cash flow on a day-by-day basis. That is to say, I break out the actual cash payments (paychecks) that I receive and break them apart into the 14 day increments (paycheck/14). I then take my expenses and do the same. If you organize your expenses into categories, you will receive some meaningful numbers about your daily liquidity (i.e: cash flow before taxes, after taxes, cash flow after house expenses, ect) This serves two purposes. One, you will understand how much you can actually spend on a day-to-day basis. Second, once you realize your flexibility on a day-to-day basis, it is easy to plan and forecast your expenses.",
"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": "a19ebf47a6a423a517f69a38387dc80f",
"text": "If it's number of years and the interest is per-annum the formula is the same as the normal one. this should work on most hand-held calculators.",
"title": ""
},
{
"docid": "46a9706b8227cb275cd42ac865c25ba9",
"text": "This looks correct to me, for simple interest. If you are dealing with compound interest, the formula would be: So, A = 500000(1+0.036/365)^(30), or 501,481.57, or an interest of 1481.57, assuming the 3.6% is the annual nominal interest rate and it is compounded daily. Note that you are ignoring the depreciation and also ignoring the percentage of customers who will forfeit their debt in the 30 - 60 day period.",
"title": ""
},
{
"docid": "c652aedd98aef8b438875e0bd144b905",
"text": "This is a present value calculation, which excel or any financial calculator can handle. N = 300 (months) %i = 5/12 or .05/12 depending on the program/calculator PMT = $5000 (the monthly payment) FV = 0 (you want to end at zero balance) This calculates a PV (present value of $855,300) Chad had it right, but used a calculator that didn't offer the PV function, so he guessed and changed numbers til the answer was clear. user379 makes a good point, but why start inflation calculations at 65, and not now? You look like you're in your 30's, so there's 30 years of inflation, and $60K/yr in today's value will need to be closer to $150K/yr, given about 30 years of 3% inflation.",
"title": ""
},
{
"docid": "37528e2711eafb0e0573772a2bf49083",
"text": "The equation is the same one used for mortgage amortization. You first want to calculate the PV (present value) for a stream of $50K payments over 20 years at a10% rate. Then that value is the FV (future value) that you want to save for, and you are looking to solve the payment stream needed to create that future value. Good luck achieving the 10% return, and in knowing your mortality down to the exact year. Unless this is a homework assignment, which need not reflect real life. Edit - as indicated above, the first step is to get that value in 20 years: The image is the user-friendly entry screen for the PV calculation. It walks you though the need to enter rate as per period, therefore I enter .1/12 as the rate. The payment you desire is $50K/yr, and since it's a payment, it's a negative number. The equation in excel that results is: =PV(0.1/12,240,-50000/12,0) and the sum calculated is $431,769 Next you wish to know the payments to make to arrive at this number: In this case, you start at zero PV with a known FV calculated above, and known rate. This solves for the payment needed to get this number, $568.59 The excel equation is: =PMT(0.1/12,240,0,431769) Most people have access to excel or a public domain spreadsheet application (e.g. Openoffice). If you are often needing to perform such calculations, a business finance calculator is recommended. TI used to make a model BA-35 finance calculator, no longer in production, still on eBay, used. One more update- these equations whether in excel or a calculator are geared toward per period interest, i.e. when you state 10%, they assume a monthly 10/12%. With that said, you required a 20 year deposit period and 20 year withdrawal period. We know you wish to take out $4166.67 per month. The equation to calculate deposit required becomes - 4166.67/(1.00833333)^240= 568.59 HA! Exact same answer, far less work. To be clear, this works only because you required 240 deposits to produce 240 withdrawals in the future.",
"title": ""
},
{
"docid": "13b60ae729cdff6623eb64f3477e3dc9",
"text": "\"I've just started using Personal Capital (www.personalcapital.com) after seeing the recommendation at several places. I believe it gives you what you want to see, but I don't think you can back populate it with old information. So if you log in and link accounts today, you'll have it going forward. I only put in my investment accounts as I use another tool to track my day-to-day spending. I use Personal Capital to track my investment returns over time. How did my portfolio compare to S&P 500, etc. And here is a shot of the \"\"You Index\"\" which I think is close to what you are looking for:\"",
"title": ""
},
{
"docid": "5e0cc9ac15148557022f754f06d64108",
"text": "But how do I bring the initial deposit into the equation? Basically, you can't. Unless you combine two different formulas from Math of Finance into a single expression. The single initial deposit of $1000 will compound for 20 years at 5% compounded annually. The final amount for this part of the deposit will be: V1 = 1000 x (1.05)^20 In addition the series of 20 payments will be an ordinary annuity with a regular payment of $100, with the value on the occasion of the 20th payment given by: So the final total amount in the account at the end of 20 years will be the sum of these two values...",
"title": ""
},
{
"docid": "c54d44fcdbe6423086dfee7e9d614c5f",
"text": "\"Note that mutual funds' quarterly/annual reports usually have this number. I generally just let my home-accounting software project my future net worth; its numbers agree well enough with those I've gotten from more \"\"professional\"\" sources such as monte-carlo modelling. (They'd agree better if I fed in all the details of my paycheck, but I don't feel like doing the work to keep that up to date.) I'm using Quicken, but I assume MS Money and other competitors have the same capability if you buy the appropriate version.\"",
"title": ""
},
{
"docid": "a363af68e58e52989a953606175bb805",
"text": "\"I think this question is perfectly on topic, and probably has been asked and answered many times. However, I cannot help myself. Here are some basics however: Personal Finance is not only about math. As a guy who \"\"took vector calculus just for fun\"\", I have learned that superior math skills do not translate into superior net worth. Personal finance is about 50% behavior. Take a look at the housing crisis, car loans, or payday lenders and you will understand that the desire to be accepted by others often trumps the math surrounding a transaction. Outline your goals What is it that you want in life? A pile of money or to retire early? What does your business look like? How much cash will you need? Do you want to own a ton of rental properties? How does all this happen (set intermediate goals). Then get on a budget A budget is a plan to spend your money in advance. Stick to it. From there you can see how much money you have to implement various goals. Are your goals to aggressive? This is really important as people have a tendency to spend more money then they have. Often times when people receive a bonus at work, they spend that one bonus on two or three times over. A budget will prevent this from happening. Get an Emergency Fund Without an emergency fund, you be subject to the financial whims of people involved in your own life and that of the broader marketplace. Once you have one, you are free to invest with impunity and have less stress in a world that deals out plenty. Bad things will happen to you financially, protect against them. The best first investments are simple: Invest in yourself. Find a way to make a very healthy income with upward mobility. Also get out and stay out of debt. These things are not sexy, but they pay off in the long run. The next best investment is also simple: Index funds. These become the bench mark for all other investments. If you do not stand a good chance of beating the S&P 500 index fund, why bother? Just dump the money in the fund and sleep well at night.\"",
"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": "4e5b323e00d0f3483c4b8e7f58baee9d",
"text": "Perhaps there is no single formula that accounts for all the time intervals, but there is a method to get formulas for each compound interest period. You deposit money monthly but there is interest applied weekly. Let's assume the month has 4 weeks. So you added x in the end of the first month, when the new month starts, you have x money in your account. After one week, you have x + bx money. After the second week, you have x + b(x + bx) and so on. Always taking the previous ammount of money and multiplying it by the interest (b) you have. This gives you for the end of the second month: This looks complicated, but it's easy for computers. Call it f(0), that is: It is a function that gives you the ammount of money you would obtain by the end of the second month. Do you see that the future money inputs are given with relation to the previous ones? Then we can do the following, for n>1 (notice the x is the end of the formula, it's the deposit of money in the end of the month, I'm assuming it'll pass through the compound interest only in the first week of the next month): And then write: There is something in mathematics called recurrence relation in which we can use these two formulas to produce a simplified one for arbitrary b and n. Doing it by hand would be a bit complicated, but fortunately CASes are able to do it easily. I used Wolfram Mathematica commands: And it gave me the following formula: All the work you actually have to do is to figure out what will be f(0) and then write the f(n) for n>0 in terms of f(n-1). Notice that I used the command FullSimplify in my code, Mathematica comes with algorithms for simplyfing formulas so if it didn't find something simpler, you probably won't find it by yourself! If the code looks ugly, it's because of Mathematica clipboard formatting, in the software, it looks like this: Notice that I wrote the entire formula for f(0), but as it's also a recurrence relation, it can be written as: That is: f(0)=g(4). This should give you much simpler formulas to apply in this method.",
"title": ""
},
{
"docid": "26821c66dd72cf208a64336d6b63caa5",
"text": "I've found the systems that seem to work. Firstly, you need to find how much money is required to pay for the withdrawals after retirement, while still accruing interest. I couldn't seem to do this with an equation, but this bit of javascript worked: yearsToLast: Number of years of yearly withdrawals yearlyWithdrawal: Amount to withdraw each year interest: Decimal form of yearly compounding interest Now that we have how much is required at the beginning of the retirement, to figure out how much to add yearly to hit this mark, you'd use: amount: Previously found required amount to reach interest: Decimal form of yearly compounding interest yearsSaving: Number of years saving till amount needs to be hit I hope this helps some other poor soul, because I could find squat on how to do this. Max",
"title": ""
},
{
"docid": "2a6920f0c5eeedd0d866e1dab1187ca9",
"text": "I know this is an old question, but for others who may be wondering the same thing, Kualto.com does precisely this. You enter your expected expenses/income and it shows you the beginning and ending balance of each week. You can navigate ahead as much as you want to see how expenses today will affect your account balance in the future.",
"title": ""
},
{
"docid": "a55e257a19924432e3baf0a7cd2c9832",
"text": "\"The formula is actually as follows: (0.06571441 * V^2) + 15 * V, where V is the value divided by 1,000 which gives us AU$ 23,929 You find the same value using the calculator you linked to if you select \"\"Investment\"\" instead of \"\"Primary Residence\"\" or uncheck \"\"I am a first home buyer\"\" Edit: I don't know how they determine the $AU 821, it might be worth calling them. From looking up the First Home Owner Discount, it looks like no stamp duty may be due if you qualify for the discount: From 1 September 2016, the Northern Territory Government introduced increased stamp duty assistance for first home buyers who purchase an established home in the Northern Territory up to the value of $650 000. The First Home Owner Discount (FHOD) is a full stamp duty concession on the initial $500 000 value of the home, which equates to stamp duty savings of up to $23 928.60. For established homes valued at more than $650 000, a stamp duty saving of $10 000 is available until 31 December 2016. source: Department of Treasury and Finance\"",
"title": ""
},
{
"docid": "fd60b550030f7f8980fa50a6a6cb4e1e",
"text": "\"For a personal finance forum, this is too complicated for sustained use and you should find a simpler solution. For a mathematical exercise, you are missing information required to do the split fairly. You have to know who overlaps and when to know how to do the splits. For an extreme example, take your dates given: Considering 100 days of calculation period, If Roommate D was the only person present for the last 10 days, they should pay 100% of the grocery bill as they are the only one eating. From your initial data set, you can't know who should be splitting the tab for any given day. To do this mathematically, you'd need: But don't forget \"\"In Theory, Theory works. In Practice, Practice works.\"\" Good theory would say make a large, complicated spreadsheet as described above. Good practice would be to split up the costs in a much, much simpler way.\"",
"title": ""
}
] |
fiqa
|
66abc0130efe0fb2f032ca1580b4a5ee
|
What's the least risky investment for people in Europe?
|
[
{
"docid": "378ec592a5f1b41b1db8f08993284ba1",
"text": "\"First of all, congratulations on saving some money. So many people these days do not even get that far. As far as investments, what is best for you depends heavily on your: Here is a quick summary of types of assets that are likely available to you, and my thoughts on why they may or may not be a good fit for your situation. Cash Equivalents Cash Equivalents are highly liquid, meaning you can get cash for them on fairly short notice. In particular, Money Markets and Certificates of Deposit (CDs) are also considered very safe when issued by a bank, as they are often insured against loss by the government up to a certain amount (this varies quite a lot by country within Europe, see the Wikipedia article here for additional detail. Please note that in the case of a CD, you are usually unable to get access to your money for the length of the investment period, which is usually a short period of time such as 3 months, 6 months, or 1 year. This is a good choice if you may need your money back on short notice, and your main goal is to preserve your principal. However, the returns tend to be very low and often do not keep pace with inflation, meaning that over several years, you may lose \"\"real\"\" purchasing power, even if you don't lose nominal value in your account. Special Note on Cash Equivalents If the money you want to invest is also your Emergency Fund, or you do not have an Emergency Fund, I would highly recommend Cash Equivalents. They will provide the highest level of Liquidity along with a short Time Horizon so that you can get your money as needed in the case of unforeseen expenses such as if your car breaks down. Debt Debt investments include government and corporate bonds. They are still considered relatively safe, as the issuer would need to default (usually this means they are in bankruptcy) in order for you not to be paid back. For example, German bonds have been considered safer than Greek bonds recently based on the underlying strength of the government. Unlike Cash Equivalents, these are not guaranteed against loss, which means that if the issuer defaults, you could lose up to 100% of your investment. Bonds have several new features you will need to consider. One is interest rate risk. One reason bonds perform better than cash equivalents is that you are taking on the risk that if interest rates rise, the fixed payments the bond promises will be worth less, and the face value of your bond will fall. While most bonds are still very Liquid, this means that if you need to sell the bond before it matures, you could lose money. As mentioned earlier, some bonds are riskier than others. Given that you are looking for a low-risk investment, you would want to select a bond that is considered \"\"invesment grade\"\" rather than a riskier \"\"junk\"\" bond. Debt investments are a good choice if you can afford to do without this money for a few years, and you want to balance safety with somewhat better returns than Cash Equivalents. Again though, I would not recommend investing in Debt until you have also built up a separate Emergency Fund. If you do choose to invest in bonds, I recommend that you diversify your risks by investing in a bond fund, rather than in just one company's or government's debt. This will reduce the likelihood that you will experience a catastrophic loss. Ownership Ownership assets includes stocks and other assets such as real estate and precious metals such as gold. While these investments can have high returns, in your situation I would strongly recommend that you not invest in these types of investments, for the following reasons: For these reasons, debt is considered a safer investment than equity for any particular company, government, or the market as a whole. Ownership assets are a good choice for people who have a high Risk Tolerance, long Time Horizon, low Liquidity needs, and will not be bothered by larger potential changes in the value of the investment at any given time. Special Note on Gold I would consider Gold a very risky investment and not a good fit for you at the moment based on what you've shared in your question. Gold is considered \"\"safe\"\" in the sense that people believe that if the economy goes into recession, depression, or collapses entirely, gold will continue to be valuable. In a post-apocalyptic world where paper money became worthless, it is still a good bet that gold will always be considered valuable within human society as a store of value. That being said, the price of gold fluctuates almost entirely based on how bad people think things are going to get. Think about the difference between gold and a company like Coca-Cola. Would you like to own 100% of Coca-Cola? Of course, because you know there is a very good chance that people will continue to spend money all over the world on their products. On the other hand, gold itself produces no products, no sales, no profits, and no cash flow. As such, if you buy gold, you are really making a speculative bet that gold will be in higher demand tomorrow than it is today. You are buying an asset (the gold) rather than part of a company's equity or debt that is designed to throw off payments to its investors in the form of bond payments or dividends. So, if people decide next year that things are improving, it is possible that gold could lose value, given that gold prices are at historically high levels. Gold could be a good choice for someone who has a large, well-diversified investment portfolio, and who is looking for a hedge to protect against inflation and other risks that they have taken on via their other investments. I hope that is helpful - best of luck in your choices. Let us know what you decide!\"",
"title": ""
},
{
"docid": "e7872e2a2885e23482027b15df8710aa",
"text": "Putting the money in a bank savings account is a reasonably safe investment. Anything other than that will come with additional risk of various kinds. (That's right; not even a bank account is completely free of risk. Neither is withdrawing cash and storing it somewhere yourself.) And I don't know which country you are from, but you will certainly have access to your country's government bonds and the likes. You may also have access to mutual funds which invest in other countries' government bonds (bond or money-market funds). The question you need to ask yourself really is twofold. One, for how long do you intend to keep the money invested? (Shorter term investing should involve lower risk.) Two, what amount of risk (specifically, price volatility) are you willing to accept? The answers to those questions will determine which asset class(es) are appropriate in your particular case. Beyond that, you need to make a personal call: which asset class(es) do you believe are likely to do better or less bad than others? Low risk usually comes at the price of a lower return. Higher return usually involves taking more risk (specifically price volatility in the investment vehicle) but more risk does not necessarily guarantee a higher return - you may also lose a large fraction of or even the entire capital amount. In extreme cases (leveraged investments) you might even lose more than the capital amount. Gold may be a component of a well-diversified portfolio but I certainly would not recommend putting all of one's money in it. (The same goes for any asset class; a portfolio composed exclusively of stocks is no more well-diversified than a portfolio composed exclusively of precious metals, or government bonds.) For some specifics about investing in precious metals, you may want to see Pros & cons of investing in gold vs. platinum?.",
"title": ""
}
] |
[
{
"docid": "7847578cee6631c25a5d983b43d22e33",
"text": "\"On contrary of what Mike Scott suggested, I think in case of EURO DOOM it's a lot safer if your savings were changed into another currency in advance. Beware that bringing your money into an EURO CORE country (like Finland, Austria, Germany, Nethereland) it's useful if you think those banks are safer, but totally useless to avoid the conversion of your saving from Euro into your national currency. In case of EURO CRASH, only the Central Bank will decide what happens to ALL the Euro deposited wherever, single banks, even if they are Deutsche Bank or BNP or ING, can not decide what to do on their own. ECB (European Central Bank) might decide to convert EURO into local currencies based on the account's owner nationality. Therefor if you are Greek and you moved your saving in a German bank, the ECB might decide that your Euro are converted into New Dracma even if they sit in a German bank account. The funniest thing is that if you ask to a Finland bank: \"\"In case of Euro crash, would you convert my Euro into New Dracma?\"\", they sure would answer \"\"No, we can't!\"\", which is true, they can not because it's only the ECB (Europe Central Bank) the one that decides how an ordered Euro crash has to be manged, and the ECB might decide as I explained you above. Other Central Banks (Swiss, FED, etc.) would only follow the decisions of the ECB. Moreover in case of EURO DOOM, it's highly probable that the Euro currency looses a tremendous value compared to other currencies, the loss would be huge in case the Euro Crash happens in a disordered way (i.e. a strong country like Germany and their banks decides to get out and they start printing their own money w/o listening to the ECB anymore). So even if your saving are in Euro in Germany they would loose so much value (compared to other currencies) that you will regreat forever not to have converted them into another currency when you had the time to do it. Couple of advises: 1) If you want to change you savings into another currency you don't need to bring them into another bank/country (like US), you could simply buy US Shares/Bonds at your local bank. Shares/Bonds of a US company/US gov will always be worth their value in dollars no matter in what new pathetic currency your account will be converted. 2) But is there a drawback in converting my saving into another currency (i.e. buying dollars in the form of US treasury bonds)? Unfortunately yes, the drawback is that in case this Euro drama comes finally to an happy ending and Germans decide to open their wallets for the nth time to save the currency, the Euro might suddenly increase its value compared to other currencies, therefor if you changed your saving into another currency you might loose money (i.e. US dollars looses value against the Euro).\"",
"title": ""
},
{
"docid": "e4227383817fb1d7e34405d771bee381",
"text": "Thats a very open question, Depends on the risk you are willing to take with the money, or the length of time you are willing sit on it, or if you have a specific goal like buying a house. Some banks offer high(ish) rate savings accounts http://www.bankaccountsavings.co.uk/calculator with a switching bonus that could be a good start. (combining the nationwide flexdirect and regular saver) if you want something more long term - safe option is bonds, medium risk option is Index funds (kind of covers all 3 risks really), risky option is Stocks & shares. For these probably a S&S ISA for a tax efficient option. Also LISA or HtB ISA are worth considering if you want to buy a house in the future.",
"title": ""
},
{
"docid": "a47c65b0a06c138ef8250846a5a28aba",
"text": "There are two parts to this. Firstly, if you are also living in the property you have bought, then you should not consider it to be an investment. You need it to provide shelter, and the market value is irrelevant unless/until you decide to move. Of course, if your move is forced at a time not of your choosing then if the market value has dropped, you might lose out. No-one can accurately predict the housing market any more than they can predict interest rates on normal savings accounts, the movement of the stock market, etc. Secondly, if you just have a lump sum and you want to invest it safely, the bank is one of the safest places to keep it. It is protected / underwritten by EU law (assuming you are in the EU) up to €100,000. See for example here which is about the UK and Brexit in particular but mentions the EU blanket protection. The other things you could do with it - buy property, gold, art works, stocks and shares, whatever thing you think will be least likely to lose value over time - would not be protected in the same way.",
"title": ""
},
{
"docid": "1034f141e13d0ab627501a394187997c",
"text": "You can look the Vanguard funds up on their website and view a risk factor provided by Vanguard on a scale of 1 to 5. Short term bond funds tend to get their lowest risk factor, long term bond funds and blended investments go up to about 3, some stock mutual funds are 4 and some are 5. Note that in 2008 Swenson himself had slightly different target percentages out here that break out the international stocks into emerging versus developed markets. So the average risk of this portfolio is 3.65 out of 5. My guess would be that a typical twenty-something who expects to retire no earlier than 60 could take more risk, but I don't know your personal goals or circumstances. If you are looking to maximize return for a level of risk, look into Modern Portfolio Theory and the work of economist Harry Markowitz, who did extensive work on the topic of maximizing the return given a set risk tolerance. More info on my question here. This question provides some great book resources for learning as well. You can also check out a great comparison and contrast of different portfolio allocations here.",
"title": ""
},
{
"docid": "e256880a79a54701a562389d0a2fd2ab",
"text": "If you spent your whole life earning the same portfolio that amounts $20,000, the variance and volatility of watching your life savings drop to $10,000 overnight has a greater consequence than for someone who is young. This is why riskier portfolios aren't advised for older people closer to or within retirement age, the obvious complementary group being younger people who could lose more with lesser permanent consequence. Your high risk investment choices have nothing to do with your ability to manage other people's money, unless you fail to make a noteworthy investment return, then your high risk approach will be the death knell to your fund managing aspirations.",
"title": ""
},
{
"docid": "2ebd49168456a4ffc4b7f3ccd5ef1f1a",
"text": "\"There's not nearly enough information here for anyone to give you good advice. Additionally, /r/personalfinance will probably be a bit more relevant and helpful for what you're asking. Aside from that, if you don't know what you're doing, stay out of currency trading and mutual funds. If you don't care about losing your money, go right ahead and play in some markets, but remember there are people paid millions of dollars/year who don't make consistent profit. What are the chances a novice with no training will perform well? My $.02, pay your debt, make a general theory about the economy a year from now (e.g. \"\"Things will be worse in Europe than they are now\"\") and then invest your money in an index fund that matches that goal (e.g. Some sort of Europe-Short investment vehicle). Reassess a year from now and don't stress about it.\"",
"title": ""
},
{
"docid": "bdecabad1507da5146b2ddd2c4d34e6a",
"text": "\"While nothing is guaranteed - any stock market or country could collapse tomorrow - if you have a fairly long window (15+ years is certainly long), ETFs are likely to earn you well above inflation. Looking at long term ETFs, you typically see close to 10% annual growth over almost any ten year period in the US, and while I don't know European indexes, they're probably well above inflation at least. The downside of ETFs is that your money is somewhat less liquid than in a savings account, and any given year you might not earn anything - you easily could lose money in a particular year. As such, you shouldn't have money in ETFs that you expect to use in the next few months or year or even a few years, perhaps. But as long as you're willing to play the long game - ie, invest in ETF, don't touch it for 15 years except to reinvest the dividends - as long as you go with someone like Vanguard, and use a very low expense ratio fund (mine are 0.06% and 0.10%, I believe), you are likely in the long term to come out ahead. You can diversify your holdings - hold 10% to 20% in bond funds, for example - if you're concerned about risk; look at how some of the \"\"Target\"\" retirement funds allocate their investments to see how diversification can work [Target retirement funds assume high risk tolerance far out and then as the age grows the risk tolerance drops; don't invest in them, but it can be a good example of how to do it.] All of this does require a tolerance of risk, though, and you have to be able to not touch your funds even if they go down - studies have repeatedly shown that trying to time the market is a net loss for most people, and the best thing you can do when your (diverse) investments go down is stay neutral (talking about large funds here and not individual stocks). I think this answers 3 and 4. For 1, share price AND quantity matter (assuming no splits). This depends somewhat on the fund; but at minimum, funds must dividend to you what they receive as dividends. There are Dividend focused ETFs, which are an interesting topic in themselves; but a regular ETF doesn't usually have all that large of dividends. For more information, investopedia has an article on the subject. Note that there are also capital gains distributions, which are typically distributed to help offset capital gains taxes that may occur from time to time with an ETF. Those aren't really returns - you may have to hand most or all over to the IRS - so don't consider distributions the same way. The share price tracks the total net asset value of the fund divided by the number of shares (roughly, assuming no supply/demand split). This should go up as the stocks the ETF owns go up; overall, this is (for non-dividend ETFs) more often the larger volatility both up and down. For Vanguard's S&P500 ETF which you can see here, there were about $3.50 in dividends over 2014, which works out to about a 2% return ($185-$190 share price). On the other hand, the share price went from around $168 at the beginning of 2014 to $190 at the end of 2014, for a return of 13%. That was during a 'good' year for the market, of course; there will be years where you get 2-3% in dividends and lose money; in 2011 it opened at 116 and closed the year at 115 (I don't have the dividend for that year; certainly lower than 3.5% I'd think, but likely nonzero.) The one caveat here is that you do have stock splits, where they cut the price (say) in half and give you double the shares. That of course is revenue neutral - you have the same value the day after the split as before, net of market movements. All of this is good from a tax point of view, by the way; changes in price don't hit you until you sell the stock/fund (unless the fund has some capital gains), while dividends and distributions do. ETFs are seen as 'tax-friendly' for this reason. For 2, Vanguard is pretty good about this (in the US); I wouldn't necessarily invest monthly, but quarterly shouldn't be a problem. Just pay attention to the fees and figure out what the optimal frequency is (ie, assuming 10% return, what is your break even point). You would want to have some liquid assets anyway, so allow that liquid amount to rise over the quarter, then invest what you don't immediately see a need to use. You can see here Vanguard in the US has no fees for buying shares, but has a minimum of one share; so if you're buying their S&P500 (VOO), you'd need to wait until you had $200 or so to invest in order to invest additional funds.\"",
"title": ""
},
{
"docid": "3d91a34cfbab8e3a3455341d62804b92",
"text": "CDs or money market funds. Zero-risk for the CD and ultra-low risk for the money market account; better return than most savings accounts.",
"title": ""
},
{
"docid": "6208896a2c975207e5bd9acbc24275ec",
"text": "If you don't want to hassle with opening an account (and don't mind going without insurance) there are currency ETF's that basically invest in euro money market accounts. Here's an example of one Not sure if the return would be as much as you'd get if you opened your own account and went for longer term instruments like a 12 month CD (I think the Euro MM rate is around 1.1% compared to 0.1% for the US). But since it trades like a stock you can do it without having to establish an account with an overseas bank.",
"title": ""
},
{
"docid": "f8cfc4bcf3a436ab0da9f2e1c49bf3f7",
"text": "It's safe in the sense that there is no counter party risk involved when holding bitcoins but it is still too early to call it a safe haven. However it could become very useful if strict capital controls are enforced around Europe.",
"title": ""
},
{
"docid": "b41317e91da402872831179ca16e4e1b",
"text": "In my mind, when looking at a five year period you have a number of options. You didn't specify where you are based, which admittedly makes it harder, to give you good advice. If you are looking for an investment that can achieve large gains, equities are impossible to ignore. By investing in an index fund or other diverse asset forms (such as mutual funds), your risk is relatively minimal. However there has historically been five year periods where you would lose/flatline your money. If this was to be the case you would likely be better off waiting more than five years to buy a house, which would be frustrating. When markets rebound, they often do it hard. If you are in a major economy, taking something like the top 100 of your stock market is a safe bet, although admittedly you would have made terrible returns if you invested in the Polish markets. While they often achieve lower returns than equity investments, they are generally considered safer - especially government issued bonds. If you were willing to sacrifice returns for safety, you must always consider them. This is an interesting new addition, and I can't comment on the state of it in the United States, however in Europe we have a number of platforms which do this. In the UK, for example you can achieve ~7.3% returns YoY using sites like Funding Circle. If you invest in a diverse range of businesses, you have minimal risk from and individual company not paying. Elsewhere in Europe (although not appropriate for me as everything I do is denominated in Sterling), you can secure 12% in places like Georgia, Poland, and Estonia. This is a very good rate and the platforms seem reputable, and 'guarantee' their loans. However unlike funding circle, they are for consumer loans. The risk profile in my mind is similar to that of equities, but it is hard to say. Whatever you do, you need to do your homework, and ensure that you can handle the level of risk offered by the investments you make. I haven't included things like Savings accounts in here, as the rates aren't worth bothering with.",
"title": ""
},
{
"docid": "2234ad152a94b06edf2086f30592fe80",
"text": "I am not interested in watching stock exchange rates all day long. I just want to place it somewhere and let it grow Your intuition is spot on! To buy & hold is the sensible thing to do. There is no need to constantly monitor the stock market. To invest successfully you only need some basic pointers. People make it look like it's more complicated than it actually is for individual investors. You might find useful some wisdom pearls I wish I had learned even earlier. Stocks & Bonds are the best passive investment available. Stocks offer the best return, while bonds are reduce risk. The stock/bond allocation depends of your risk tolerance. Since you're as young as it gets, I would forget about bonds until later and go with a full stock portfolio. Banks are glorified money mausoleums; the interest you can get from them is rarely noticeable. Index investing is the best alternative. How so? Because 'you can't beat the market'. Nobody can; but people like to try and fail. So instead of trying, some fund managers simply track a market index (always successfully) while others try to beat it (consistently failing). Actively managed mutual funds have higher costs for the extra work involved. Avoid them like the plague. Look for a diversified index fund with low TER (Total Expense Ratio). These are the most important factors. Diversification will increase safety, while low costs guarantee that you get the most out of your money. Vanguard has truly good index funds, as well as Blackrock (iShares). Since you can't simply buy equity by yourself, you need a broker to buy and sell. Luckily, there are many good online brokers in Europe. What we're looking for in a broker is safety (run background checks, ask other wise individual investors that have taken time out of their schedules to read the small print) and that charges us with low fees. You probably can do this through the bank, but... well, it defeats its own purpose. US citizens have their 401(k) accounts. Very neat stuff. Check your country's law to see if you can make use of something similar to reduce the tax cost of investing. Your government will want a slice of those juicy dividends. An alternative is to buy an index fund on which dividends are not distributed, but are automatically reinvested instead. Some links for further reference: Investment 101, and why index investment rocks: However the author is based in the US, so you might find the next link useful. Investment for Europeans: Very useful to check specific information regarding European investing. Portfolio Ideas: You'll realise you don't actually need many equities, since the diversification is built-in the index funds. I hope this helps! There's not much more, but it's all condensed in a handful of blogs.",
"title": ""
},
{
"docid": "2b1a8a2a609b0f853660a8786305f123",
"text": "just pick a good bond and invest all your money there (since they're fairly low risk) No. That is basically throwing away your money and why would you do that. And who told you they are low risk. That is a very wrong premise. What factors should I consider in picking a bond and how would they weigh against each other? Quite a number of them to say, assuming these aren't government bonds(US, UK etc) How safe is the institution issuing the bond. Their income, business they are in, their past performance business wise and the bonds issued by them, if any. Check for the bond ratings issued by the rating agencies. Read the prospectus and check for any specific conditions i.e. bonds are callable, bonds can be retired under certain conditions, what happens if they default and what order will you be reimbursed(senior debt take priority). Where are interest rates heading, which will decide the price you are paying for the bond. And also the yield you will derive from the bond. How do you intend to invest the income, coupon, you will derive from the bonds. What is your time horizon to invest in bonds and similarly the bond's life. I have invested in stocks previously but realized that it isn't for me Bonds are much more difficult than equities. Stick to government bonds if you can, but they don't generate much income, considering the low interest rates environment. Now that QE is over you might expect interest rates to rise, but you can only wait. Or go for bonds from stable companies i.e. GE, Walmart. And no I am not saying you buy their bonds in any imaginable way.",
"title": ""
},
{
"docid": "721e2da6d1dd2e44f93811e7378c9a42",
"text": "Basically the first thing you should do before you invest your money is to learn about investing and learn about what you want to invest in. Another thing to think about is that usually low risk can also mean low returns. As you are quite young and have some savings put aside you should generally aim for higher risk higher return investments and then when you start to reach retirement age aim for less risky lower return investments. In saying that, just because an investment is considered high risk does not mean you have to be exposed to the full risk of that investment. You do this by managing your risk to an acceptable level which will allow you to sleep at night. To do this you need to learn about what you are investing in. As an example about managing your risk in an investment, say you want to invest $50,000 in shares. If you put the full $50,000 into one share and that share price drops dramatically you will lose a large portion of your money straight away. If instead you spent a maximum of $10,000 on 5 different shares, even if one of them falls dramatically, you still have another 4 which may be doing a lot better thus minimising your losses. To take it one step further you might say if anyone of the shares you bought falls by 20% then you will sell those shares and limit your losses to $2000 per share. If the worst case scenario occurred and all 5 of your shares fell during a stock market crash you would limit your total losses to $10,000 instead of $50,000. Most successful investors put just as much if not more emphasis on managing the risk on their investments and limiting their losses as they do in selecting the investments. As I am not in the US, I cannot really comment whether it is the right time to buy property over there, especially as the market conditions would be different in different states and in different areas of each state. However, a good indication of when to buy properties is when prices have dropped and are starting to stabilise. As you are renting at the moment one option you might want to look at is buying a place to live in so you don't need to rent any more. You can compare your current rent payment with the mortgage payment if you were to buy a house to live in. If your mortgage payments are lower than your rent payments then this could be a good option. But whatever you do make sure you learn about it first. Make sure you spend the time looking at for sale properties for a few months in the area you want to buy before you do buy. This will give you an indication of how much properties in that area are really worth and if prices are stable, still falling or starting to go up. Good luck, and remember, research, research and more research. Even if you are to take someone elses advice and recommendations, you should learn enough yourself to be able to tell if their advice and recommendations make sense and are right for your current situation.",
"title": ""
},
{
"docid": "2b0f50c6befa43aa0f99833600320dd9",
"text": "\"First, you don't state where you are and this is a rather global site. There are people from Canada, US, and many other countries here so \"\"mutual funds\"\" that mean one thing to you may be a bit different for someone in a foreign country for one point. Thanks for stating that point in a tag. Second, mutual funds are merely a type of investment vehicle, there is something to be said for what is in the fund which could be an investment company, trust or a few other possibilities. Within North America there are money market mutual funds, bond mutual funds, stock mutual funds, mutual funds of other mutual funds and funds that are a combination of any and all of the former choices. Thus, something like a money market mutual fund would be low risk but quite likely low return as well. Short-term bond funds would bring up the risk a tick though this depends on how you handle the volatility of the fund's NAV changing. There is also something to be said for open-end, ETF and closed-end funds that are a few types to consider as well. Third, taxes are something not even mentioned here which could impact which kinds of funds make sense as some funds may invest in instruments with favorable tax-treatment. Aside from funds, I'd look at CDs and Treasuries would be my suggestion. With a rather short time frame, stocks could be quite dangerous to my mind. I'd only suggest stocks if you are investing for at least 5 years. In 2 years there is a lot that can happen with stocks where if you look at history there was a record of stocks going down about 1 in every 4 years on average. Something to consider is what kind of downside would you accept here? Are you OK if what you save gets cut in half? This is what can happen with some growth funds in the short-term which is what a 2 year time horizon looks like. If you do with a stock mutual fund, it would be a gamble to my mind. Don't forget that if the fund goes down 10% and then comes up 10%, you're still down 1% since the down will take more.\"",
"title": ""
}
] |
fiqa
|
88204bc51769453bb8e0869f97eff1ce
|
How do multi-currency bank accounts work? What is the advantage?
|
[
{
"docid": "18fdaf795363cebce215bc069bf9f8f1",
"text": "Today typically a Business needs to hold accounts in more than one currency. Banks in certain countries are offering what is called a dual currency account. It is essentially 2 accounts with same account number but different currency. So One can have an account number say 123456 and have it in say AUD and USD. So the balance will always show as X AUD and Y USD. If you deposit funds [electronic, check or cash] in USD; your USD balance goes up. Likewise at the time of withdrawal you have to specify what currency you are withdrawing. Interest rates are calculated at different percentage for different currencies. So in a nutshell it would like operating 2 accounts, with the advantage of remembering only one account number. Designate a particular currency as default currency. So if you don't quote a currency along with the account number, it would be treated as default currency. Otherwise you always quote the account number and currency. Of-course bundled with other services like free Fx Advice etc it makes the entire proposition very attractive. Edit: If you have AUD 100 and USD 100, if you try and withdraw USD 110, it will not be allowed; Unless you also sign up for a auto sweep conversion. If you deposit a GBP check into the account, by default it would get converted into AUD [assuming AUD is the default currency]",
"title": ""
}
] |
[
{
"docid": "f8a85fd74968db82a68d08b94722c7d6",
"text": "There are short-term and long term aspects. In the long term, if you live and work in Australia and plan to continue doing both indefinitely, you might as well move all your cash investments there. There would be no point bearing the exchange rate risks. It may be worth keeping the account open with just enough credit to stop it being shut down. There is no point needing to (think about) filing foreign tax returns just because you have an account earning a small amount of interest. In the short term, I think the more important question is practicality rather than exchange rate risk. You want to have enough cash in both countries that if you suddenly have to pay say an apartment deposit or a bill, you won't be caught short. So I would leave at least a few thousands dollars in a US bank account until at least a couple of months after the move, when I was sure everything was settled. Good luck.",
"title": ""
},
{
"docid": "b0faa9b09d609afbd8ea2deaf040ae91",
"text": "If the account is not dollar-denominated, I would say it does not make sense at all to have dollar-denominated statements. Such a statement would not even be accurate for any reasonable amount of time (since FX rates constantly fluctuate). This would be a nightmare for accounting purposes. If you really need to know the statements in USD, I think the best practice would be to perform the conversion yourself using Excel or some similar software.",
"title": ""
},
{
"docid": "ef4596cc691792cd683cf0bc01b94162",
"text": "If I understand your question, you're misunderstanding the buy/sell spread, and at least in this instance seem to be in an unfortunate situation where the spread is quite large. The Polish Zloty - GBP ideal exchange rate is around 5.612:1. Thus, when actually exchanging currency, you should expect to pay a bit more than 5.612 Zloty (Zloties?) to get one Pound sterling, and you should expect to get a bit less than 5.612 Zloty in exchange for one Pound sterling. That's because you're giving the bank its cut, both for operations and so that it has a reason to hold onto some Zloty (that it can't lend out). It sounds like Barclay's has a large spread - 5.211 Buy, 5.867 Sell. I would guess British banks don't need all that many Zloty, so you have a higher spread than you would for USD or EUR. Other currency exchange companies or banks, particularly those who are in the primary business of converting money, may have a smaller spread and be more willing to do it inexpensively for you. Also, it looks like the Polish banks are willing to do it at a better rate (certainly they're giving you more Zloty for one Pound sterling, so it seems likely the other way would be better as well, though since they're a Polish bank it's certainly easier for them to give you Zloty, so this may be less true). Barclay's is certainly giving you a better deal on Pounds for a Zloty than they are Zloty for a Pound (in terms of how far off their spread is from the ideal).",
"title": ""
},
{
"docid": "ca5d202b93c164af5f61d58a5cd0aa01",
"text": "Here's what the GnuCash documentation, 10.5 Tracking Currency Investments (How-To) has to say about bookkeeping for currency exchanges. Essentially, treat all currency conversions in a similar way to investment transactions. In addition to asset accounts to represent holdings in Currency A and Currency B, have an foreign exchange expenses account and a capital gains/losses account (for each currency, I would imagine). Represent each foreign exchange purchase as a three-way split: source currency debit, foreign exchange fee debit, and destination currency credit. Represent each foreign exchange sale as a five-way split: in addition to the receiving currency asset and the exchange fee expense, list the transaction profit in a capital gains account and have two splits against the asset account of the transaction being sold. My problems with this are: I don't know how the profit on a currency sale is calculated (since the amount need not be related to any counterpart currency purchase), and it seems asymmetrical. I'd welcome an answer that clarifies what the GnuCash documentation is trying to say in section 10.5.",
"title": ""
},
{
"docid": "7e6ce529c96e20905f0789621c8fcfea",
"text": "The easiest options appear to be to open an account with one of the large multinational banks like Citi. They have options such as opening two separate checking accounts, one in each currency, and Citi in particular has an international account that appears to make mutli-currency personal banking easier. All of the options have minimum balance requirements or fees for conversion, but if you need quick access this seems to be the best bet. Even if this is a one-time event and you don't need the account, a bank like Citi may be able to help you cash the check and get access to the funds quicker than a national or local bank. http://www.citibank.com/ipb-global/homepage/newsite/content/english/multi_cap_bank_depo.htm Alternatively if you know anyone with a US bank account you can deposit it with them and take the cash withdrawal from their account, assuming they agree, the check isn't too large, etc.",
"title": ""
},
{
"docid": "4bcf037ef9312226087b3bd30dba8e63",
"text": "There is a service TransferWise through which you can send money from UK banks to EUR bank accounts in the EU for a 1 GBP fee (much cheaper then about 25 GBP for a SWIFT transfer). You send them a UK national GBP transfer to their UK HSBC account, and they send the equivalent amount in EUR from their Irish EUR bank account to your EUR account - for example in Germany. What is best, is that they use bare mid-market ForEx exchange rates, without any markup on the GBP to EUR exchange rate, which is usually in the range of 2% to 5% in banks, so you don't lose anything on the exchange rate.",
"title": ""
},
{
"docid": "28a0e1b5359a14a50a5383e06c2e5531",
"text": "The big risk for a bank in country X is that they would be unfamiliar with all the lending rules and regulations in country Y. What forms and disclosures are required, and all the national and local steps that would be required. A mistake could leave them exposed, or in violation of some obscure law. Plus they wouldn't have the resources in country Y to verify the existence and the actual ownership of the property. The fear would be that it was a scam. This would likely cause them to have to charge a higher interest rate and higher fees. Not to mention that the currency ratio will change over the decades. The risks would be large.",
"title": ""
},
{
"docid": "d67f73d2dcae87e644012d8234d2125b",
"text": "\"Echoing that bank fees are mostly \"\"because they can\"\", although partly this is because simply holding onto the money doesn't really pay enough for the physical infrastructure of branches, ATMs and staff. So like a budget airline they make it up on additional fees. But that document doesn't actually say they charge 3% for currency conversion! It's \"\"0.20% of transaction amount\"\" for currency conversion, which is not bad (although watch out for the \"\"spread\"\" between buying and selling rates). I see \"\"International POS/ATM Transaction Fee 3% of transaction amount\"\", which is very different. That's a card fee. The big issue with these is fraud - your card number suddenly being used in a different country will nearly always trigger extra fraud checks. It also involves a much more complicated settlement process. I'm more unimpressed with the monthly service charges and the huge $85 fee for international wire transfers.\"",
"title": ""
},
{
"docid": "49be636cb79217a992a2a5337909c617",
"text": "\"See my comment below about the official exchange rate. There is no \"\"official\"\" exchange rate to apply as far as I'm aware. However the bank is already applying the same exchange rate you can find in the forex markets. They are simply applying a spread (meaning they will add some amount to the exchange rate whichever way you are exchanging currency). You will almost certainly not find a bank that doesn't apply a spread. Of course, their spread might be large, so that's why it is good to compare rates. By the way, 5 GBP/month seems reasonable for a foreign currency (or any) acct. The transaction fees might be cheaper in a different \"\"package\"\" so check. You should consider trying PayPal. Their spread is quite small - and publicly disclosed - and their per-transaction fees are very low. Of course, this is not a bank account. But you can easily connect it to your bank account and transfer the money between accounts quickly. They also offer free foreign currency accounts that you can basically open and close in a click. Transfers are instantaneous. I am based in Germany but I haven't had a problem with clients from various English-speaking countries using PayPal. They actually seem to prefer it in many instances.\"",
"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": "ef1c7c2a0da5d0c4d348db3446d4e5be",
"text": "It is a rather complex system, but here is a rough summary. Interbank tranfers ultimately require a transfer of reserves at the central bank. As a concrete example, the bank of england system is the rtgs. Only the clearing banks and similar (e.g. bacs) have access to rtgs. You can send a chaps payment fairly quickly, but that costs. Chaps immediately triggers an rtgs transfer once the sending bank agrees and so you can be certain that the money is being paid. Hence its use for large amounts. Bacs also sits on the rtgs but to keep costs down it batches tranfers up. Because we are talking about bank reserve movements, checks have to be in place and that can take time. Furthermore the potential for fraud is higher than chaps since these are aggregrated transactions a layer removed, so a delay reduces the chance of payment failing after apparently being sent. Faster payments is a new product by bacs that speeds up the bacs process by doing a number of transfers per day. Hence the two hour clearing. For safety it can only be used for up to 10k. Second tier banks will hold accounts with clearing banks so they are another step down. Foreign currency transfers require the foreign Central Bank reserve somewhere, and so must be mediated by at least one clearing bank in that country. Different countries are at different stages in their technology. Uk clearing is 2h standard now but US is a little behind I believe. Much of Europe is speeding up. Rather like bitcoin clearing, you have a choice between speed and safety. If you wait you are more certain the transaction is sound and have more time to bust the transfer.",
"title": ""
},
{
"docid": "9fbd618f21167b6f2ca0204c0cb3d4ed",
"text": "I ended up just trying. I gave A the IBAN of B's account, which I calculated online based on the bank code and account number (because B claimed IBAN won't work, so didn't give it to me), and B's name. A was able to transfer the money apparently without extra difficulties, and it appeared on B's account on the same day. Contrary to some other posts here, IBAN has nothing to do with the Euro zone, nor is it a European system. It started in Europe, but it has been adopted as an ISO standard (link). As usual of course some countries don't see the urgency to follow an international standard :) XE.com has a list of all IBAN countries; quite a few are non-European. Here is even the list formatted specially for the European-or-not discussion: link.",
"title": ""
},
{
"docid": "4bb4d41c48db1ec43b5a542e87f30065",
"text": "I think the one single answer is that the answer depends on the two countries involved and their banks' practices. To find that answer, you need to ask other expats from your country living in France and ask them for their experience. Note that most expats do not know what fees they are paying. For example, in the Philippines, the lowest fee charged still involves waiting 30 days to get your money. Specifically, I opened a US dollar savings account with the minimum of US $500 required (other rules are involved for opening a bank account), deposited a personal check drawn on my US bank account (no fee charged), and waited 30 calendar days to withdraw USD bills. The Philippines bank did not have a branch in the US, but had financial arrangements with US banks. After getting USD dollars in my hand, I walked to a nearby exchange business store (which usually offered a better daily rate than a bank, but a rate between the banks' buy and sell rates) and exchange the dollars for pesos. Note that years ago, banks did not give USD bills, when dollars were scarce in the Philippines. However, this process does not work in Thailand, due to bank rules against private individuals opening a USD account, with exceptions. And there are still fees involved. March 2017",
"title": ""
},
{
"docid": "afbb0d017059f0ed498dfe39c919d4e2",
"text": "For the first part of your question, I think the answer is a combination of three things: (1) Bigger companies have leverage to negotiate better deals due to volume. (2) Some of these companies are also taking bookings from outside the US for people traveling to the US (either directly or through affiliates). This means that they also have income in other currencies, so they may not actually be making as many wire transfers as you think. They simply keep a bank account in Europe, for example, in Euros to receive and send money in the Eurozone as needed. They balance the exchange on their books internally in this case, without actually sending funds through the international banking system. Similarly in other parts of the world. (3) These companies are not going to make a wire transfer for every transaction, in any case. They are going to transfer big sums of money to an account abroad to balance things on a longer-term basis (weekly, month, etc.) Then they will make individual payments to service providers out of the overseas account in between these larger, international transfers. For the second part of your question, I think there's probably no way for a new business to get the advantages of scale unless you've got significant capital backing your endeavor that would make it plausible that you'll be transferring in scale. I don't see any reason in principle that the new company could not establish bank accounts abroad and try to execute the plan outlined in #2 above except that it would require some set-up costs to do the proper paperwork in each country, probably to travel, and to initially fund the various accounts.",
"title": ""
},
{
"docid": "250776fdc7608cf2ad194f982553b759",
"text": "\"In Europe in most of the countries there is also a thing called ACH. In UK there is a thing called BACS and in other countires there are other things. Essentially every country has what is called a \"\"Low value Net Settlement System\"\" that is used to transfer funds between accounts of different banks. In US there is rounting number, in UK there is a Sort Code, in Indonesia there is a sort code. Essentially a Bank Identifier that is issued by the Governing body within respective countires. Certian identifiers like SWIFT BIC [Bank Identification Code] are Unique across world.\"",
"title": ""
}
] |
fiqa
|
813ee48eee648ce48a9b5abedd697d61
|
what is the meaning of allowing FDI in Insurance and pension funds
|
[
{
"docid": "8918cf0207969007a7c15fb0a639b4a0",
"text": "Insurance in India is offered by Private companies as well [ICICI, Maxbupa, SBI, Max and tons of other companies]. These are priavte companies, as Insurance sectors one has to look for long term stability, not everyone can just open an Insurance company, there are certain capital requirements. Initially the shareholding pattern was that Indian company should have a majority shareholding, any foreign company can have only 26% share's. This limit has now been extended to 49%, so while the control of the private insurance company will still be with Indian's the foreign companies can invest upto 49%. It's a economic policy decission and the outcome whether positive or negative will be known after 10 years of implemenation :) Pro's: - Brings more funds into the Insurance segment, there by bringing strength to the company - Better global practise on risk & data modelling may reduce premium for most - Innovation in product offering - More Foreign Exchange for country that is badly needed. Con's: - The Global companies may hike premium to make more profits. - They may come up with complex products that common man will not understand and will lead to loss - They may take back money anytime as they are here for profit and not for cause. Pension today is offered only by Government Companies. There is a move to allow private companies to offer pension. Today life insurance companies can launch Pension schemes, however on maturity the annuity amount needs to be invested into LIC to get an annuity [monthly pension].",
"title": ""
}
] |
[
{
"docid": "1d94322f86b8c4d4aeab0163ac063d5a",
"text": "Fund rebalancing typically refers to changing the investment mix to stay within the guidelines of the mutual fund objective. For example, lets say a fund is supposed to have at least 20% in bonds. Because of a dramatic increase in stock price and decrease in bond values it finds itself with only 19.9% in bonds at the end of the trading day. The fund manager would sell sufficient equities to reduce its equity holdings and buy more bonds. Rebalancing is not always preferential because it could cause capital gain distribution, typically once per year, without selling the fund. And really any trading within the fun could do the same. In the case you cite the verbiage is confusing. Often times I wonder if the author knows less then the reader. It might also be a bit of a rush to get the article out, and the author did not write correctly. I agree that the ETFs cited are suitable for short term traders. However, that is because, traditionaly, the market has increased in value over the long term. If you bet it will go down over the long term, you are almost certain to lose money. Like you, I cannot figure out how rebalancing makes this suitable only for short term traders. If the ETFs distribute capital gains events much more frequently then once per year, that is worth mentioning, but does not provide a case for short versus long term traders. Secondly, I don't think these funds are doing true rebalancing. They might change investments daily for the most likely profitable outcome, but that really isn't rebalancing. It seems the author is confused.",
"title": ""
},
{
"docid": "10233a68f38891dfe9dd64590cb455f3",
"text": "\"Long-term capital gains, which is often the main element of investment income for investors who are not high-frequency day traders, are taxed at a single rate that is often substantially below the marginal rate they would otherwise be taxed at, particularly for wealthy individuals. There are a few rationales behind this treatment; the two most common are that the government wants to encourage long-term investments (as opposed to short-term speculation), and that capital gains are a kind of double taxation (from one point of view) as they are coming from income that has already been taxed once before (as wage or ordinary income). The latter in particular is highly controversial, but this is one of the more divisive political issues in the taxation front - one party would eliminate the tax entirely, the other would eliminate the difference. For most individuals, the majority of their long-term capital gains are taxed at 15% up to almost half of a million dollars total AGI, which is a fairly low rate - it's equivalent to the rate a taxpayer would pay on up to $37,000 in wage income (after deductions/exemptions/etc.). You can see from this table in Wikipedia that it is much preferred to pay long-term capital gains rates when possible - at every point it's at least 10% lower than the tax rate for ordinary income. Ordinary income includes wages and many other sources of income - basically, anything that is not long term capital gains. Wage income is taxed at this rate, and also subject to some non-income-tax taxes (FICA and Medicare in particular); other sources of ordinary income are not subject to those taxes (including IRA income). Short term capital gains are generally included in this bucket. Qualified Dividends are treated similarly to long-term capital gains (as they are of a similar nature), and taxed accordingly. The \"\"Net Investment Tax\"\" is basically applying the Medicare tax to investment income for higher-income taxpayers ($125k single, $250k joint). It's on top of capital gains rates for them. It came about through the Affordable Care Act, and is one of the first provisions likely to be repealed by the new Congress (as it can be repealed through the budgeting provision). It seems likely that 2017 taxes will not contain this provision.\"",
"title": ""
},
{
"docid": "62fce22d874701280896565f7ce28c74",
"text": "\"Pension- and many \"\"low-risk\"\" investment funds may only invest in AAA-rated stocks and bonds. While the S&P rating alone doesn't imply that such funds must immediately disinvest in US bonds (Fitch and Moody's are holding), it does create the risk that the other rating agencies will follow suite and also lower the US rating. As the largest issuer of bonds, controller of the world's reserve currency, and with many emerging markets placing almost all their current account surpluses in US bonds, this risk change has implications everywhere. Some companies will already start disinvestment while some investors will start demanding higher interest returns in order to buy US bonds. It isn't yet a stampede, but the gates are now open. That said, S&P is simply reflecting the opinions of bond traders. Markets were already unstable long before the downrating. However, from the US perspective, it is a timely reminder to politicians that the global balance is shifting and that the US cannot count on incumbency to protect it from the disapproval of financial analysts.\"",
"title": ""
},
{
"docid": "d6a5c5df9cb8565dd591940be0b2d64f",
"text": "International means from all over the world. In the U.S. A Foreign Equity fund would be non-US stocks. There's an odd third choice I'm aware of, a fund of US companies that derive their sales from overseas, primarily.",
"title": ""
},
{
"docid": "a65dd8fadb60fc7450ef562489362f05",
"text": "The word bespoke means made to order. Bespoke insurance means non-cookie cutter. That mean the thing your are trying to protect, or the risk to that item is not normally covered; so you need a non-standard type of policy. Your neighborhood insurance company doesn't handle a bespoke policy. There are companies that do. Reinsurance is insurance on insurance. Company X has a risk they want to insure, so they go to insurance company A. After a while insurance company A realizes that they have sold a few of these policies and they have a risk if they guessed wrong. So they take out a policy with insurance company B to protect themselves if more than some percentage of their policies go bad. That policy takes bespoke reinsurance.",
"title": ""
},
{
"docid": "ac752fb104fc90705e42850f151aec14",
"text": "What I'm going to write is far too long for a comment, so I'll put it here even though its not an answer. That's the closest thing to an answer you'll get here, I'm afraid. I'm not a tax professional, and you cannot rely on anything I say, as you undoubtedly know. But I'll give you some pointers. Things you should be researching when you have international clients: Check if Sec. 402 can apply to the pension funds, if so your life may become much easier. If not, and you have no idea what you're doing - consider referring the client elsewhere. You can end up with quite a liability suit if you make a mistake here, because the penalties on not filing the right piece of paper are enormous.",
"title": ""
},
{
"docid": "8177505fb3f012694faa2ced7ad40d4d",
"text": "\"There are a few questions that need qualification, and a bit on the understanding of what is being 'purchased'. There are two axioms that require re-iteraton, Death, and Taxes. Now, The First is eventually inevitable, as most people will eventually die. It depends what is happening now, that determines what will happen tomorrow, and the concept of certainty. The Second Is a pay as you go plan. If you are contemplating what will heppen tomorrow, you have to look at what types of \"\"Insurance\"\" are available, and why they were invented in the first place. The High seas can be a rough travelling ground, and Not every shipment of goods and passengers arrived on time, and one piece. This was the origin of \"\"insurance\"\", when speculators would gamble on the safe arrival of a ship laden with goods, at the destination, and for this they received a 'cut' on the value of the goods shipped. Thus the concept of 'Underwriting', and the VALUE associated with the cargo, and the method of transport. Based on an example gallion of good repair and a well seasoned Captain and crew, a lower rate of 'insurance' was deemed needed, prior to shipment, than some other 'rating agency - or underwriter'. Now, I bring this up, because, it depends on the Underwriter that you choose as to the payout, and the associated Guarantee of Funds, that you will receive if you happen to need to 'collect' on the 'Insurance Contract'. In the case of 'Death Benefit' insurance, You will never see the benefit, at the end, however, while the policy is in force (The Term), it IS an Asset, that would be considered in any 'Estate Planning' exercise. First, you have to consider, your Occupation, and the incidence of death due to occupational hazards. Generally this is considered in your employment negotiations, and is either reflected in the salary, or if it is a state sponsored Employer funded, it is determined by your occupational risk, and assessed to the employer, and forms part of the 'Cost-of-doing-business', in that this component or 'Occupational Insurance' is covered by that program. The problem, is 'disability' and what is deemed the same by the experience of the particular 'Underwriter', in your location. For Death Benefits, Where there is an Accident, for Motor Vehicle Accidents (and 50,000 People in the US die annually) these are covered by Motor Vehicle Policy contracts, and vary from State to State. Check the Registrar of State Insurance Co's for your state to see who are the market leaders and the claim /payout ratios, compared to insurance in force. Depending on the particular, 'Underwiriter' there may be significant differences, and different results in premium, depending on your employer. (Warren Buffet did not Invest in GEICO, because of his benevolence to those who purchase Insurance Policies with GEICO). The original Poster mentions some paramaters such as Age, Smoking, and other 'Risk factors'.... , but does not mention the 'Soft Factors' that are not mentioned. They are, 'Risk Factors' such, as Incidence of Murder, in the region you live, the Zip Code, you live at, and the endeavours that you enjoy when you are not in your occupation. From the Time you get up in the morning, till the time you fall asleep (And then some), you are 'AT Risk' , not from a event standpoint, but from a 'Fianancial risk' standpoint. This is the reason that all of the insurance contracts, stipulate exclusions, and limits on when they will pay out. This is what is meant by the 'Soft Risk Factors', and need to be ascertained. IF you are in an occupation that has a limited exposure to getting killed 'on the job', then you will be paying a lower premium, than someone who has a high risk occupation. IT used to be that 'SkySkraper Iron Workers', had a high incidence of injury and death , but over the last 50 years, this has changed. The US Bureau of Labor Statistics lists these 10 jobs as the highest for death (per 100,000 workers). The scales tilt the other way for these occupations: (In Canada, the Cheapest Rate for Occupational Insurance is Lawyer, and Politician) So, for the rest in Sales, management etc, the national average is 3 to 3.5 depending on the region, of deaths per 100,000 employed in that occupation. So, for a 30 year old bank worker, the premium is more like a 'forced savings plan', in the sense that you are paying towards something in the future. The 'Risk of Payout' in Less than 6 months is slim. For a Logging Worker or Fisher(Men&Women) , the risk is very high that they might not return from that voyage for fish and seafood. If you partake in 'Extreme Sports' or similar risk factors, then consider getting 'Whole Term- Life' , where the premium is spread out over your working lifetime, and once you hit retirement (55 or 65) then the occupational risk is less, and the plan will payout at the age of 65, if you make it that far, and you get a partial benefit. IF you have a 'Pension Plan', then that also needs to be factored in, and be part of a compreshensive thinking on where you want to be 5 years from today.\"",
"title": ""
},
{
"docid": "78999aaed78a1aaf92b2aec0e2e2d863",
"text": "\"Well, perhaps \"\"have a dedicated tax advisor\"\" is an answer then. I wouldn't have thought of this, as it's not specifically about taxation, is it? Or more broadly \"\"consult with a dedicated professional for the situation in detail\"\"... Yes, that is the only real answer you can get. Anything else will vary between highly localized to entirely incorrect. Pensions are rarely defined benefit anymore, and not many countries still keep state-sponsored defined benefit pension plans. For most, what's left is Social Security system, which is in no way a pension. This is an insurance, and is paid as tax which is rarely refundable (but you won't always have to pay it if you're a foreigner in the country). Usually, Social Security benefits are only available to citizens and (/or, in some rare cases) residents of that country. So it is unlikely (although possible) that you'll benefit from social security payments of more than one country. Some countries have totalization treaties that make your social security payments in one count in the other. If you're in a country that has such an agreement with the Netherlands - you're lucky. Your personal pension savings are basically tax-deferred investment accounts. But tax deferral in one country doesn't necessarily work in another. In the US you have 401k or IRA accounts, but in your own country they may very well be taxable. So you gain the tax deferral in the US, but if your own country taxes them - you lost the benefit, and you will still have to abide by the US tax rules when taking the money out. If you don't plan properly you can easily be hit by double taxation in such cases. Bottom line, you need to plan your pension savings on your own, privately, with a good and solid tax advice (and pension planning advice) that would be relevant to all the countries that you are tax resident at at any given time (you can easily be resident for tax purposes in more than one country). These advisers have to take into account the laws of the countries involved, the tax treaties between themselves and between them and the country of your citizenship, and the future countries you're planning on visiting or getting old at. Its complicated, and most likely you won't be able to predict everything, especially because the laws and treaties tend to change over time.\"",
"title": ""
},
{
"docid": "4fee06b37c87cee42807c9ce4ebb7e58",
"text": "Article was about insurers not liking the uncertainty. Some insurers want Obamacare repealed, some of them want it to stay. But they all don't want to political climate of uncertainty. A situation where people wouldn't be mandated to buy insurance because they don't fear the IRS actually requiring them, but where the actual regulations haven't been changed yet is a nightmare for insurers.",
"title": ""
},
{
"docid": "2b59e313b2bc401e6df11ff9d5c37f02",
"text": "Both are incorrect. What it says is if your fund value is 25,000 in first year; then this will earn 19.4% compound for 5 years. This is same as 142.5 absolute. The money invested in second year, will only earn for 4 years, compound interest of 19.4%. so on ... The 25000 invested last year only 19.4 for a year. The other aspect you are missing is when you pay 25,000; 4% goes towards charges. So you are only investing 24,000. Plus there is an amount towards life cover. Depending on age, around 1000 for one lacs. This means the investment is only 23000 or 23500. Generally it is not advised to buy ULIP. It is cheaper to buy term insurance plus mutual fund.",
"title": ""
},
{
"docid": "946afb38cb2c7915f02499f94c0ecdd5",
"text": "Like keshlam mentioned Insurance and Investment should not generally be mixed. Term Insurance is the best and cheapest insurance. This would work out better than Money Back Option you have. i.e. Take a Term Insurance for the same amount, invest the difference between the Premium of Term Insurance and Money Back option. Even if you invest this difference in Bank FD's the return is much more than what your Money Back policy gives. Pension Plans are not advisable. Although IRDA has in recent times streamlined quite a bit of it, there is still some amount that goes into commission, plus the returns from Annuity providers [the yearly payment you get after retirement] is less than what you get from FD's. i.e. currently the Annuity rates are in the range of 5-6% and one year FD's are in the range of 7-8%. The only reason one need to go with Pension plan or Money Bank plan would be if one is not financially disciplined or can't reconcile to the fact that Term Insurance in-spite of not giving any returns is much better.",
"title": ""
},
{
"docid": "ec2cecd148f5a36061685e5c592c6bf3",
"text": "I found the following on a stock to mutual conversion for insurance firms for Ohio. Pulling from that link, Any domestic stock life insurance corporation, incorporated under a general law, may become a mutual life insurance corporation, and to that end may carry out a plan for the acquisition of shares of its capital stock, provided such plan: (A) Has been adopted by a vote of a majority of the directors of such corporation; (B) Has been approved by a vote of stockholders representing a majority of the capital stock then outstanding at a meeting of stockholders called for the purpose; (C) Has been approved by a majority of the policyholders voting at a meeting of policyholders called for the purpose, each of whom is insured in a sum of at least one thousand dollars and whose insurance shall then be in force and shall have been in force for at least one year prior to such meeting. and Any stockholder who has assented to the plan or who has been concluded by the vote of the assenting stockholders, and any stockholder who has objected and made demand in writing for the fair cash value of his shares subsequent to which an agreement has been reached fixing such fair cash value, but who fails to surrender his certificates for cancellation upon payment of the amount to which he is entitled, may be ordered to do so by a decree of the court of common pleas for the county in which the principal office of such corporation is located after notice and hearing in an action instituted by the corporation for that purpose, and such decree may provide that, upon the failure of the stockholder to surrender such certificates for cancellation, the decree shall stand in lieu of such surrender and cancellation. Since they successfully became a mutual insurance company, I would guess that those stocks were acquired back by the company, and are leftover from the conversion. They would not represent an ownership in the company, but might have value to a collector.",
"title": ""
},
{
"docid": "651c66eedc2afbd60878cb8b96e3586b",
"text": "Insurance isn't an investment. It's a hedge against your untimely death, and is meant to replace the potential income that will be lost by not having you there to provide for your family. Buy term, and invest the difference. Traditional investments will outperform the insurance fund, as well as offering more flexibility.",
"title": ""
},
{
"docid": "6241d19ae4f4a34d2000f940bf82e549",
"text": "The issue is the time frame. With a one year investment horizon the only way for a fund manager to be confident that they are not going to lose their shirt is to invest your money in ultra conservative low volatility investments. Otherwise a year like 2008 in the US stock market would break them. Note if you are willing to expand your payback time period to multiple years then you are essentially looking at an annuity and it's market loss rider. Of course those contacts are always structured such that the insurance company is extremely confident that they will be able to make more in the market than they are promising to pay back (multiple decade time horizons).",
"title": ""
},
{
"docid": "68137f0a658c2a2bc73b6b31ad72c235",
"text": "\"When you invest in a single index/security, you are completely exposed to the risk of that security. Diversification means spreading the investments so the losses on one side can be compensated by the gains on the other side. What you are talking about is one thing called \"\"risk apettite\"\", more formally known as Risk Tolerance: Risk tolerance is the degree of variability in investment returns that an investor is willing to withstand. (emphasis added) This means that you are willing to accept some losses in order to get a potential bigger return. Fidelity has this graph: As you can see in the table above, the higher the risk tolerance, the bigger the difference between the best and worst values. That is the variability. The right-most pie can be one example of an agressive diversified portfolio. But this does not mean you should go and buy exactly that security compostion. High-risk means playing with fire. Unless you are a professional stuntman, playing with fire usually leaves people burnt. In a financial context this usually means the money is gone. Recommended Reading: Investopedia; Risk and Diversification: The Risk-Reward Tradeoff Investopedia; How to construct a High Risk portfolio Fidelity: Guide to Diversification KPMG: Understanding and articulating Risk Appetite (pdf)\"",
"title": ""
}
] |
fiqa
|
7d4bac8621a1ea90b93e28b09b08d152
|
I am the sole owner of an LLC. Does it make a difference if I file as an S-Corp or a sole-member LLC?
|
[
{
"docid": "6b80141754cd9c7da3082116071ec001",
"text": "\"S-Corp are taxed very different. Unlike LLC where you just add the profit to your income with S-Corp you have to pay yourself a \"\"reasonable\"\" salary (on w-2) which of course is a lot more paperwork. I think the advantage (but don't hold me accountable for this) is if your S-Corp makes a lot more than a reasonable salary, then the rest of the money can be passed through on your personal return at a lower (corp) rate.\"",
"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": "ec2567a386bbe5ab4518b9e07ed63f0d",
"text": "\"I'm assuming that when you say \"\"convert to S-Corp tax treatment\"\" you're not talking about actually changing your LLC to a Corporation. There are two distinct pieces of the puzzle here. First, there's your organizational form. Your state, which is where the business is legally formed and recognized, creates the LLC or Corporation. \"\"S-Corp\"\" doesn't come into play here: your company is either an LLC or a Corporation. (There are a handful of other organizational types your state might have, e.g. PLLC, Limited Partnership, etc.; none of these are immediately relevant to this discussion). Second, there's the tax treatment you receive by the IRS. If your company was created by the state as an LLC, note that the IRS doesn't recognize LLCs as a distinct organizational type: you elect to be taxed as an individual (for single member LLCs), a partnership (for multiple member LLCs), or as a corporation. The former two elections are \"\"pass through\"\" -- there's no additional level of taxation on corporate profits, everything just passes through to the owners. The latter election introduces a tax on corporate profits. When you elect pass-through treatment, a single-member LLC files on Schedule C; a multiple-member LLC will prepare a form K-1 which you will include on your 1040. If your company was created by the state as a Corporation (not an LLC), you could still elect pass-through taxation if your company qualifies under the rules in Subchapter S (i.e. \"\"an S-Corp\"\"). States do not recognize \"\"S-Corp\"\" as part of the organizational process -- that's just a tax distinction used by the IRS (and possibly your state's tax authorities). In your case, if you are a single-member LLC (and assuming there are no other reasons to organize as a corporation), talking about \"\"S-Corp tax treatment\"\" doesn't make any sense. You'll just file your schedule C; in my experience it's fairly simple. (Note that this is based on my experience of single- and multiple-member LLCs in just two states. Your state may have different rules that affect state-level taxation; and the rules may change from year to year. I've found that hiring a good CPA to prepare the forms saves a good bit of stress and time that can be better applied to the business.)\"",
"title": ""
},
{
"docid": "a8ea55b8b623ba0c931af98338036e0b",
"text": "\"In the United States, with an S-Corp, you pay yourself a salary from company earnings. That portion is taxed at an individual rate. The rest of the company earnings are taxed as a corporation, which often have great tax benefits. If you are making over $80K/year, the difference can be substantial. A con is that there is more paperwork and you have to create a \"\"board\"\" of advisors.\"",
"title": ""
}
] |
[
{
"docid": "8510a870bd602985400586f24d7396ab",
"text": "As littleadv says, if you're a sole proprietorship, you don't need to file a 1099 for money you pay yourself. You certainly will need to file a schedule C or schedule E to report the income. And don't forget SE to pay social security taxes on the income if you made a profit. If your company is a corporation, then -- I'm not a tax lawyer here, but I think the corporation would need to file a 1099 for the money that the corporation pays to you. Assuming that the amount is above the threshold that requires a 1099. That's normally $600, but it's only $10 for royalties.",
"title": ""
},
{
"docid": "f515ab4e63b3d4bf3815179d89b29356",
"text": "\"Subchapter S Corporations are a special type of corporation; the difference is how they are taxed, not how they relate to their vendors or customers. As a result, they are named the same way as any other corporation. The rules on names of corporations vary by state. \"\"Corporation\"\" and \"\"Incorporated\"\" (and their abbreviations) are allowed by every state, but some states allow other names as well. The Wikipedia article \"\"Types of business entity\"\" lists an overview of corporation naming rules for each state. The S-Corp that I work for has \"\"Inc.\"\" at the end of its name.\"",
"title": ""
},
{
"docid": "f22a212586d8b23b70bd6ceb830ee793",
"text": "I'm not sure why you think that it matters that the distribution goes to an S-Corp vs an individual tax payer. You seem to think it has any relevance to your question, but it doesn't. It only confuses your readers. The situation is like this: LLC X is deriving income in State #2. It has two members (I and S) residents of State #1. Members I and S pay all their taxes to State #1, and don't pay taxes to State #2. State #2 audited member I and that member now needs to pay back taxes and penalties to State #2 on income derived from that State. Your question: Does that mean that member S should be worried, since that member was essentially doing the exact same thing as member I? My answer: Yes.",
"title": ""
},
{
"docid": "3d7f9fe5894143a3984af1d6e43a76a0",
"text": "\"If you have a single member LLC there is no need to separate expenses in this way since it is simply treated as part of the owner's normal tax returns. This is the way I've been operating. Owner of Single-Member LLC If a single-member LLC does not elect to be treated as a corporation, the LLC is a \"\"disregarded entity,\"\" and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on: Form 1040 Schedule C, Profit or Loss from Business (Sole Proprietorship) (PDF) Form 1040 Schedule E, Supplemental Income or Loss (PDF) Form 1040 Schedule F, Profit or Loss from Farming (PDF) An individual owner of a single-member LLC that operates a trade or business is subject to the tax on net earnings from self employment in the same manner as a sole proprietorship. If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership. https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies\"",
"title": ""
},
{
"docid": "0798aa4e5d06e0deb5d8c966f0f35db5",
"text": "I see a lot of people making the mistake or being given bad advise in structuring a new business. If you have more than one shareholder, then by all means an S Corporation is a better structure for lower taxes; avoid double taxation. If, however, this is a one shareholder S Corp, then you had better 1099 yourself as a consultant or look into sole proprietorship. The tax benefits are much better either way. Dr. Suraiya Shaik Ali",
"title": ""
},
{
"docid": "72659982bcc756ea19515bf267862f2d",
"text": "I think you're misunderstanding how S-Corp works. Here are some pointers: I suggest you talk with a EA/CPA licensed in your state and get yourself educated on what you're getting yourself into.",
"title": ""
},
{
"docid": "e3690f57050d3a70467bddf10e4f5f4c",
"text": "\"It might be best to step back and look at the core information first. You're evaluating an LLC vs a Corporation (both corporate entities). Both have one or more members, and both are seen similarly (emphasis on SIMILAR here, they're not all the same) to the IRS. Specifically, LLC's can opt for a pass-through tax system, basically seen by the IRS the same way an S-Corp is. Put another way, you can be taxed as a corporate entity, or it's P/L statements can \"\"flow through\"\" to your personal taxes. When you opt for a flow-through, the business files and you get a separate schedule to tie into your taxes. You should also look at filing a business expense schedule (Schedule C) on your taxes to claim legitimate business expenses (good reference point here). While there are several differences (see this, and this, and this) between these entities, the best determination on which structure is best for you is usually if you have full time employ while you're running the business. S corps limit shares, shareholders and some deductions, but taxes are only paid by the shareholders. C corps have employees, no restrictions on types or number of stock, and no restrictions on the number of shareholders. However, this means you would become an employee of your business (you have to draw monies from somewhere) and would be subject to paying taxes on your income, both as an individual, and as a business (employment taxes such as Social Security, Medicare, etc). From the broad view of the IRS, in most cases an LLC and a Corp are the same type of entity (tax wise). In fact, most of the differences between LLCs and Corps occur in how Profits/losses are distributed between members (LLCs are arbitrary to a point, and Corps base this on shares). Back to your question IMHO, you should opt for an LLC. This allows you to work out a partnership with your co-worker, and allows you to disburse funds in a more flexible manner. From Wikipedia : A limited liability company with multiple members that elects to be taxed as partnership may specially allocate the members' distributive share of income, gain, loss, deduction, or credit via the company operating agreement on a basis other than the ownership percentage of each member so long as the rules contained in Treasury Regulation (26 CFR) 1.704-1 are met. S corporations may not specially allocate profits, losses and other tax items under US tax law. Hope this helps, please do let me know if you have further questions. As always, this is not legal or tax advice, just what I've learned in setting several LLCs and Corporate structures up over the years. EDIT: As far as your formulas go, the tax rate will be based upon your personal income, for any pass through entity. This means that the same monies earned from and LLC or an S-corp, with the same expenses and the same pass-through options will be taxed the same. More reading: LLC and the law (Google Group)\"",
"title": ""
},
{
"docid": "b15d163a90235fed85ed81ab71d178ac",
"text": "\"Do I understand correctly, that we still can file as \"\"Married filing jointly\"\", just add Schedule C and Schedule SE for her? Yes. Business registration information letter she got once registered mentions that her due date for filing tax return is January 31, 2016. Does this prevent us from filing jointly (as far as I understand, I can't file my income before that date)? IRS sends no such letters. IRS also doesn't require any registration. Be careful, you might be a victim to a phishing attack here. In any case, sole proprietor files a regular individual tax return with the regular April 15th deadline. Do I understand correctly that we do not qualify as \"\"Family partnership\"\" (I do not participate in her business in any way other than giving her money for initial tools/materials purchase)? Yes. Do I understand correctly that she did not have to do regular estimated tax payments as business was not expected to generate income this year? You're asking or saying? How would we know what she expected? In any case, you can use your withholding (adjust the W4) to compensate.\"",
"title": ""
},
{
"docid": "d86b13bd601e7df442d84da6045192f9",
"text": "\"This is going to vary tremendously from country to country (and even from state to state, in some cases). In general, though: Sole proprietorship: LLC: There are a lot of permutations depending on local law. One thing that isn't actually much of an advantage is the \"\"limited liability\"\" component of the LLC. Simply put: for a really small company the majority shareholders are usually going to be \"\"forced\"\" to stand surety for the company in their personal capacity. Limited liability only becomes available once the company has quite a lot of cash/assets (or the illusion of a lot of cash/assets). Update - noticed two further questions that appear very similar: Should all of these be merged?\"",
"title": ""
},
{
"docid": "202023489078ad72c57b4565606684c3",
"text": "\"Interesting as I am in the exact same situations as yourself. I, in fact, just incorporated. You will be able \"\"save\"\" more in taxes in the end. The reason I put \"\"save\"\" in quotes, is that you don't necessarily save on taxes, but you can defer taxes. The driving factor behind this is that you specify your own fiscal calendar/year. Incorporating allows you to defer income for up to 6 months. Meaning that if you make your fiscal year starting in August or September, for example, you can claim that income on the following year (August + 6 months = February). It allows you to keep the current year taxes down. Also, any income left over at year end, is taxed at 15% (the Corporation rate) rather than the 30-40% personal rate you get with a sole-proprietorship. In a nutshell, with sole-proprietorship, all income is taxable (after write-offs)... in a corporation, you can take some of that income and keep it in the corporation (gives your company a \"\"value\"\"), and is only taxed at 15% - big saving there. I primarily work with US businesses. I am, however, a dual-citizen, US and Canadian, which allowed me as a sole-proprietor, to easily work with US companies. However, as a sole-proprietor or a Corporation, you simply need to get an EIN from the IRS and any US company will report earnings to that number, with no deductions. At year end, it is your responsibility to file the necessary tax forms and pay the necessary taxes to both countries. Therefore you can solicit new US business if you choose, but this is not restricted to corporations. The real benefit in incorporating is what I mentioned above. My suggestion to you is to speak with you CA, who can outline all benefits. Revenue Canada's website had some good information on this topic as well. Please let me know if you need anything else explained.\"",
"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": "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": "8c4eec481cd96016588a5da0051cb9b8",
"text": "Profits and losses in a partnership, LLC or S-corp are always reported proportional to the share of ownership. If you have a 30% share in a partnership, you will report 30% of the profit (or loss) of the respective tax year on your personal return. If you look at Part II, section J of your K-1, it should show your percentage of ownership in the entity. All numbers in Part III should reflect the amount of your share (not the entity's total amounts, which will be on Form 1065 for a partnership):",
"title": ""
},
{
"docid": "300c2b236171618b127627cb296130ad",
"text": "Through your question and then clarification through the comments, it looks like you have a U.S. LLC with at least two members. If you did not elect some other tax treatment, your LLC will be treated as a partnership by the IRS. The partnership should file a tax return on Form 1065. Then each partner will get a Schedule K-1 from the partnership, which the partner should use to include their respective shares of the partnership income and expenses on their personal Forms 1040. You can also elect to be taxed as an S-Corp or a C-Corp instead of a partnership, but that requires you to file a form explicitly making such election. If you go S-Corp, then you will file a different form for the company, but the procedure is roughly the same - Income gets passed through to the owners via a Schedule K-1. If you go C-Corp, then the owners will pay no tax on their own Form 1040, but the C-Corp itself will pay income tax. As far as whether you should try to spend the money as business expense to avoid paying extra tax - That's highly dependent on your specific situation. I'd think you'd want to get tailored advice for that.",
"title": ""
},
{
"docid": "f52e5d1fb5b3ba51acba2f3657db5615",
"text": "\"Any inward remittance received by your Parents cannot be treated as \"\"Income\"\" as per the definitaion. This can at best be treated as \"\"Gift\"\". However in India there is No Gift tax for certain relations and there is no ceiling on the amount. In your case gifting of money by son to father or viceversa is allowed without any limits and tax implication. However if you father were to invest this money in his name and make gains, the gains would be taxable. However if the Money is being transfered with specific purpose such as to buy a property, etc make sure you have the Bank give your dad an certificate of Inward remittance. This is also advisable even otherwise, the Inwared Remittance certificate from Bank certifies that the credit entry in the account is because or funds comming into India and if the tax authorities were to question the large amount of credits, it would be proof that it is due to Inward remittance and not due to say a sale of property by your dad Helpful Links: http://www.moneycontrol.com/news/tax/gift-tax-whatsa-gift_664238.html http://www.thehindubusinessline.in/bline/blnri/exp-tax.htm Edit 1: What you father does with the money is treated as EXPENSE, ie spends on day to day expense or pays off your Loans or Pay off his loans have no relevance from a Tax Prespective in India. The only issue comes in say you have transfered the funds to buy a property and there was no purpose of remittance specified by Bank's letter and one want to reptriate this funds back to US, then its an issue. If you transfer the funds directly to your Loan account again there is no tax implication to you in India as you are NRI.\"",
"title": ""
}
] |
fiqa
|
6868bc0f581131d38934967f9f472389
|
How do the wealthy pay for things?
|
[
{
"docid": "b23d1bc1dc22e8aef985a8bf65abb967",
"text": "\"This is second hand information as I am not a millionaire, but I work with such people everyday and have an understanding of how they handle cash: The wealthy people don't. Simple. Definitely not if they don't have to. Cash is a tool to them that they use only if they get benefit of it being a cash transaction (one of my friends is a re-seller and he gets a 10% discount from suppliers for settling lines using cash). Everything else they place on a line of credit. For people who \"\"dislike\"\" credit cards and pay using ATM or debit cards might actually have a very poor understanding of leverage. I assure you, the wealthy people have a very good understanding of it! Frankly, wealthy people pay less for everything, but they deserve it because of the extreme amount of leverage they have built for themselves. Their APRs are low, their credit limits are insanely high, they have longer billing periods and they get spoiled by credit card vendors all the time. For example, when you buy your groceries at Walmart, you pay at least a 4% markup because that's the standardized cost of processing credit cards. Even if you paid in cash! A wealthy person uses his credit card to pay for the same but earns the same percentage amount in cash back, points and what not. I am sure littleadv placed the car purchase on his credit card for similar reasons! The even more wealthy have their groceries shipped to their houses and if they pay cash I won't be surprised if they actually end up paying much less for fresh (organic) vegetables than what equivalent produce at Walmart would get them! I apologize for not being able to provide citations for these points I make as they are personal observations.\"",
"title": ""
},
{
"docid": "17e78480112a308574692e1fc00fecfe",
"text": "\"While you would probably not use your ATM card to buy a $1M worth mansion, I've heard urban legends about people who bought a house on a credit card. While can't say its reliable, I wouldn't be surprised that some have actual factual basis. I myself had put a car down-payment on my credit card, and had I paid the sticker price, the dealer would definitely have no problem with putting the whole car on the credit card (and my limits would allow it, even for a luxury brand). The instruments are the same. There's nothing special you need to have to pay a million dollars. You just write a lot of zeroes on your check, but you don't need a special check for that. Large amounts of money are transferred electronically (wire-transfers), which is also something that \"\"regular\"\" people do once or twice in their lives. What might be different is the way these purchases are financed. Rich people are not necessarily rich with cash. Most likely, they're rich with equity: own something that's worth a lot. In this case, instead of a mortgage secured by the house, they can take a loan secured by the stocks they own. This way, they don't actually cash out of the investment, yet get cash from its value. It is similarly to what we, regular mortals, do with our equity in primary residence and HELOCs. So it is not at all uncommon that a billionaire will in fact have tons of money owed in loans. Why? Because the billions owned are owned through stock valuation, and the cash used is basically a loan secured by these stocks. It might happen that the stocks securing the loans become worthless, and that will definitely be a problem both to the (now ex-)billionaire and the bank. But until then, they can get cash from their investment without cashing out and without paying taxes. And if they're lucky enough to die before they need to repay the loans - they saved tons on money on taxes.\"",
"title": ""
},
{
"docid": "10c0f678060e4a75b6b7b5a802c51848",
"text": "I was once the personal assistant to two wealthy NYC sisters. They did not pay for anything. For example, if we were riding the subway, I would pay, and be reimbursed by the Company. They had multiple residences and investment properties. Each property was purchased through a separate Limited Liablity Corporation, and paid for by the Company. When they purchased, donated or sold art, it was through their family Foundation. Their income primarily came from a draw of funds from the family estate, although one of them worked as an architect, which provided further income.",
"title": ""
}
] |
[
{
"docid": "323c75c34ba054d6ba99ed51108702ae",
"text": "Right, just like computers are only available to the upper class. In reality, the wealthy would just be the initial market. As their demand causes supply increases/cost innovation, prices will inevitably fall (and philanthropy almost certainly rise), which would make the enhancements available further down the economic ladder, which cycles the process again.",
"title": ""
},
{
"docid": "51ace463ec495857250cc8631b9ee890",
"text": "I got that notion from Max Kaiser, his ideas about that are mostly about interest rate apartheid - banks and rich people get money at zero interest, we pay 9, 10, 30%. I think it involves everything from how we are seen in the eyes of the law to assuming risk, etc. We are expected to play by the rules and they are not.",
"title": ""
},
{
"docid": "49dfe3479f965f01e8864a3284d28d6a",
"text": "The 'uber' rich because they take chances that others aren't willing to. They also are rich because they make products people like. Take for instance Apple [or whatever smartphone/computer brand your so privileged to own] ,like them or not they make a great product (determined by the market). If the market didn't like it (Microsoft Zune) then it'll fail. As for the risk aspect, starting a business takes a TON of risk, and only after much strife and hardships can a business have potential to reach great heights. You think starting Popeyes's was easy? You think franchising is easy? Absolutely not! You sit there in your privileged high-horse saying the rich should pay because they make something you like and helped to succeed. It's like wanting something for free. Buy phone -> Others buy phone -> Complain about the rich and vote for UBI -> Get extra $ you wouldn't have gotten otherwise-> Spend that extra $ on the next years phone",
"title": ""
},
{
"docid": "f710cf70297ba675d3fe3c1fc9557140",
"text": "And rich person is more likely not to choose subpar government services when they can choose something else. Meaning if the were allowed to opt out of this monopoly service provider they would. Meaning the only ones who want government services is those who want someone else to pay for it for them.",
"title": ""
},
{
"docid": "4dceaf523ac9a71169632ad3f2e7dde8",
"text": "\"Most well-off people have investments which they have held for long periods of time, often of very substantial value such as a large part of a company. They also have influence on legislators and officials through various social contacts, lobbyists, and contributions. They managed to convince these law makers to offer a lower tax on income derived from sales of such investments. The fig leaf covering this arrangement is that it \"\"contributes to the growth of economy by encouraging long-term investment in new enterprises.\"\"\"",
"title": ""
},
{
"docid": "c5b754eb59d20a461ed839fe1d464e59",
"text": "The prices we pay for goods and services is set by our level of income because we have a huge choice of price levels from luxury to economy class and DIY. This was true of rent and mortgage payments before the real estate bubble. There is still some choice though from a tiny house or trailer to a mansion. None of these are one set demand decided by someone else as with land value tax. Many people like where they live and want to stay there. Those people create a cross generational community. Land and homes must be affordable and we should have as much freedom about what we do with our homes as possible.",
"title": ""
},
{
"docid": "b6046d9a59d22cd2c94acdd6a8042811",
"text": "Exactly. People don't seem to realize that a lot of the things they take for granted as being provided by the government were more than adequately provided by private charities until the government stepped in and 'fixed' things...or else they do get it but sweep it under the rug and mumble something about 'its more efficient this way' to justify intruding on the private affairs of others. This is why the founding fathers hated democracy -- the Athenians had no concept of rei publicae.",
"title": ""
},
{
"docid": "94e274d66650337c888a371d404e2d7b",
"text": "People just love becoming more well-off than they currently are, and one of the ways they do it is with leverage. Leverage requires credit. That desire is not exclusive to people who are not already well-off. For a well-off person who wants to become more well-off by expanding their real estate ventures, paying cash for property is a terrible way to go about it. The same goes for other types of business or market investment. Credit benefits the well-off even more greatly than it benefits the poor or the middle-class.",
"title": ""
},
{
"docid": "4aa71bc5470147597db83be59cdb3e56",
"text": "\"The scenario you mention regarding capital gains is pretty much the core of the issue. Here's a run-down from PolitiFact.com that explains it a bit. It's important to focus on it being the tax rate, not the tax amount (which I think you get, but I want to reinforce that for other readers). Basically, most of Buffett's income comes from capital gains and dividends, income from investments he makes with the money he already has. Income earned by buying and selling stocks or from stock dividends is generally taxed at 15 percent, the rate for long-term capital gains and qualified dividends. Buffett also mentioned that some of the \"\"mega-rich\"\" are hedge fund managers \"\"who earn billions from our daily labors but are allowed to classify our income as 'carried interest,' thereby getting a bargain 15 percent tax rate.\"\" We don't know the taxes paid by Buffett's secretary, who was mentioned by Obama but not by Buffett. Buffet's secretary would have to make a high salary, or else typical deductions (such as the child tax credit) would offset taxes owed. Let's say the secretary is a particularly well-compensated executive assistant, making adjusted income more than $83,600 in income. (Yes, that sounds like a lot to us, too, but remember: We're talking about the secretary to one of the richest people in the world.) In that case, marginal tax rates of 28 percent would apply. Then, there would be payroll taxes of 6.25 percent on the first $106,800, money that goes to Social Security, and another 1.45 percent on all income, which goes to Medicare. The secretary’s overall tax rate would be lower than 28 percent, since not all the income would be taxed at that rate, only the income above $83,600. Buffett, meanwhile, would pay very little, if anything, in payroll taxes. In the New York Times op-ed, Buffett said he paid 17.4 percent in taxes. Thinking of the secretary, it gets a little complicated, given how the tax brackets work, but basically, people who make between $100,000 and $200,000 are paying around 20 percent in federal taxes, including payroll and income taxes, according to an analysis from the nonpartisan Tax Policy Center. So in this case, the secretary's rate is higher because so much of Buffett's income comes from investments and is taxed at the lower capital gains rate. Here's Buffet's original Op-Ed in the NYT for those of you that aren't familiar.\"",
"title": ""
},
{
"docid": "62e95a628269a92d9a6eb88cf35f5c91",
"text": "\"Partly I suspect this is selection bias. You say you see so many luxury cars go by. But if you're looking for them, you're going to notice them. Have you calculated the actual percentage? Do they make up 50% of the cars that pass a specific point in a specific period of time? Or just 10% if you really counted? You say you live in Baltimore county, Maryland. That's a relatively wealthy area, so I'd expect the percentage of luxury cars to be higher than the national average. You'd likely see considerably fewer in the backwoods of Mississippi. That said, some people who own luxury cars can't really afford them. I'm reminded of a wonderful TV commercial I saw recently where a man is showing off all his material goods, he talks about his big house, and his swimming pool, and his fancy car, with a big smile on his face, standing tall, and generally looking proud and happy. And then he says, \"\"How do I do it?\"\" And suddenly his expression changes to complete despair, he slumps down, and says, \"\"I'm in debt up to my eyeballs.\"\" It turns out to be a commercial for a debt-counseling service. Some people put very high value on owning a fancy car and are willing to sacrifice on other things. If having a big fancy car is more important to you then, say, having a nice house or the latest computer or a big screen TV or dining out more often or going on more expensive vacations or whatever you have to give up to get the car, well, that's your decision. Personally I don't care much about a fancy car, I just want something that gets me where I want to go. And I've always figured that with an expensive car, you have to constantly worry about getting in an accident and damaging or destroying it. If you put your money into a big fancy house, at least houses rarely collide with each other. Personally, I make a nice income too. And I have a $500/month mortgage and zero car payment because I drive a 2003 pickup that I bought with cash. But I have two kids in college and I'm trying to get them through with no debt, that's where all my money is going.\"",
"title": ""
},
{
"docid": "16cae3c6ef9c86ec505e60790d2ac9ac",
"text": "The rich pay more in taxes. It would be hard to cut taxes in a way that *didnt* help the rich. I'm more concerned with what it does for the middle and lower classes. I don't care that much if it helps the rich. EDIT: Okay, so let's say you give the top third of the population (by income) a 1% income tax cut. The middle third got a 5% cut, and the bottom third got a 10% cut. In dollar value, the rich are still getting a larger cut, simply by virtue of how much they pay in taxes. Someone made a point about property tax. Speaking very generally, poor people rent and rich people own. So a property tax inherently benefits the wealthy, because they own more property. Certainly any kind of corporate or capital gains cut would benefit the wealthy, since they own the corporations and are more heavily invested. Even a sales tax cut would benefit the wealthy more than the non-wealthy, simply because they spend more money. But what frustrates me is how hung up people get on the fact that something is good for the wealthy, (such as with the headline of OPs article) as if we should actively try to avoid helping anyone rich. As I stated above, I don't care that it helps the rich, as long as it's helping the rest of us, too. And if the rich are getting a bigger benefit than I am by virtue of being rich, I'm not bothered, because I can do math.",
"title": ""
},
{
"docid": "bb309bf8d35c9118d1a2dc3649ee6875",
"text": "Those billionaires are often billionaires because they make it their job to take my hard earned money, which I give them willingly, and make it worth more than inflation in fifty years so that I can retire with dignity, comfort and peace. If you tax the hell out of that then people are either not going to do it, or it will be prohibitively expensive to do so, meaning that the 401(K) system makes less money. Also, wtf did the rich people do to deserve to be punished?",
"title": ""
},
{
"docid": "e3feabf3c5377f19e11874057aade2f8",
"text": "\"This article is also light on sources. It overstates inherited wealth. People who work with rich people know the saying \"\"shirtsleeve to shirtsleeve in three generations\"\". There is a proclivity of rich descendants to squander their fortune, which totally negates a majority of this article. In sum, this article and news source insists on itself\"",
"title": ""
},
{
"docid": "51d4ff1cf3835ae0b7b0761fa4fe207b",
"text": "First of all, it's not the 1% that run things. It is more like the 0.1%. They run things because they run the government, not because they cannot be challenged in the market. We should expect the courts to be less corruptible because their proceedings take place in public, whereas the Executive bureaucracy and most of the Congressional machinations occur behind closed doors. Deals are made that we have no knowledge of. That is where the 0.1% operates. They are as afraid of the light of day as vampires. There is usually a cycle of wealth that lasts three or four generations unless that cycle is interrupted by collusion with the government. Europe's rich stayed rich because they became the government. Their thefts were sanctified by making them nobility and protecting them with the state. Look at the makeup of Obama's inner circle. It is the banking nobility. Those banks and banksters would all be broke now if they had not harnessed the government to steal from thee and me to give to them. Small government that debates everything in the open will not protect the very rich. Without government protection their wealth will return to the general pool in three generations.",
"title": ""
},
{
"docid": "03d36bcfc0701893351e08d872295887",
"text": "Some good answers already, but let me add a TL:DR version. Brokers work like a special type of bank account where you can deposit or withdraw money. The major difference is that they also give you the ability to buy/sell investments with the money in your account which you can do by either calling them or using their website. Important: Many investments you will make through a broker(e.g. stocks) are not insured against losing value like the money in your bank account.",
"title": ""
}
] |
fiqa
|
6cc49f18959c7514ba6b87baae88fbe1
|
As an employer, how do I start a 401k or traditional IRA plan?
|
[
{
"docid": "f4169e685a12d264278d31530c50068e",
"text": "Here is a nice overview from Vanguard on some options for a small business owner to offer retirement accounts. https://investor.vanguard.com/what-we-offer/small-business/compare-plans I would look over the chart and decide which avenue is best for you and then call around to investment companies (Vanguard, Fidelity, etc. etc.) asking for pricing information.",
"title": ""
},
{
"docid": "c13247d22b07329cfee1a80df0f5e770",
"text": "OK, so first of all, employers don't set up IRAs. IRA stands for Individual Retirement Account. You can set up a personal IRA for yourself, but not for employees. If that is what you're after, then just set one up for yourself - no special rules there for self employment. As far as setting up a 401(k), I'd suggest checking with benefits management companies. If you're small, you probably don't have an HR department, so managing a 401(k) yourself would likely be overly burdensome. Outsourcing this to a company which handles HR for you (maybe running payroll, etc. also), would be the best option. Barring that, I'd try calling a large financial institution (Schwab, Fidelity, etc.) for clear guidance.",
"title": ""
},
{
"docid": "02774bad616ec7caadba2ad0ca64f880",
"text": "\"If you are the sole owner (or just you and your spouse) and expect to be that way for a few years, consider the benefits of an individual 401(k). The contribution limits are higher than an IRA, and there are usually no fees involved. You can google \"\"Individual 401k\"\" and any of the major investment firms (Fidelity, Schwab, etc) will set one up free of charge. This option gives you a lot of freedom to decide how much money to put away without any plan management fees. The IRS site has all the details in an article titled One-Participant 401(k) Plans. Once you have employees, if you want to set up a retirement plan for them, you'll need to switch to a traditional, employer-sponsored 401k, which will involve some fees on your part. I seem to recall $2k/yr in fees when I had a sponsored 401(k) for my company, and I'm sure this varies widely. If you have employees and don't feel a need to have a company-wide retirement plan, you can set up your own personal IRA and simply not offer a company plan to your employees. The IRA contribution limits are lower than an individual 401(k), but setting it up is easy and fee-free. So basically, if you want to spend $0 on plan management fees, get an individual 401(k) if you are self-employed, or an IRA for yourself if you have employees.\"",
"title": ""
}
] |
[
{
"docid": "a214f765ad8bf0850db57657119533be",
"text": "\"Your contribution limit to a 401(k) is $18,000. Your employer is allowed to contribute to your 401(k), usually a \"\"matching contribution\"\". That matching contribution comes from your employer, so is not subject to your personal contribution limit. A contribution to a regular 401(k) is typically made with pre-tax money (i.e. you don't pay payroll taxes on the money you contribute) so you pay less taxes for the current tax year. However when you retire and you take money out, you pay taxes on the money you take out. On one hand, your tax rate may be lower when you have retired, but on the other hand, if your investments have appreciated over time, the total amount of tax you pay would be higher. If your company offers a Roth 401(k) plan, you can contribute $18,000 of after tax money. This way you pay the tax on the $18,000 today, as you would if you did not put the money in the 401(k), but when you take the money out at retirement, you would not have to pay tax. In my opinion, that serves as a way to pay effectively more money into your 401(k). Some firms put vesting provisions on the amount that they match in your 401(k), e.g. 4 years at 25% per year. So you have to work 1 full year to be entitled to 25% of their matching contribution, 2 years for 50%, and 4 years to receive all of it. Check your company's Summary Plan Description of the 401(k) to be sure. You are not allowed to invest pre-tax money into a Traditional IRA if you are already contributing to a 401(k) plan and have reached the income limits ($62,000 AGI for single head of household). You are allowed to contribute post-tax money to a Traditional IRA plan if you have already contributed to a 401(k), which you can then Roll-over into a Roth IRA (look up 'backdoor IRA'). The IRA contribution limit applies to all IRA accounts over that calendar year. You could put some money in a traditional IRA, a Roth IRA, another traditional IRA, etc. so long as the total amount is not more than the contribution limit. This gives you an upper limit of 5.5k + 18k = 23.5 investments in retirement accounts. Note however, once you reach age 50, these limits increase to 6.5k (IRA) + 24k (401(k)). They also are adjusted periodically with the rate of inflation. The following approach may be more efficient for building wealth: This ordering is the subject of debate and people have different opinions. There is a separate discussion of these priorities here: Best way to start investing, for a young person just starting their career? Note however, a 401(k) loan becomes payable if you leave your company, and if not repaid, is an unauthorised distribution from your 401k (and therefore subject to an additional 10% tax penalty). You should also be careful putting money into an IRA, as you will be subject to an additional 10% tax penalty if you take out the money (distribution) before retirement, unless one of the exceptions defined by the IRA applies (e.g. $10,000 for first time home purchase), which could wipe out more than any gains you made by putting it in there in the first place. Your specific circumstances may vary, so this approach may not be best for you. A registered financial advisor may be able to help - ensure they are legitimate: https://adviserinfo.sec.gov\"",
"title": ""
},
{
"docid": "da302fbfa3c5fd4fc872d67cf29b8eae",
"text": "Don't try individual stocks. If you have a job, any job, even one from mowing lawns, you can open a Roth IRA. If you are under 18 you will need your parents/guardian to setting up the account. You can put the an amount equal to your earned income into the Roth IRA, up to the annual maximum of $5500. There are advantages to a Roth IRA: What happens if you are using your income to pay for your car, insurance, etc? You can get the money from your parents, grandparents. The only rule is that you can't invest more than you have earned. Act before Tax day (April 15th). You know what you made last year. If you open the account and make the contribution before April 15th it can count for last year, as long as you are clear with the broker/bank when you make the deposit.",
"title": ""
},
{
"docid": "1c9569033a3d0a5bd57b3b256ee4b5f2",
"text": "You can buy stocks in the IRA, similarly to your regular investment account. Generally, when you open an account with a retail provider like TDAmeritrade, all the options available for you on that account are allowable. Keep in mind that you cannot just deposit money to IRA. There's a limit on how much you can deposit a year ($5500 as of 2015, $6500 for those 50 or older), and there's also a limit on top of that - the amount you deposit into an IRA cannot be more than your total earned income (i.e. income from work). In addition, there are limits on how much of your contribution you can deduct (depending on your income and whether you/your spouse have an employer-sponsored retirement plan).",
"title": ""
},
{
"docid": "4b1a79654858ab8d0ddcb37a7560699f",
"text": "\"Close... Warning, I may be off a bit here; I'm sure someone will correct me if so. Traditional 401k or IRA: money goes in pre-tax (so, yes, you avoid paying tax on it now), grows untaxed, taxes are due when you retire and start taking money back out of the account -- but your income, including these withdrawals, is likely to be lower than your peak earning years so your tax rate will be lower. You don't avoid all the tax, but you delay it and hopefully reduce it, and by doing so there's more money in your account earning returns. Roth 401k or IRA: money goes in after taxes (you do pay income tax now). However, all returns on the money are untaxed (I believe), and you pay no tax when you're eligible to withdraw the funds. Either or both kinds of 401k may be eligible for some percentage of matching funds from your employer (there are some incentives for them to offer this benefit). I believe that even if you're doing a Roth 401k, the matching funds legally have to go in as traditional plan. And yes, as that implies, it is possible to split your contribution between the two styles. Note: the matching funds are \"\"free money.\"\" If your plan offers a match, it is highly recommended that you contribute enough to your 401k to capture the maximum match.\"",
"title": ""
},
{
"docid": "fc86f9b2f121b065474cc6b9bee880d1",
"text": "Traditional IRA contributions can be made if you have compensation and the amount of the contribution is limited to the smaller of your compensation and $5500 ($6000 if age 50 or more). Note that compensation (which generally means earnings form working) is not just what appears on a W-2 form as salary or wages; it can be earnings from self-employment too, as well as commissions, alimony etc (but not earnings from property, pensions and annuities, certain types of partnership income) You must also not have attained age 70.5 in the year for which the contribution is made. Even if you don't have any compensation of your own, you can nonetheless make a Traditional IRA contribution if your spouse has compensation as long as you are filing a joint tax return with your spouse. For spouses filing a joint return, the limits are still the same $5500/$6000 for each spouse, and the sum total of Traditional IRA contributions for both spouses also must not exceed the sum total of earned income of both spouses. The age limits etc are all still applicable. Note that none of this says anything about whether the contributions are deductible. Everyone meeting the above requirements is eligible to make contributions to a Traditional IRA; whether the contributions can be deducted from current income depends on the income: those with high enough incomes cannot deduct the contribution. This is different from Roth IRAs to which people with high incomes are not permitted to make a contribution at all. Finally, the source of the cash you contribute to the IRA can be the proceeds of the stock sale if you like; you are not required to prove that the cash received from compensation is what you sent to the IRA custodian. Read Publication 590 (available on the IRS website www.irs.gov) if you need an authoritative reference.",
"title": ""
},
{
"docid": "61a798b02ff3bca4fead46b2ba7aabaa",
"text": "See Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA? for a start. Kevin, the discussion is far more complex than you might think. Say your account grows by X, (pretend it's 10 if you wish) and your tax rate is Y (25%?). If you take the initial sum, tax it at Y, but then grow it X, the result is identical to doing it in the reverse order. So $1000 to start can grow to $10,000, then after tax, $7500. Or $1000 taxed to $750, then grow to $7500. For pretax deposits, the key is that you deposit those contributions at your marginal rate, i.e. the rate you'd pay on the last $X taxed. But withdrawals start at zero. In the perfect scenario, you will save 25-28% tax on deposits, but at retirement, enjoy taxation at 0%,10%,15% for a large portion or all of the withdrawals. (Note, others can suggest rates will rise, and they may be right. My answer is based on the current tax structure.) A new earner, at 10 or 15% may be better off starting with Roth, and as they earn their way to 25% or higher slide over to pre-tax deposits. My 14 year old baby sits, and makes enough to fund a Roth, but pays no tax as she earns less than her own standard deduction for what that's worth.",
"title": ""
},
{
"docid": "c7efc2dd021ddf9a2a03b9622a11cf2a",
"text": "I have managed two IRA accounts; one I inherited from my wife's 401K and my own's 457B. I managed actively my wife's 401 at Tradestation which doesn't restrict on Options except level 5 as naked puts and calls. I moved half of my 457B funds to TDAmeritrade, the only broker authorized by my employer, to open a Self Directed account. However, my 457 plan disallows me from using a Cash-secured Puts, only Covered Calls. For those who does not know investing, I resent the contention that participants to these IRAs should not be messing around with their IRA funds. For years, I left my 401k/457B funds with my current fund custodian, Great West Financial. I checked it's current values once or twice a year. These last years, the market dived in the last 2 quarters of 2015 and another dive early January and February of 2016. I lost a total of $40K leaving my portfolio with my current custodian choosing all 30 products they offer, 90% of them are ETFs and the rest are bonds. If you don't know investing, better leave it with the pros - right? But no one can predict the future of the market. Even the pros are at the mercy of the market. So, I you know how to invest and choose your stocks, I don't think your plan administrator has to limit you on how you manage your funds. For example, if you are not allowed to place a Cash-Secured Puts and you just Buy the stocks or EFT at market or even limit order, you buy the securities at their market value. If you sell a Cash-secured puts against the stocks/ETF you are interested in buying, you will receive a credit in fraction of a dollar in a specific time frame. In average, your cost to owning a stock/ETF is lesser if you buy it at market or even a limit order. Most of the participants of the IRA funds rely too much on their portfolio manager because they don't know how to manage. If you try to educate yourself at a minimum, you will have a good understanding of how your IRA funds are tied up to the market. If you know how to trade in bear market compared to bull market, then you are good at managing your investments. When I started contributing to my employer's deferred comp account (457B) as a public employee, I have no idea of how my portfolio works. Year after year as I looked at my investment, I was happy because it continued to grow. Without scrutinizing how much it grew yearly, and my regular payroll contribution, I am happy even it only grew 2% per year. And at this age that I am ready to retire at 60, I started taking investment classes and attended pre-retirement seminars. Then I knew that it was not totally a good decision to leave your retirement funds in the hands of the portfolio manager since they don't really care if it tanked out on some years as long at overall it grew to a meager 1%-4% because they managers are pretty conservative on picking the equities they invest. You can generalize that maybe 90% of IRA investors don't know about investing and have poor decision making actions which securities/ETF to buy and hold. For those who would like to remain as one, that is fine. But for those who spent time and money to study and know how to invest, I don't think the plan manager can limit the participants ability to manage their own portfolio especially if the funds have no matching from the employer like mine. All I can say to all who have IRA or any retirement accounts, educate yourself early because if you leave it all to your portfolio managers, you lost a lot. Don't believe much in what those commercial fund managers also show in their presentation just to move your funds for them to manage. Be proactive. If you start learning how to invest now when you are young, JUST DO IT!",
"title": ""
},
{
"docid": "dcb9f17b9d27ac5ab74a948bb20d0bdf",
"text": "Your assumptions are flawed or miss crucial details. An employer sponsored 401k typically limits the choices of investments, whereas an IRA typically gives you self directed investment choices at a brokerage house or through a bank account. You are correct in noticing that you are limited in making your own pre-tax contributions to a traditional IRA in many circumstances when you also have an employer sponsored 401k, but you miss the massive benefit you have: You can rollover unlimited amounts from a traditional 401k to a traditional IRA. This is a benefit that far exceeds the capabilities of someone without a traditional 401k who is subject to the IRA contribution limits. Your rollover capabilities completely gets around any statutory contribution limit. You can contribution, at time of writing, $18,000 annually to a 401k from salary deferrals and an additional $35,000 from employer contributions for a maximum of $53,000 annually and roll that same $53,000 into an IRA if you so desired. That is a factor. This should be counterweighed with the borrowing capabilities of a 401k, which vastly exceeds an IRA again. The main rebuttal to your assumptions is that you are not necessarily paying taxes to fund an IRA.",
"title": ""
},
{
"docid": "a4617e0261b7f1b94be4dd512cb4fbd2",
"text": "All data for a single adult in tax year 2010. Roth IRA 401K Roth 401k Traditional IRA and your employer offers a 401k Traditional IRA and your employer does NOT offer a 401k So, here are your options. If you have a 401k at work, you could max that out. If you make close to $120K, you could reduce your AGI enough to contribute to a Roth IRA. If you do not have a 401k at work, you could contribute to a Traditional IRA and deduct the $5K from your AGI similar to how a 401k works. Other than that, I think you are looking at investing outside of a retirement plan which means more flexibility, but no tax advantage.",
"title": ""
},
{
"docid": "100ce6cc7dc35df1edade1bcc393b6e7",
"text": "You can invest another $5,500 in your Roth IRA each year, so you can invest up to $11,000 between the two tax years. Additionally you can make investments for the previous year up until 15 April the following year. In your case that will be close to graduation time, and you may decide to max out the contribution for 2014, but wait until you are settled into a new job before setting those savings aside long-term. When you start your first job, there will likely also be an option to invest in a 401k. You can still have the advantages of a Roth, but you will be limited to the investments available in the plan. Most employers I've seen today still offer a low-cost index fund, but you may have to speak up at a company meeting to pressure them to include one of those options in the plan. With a 401k your limit increases to $17,500/year. Make sure that the index fund you invest in has the lowest possible expense ratio. I use VOO. Depending on trading fees, etc., you might pick something else.",
"title": ""
},
{
"docid": "f638f00320e4f3c87d0d7ce7e6951429",
"text": "\"Yes, it can be done. See \"\"Scenario 4\"\" at Isolating 401(k) basis - Fairmark.com. Though that article is primarily about getting after-tax 401(k) money into a Roth IRA, Scenario 4 applies to the scenario you are asking about. At a high level you do exactly what you say -- transfer the pre-tax money from your trad IRAs to a 401(k) (btw, a solo 401(k) will work for this also -- doesn't have to be your employer's -- but then you need to be eligible to set up a solo 401(k)). This is allowed because qualified plans can't accept after after-tax traditional IRA money, so the transfer overrides the usual pro rata rules and \"\"strains\"\" the basis out and leaves it in the trad IRA. However, there's a mismatch between the intent of Congress (as indicated by the Joint Committee on Taxation report on the law) and the actual text of the law as detailed in the Fairmark article which while it doesn't stop you from doing this adds a couple of hoops to jump through if you want to be in total compliance with the law.\"",
"title": ""
},
{
"docid": "5b586c9fde989b7a17dd298472bc9b8a",
"text": "If your employer matches a percentage of your contributions, then you should try to max out your plan. Once you have completed maxing out your 401k, you may want to open up an IRA for several reasons: will your 401k be enough to sustain your lifestyle in retirement? Your IRA allows you to save even more for retirement. you can invest in all sorts of stuff through your IRA that might not be available in your plan. you can withdraw the principal from your IRA, usually after five years. This serves as another form of savings. IRAs have some asset protection in the event of bankruptcy. A normal savings or investment account usually does not offer such protection.",
"title": ""
},
{
"docid": "45a13e53bb0e27f1882735c04abdfa80",
"text": "There are a couple reasons for having a Traditional or Roth IRA in addition to a 401(k) program in general, starting with the Traditional IRA: With regards to the Roth IRA: Also, both the Traditional and Roth IRA allow you to make a $10,000 withdraw as a first time home buyer for the purposes of buying a home. This is much more difficult with the 401(k) and generally you end up having to take a loan against the 401(k) instead. So even if you can't take advantage of the tax deductions from contributions to a Traditional IRA, there are still good reasons to have one around. Unless you plan on staying with the same company for your entire career (and even if you do, they may have other plans) the Traditional IRA tends to be a much better place to park the funds from the 401(k) than just rolling them over to a new employer. Also, don't forget that just because you can't take deductions for the income doesn't mean that you might not need the income that savings now will bring you in retirement. If you use a retirement savings calculator is it saying that you need to be saving more than your current monthly 401(k) contributions? Then odds are pretty good that you also need to be adding additional savings and an IRA is a good location to put those assets because of the other benefits that they confer. Also, some people don't have the fiscal discipline to not use the money when it isn't hard to get to (i.e. regular savings or investment account) and as such it also helps to ensure you aren't going to go and spend the money unless you really need it.",
"title": ""
},
{
"docid": "abedfb33f3b34c86677e9bbbec5b8e35",
"text": "\"Open an investment account on your own and have them roll the old 401K accounts into either a ROTH or traditional IRA. Do not leave them in old 401k accounts and definitely don't roll them into your new employer's 401K. Why? Well, as great as 401K accounts are, there is one thing that employers rarely mention and the 401K companies actively try to hide: Most 401K plans are loaded with HUGE fees. You won't see them on your statements, they are often hidden very cleverly with accounting tricks. For example, in several plans I have participated in, the mutual fund symbols may LOOK like the ones you see on the stock tickers, but if you read the fine print they only \"\"approximate\"\" the underlying mutual fund they are named for. That is, if you multiply the number of shares by the market price you will arrive at a number higher than the one printed on your statement. The \"\"spread\"\" between those numbers is the fee charged by the 401K management company, and since employees don't pick that company and can't easily fire them, they aren't very competitive unless your company is really large and has a tough negotiator in HR. If you work for a small company, you are probably getting slammed by these fees. Also, they often charge fees for the \"\"automatic rebalancing\"\" service they offer to do annually to your account to keep your allocation in line with your current contribution allocations. I have no idea why it is legal for them not to disclose these fees on the statements, but they don't. I had to do some serious digging to find this out on my own and when I did it was downright scary. In one case they were siphoning off over 3% annually from the account using this standard practice. HOWEVER, that is not to say that you shouldn't participate in these plans, especially if there is an employer match. There are fees with any investment account and the \"\"free money\"\" your employer is kicking in almost always offsets these fees. My point here is just that you shouldn't keep the money in the 401K after you leave the company when you have an option to move it to an account with much cheaper fees.\"",
"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": ""
}
] |
fiqa
|
f5e13bef2bab5ab7d559055f64d24173
|
Acquiring first office clothes
|
[
{
"docid": "58421f730e6ce10311b57fb06a679356",
"text": "While in the interview stage you need one good outfit. Take care of them and they will see you through this stage of the process. Shoes, ties, shirt, and a suit can all be purchased on sale. The fact that you have months before graduation give you time to purchase them when there is a sale. Off-the-rack is good enough for a suit for this stage of your life. There is no need to go custom made when you are just starting out. In fact you may find you never need more than one or two suits, and they never need to be custom made.",
"title": ""
},
{
"docid": "23cead4feb9d24d7e00b6b22294f7fdc",
"text": "Like the other answers, I'm not entirely sure the equivalent exists in your country. But in the US there are thrift stores run by charities like GoodWill or the Salvation Army that sell clothes for very little money. When my wife was in a similar situation very early in her career she learned the trick of driving to thrift stores nearest to the richest neighborhoods in town. She often found high dollar designer clothes that had been worn once (to an event or party) and then donated. Apparently it is quite gauche for the well-to-do to be caught dead in the same outfit twice. It wasn't uncommon for her to find clothes/shoes that retailed for hundreds of dollars for $10 or so.",
"title": ""
},
{
"docid": "0977eb1ea7f87d0209e0dfee94cc32b0",
"text": "Sounds like you're a man, so you're in luck. Our formalwear all looks similar enough that you can get by on a very short rotation. You can buy 1 pair of decent slacks in a versatile color like navy or grey with a pair of brown shoes with matching belt then have as little as 2 button down shirts (white and light blue). You can help keep the button downs clean by wearing an undershirt. This outfit can even overlap your interview outfit if you want to save more (especially if you want a good jacket/sport coat). The real key is to just not pick anything flashy and nobody will ever notice. You'll be running to the dry cleaners every single weekend, but you won't have much in terms of up-front costs. For women though I have no clue how they manage this stuff.",
"title": ""
}
] |
[
{
"docid": "6f47f06623dd8319201aedf3c4769a27",
"text": "I was able to request a modest advance on my salary when I started my first job out of college, for essentially the same reason. Alternatively, you might consider requesting a small personal loan from friends or family. If you have a credit card that can cover things like grocery expenses for that period, this may also be the appropriate time to use it. Buy cheap food, like lentils and beans. :P In the future, once you earn some money, you should keep around a few months' worth of essential expenses in a saving account to avoid this situation. :)",
"title": ""
},
{
"docid": "eafcf24fabb16fcebd419f62145205c8",
"text": "I'm wearing shorts I bought online. Levi's. Amazon offers free returns so I bought two sizes and picked what fit me best. I don't buy them all online but I do things like jeans from a specific brand where I know the sizing well. A lot of places offer free returns now. Otherwise I might take a gamble on a shirt fitting, or check out what blank it's printed on to see if I know it already. Just bought a shirt yesterday that I knew was printed on an American apparel 50/50 blank so I knew what size I need as I have ten shirts printed on that blank already. Still need to go into a store for a lot of things though",
"title": ""
},
{
"docid": "9f6c11508410e3583fc536760a257646",
"text": "First you need to incorporate. 2) Build your websites & setup social accounts 3) create content: photoshoots, marketing designs, etc You should be creating your apparel designs at the same time as your site is being built and your product should be printed before the photoshoots. If you need more in depth help. Message me.",
"title": ""
},
{
"docid": "3077b7fdcc203875f2c0c50aa165afb4",
"text": "Sounds more of a question for the fine people at StyleForum.net but i would suggest to start looking carefully at the quality of the fabrics: once you start studying the subject you will quickly recognize a solid shirt from a cheap one. That'll help you save money in the long term. Also keeping it simple (by choosing classic color tones and patterns) will make your wardrobe more resistant to the fashion du jour.",
"title": ""
},
{
"docid": "d1ec8530127342d42b5dea70184732c4",
"text": "Buy a lot of best quality of products. We are happy to help you. Just visit Budget Closeouts and order any item you love to get it on your doorstep. We have many categorized items of General Merchandise for personal uses, daily uses, apparel, fashioned clothing, watches, kitchen accessories. You can purchase toys and much more for your infant. There is a branding clothing including towel and other wear. New fashioned and artificial jewelry for women available at our site at low cost.",
"title": ""
},
{
"docid": "8c0ef6f40ab8b479d6fb041cc7102d7d",
"text": "It depends on a couple of things. One is your age -- if you're recently out of college that's totally fine; if you've been a professional for a long time then you may want to go a bit more formal. It also depends on the kind of investment firm and how client-facing the role / firm is. For example, I used to be at a firm where interviewing in shorts and a t-shirt would've been completely acceptable but I wouldn't suggest that at a white-shoe bank.",
"title": ""
},
{
"docid": "4bca2ab00f446483cdaaa60415bd5f2f",
"text": "Dark navy or medium gray suit. Black is for funeral or formal evening (tuxedo) only. Regardless of suit price, budget $75-$100 for tailoring. You need to have the waist of the coat adjusted, sleeves proper length and pants hemmed for it to all fit correctly. If you're in good shape I'd suggest Suit Supply instead of Brooks Bros - with the former catering to a more modern and generally younger clientele, still with excellent quality (comparably). Jos A Bank if you're really on a budget but do a little research on suit fit, button stance, lapel width, and pants break and taper before you go in because they'll sell you garbage if you don't know what you're talking about. /r/malefashionadvice has a good sidebar and wiki if you want more info.",
"title": ""
},
{
"docid": "c804ae4682fa76a99113968800e2d94c",
"text": "to find out how, we encourage you to read this post right away. by doing so, you will surely know how you can finance the purchase of important office or business equipment. you will also learn from it an excellent alternative you can use to get the machines you need to support the profit-generating activities of your enterprise.",
"title": ""
},
{
"docid": "f42da1cd2ef31cee66b76a76fc1b27d3",
"text": "How are they going to know? You're going to be wearing dress shirts at that stage of your professional career. (*Not actual advice. I work in a different area of finance, however one of my coworkers had full sleeves done at some point prior to joining and just wore long sleeve shirts to work every day)",
"title": ""
},
{
"docid": "3a0de80aa0d7b68fa36d2b1649083169",
"text": "Cleaning the dirty clothes on your own and then ironing them out is quite a tough and time consuming task even if you have the washing machine to ease the process. It is still a whole lot trouble to do on your own since if nothing else then at least you have to give time for machine washing; as a result you can’t plan outings.",
"title": ""
},
{
"docid": "511e8057b45ed3161ca616adc928c2ff",
"text": "Ok the black suit being for funerals and weddings only thing freaks me out because I've worn black suits to two interviews already. I'm gonna check out suit supply, there's a location nearby. What exactly is dark navy and medium gray (as opposed to what, light navy and dark gray?) What about those suits that are very lightly striped and black",
"title": ""
},
{
"docid": "79a3178632c607b69ebb936f976cb00e",
"text": "\"In my office we say \"\"A plan never survives first contact.\"\" I think the more important lesson would be the ability to quickly adapt your goals as things come up. I know plenty of business owners who have created goals and strive like hell to achieve them even after it no longer makes sense.\"",
"title": ""
},
{
"docid": "56596fac5107f6f0af730a04194202f2",
"text": "\"A little terminology: Grant: you get a \"\"gift\"\" with strings attached. \"\"Grant\"\" refers to the plan (legal contract) under which you get the stock options. Vesting: these are the strings attached to the grant. As long as you're employed by the company, your options will vest every quarter, proportionally. You'll become an owner of 4687 or 4688 options every quarter. Each such vest event means you'd be getting an opportunity to buy the corresponding amount of stocks at the strike price (and not the current market price which may be higher). Buying is called exercising. Exercising a nonqualified option is a taxable event, and you'll be taxed on the value of the \"\"gift\"\" you got. The value is determined by the difference between the strike price (the price at which you have the option to buy the stock) and the actual fair market value of the stock at the time of vest (based on valuations). Options that are vested are yours (depending on the grant contract, read it carefully, leaving the company may lead to forfeiture). Options that are not vested will disappear once you leave the company. Exercised options become stocks, and are yours. Qualified vs Nonqualifed - refers to the tax treatment. Nonqualified options don't have any special treatment, qualified do. 3.02M stocks issued refers to the value of the options. Consider the total valuation of the company being $302M. With $302M value and 3.02M stocks issued, each stock is worth ~$100. Now, in a year, a new investor comes in, and another 3.02M stocks are issued (if, for example, the new investor wants a 50% stake). In this case, there will be 6.04M stocks issued, for 302M value - each stock is worth $50 now. That is called dilution. Your grant is in nominal options, so in case of dilution, the value of your options will go down. Additional points: If the company is not yet public, selling the stocks may be difficult, and you may own pieces of paper that no-one else wants to buy. You will still pay taxes based on the valuations and you may end up paying for these pieces of paper out of your own pocket. In California, it is illegal to not pay salary to regular employees. Unless you're a senior executive of the company (which I doubt), you should be paid at least $9/hour per the CA minimum wages law.\"",
"title": ""
},
{
"docid": "32b05968963d9514c0e852d6bb5761a8",
"text": "I think a shirt with French cuffs that require cufflinks is a good way to show any conservative workplace that you know how they roll. However if you are just an intern it might make you look very stuffy. I say do it if you are over 20. And practice tying your tie so the taper to the point starts at the belt buckle. You don't want to see the top shirt button, and you don't want to see any shirt below the tie. Last thing, leave the bottom button of the suit unbuttoned at all times. So if it is a three button suit, never ever touch button three. Also, you may unbutton your suit when you sit down, rebutton it up when you stand up. If you sit down with buttons done up sometimes it scrunches up a bit around the shoulders.",
"title": ""
},
{
"docid": "fb170625dab7f3cef03aa1776a9740b7",
"text": "Fair enough. It's an interesting one, seems everyone has taken to wearing them in the US office. We rip the piss out of them pretty badly over here, until one dude rocked up with an Axe Capital one. That was pretty cool",
"title": ""
}
] |
fiqa
|
2fda7195ef3ddc7d497367236964bb28
|
How can I import customers and invoices from a previous year's Gnucash file?
|
[
{
"docid": "52814076ebf3e11bea5315414acf2240",
"text": "There does not appear to be a way to export the customers and invoices nor a way to import them into another data file if you could export them. However, as said in the comments to your question, your question seems predicated upon the notion that it is 'best practice' to create a new data file each year. This is not considered necessary It should be noted that GnuCash reports should be able to provide accurate year-end data for accounting purposes without zeroing transactions, so book-closing may not be necessary. Leaving books unclosed does mean that account balances in the Chart of Accounts will not show Year-To-Date amounts. - Closing Books GnuCash Wiki The above linked wiki page has several methods to 'close the books' if that is what you want to do - but it is not necessary. There is even a description on how to create a new file for the new year which only talks about setting up the new accounts and transactions - nothing about customers, invoices etc. Note that you can 'close the books' without creating a new data file. In summary: you cannot do it; but you don't need to create a new file for the new year so you don't need to do it.",
"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": "9ebc43ac297c2c5d3bad28059236f170",
"text": "Check the Financial section in this list of Open Source Software",
"title": ""
},
{
"docid": "4767150d12ae946f266ade3beae6a7b0",
"text": "You could keep an eye on BankSimple perhaps? I think it looks interesting at least... too bad I don't live in the US... They are planning to create an API where you can do everything you can do normally. So when that is released you could probably create your own command-line interface :)",
"title": ""
},
{
"docid": "998c6bb64e219b1c2a9fa3c93102ef7f",
"text": "If you were a business, all your assets would have a dollar value, so when you sold them you'd decrease the amount of assets by that amount and increase in cash, and if there was a profit on the sale it would go in as income, if there was loss it would count as a cost (or a loss)... so if there was a profit it would increase Equity, a loss then it would decrease Equity. Since it's not really worthwhile doing a estimated cost for everything that you have, I'd just report it as income like you are doing and let the amount of equity increase proportionately. So, implicitly you always had roughly that amount of equity, but some of it was in the form of assets, and now you're liquidating those assets so the amount shows up in GnuCash. When you buy new things you might sell later, you could consider adding them as assets to keep track of this explicitly (but even then you have problems-- the price of things changes with time and you might not want to keep up with those price changes, it's a lot of extra work for a family budget) -- for stuff you already have it's better to treat things as you are doing and just treat the money as income-- it's easier and doesn't really change anything-- you always had that in equity, some of it was just off the books and now you are bringing it into the books.",
"title": ""
},
{
"docid": "b032d3617b0cb738bf35e3604308a83b",
"text": "You would need to use Trading Accounts. You can enable this, File->Properties->Account settings tab, and check Use Trading Accounts. For more details see the following site: http://wiki.gnucash.org/wiki/Trading_Accounts",
"title": ""
},
{
"docid": "fcad8e8e16fb8e86b9784b90ea346cf7",
"text": "The GnuCash manual has a page with examples of opening new accounts. The tl;dr is: use the Equity:Opening Balance to offset your original amounts. The further explanation from the GnuCash page is: As shown earlier with the Assets:Checking account, the starting balances in an account are typically assigned to a special account called Equity:Opening Balance. To start filling in this chart of account, begin by setting the starting balances for the accounts. Assume that there is $1000 in the savings account and $500 charged on the credit card. Open the Assets:Savings account register. Select View from the menu and check to make sure you are in Basic Ledger style. You will view your transactions in the other modes later, but for now let’s enter a basic transaction using the basic default style. From the Assets:Savings account register window, enter a basic 2 account transaction to set your starting balance to $1000, transferred from Equity:Opening Balance. Remember, basic transactions transfer money from a source account to a destination account. Record the transaction (press the Enter key, or click on the Enter icon). From the Assets:Checking account register window, enter a basic 2 account transaction to set your starting balance to $1000, transferred from Equity:Opening Balance. From the Liabilities:Visa account register window, enter a basic 2 account transaction to set your starting balance to $500, transferred from Equity:Opening Balance. This is done by entering the $500 as a charge in the Visa account (or decrease in the Opening Balance account), since it is money you borrowed. Record the transaction (press the Enter key, or click on the Enter icon). You should now have 3 accounts with opening balances set. Assets:Checking, Assets:Savings, and Liabilities:Visa.",
"title": ""
},
{
"docid": "aa9d259510819cd62f0e479e8728860b",
"text": "\"You say your primary goal is to clean up your credit report, and you're willing to spend some cash to do it. OK. But beware: the law in this area is a funhouse mirror, everything works upside down and backwards. To start, let's be clear: Credit reports are not extortion to force you into paying. They are a historical record of your creditworthiness, and almost impossible to fix without altering history. Paying on this debt will affirm the old data was correct, and glue it to your report. Here's how credit reporting works for R-9 (sent to collections) amounts. The data is on your credit report for 7 years. The danger is in this clock being restarted. What will not restart the clock? Ignoring the debt, talking casusally to collectors, and the debt being sold from one collector to another. What will restart the clock? Acknowledging the debt formally, court judgment, paying the debt, or paying on the debt (obviously, paying acknowledges the debt.) Crazy! You could have a debt that's over 7 years old, pay it because you're a decent person, and BOOM! Clock restarts and 7 more years of bad luck. Even worse-- if they write-off or forgive any part of the debt, that's income and you'll need to pay income tax on it. Ugh! Like I say, the only way to remove a bad mark is to alter history. Simple fact: The collector doesn't care about your bad credit mark; he wants money. And it costs a lot of money, time and/or stress for both of you to demand they research it, negotiate, play phone-tag, and ultimately go to court. So this works very well (this is just the guts, you have to add all the who, what, where, signature block, formalities etc.): 1 Company and Customer absolutely disagree as to whether Customer owes Company this debt: (explicitly named debt with numbers and amount) 2 But Company and Customer both eagerly agree that the expense, time, and stress of research, negotiation, and litigation is burdensome for both of us. We both strongly desire a quick, final and no-fault solution. Therefore: 3 Parties agree Customer shall pay Company (acceptable fraction here). Payment within 30 days. To be acknowledged in writing by Company. 4 This shall be absolute and final resolution. 5 NO-FAULT. Parties agree this settlement resolves the matter in good faith. Parties agree this settlement is done for practical reasons, this bill has not been established as a valid debt, and any difference between billed and settled amount is not a canceled nor forgiven debt. 6 Neither party nor its assigns will make any adverse statements to third parties relating to this bill or agreement. Parties agree they have a continuous duty to remove adverse statements, and agree to do so within seven days of request. 7 Parties specifically agree no adverse mark nor any mark of any kind shall be placed on Customer's credit report; and in the event such a mark appears, Parties will disavow it continuously. Parties agree that a good credit report has a monetary value and specific impacts on a customer's life. 8 Jurisdiction of law shall be where the effects are felt, and that shall be (place of service) regarding the amounts of the bill proper. Severable, inseparable, counterparts, witness, signature lines blah blah. A collector is gonna sign this because it's free money and it's not tricky. What does this do? 1, 2 and 5 alter history to make the debt never have existed in the first place. To do this, it must formally answer the question of why the heck would you pay a debt that isn't real and you don't owe: out of sheer practicality; it's cheaper than Rogaine. This is your \"\"get out of jail free\"\" card both with the credit bureaus and the IRS. Of course, 3 gives the creditor motivation to go along with it. 6 says they can't burn your credit. 7 says it again and they're agreeing you can sue for cash money. 8 lets you pick the court. The collector won't get hung up on any of these since he can easily remove the bad mark. (don't be mad that they won't do it \"\"for free\"\", that's what 3 is for.) The key to getting them to take a settlement is to be reasonable and fair. Make sure the agreement works for them too. 6 says you can't badmouth them on social media. 4 and 5 says it can't be used against them. 8 throws them a bone by letting them sue in their home court for the bill they just settled (a right they already had). If it's medical, add \"\"HIPAA does not apply to this document\"\" to save them a ton of paperwork. Make it easy for them. You want the collector to take it to his boss and say \"\"this is pretty good. Do it.\"\" Don't send the money until their signed copy is in your hands. Then send promptly with an SASE for the receipt. Make it easy for them. This is on you. As far as \"\"getting them to send you an offer\"\", creditors are reluctant to mail things especially to people they don't think will pay, because it costs them money to write and send. So you may need to be proactive about running them down with your offer. Like I say, it's a funhouse mirror.\"",
"title": ""
},
{
"docid": "d843bca1e943e85e1b0348c3812e7a6c",
"text": "\"GNUCash won't show 'Credit Card' type accounts in \"\"Process Payment\"\", as of v.2.6.1. A workaround is to create another account of type A/Payable. Then, transfer the operations you want to pay via \"\"Process Payment\"\" to this new account. It should be visible now. A drawback is that you have split your current Credit Card debt, which makes it harder to track. Alternatively you may wish to only use this new account for all your credit card related expenses. Another alternative is processing payments for these purchases manually to keep the 'credit card' accounts consistent.\"",
"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": "1577e21bf4ad3391c4631197ed104014",
"text": "I would say when starting with Gnucash to start with the level of granularity you are comfortable with while sticking to the double entry bookkeeping practices. So going through each one: Refund for Parking Pass. Assuming you treat the Parking Pass as a sunk cost, i.e. an Expense account, its just a negative entry in the Expense account which turns into a positive one in your Bank account. Yes it may look weird, and if you don't like it you can always 'pay from Equity' the prior month, or your Bank Account if you're backfilling old statements. Selling physical items. If you sold it on eBay and the value is high enough you'll get tax forms indicating you've earned x. Even if its small or not done via eBay, treat it the same way and create a 'Personal Items/Goods' Income account to track all of it. So the money you get in your Bank account would have come from there. Found jacket money would be an Equity entry, either Opening Balances into Cash or Bank account. Remember you are treating Equity / Opening Balances as the state before you started recording every transaction so both the value going into Assets (Banks,Stock,Mutual Funds) and Liabilities (Mortgage, Student Debt, Credit Card Debt) originate from there.",
"title": ""
},
{
"docid": "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": "0507b77c98c3fcf6da71fa48b8d2b9c8",
"text": "My bank will let me download credit card transactions directly into a personal finance program, and by assigning categories to stores I can get at least a rough overview of that sidd of things, and then adjust categories/splits when needed. Ditto checks. Most of my spending is covered by those. Doesn't help with cash transactions, though; if I want to capture those accurately I need to save receipts. There are ocr products which claim to help capture those; haven't tried them. Currently, since my spending is fairly stable, I'm mostly leaving those as unknown; that wouldn't work for you.",
"title": ""
},
{
"docid": "47ae96508ca08a01b1c2432172264fb7",
"text": "I just decided to start using GnuCash today, and I was also stuck in this position for around an hour before I figured out what to do exactly. The answer by @jldugger pointed me partially on the right track, so this answer is intended to help people waste less time in the future. (Note: All numbers have been redacted for privacy issues, but I hope the images are sufficient to allow you to understand what is going on. ) Upon successfully importing your transactions, you should be able to see your transactions in the Checking Account and Savings Account (plus additional accounts you have imported). The Imbalance account (GBP in my case) will be negative of whatever you have imported. This is due to the double-entry accounting system that GnuCash uses. Now, you will have to open your Savings Account. Note that except for a few transactions, most of them are going to Imbalance. These are marked out with the red rectangles. What you have to do, now, is to click on them individually and sort them into the correct account. Unfortunately (I do not understand why they did this), you cannot move multiple transactions at once. See also this thread. Fortunately, you only have to do this once. This is what your account should look like after it is complete. After this is done, you should not have to move any more accounts, since you can directly enter the transactions in the Transfer box. At this point, your Accounts tab should look like this: Question solved!",
"title": ""
},
{
"docid": "76c035fbbf0e576a6f2bd374cab35523",
"text": "\"The answer was provided to me at the Gnucash chat by \"\"warlord\"\". The procedure is as follows: After doing this you will have:\"",
"title": ""
},
{
"docid": "b07522b3d0b8010ac5cf189a043fcddf",
"text": "so... asset price inflation decoupled from fundamentals (thank you QE) along with rise in ETF (notorious depressant on volatility) means options trader are underestimating volatility? Who calculates the daily spreads between HV and IV, anyone? Im new to this.",
"title": ""
}
] |
fiqa
|
4d41d9c4cfdeafaea8e5dcbac0323618
|
Why does it take 3 days to do electronic transfers between banks? [duplicate]
|
[
{
"docid": "56200feb130cf0f9a75e565a7f4b6eeb",
"text": "\"I was perplexed by this until a few days ago when it finally clicked in a meeting with our fraud and money laundering teams in work (I work on trading surveillance). Apparently fraud detection and prevention of money laundering are currently the biggest delayers when it comes to electronic transfer of funds, checking that the transferring party has the funds to transfer etc. takes no time at all. It takes some time for a bank user to \"\"release\"\" a funds transfer; once it has been initiated it is put into a queue to be reviewed as potentially fraudulent or money laundering activity. Almost every transaction has to be monitored for this from a legal standpoint. The compliance process can take multiple days. Once the process is complete the request also has to go through \"\"settling\"\" which is an end of day process whereby banks \"\"net off\"\" their customers' transactions with other banks and only pass the net value between them. This is an end of day process by nature so only happens once a day meaning that once all of the checks have occurred any transaction will take until the end of the day to crystallise for the bank and so get credited to their customers' accounts. Incidentally in the UK and Europe banks are moving to streamline this process through \"\"faster payment\"\" systems (that is the industry term for the technology) so that customers see the effect within a few hours (2 in the UK currently) and then the banks net off at the end of day as usual. This means reducing the time it takes to do the checks that have to be done using specialist software to flag transfers as potentially fraudulent or not and making banks' processes much clearer and faster.\"",
"title": ""
},
{
"docid": "21abd7c81ac52b7456f391cab37c1f7c",
"text": "\"When Laurence Olivier took the role of Douglas Macarthur in the Unification Church's filming of Inchon, he told the press, \"\"People ask me why I'm playing in this picture. The answer is simple: Money, dear boy.\"\" Banking systems are typically decades old and subject to innumerable legal and technical restrictions. Moving money more quickly from one client's account to another would definitely be in the clients' interest, but\"",
"title": ""
}
] |
[
{
"docid": "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": "d67f73d2dcae87e644012d8234d2125b",
"text": "\"Echoing that bank fees are mostly \"\"because they can\"\", although partly this is because simply holding onto the money doesn't really pay enough for the physical infrastructure of branches, ATMs and staff. So like a budget airline they make it up on additional fees. But that document doesn't actually say they charge 3% for currency conversion! It's \"\"0.20% of transaction amount\"\" for currency conversion, which is not bad (although watch out for the \"\"spread\"\" between buying and selling rates). I see \"\"International POS/ATM Transaction Fee 3% of transaction amount\"\", which is very different. That's a card fee. The big issue with these is fraud - your card number suddenly being used in a different country will nearly always trigger extra fraud checks. It also involves a much more complicated settlement process. I'm more unimpressed with the monthly service charges and the huge $85 fee for international wire transfers.\"",
"title": ""
},
{
"docid": "6456413b7ec143609b45ca93f8c59625",
"text": "Generally, unless you're doing a wire transfer, bank transactions are processed in batches overnight. So the credit card company won't be able to confirm your transfer until the next business day (it may take even longer for them to actually receive the money).",
"title": ""
},
{
"docid": "94b2fd12e0f23935c4f35f3d4f8cfcee",
"text": "I phoned Tangerine; they enlightened me. It generally takes 2 hours for the email to arrive. Next, the recipient must open the email, click the link, and enter their bank account number. They'll generally receive the money 2-3 business days after that. This forum post suggests that the delays are due to systemic risk management, tendering, and clearing.",
"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": "384e8f4f9cfd57bcd1d185a8fbc1a6dc",
"text": "Wire transfers normally run through either the Fedwire system or the Clearing House Interbank Payments System (CHIPS). The process generally works like this: You approach a bank or other financial institution and ask to transfer money. You give the bank a certain code, either an international bank account number or one of several other standards, which informs the bank where to send the money. The bank sends a message through a system like Fedwire to the receiving bank, along with settlement instructions. This is where the process can get a bit tricky. For the wire transfer to work, the banks must have reciprocal accounts with each other, or the sending bank must send the money to a bank that does have such an account with the receiver. If the sending bank sends the money to a third-party bank, the transaction is settled between them, and the money is then sent to the receiving bank from the third-party bank. This last transaction may be a wire transfer, ACH transfer, etc. The Federal Reserve fits into this because many banks hold accounts for this purpose with the Federal Reserve. This allows them to use the Fed as the third-party bank referred to above. Interestingly enough, this is one of the significant ways in which the Fed makes a profit, because it, along with every other bank and routing agent in the process, collects a miniscule fee on this process. You'll often find sources that state that Fedwire is only for transferring large transactions; while this is technically correct, it's important to understand that financial institutions don't settle every wire transfer or payment immediately. Although the orders are put in immediately, the financial institutions settle their transactions in bulk at the end of the business day, and even then they normally only settle the difference. So, if Chase owes Bank of America $1M, and Bank of America owes Chase $750K, they don't send these as two transactions; Chase simply credits BAC $250K. You didn't specifically ask about ACH transfers, which as littleadv pointed out, are different from wire transfers, but since ACH transfers can often form a part of the whole process, I'll explain that process too. ACH is a payment processing system that works through the Federal Reserve system, among others. The Federal Reserve (through the Fedline and FedACH systems) is by far the largest payment processor. The physical cash itself isn't transferred; in simple terms, the money is transferred through the ACH system between the accounts each bank maintains at the Federal Reserve. Here is a simple example of how the process works (I'm summarizing the example from Wikipedia). Let's say that Bob has an account with Chase and wants to get his paycheck from his employer, Stack Exchange, directly deposited into this account. Assume that Stack Exchange uses Bank of America as their bank. Bob, the receiver, fills out a direct deposit authorization form and gives it to his employer, called the originator. Once the originator has the authorization, they create an entry with an Originating Depository Financial Institution, which acts as a middleman between a payment processor (like the Federal Reserve) and the originator. The ODFI ensures that the transaction complies with the relevant regulations. In this example, Bank of America is the ODFI. Bank of America (the ODFI) converts the transaction request into an ACH entry and submits it, through an ACH operator, to the Receiving Depository Financial Institution (RDFI), which in this case is Chase bank. Chase credits (deposits) the paycheck in Bob's account. The Federal Reserve fits into all of this in several ways. Through systems like Fedline and FedACH, the Fed acts as an ACH operator, and the banks themselves also maintain accounts at the Federal Reserve, so it's the institution that actually performs the settling of accounts between banks.",
"title": ""
},
{
"docid": "6117285b4f91fa403a869d9aae1f0b06",
"text": "Transaction fees are part of the income for banks, and as we know they are profit making corporations just like any other Company. The differene is that instead of buying and packing and Selling groceries, they buy and package and sell Money. Within the rules and the market they will try to maximize their profit, exactly like Apple or GM or Walmart and so on. Sweden and Holland are part of the European union and the leaders of the union has defined (by law) that certain types of transactions should be done without fees. In order to transfer Money from your Swedish account to the Dutch account you do what is called a SEPA transaction, which should be done in one day without cost to you as a customer. Reference: https://en.wikipedia.org/wiki/Single_Euro_Payments_Area Gunnar",
"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": "ed46c50e9037426f041b572817397ecf",
"text": "I believe there are electronic exchanges that run continuously, but the older ones don't want to change their practices since some people may have strategies which (claim they) are based on this behavior so there would be a lot of unhappy people if it was altered. The pause doesn't seem to do any harm. There are alternatives if you dislike it. Don't try to fix what isn't broken.",
"title": ""
},
{
"docid": "6dafb584e471831c58c794e49801271c",
"text": "The reason they want the transaction to go through is because they make money that way. Remember the overdraft protection might incur a fee. If it does their experience may show them that the fee is a greater source of profit when balanced against the losses incurred because of insufficient funds. Even free overdraft transactions are limited. If they didn't want to make money they would have a way to make sure that multiple overdrafts in a short time window wouldn't require multiple protection events. Remember each time they transfer funds they only bring you to zero. As it is now the coffee you buy after putting money on your subway fare card might also trigger an overdraft transfer.",
"title": ""
},
{
"docid": "a9fcab5818512c3eaaaabbd520b51012",
"text": "Behind the scenes of banking are a lot of very manual processes especially when something goes wrong. These take extra time not only because it involves people reviewing what went wrong but also because the bank will take extra steps to reduce human error (e.g. technical jargon about maker/checker, dual controls). Something like this can easily get held up for a month and the best way to jump the queue is to start complaining a lot, calling customer service frequently, asking to talk to management and otherwise pestering the bank until someone senior gets your problem fast-tracked so you stop giving them a headache.",
"title": ""
},
{
"docid": "916a1bd0e73b9458004031fb04185062",
"text": "Take a look at http://en.wikipedia.org/wiki/Payment_gateway There is essentially a lead time between when the transaction is made and when it is settled, 2-3 business days is the lead time for settlement. The link explains the process step-by-step",
"title": ""
},
{
"docid": "5d4b563eb87571a56696afb1a390e007",
"text": "Mainly because they can. Yes, there is a cost for banks to execute such transactions, and yes, there is a cost to cover the implied risks, but it is far from 3 or 4%. There are banks that charge a flat rate of less than 30$ (and no percentage), so for larger amounts, it is worth shopping around. Note that for smaller amounts, which are the majority of personal transactions, that is probably about as, if not more expensive, than paying 3% - below 1000$, 3% is less than 30$. So charging a percentage is actually better for people that want to transfer smaller amounts.",
"title": ""
},
{
"docid": "c86d14f8aa9808105813991a3ee85129",
"text": "I have taken to using the service TransferWise. I have found them to be faster and cheaper and easier than using SWIFT, given the US Banking's... antiquated system of doing things. I've made dozens of transfers between my international accounts with TransferWise over the past 18 months. Some of them very large and some of them tiny, and even when there's been an issue (I once wrote an offensive joke in my narration for the transfer and they noticed) they have handled it respectfully and quickly. Prior to transferring money to US accounts, I used the SWIFT system - but SWIFT has a pretty spotty record in the US. Some banks you can do it all online but other banks, as Dheer mentioned, you have to go into the bank and sometimes find a senior staff member before you can find someone who even knows what SWIFT is.",
"title": ""
},
{
"docid": "9b37851cc5fb0bc5aee4673672fc4735",
"text": "\"To add in a brief expansion to Portman's complete answer. The payment can also be thought of as compensation for your \"\"switching cost\"\". Obviously it is inconvenient to transfer your account from one bank to another (changing static payments, stationery, that sort of thing). The cash is offered as payment towards that inconvenience. Given the profits that banks make you can think of the $100 in much the same way as a store offering you a 5% discount on your next shopping trip.\"",
"title": ""
}
] |
fiqa
|
bb2f7965fba4799eb7489fafa93413d1
|
Swiss-style Monetary Policy
|
[
{
"docid": "87f3299669175f2ba326371f00e92c4a",
"text": "\"This is what is called \"\"weasel words\"\". They're trying to put some authority into their ad, but since they don't have any - they're putting meaningless words that sound important. Monetary policy is the state/central bank policy to control the supply of the available currency. Cannot think of a way to connect it to private investments.\"",
"title": ""
},
{
"docid": "8a0657524e9d35d91e45059d307b5966",
"text": "\"I'm not sure what is traditionally meant by \"\"Swiss-style monetary policy\"\" but lately it has meant the same thing as US monetary policy, or Japanese monetary policy, or Euro monetary policy: PRINT. Look how many Swiss Francs it takes to buy a currency that cannot be printed: I'm not sure why they would be touting \"\"Swiss-style monetary policy\"\". That hasn't been too stellar lately.\"",
"title": ""
}
] |
[
{
"docid": "045a95698737bb16498d42194ede6411",
"text": "I am just a C student with no hope for grad school, so you are going to have to walk me through this... The ECB (until recently), Japan, and the Swiss have been running QE programs equal to that of the Fed's in 2009 for the last couple of years. That's an extraordinary amount of money being created... what's more, is that the Swiss are even buying shitloads of American equities with it. Perhaps my understanding of M2 is flawed, but how would the Swiss national bank buying $63B in equities change M2? It's not like the fed is printing the money specifically for the transaction. The amount of QE being pumped into a healthy economy over the last couple years should be concerning, if only because it's unprecedented, especially since some of it is being directly invested into equities. I don't think there is a viable argument that can truthfully say that it isn't a pretty large variable in the market today.... but I could be wrong. Also, I've read enough, and heard enough, on how the inflation rate is measured to cultivate a healthy skepticism for the entire metric. The way they choose baskets, while obviously the best possible, is not something that lends itself to precision. Please be kind to my grammar.",
"title": ""
},
{
"docid": "b7577e9124a4a8752111a7e91e5033a0",
"text": "The idea behind this move is to avoid or mitigate long-term deflationary pressure and to boost the competitiveness of Swiss exporters. This is primarily a Swiss-based initiative that does not appear likely to have a major impact on the broader Eurozone. However, some pressure will be felt by other currencies as investors look to purchase - ie. this is not a great scenario for other countries wanting to keep their currencies weak. In terms of personal wealth - if you hold Swiss f then you are impacted. However, 1.2 is still very strong (most analysts cite 1.3 as more realistic) so there seems little need for a reaction of any kind at the personal level at this time, although diversity - as ever - is good. It should also be noted that changing the peg is a possibility, and that the 1.3 does seem to be the more realistic level. If you hold large amounts of Swiss f then this might cause you to look at your forex holdings. For the man in the street, probably not an issue.",
"title": ""
},
{
"docid": "39430e9e2b7e42a65b94a9ad0d7d55bf",
"text": "\"Correct! But this is only true when a central bank is involved. So if there's a single institution that has a territorial monopoly on the production of money (and competing currencies aren't allowed via \"\"legal tender laws\"\"), then the debt-based money system OP describes isn't actually the system being used. That's the problem with his post: he's trying to make it seem like our current system of fiat currencies is somehow natural or emergent. It's not. What we have now is the result of a legal monopoly.\"",
"title": ""
},
{
"docid": "c4d799f952082cf6768813a8df4b3127",
"text": "The Swiss franc has appreciated quite a bit recently against the Euro as the European Central Bank (ECB) continues to print money to buy government bonds issues by Greek, Portugal, Spain and now Italy. Some euro holders have flocked to the Swiss franc in an effort to preserve the savings from the massive Euro money printing. This has increased the value of the Swiss franc. In response, the Swiss National Bank (SNB) has tried to intervene multiple times in the currency market to keep the value of the Swiss franc low. It does this by printing Swiss francs and using the newly printed francs to buy Euros. The SNB interventions have failed to suppress the Swiss franc and its value has continued to rise. The SNB has finally said they will print whatever it takes to maintain a desired peg to the Euro. This had the desired effect of driving down the value of the franc. Which effect will this have long term for the euro zone? It is now clear that all major central bankers are in a currency devaluation war in which they are all trying to outprint each other. The SNB was the last central bank to join the printing party. I think this will lead to major inflation in all currencies as we have not seen the end of money printing. Will this worsen the European financial crisis or is this not an important factor? I'm not sure this will have much affect on the ongoing European crisis since most of the European government debt is in euros. Should this announcement trigger any actions from common European people concerning their wealth? If a European is concerned with preserving their wealth I would think they would begin to start diverting some of their savings into a harder currency. Europeans have experienced rapidly depreciating currencies more than people on any other continent. I would think they would be the most experienced at preserving wealth from central bank shenanigans.",
"title": ""
},
{
"docid": "f2bb673aed58d4f4d514d8902cd390a0",
"text": "It matters to taxpayers and this country because the Federal Reserve's obligations are guaranteed by them. Taxpayers don't support fully covering Wall Street's bad bets from the Financial Crisis, which is precisely what QE and current monetary policy are aimed at doing.",
"title": ""
},
{
"docid": "5e05f4ca993aa308520b5e5ce2655662",
"text": "\"> AMERICA is growing, Western Europe is stagnant, China and most of East Asia is expanding relatively quickly So staring into the face of evidence from his own intro context that generally the more active fiscal intervention since the GFC, the better economies have fared, the author proceeds to prognosticate about impending doom for the Chinese if they don't conclusively switch & stick to austerity and ignore growth to focus on hidden inflation monsters. For the US somehow everything comes down to fed monetary policy, despite the fact that 4 years of the fed's alphabet soup programs without any fiscal assistance from congress hasn't kicked the US back into preferred growth and GDP is seeming to slow back down toward recession/stagnation. And finally the eurozone is apparently most plagued by \"\"overblown public debt\"\" and government spending somehow \"\"crowding out\"\" investment that just wishes it had the chance to invest if those pesky profligate politicians would get out of the way, and maybe the countries should fork over their economic sovereignty to the ECB so they can be structurally reformed (bloodletting/grave robbing). Just my opinion, this whole article seems like shitty oldschool/backward economic views coming out of academic economics, likely angling to be a ['very serious person' in ECB bureaucratic/advisory politics](http://www.geopolitical-info.com/en/expert/professor-enrico-colombatto). The lack of being able to comprehend & adjust to real world results is just sad.\"",
"title": ""
},
{
"docid": "0e7739a1c040d7e49a3b2af7e5bfb609",
"text": "\"This is the best tl;dr I could make, [original](http://www.reuters.com/article/us-usa-fed-policy-idUSKBN1A80XA) reduced by 87%. (I'm a bot) ***** > The Fed led the way in tightening monetary policy as the global economy recovered from the 2008 recession but must now determine how plans by other central banks&#039; plans may affect their own policy. > While a stronger European economy has been welcomed by the Fed, lessening risks to the global economy, a move by major central banks to all tighten monetary policy simultaneously has not been seen for a decade. > When Fed policymakers meet on July 25-26 they will need to decide a start date for reducing their bond holdings or leave more time to evaluate what Fed Governor Lael Brainard recently cited as a possible &quot;Turning point&quot; in global monetary policy that may affect economic growth. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6peule/federal_reserve_now_faces_prospect_of_global/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~174973 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*: **Fed**^#1 **rate**^#2 **policy**^#3 **month**^#4 **bond**^#5\"",
"title": ""
},
{
"docid": "cb3bbbf3c817b7a173fbd0fcbf065452",
"text": "Your question contains two different concepts: fractional reserve banking and debt-based money. When thinking of these two things I think it is important to analyze these items separately before trying to understand how the whole system works. Fractional Reserve Banking As others have pointed out fractional reserve banking is not a ponzi scheme. It can be fraudulent, however. If a bank tells all its depositors that they can withdrawal their money at any time (i.e. on demand) and the bank then proceeds to loan out some portion of the depositors' money then the bank has committed fraud since there is no way they could honor the depositors' requests for their money if many of them came for their money at one time. This is true regardless of what type of money is deposited - dollars, gold, etc.. This is how most modern banks operate. Debt-based money Historically, the Fed would introduce new money by buying US Treasuries. This means Federal Reserve Notes (FRN) are backed by US Treasuries. I agree that this seems strange. Does this mean if I take my FRNs to the Fed I could redeem them for US Treasuries? But US Treasuries are promises to pay FRNs in the future. This makes my head hurt. Reminds me of the definition for recursion: see recursion. Here is an experiment. What if we wanted to recreate FRNs today and none existed? The US government would offer a note to pay 100 FRNs in one year and pay 5% interest on the note. The Fed would print up its first 100 FRNs to buy the note from the US government. The US government would spend the FRNs. The first 100 FRNs have now entered into circulation. At the end of the note's term the Fed should have 105 FRNs since the government agreed to pay 5% interest on the note. But how is the US government going to pay the interest and principal on the note when only 100 FRNs exist? I think this is the central point to your question. I can come up with only two answers: 1) the Fed must purchase some assets that are not debt based 2) the US government must continue to issue debt that is purchased by newly printed FRNs in order to pay back older debt and interest. This is a ponzi scheme. The record debt levels seem to indicate the ponzi scheme option was chosen.",
"title": ""
},
{
"docid": "c4256692af1f36bc4422ea1aa0c48647",
"text": "So much spin with you. Kenyes wrote explicitly about deficit spending, and the repayment of those deficits. The denomination of the currency, floating or otherwise, is besides the point. Again, you just want to model away the burden and risk of debt. It's never worked, and it never will.",
"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": "68307d5be9ffcdcde08545453139e73a",
"text": "\"Buying physical gold: bad idea; you take on liquidity risk. Putting all your money in a German bank account: bad idea; you still do not escape Euro risk. Putting all your money in USD: bad idea; we have terrible, terrible fiscal problems here at home and they're invisible right now because we're in an election year. The only artificially \"\"cheap\"\" thing that is well-managed in your part of the world is the Swiss Franc (CHF). They push it down artificially, but no government has the power to fight a market forever. They'll eventually run out of options and have to let the CHF rise in value.\"",
"title": ""
},
{
"docid": "bab7bb817344b8591a92849a473ed6a7",
"text": "I beg to differ: Israel has an incredibly well managed central bank, and the usury market is wonderfully competitive. It's a shame Stanley Fischer has retired. His management is the case study in central bank management. Rates are low because inflation is low. The nominal rate is irrelevant to return because a 2% nominal return with 1% inflation is superior to a 5% nominal return with 9% inflation. A well-funded budget is the best first step, so now a tweak is necessary: excess capital beyond budgeting should be moved quickly to internationally diversified equities after funding, discounted and adjusted, longer term budgets. Credit will not pay the rate necessary for long term investment. Higher variance is the price to pay for higher returns.",
"title": ""
},
{
"docid": "629a1e69f2804a85212260c726c6c200",
"text": "This is a good point. The problem is that we still use the central bank and interest rates to try to control the economy. This is the part that has failed. I would suggest adjusting government spending based on the economic situation (down in good times, up in bad times). I do believe this would prevent recessions but it has never been tried. only in desperate times like the japanese recession and our great depression does this get tried and in both times has been effective. This is the difference between monetary and fiscal policy.",
"title": ""
},
{
"docid": "6cd544ba48b9438597eb4281ed7c0779",
"text": "\"Yes sir, I'm working on compiling your \"\"precise evidence,\"\" and I'll have it printed and bound for you on the double. In the meantime, you can look here as a starting point and try to find the part where the Fed has allowed interest rates to adjust freely, and maybe you can learn why rates are artificial: http://en.wikipedia.org/wiki/Federal_Reserve_responses_to_the_subprime_crisis As for \"\"cahoots\"\" and independent banks and whatever other off-topic nonsense you're babbling about, there was nothing said about cahoots or independent banks. The interest rates paid for and to US banks are affected by the monetary policy of the Fed. There is no collusion, or \"\"cahoots,\"\" required for them to follow a common policy of artificially-low interest rates, which was the point of the earlier post.\"",
"title": ""
},
{
"docid": "24cf9bf194cce0172e56f99da529f5bd",
"text": "They will not open an account if you come in wanting to open an account for a third party. Your sister will have to do it herself. Assuming she has a SSN and credit history to verify her identity, she'll easily be able to do it online, and use whatever address she wants to send mail to (she can have separate mailing and residence addresses). There are also Israeli institutions who provide investment accounts to Israelis with ability to trade in the US. That might be easier for her than having an account in the US and filing tax returns in Israel every year. Unless she evades taxes in Israel, that is...",
"title": ""
}
] |
fiqa
|
f47421a1d488cd01163356374a1ba69d
|
Why does capital gains tax apply to long term stock holdings?
|
[
{
"docid": "348c16d28dd5f13cc22835ed310e419a",
"text": "\"Why only long term investments? What do they care if I buy and sell shares in a company in the same year? Simple, your actually investing when you hold it for a long term. If you hold a stock for a week or a month there is very little that can happen to change the price, in a perfect market the value of a company should stay the same from yesterday to today so long as there is no news(a perfect market cannot exist). When you hold a stock for a long term you really are investing in the company and saying \"\"this company will grow\"\". Short term investing is mostly speculation and speculation causes securities to be incorrectly valued. So when a retail investor puts money into something like Facebook for example they can easily be burned by speculation whether its to the upside or downside. If the goal is to get me to invest my money, then why not give apply capital gains tax to my savings account at my local bank? Or a CD account? I believe your gains on these accounts are taxed... Not sure at what rate. If the goal is to help the overall health of business, how does it do that? During an IPO, the business certainly raises money, but after that I'm just buying and selling shares with other private shareholders. Why does the government give me an incentive to do this (and then hold onto it for at least a year)? There are many reasons why a company cares about its market price: A companies market cap is calculated by price * shares outstanding. A market cap is basically what the market is saying your company is worth. A company can offer more shares or sell shares they currently hold in order to raise even more capital. A company can offer shares instead of cash when buying out another company. It can pay for many things with shares. Many executives and top level employees are payed with stock options, so they defiantly want to see there price higher. these are some basic reasons but there are more and they can be more complex.\"",
"title": ""
},
{
"docid": "4dceaf523ac9a71169632ad3f2e7dde8",
"text": "\"Most well-off people have investments which they have held for long periods of time, often of very substantial value such as a large part of a company. They also have influence on legislators and officials through various social contacts, lobbyists, and contributions. They managed to convince these law makers to offer a lower tax on income derived from sales of such investments. The fig leaf covering this arrangement is that it \"\"contributes to the growth of economy by encouraging long-term investment in new enterprises.\"\"\"",
"title": ""
},
{
"docid": "55f5766b4bd76b7cc568d0b2098f45c3",
"text": "\"It's a matter of social policy. The government wants people to make long term investments because that would lead to other long-term government goals: employment, manufacturing, economical growth in general. While speculative investments and day-trading are not in any way discouraged, investments that contribute to the economy as a whole and not just the investor are encouraged by the lower tax rates on the profits. While some people consider it to be a \"\"fig leaf\"\", I consider these people to be populists and dishonest. Claiming that long term social goals are somehow bad is hypocrisy. Claiming that short-term trading contributes to the economy as a whole is a plain lie.\"",
"title": ""
},
{
"docid": "203eb96b27730739653e88e2b39cee77",
"text": "In Australia we have a 50% capital gain discount if you hold the asset for more than 12 months, whether it is in shares, property or other assets. The main reason is to encourage people to invest long-term instead of speculating or trading. The government sees speculation or short term trading as more risky than long term investing for the everyday mum and dad investor, so rewards people it sees taking the lower risk long term view. In my opinion, long term investing, short term trading and speculation can all be risky for someone who is unedutated in the financial markets, and the first rule of investing should be to consider the asset itself and not the tax implications.",
"title": ""
}
] |
[
{
"docid": "7ca594024cad43676e532bdd3be3a86d",
"text": "No, it's not all long-term capital gain. Depending on the facts of your situation, it will be either ordinary income or partially short-term capital gain. You should consider consulting a tax lawyer if you have this issue. This is sort of a weird little corner of the tax law. IRC §§1221-1223 don't go into it, nor do the attendant Regs. It also somewhat stumped the people on TaxAlmanac years ago (they mostly punted and just declared it self-employment income, avoiding the holding period issue). But I did manage to find it in BNA Portfolio 562, buried in there. That cited to a court case Comm'r v. Williams, 256 F.2d 152 (5th Cir. 1958) and to Revenue Ruling 75-524 (and to another Rev. Rul.). Rev Rul 75-524 cites Fred Draper, 32 T.C. 545 (1959) for the proposition that assets are acquired progressively as they are built. Note also that land and improvements on it are treated as separate assets for purposes of depreciation (Pub 946). So between Williams (which says something similar but about the shipbuilding industry) and 75-524, as well as some related rulings and cases, you may be looking at an analysis of how long your property has been built and how built it was. You may be able to apportion some of the building as long-term and some as short-term. Whether the apportionment should be as to cost expended before 1 year or value created before 1 year is explicitly left open in Williams. It may be simpler to account for costs, since you'll have expenditure records with dates. However, if this is properly ordinary income because this is really business inventory and not merely investment property, then you have fully ordinary income and holding period is irrelevant. Your quick turnaround sale tends to suggest this may have been done as a business, not as an investment. A proper advisor with access to these materials could help you formulate a tax strategy and return position. This may be complex and law-driven enough that you'd need a tax lawyer rather than a CPA or preparer. They can sort through the precedent and if you have the money may even provide a formal tax opinion. Experienced real estate lawyers may be able to help, if you screen them appropriately (i.e. those who help prepare real estate tax returns or otherwise have strong tax crossover knowledge).",
"title": ""
},
{
"docid": "7a252d3d90b6059f7c527797d75585a7",
"text": "\"I'll try to answer using your original example. First, let me restate your assumptions, slightly modified: The mutual fund has: Note that I say the \"\"mutual fund has\"\" those gains and losses. That's because they occur inside the mutual fund and not directly to you as a shareholder. I use \"\"realized\"\" gains and losses because the only gains and losses handled this way are those causes by actual asset (stock) sales within the fund (as directed by fund management). Changes in the value of fund holdings that are not sold are not included in this. As a holder of the fund, you learn the values of X, Y, and Z after the end of the year when the fund management reports the values. For gains, you will also typically see the values reported on your 1099-DIV under \"\"capital gains distributions\"\". For example, your 1099-DIV for year 3 will have the value Z for capital gains (besides reporting any ordinary dividends in another box). Your year 1 1099 will have $0 \"\"capital gains distributions\"\" shown because of the rule you highlighted in bold: net realized losses are not distributed. This capital loss however can later be used to the mutual fund holder's tax advantage. The fund's internal accounting carries forward the loss, and uses it to offset later realized gains. Thus your year 2 1099 will have a capital gain distribution of (Y-X), not Y, thus recognizing the loss which occurred. Thus the loss is taken into account. Note that for capital gains you, the holder, pay no tax in year 1, pay tax in year 2 on Y-X, and pay tax in year 3 on Z. All the above is the way it works whether or not you sell the shares immediately after the end of year 3 or you hold the shares for many more years. Whenever you do sell the shares, you will have a gain or loss, but that is different from the fund's realized losses we have been talking about (X, Y, and Z).\"",
"title": ""
},
{
"docid": "2298623d7f59f87288ce808fd76d4706",
"text": "The capital gain is either short-term or long-term and will be indicated on the 1099-DiV. You pay taxes on this amount as the capital gain was received in a taxable account (assuming since you received a 1099-DIV). More info here: https://www.mutualfundstore.com/brokerage-account/capital-gains-distributions-taxable",
"title": ""
},
{
"docid": "81b9092a7fb8eabc369aa9bf0b4a9989",
"text": "No Tax would have been deducted at the time of purchase/sale of shares. You would yourself be required to compute your tax liability and then pay taxes to the govt. In case the shares sold were held for less than 1 year - 15% tax on capital gains would be levied. In case the shares sold were held for more than 1 year - No Tax would be levied and the income earned would be tax free. PS: No Tax is levied at the time of purchase of shares and Tax is only applicable at the time of sale of shares.",
"title": ""
},
{
"docid": "b693d1e182c3ed28bb173f8f81004e15",
"text": "\"There are probably many correct answers to this question, but for most people, the main reason is qualified dividends. To be a qualified dividend (and therefore eligible for lower tax rates), the dividend-paying stock or fund must be held for \"\"more than 60 days during the 121-day period that begins 60 days before the ex-dividend date\"\". Since many stocks and funds pay out dividends at the end of the year, that means it takes until mid- to late February to determine if you held them, and therefore made the dividend qualified. Brokerages don't want to send out 1099s in January and then possibly have to send out revised versions if you decide to sell something that paid a dividend in December that otherwise would have been qualified.\"",
"title": ""
},
{
"docid": "ab9d23b9c64bf48c909c67f1f807bef8",
"text": "\"A mutual fund could make two different kinds of distributions to you: Capital gains: When the fund liquidates positions that it holds, it may realize a gain if it sells the assets for a greater price than the fund purchased them for. As an example, for an index fund, assets may get liquidated if the underlying index changes in composition, thus requiring the manager to sell some stocks and purchase others. Mutual funds are required to distribute most of their income that they generate in this way back to its shareholders; many often do this near the end of the calendar year. When you receive the distribution, the gains will be categorized as either short-term (the asset was held for less than one year) or long-term (vice versa). Based upon the holding period, the gain is taxed differently. Currently in the United States, long-term capital gains are only taxed at 15%, regardless of your income tax bracket (you only pay the capital gains tax, not the income tax). Short-term capital gains are treated as ordinary income, so you will pay your (probably higher) tax rate on any cash that you are given by your mutual fund. You may also be subject to capital gains taxes when you decide to sell your holdings in the fund. Any profit that you made based on the difference between your purchase and sale price is treated as a capital gain. Based upon the period of time that you held the mutual fund shares, it is categorized as a short- or long-term gain and is taxed accordingly in the tax year that you sell the shares. Dividends: Many companies pay dividends to their stockholders as a way of returning a portion of their profits to their collective owners. When you invest in a mutual fund that owns dividend-paying stocks, the fund is the \"\"owner\"\" that receives the dividend payments. As with capital gains, mutual funds will redistribute these dividends to you periodically, often quarterly or annually. The main difference with dividends is that they are always taxed as ordinary income, no matter how long you (or the fund) have held the asset. I'm not aware of Texas state tax laws, so I can't comment on your other question.\"",
"title": ""
},
{
"docid": "5939f1d283af184f432800ab3ed5f171",
"text": "Another benefit of holding shares longer was just pointed out in another question: donating appreciated shares to a nonprofit may avoid the capital gains tax on those shares, which is a bigger savings the more those shares have gone up since purchase.",
"title": ""
},
{
"docid": "743d2e65a512c9a50e965e0a1b4a80f0",
"text": "\"Dividends telegraph that management has a longer term focus than just the end of quarter share price. There is a committment to at least maintain (if not periodically increase) the dividend payout year over year. Management understands that cutting or pausing dividends will cause dividend investors in market to dump shares driving down the stock price. Dividends can have preferential tax treatment in some jurisdictions, either for an individual compared to capital gains or compared to the corporation paying taxes themselves. For example, REITs (real estate investment trusts) are a type of corporation that in order to not pay corporate income tax are required to pay out 95% of income as dividends each year. These are not the only type, MLP (master limited partnerships) and other \"\"Partnership\"\" structures will always have high dividend rates by design. Dividends provide cash flow and trade market volatility for actual cash. Not every investor needs cash flow, but for certain investors, it reduces the risks of a liquidity crisis, such as in retirement. The alternative for an investor who seeks to use the sale of shares would be to maintain a sufficient cash reserve for typical market recessions.\"",
"title": ""
},
{
"docid": "d3654d20ab2b1704565386801ebed97b",
"text": "\"Of course, but that's not relevant to my example. Let me clarify: say you hold a highly-appreciated $10M position in AAPL and you have good reason to believe the next iPhone is going to be a flop, causing the stock to decline 20%. You can sell now to avoid the (probable) decline, but by doing so you will be left with, let's say, $6.67M after paying $3.33M of state and federal LTCG taxes on the appreciation ($9M of the $10M, because you bought a long time ago). However, by simply doing nothing and \"\"eating\"\" the 20% decline, you'll end up with $8M instead of $6.67M. Many economists would criticize the tax in this example, as it has led to the investor rationally suffering a $2M loss, instead of reallocating all $10M of his/her capital to a more promising enterprise. Furthermore, if/when many investors act that way, they can create inefficiency in the equity markets (prices not declining by as much as they should to reflect a firm's reduced prospects).\"",
"title": ""
},
{
"docid": "c3cc127af554bb700a27d2379fb350c3",
"text": "\"A qualifying distribution seems guaranteed to fall under long term capital gains. But a disqualifying distribution could also fall under long term capital gains depending on when it is sold. So what's the actual change that occurs once something becomes a qualifying as opposed to a disqualifying distribution? Yes a qualifying distribution always falls under long term capital gain. The difference between qualifying and disqualifying is how the \"\"bargain element\"\" of benefit is calculated. In case of disqualifying distribution it is always the discount offered, Irrespective of the final sale price of the stock. In case of qualifying distribution it is lower of actual discount or profit. Thus if you sell the stock at same price or slightly lower price than the price on exercise date, your \"\"bargain element\"\" is less. This is not the case with disqualifying distribution.\"",
"title": ""
},
{
"docid": "37fc06a986a153ff45385b6d78c39786",
"text": "There's an odd anomaly that often occurs with shares acquired through company plans via ESPP or option purchase. The general situation is that the share value above strike price or grant price may become ordinary income, but a sale below the price at day the shares are valued is a capital loss. e.g. in an ESPP offering, I have a $10 purchase price, but at the end of the offering, the shares are valued at $100. Unless I hold the shares for an additional year, the sale price contains ordinary W2 income. So, if I see the shares falling and sell for $50, I have a tax bill for $90 of W2 income, but a $50 capital loss. Tax is due on $90 (and for 1K shares, $90,000 which can be a $30K hit) but that $50K loss can only be applied to cap gains, or $3K/yr of income. In the dotcom bubble, there were many people who had million dollar tax bills and the value of the money netted from the sale couldn't even cover the taxes. And $1M in losses would take 300 years at $3K/yr. The above is one reason the lockup date expiration is why shares get sold. And one can probably profit on the bigger companies stock. Edit - see Yelp down 3% following expiration of 180 day IPO lock-up period, for similar situation.",
"title": ""
},
{
"docid": "085e2dffab276a036853dd071ebe34cc",
"text": "\"Offset against taxable gains means that the amount - $25 million in this case - can be used to reduce another sum that the company would otherwise have to pay tax on. Suppose the company had made a profit of $100 million on some other investments. At some point, they are likely to have to pay corporation tax on that amount before being able to distribute it as a cash dividend to shareholders. However if they can offset the $25 million, then they will only have to pay tax on $75 million. This is quite normal as you usually only pay tax on the aggregate of your gains and losses. If corporation tax is about 32% that would explain the claimed saving of approximately $8 million. It sounds like the Plaintiffs want the stock to be sold on the market to get that tax saving. Presumably they believe that distributing it directly would not have the same effect because of the way the tax rules work. I don't know if the Plaintiffs are right or not, but if they are the difference would probably come about due to the stock being treated as a \"\"realized loss\"\" in the case where they sell it but not in the case where they distribute it. It's also possible - though this is all very speculative - that if the loss isn't realised when they distribute it directly, then the \"\"cost basis\"\" of the shareholders would be the price the company originally paid for the stock, rather than the value at the time they receive it. That in turn could mean a tax advantage for the shareholders.\"",
"title": ""
},
{
"docid": "ca40f9b445156190dec0799d8d34b5f7",
"text": "\"I always liked the answer that in the short term, the market is a voting machine and in the long term the market is a weighing machine. People can \"\"vote\"\" a stock up or down in the short term. In the long term, typically, the intrinsic value of a company will be reflected in the price. It's a rule of thumb, not perfect, but it is generally true. I think it's from an old investing book that talks about \"\"Mr. Market\"\". Maybe it's from one of Warren Buffet's annual letters. Anyone know? :)\"",
"title": ""
},
{
"docid": "4b7cd157197402aa1a8b2a3dc933137c",
"text": "\"This question and your other one indicate you're a bit unclear on how capital gains taxes work, so here's the deal: you buy an asset (like shares of stock or a mutual fund). You later sell it for more than you bought it for. You pay taxes on your profit: the difference between what you sold it for and what you bought it for. What matters is not the amount of money you \"\"withdraw\"\", but the prices at which assets are bought and sold. In fact, often you will be able to choose which individual shares you sell, which means you have some control over the tax you pay. For a simple example, suppose you buy 10 shares of stock for $100 each in January (an investment of $1000); we'll call these the \"\"early\"\" shares. The stock goes up to $200 in July, and you buy 10 more shares (investing an additional $2000); we'll call these the \"\"late\"\" shares. Then the stock drops to $150. Suppose you want $1500 in cash, so you are going to sell 10 shares. The 10 early shares you bought have increased in value, because you bought then for $100 but can now sell them for $150. The 10 late shares have decreased in value, because you bought them for $200 but can now only sell them for $150. If you choose to sell the early shares, you will have a capital gain of $500 ($1500 sale price minus $1000 purchase price), on which you may owe taxes. If you sell the late shares, you will have a capital loss of $500 ($1500 sale price minus $2000 purchase price is -$500), which you can potentially use to reduce your taxes. Or you could sell 5 of each and have no gain or loss (selling five early shares for $150 gives you a gain of $250, but selling five late shares for $150 gives you a loss of $250, and they cancel out). The point of all this is to say that the tax is not determined by the amount of cash you get, but by the difference between the sale price and the price you purchased for (known as the \"\"cost basis\"\"), and this in turn depends on which specific assets you sell. It is not enough to know the total amount you invested and the total gain. You need to know the specific cost basis (i.e., original purchase price) of the specific shares you're selling. (This is also the answer to your question about long-term versus short-term gains. It doesn't matter how much money you make on the sale. What matters is how long you hold the asset before selling it.) That said, many brokers will automatically sell your shares in a certain order unless you tell them otherwise (and some won't let you tell them otherwise). Often they will use the \"\"first in, first out\"\" rule, which means they will always sell the earliest-purchased shares first. To finally get to your specific question about Betterment, they have a page here that says they use a different method. Essentially, they try to sell your shares in a way that minimizes taxes. They do this by first selling shares that have a loss, and only then selling shares that have a gain. This basically means that if you want to cash out $X, and it is possible to do it in a way that incurs no tax liability, they will do that. What gets me very confused is if I continue to invest random amounts of money each month using Betterment, then I need to withdraw some cash, what are the tax implications. As my long answer above should indicate, there is no simple answer to this. The answer is \"\"it depends\"\". It depends on exactly when you bought the shares, exactly how much you paid for them, exactly when and how much the price rose or fell, and exactly how much you sell them for. Betterment is more or less saying \"\"Don't worry about any of this, trust us, we will handle everything so that your tax is minimized.\"\" A final note: if you really do want to track the details of your cost basis, Betterment may not be for you, because it is an automated platform that may do a lot of individual trades that a human wouldn't do, and that can make tracking the cost basis yourself very difficult. Almost the whole point of something like Betterment is that you are supposed to give them your money and forget about these details.\"",
"title": ""
},
{
"docid": "50b45c1c876ea95463299d91bebd5c70",
"text": "There are a few reasons, dependent on the location of the company. The first, as you mentioned is that it means that the employee is invested in the companies success - in theory this should motivate the employee to work hard in order to increase the value of their holdings. Sometimes these have a vestment period which requires that they hold the stock for a certain amount of time before they are able to sell, and that they continue working at the company for a certain amount of time. The second, is that unlike cash, providing stocks doesn't come out of the companies liquid cash. While it is still an expense and does devalue the shares of other shareholders, it doesn't effect the daily working capital which is important to maintain to ensure business continuity. And the third, and this is for the employee, is tax reasons. In particular for substantial amounts. Of course this is dependent on jurisdiction but you can often achieve lower tax rates on receiving shares vs a cash equivalent sum, as you can draw out the money over time lowering your tax obligation each year, or other methods which aren't possible to look into now. Hope this helps.",
"title": ""
}
] |
fiqa
|
3defedaba17b30fcd14eb4c80acaead2
|
Self Assessment UK - Goods and services for your own use
|
[
{
"docid": "bab4950e509d64dcb449b74d6a9e57f5",
"text": "The problem with your profession is that it is hard to distinguish those activities as 'services rendered' or just a 'pastime hobby'. If you believe that both of those activities constitutes a 'service rendered in a professional capacity', then you should include it into the 'Goods and services for your own use' field. However, should you believe that those services rendered was not in a professional capacity and it was in a personal one (i.e. helping out), you need not include it in the field. In addition, should you feel that the pro-bono services rendered overlaps with your professional freelance work in any way, you might want to consider the service rendered to your dad and yourself as a 'professional service' and include it in Goods and services for your own use. Such examples include (but not limited to): It might be wise to call up the HMRC to clarify on your particular situation. But what I know is, this box was created to ensure that such services rendered should be considered a profit (i.e. an advantage, adds value) and not a loss (or no value).",
"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": "ed623c193cfc05a8c04cb3925bf45a18",
"text": "If you mostly do work for businesses/individuals who are VAT registered it's a no-brainer to become VAT registered yourself... Although you will have to charge your customers VAT (and pass this on to HMRC) because they are VAT-registered they will reclaim the amount so it won't actually 'cost' them anything. At the same time, you can reclaim all the VAT you're currently being charged on your business expenditure (business equipment, tickets to business events, business software, accountancy/other business services you pay for, web hosting etc etc etc) However, if most of your clients are not VAT-registered it's not worth you registering. You would have to charge your customers an extra 20% (and they wouldn't be able to claim it back!) and you would have to pass this on to HMRC. Although you could still claim for goods and services you purchase for business use, essentially you'd just be another tax collector for HMRC. That said, at the end of the day it's up to you! VAT returns are quarterly and dead simple. Just keep a spreadsheet with your invoices (output tax) and receipts (input tax) and then do some basic maths to submit the final numbers to HMRC. No accountant required!",
"title": ""
},
{
"docid": "9757bb5c63f8eaefdd7cb9c62f6da0b4",
"text": "\"The HMRC has a dedicated self-help/learning site that is helpful here: It's important to tell HMRC that you are self-employed as soon as possible. If you don't, you may have to pay a penalty. You don't want to pay more to HMRC than you have to as it is a waste of your money. Your business has started when you start to advertise or you have a customer to buy your goods or services. It is at this point that your business is 'trading'. You cannot register before you start trading. For example, if you advertise your business in the local newspaper on 15 January but do not get your first customer until 29 March; in this case, you have been trading since 15 January. You must tell HMRC within six months of the end of the tax year in which you start self-employment. You must therefore register by 5 October. But it's best to register well before this so that you do not forget to do so. The HMRC also has a YouTube channel with help videos, and \"\"Am I Trading or Not?\"\" might be of particular interest to you. Most of the registration is based around the concept of starting to work with the intent to make a profit. By the letter of law and regulations, you should register within six months of the end of the tax year you started to avoid any potential penalty. However note that the situation is different based upon your intent. If you begin making/putting up videos online as a hobby with the hope that you can make something to help you defray the basic costs involved, and the total amount you make is relatively small (say, less than 500 pounds), you will not be classified as \"\"trading\"\" and likely have no need to register with HMRC. As soon as you begin to get in regular payments, maybe a single payment of a significant size, or multiple payments for a similar service/item, you are vastly more likely to need to register. From my reading you would likely be safe to begin putting up videos without registration, but if you begin spending a large portion of your time over an extended period (multiple months) and/or begin getting payments of any notable size then you should likely register with the appropriate services (HMRC, etc). As is the case in both the USA and UK, simple registration is pretty cheap and the costs of little/no income are usually pretty minor. Also note that the HMRC trading and self-employment regulations are unusual compared to many US laws/institutions, in that you are explicitly permitted to begin doing something and only register later. So if you start doing videos for an entire tax year + 5 months and make nothing significant, you'd seemingly be fine to never register at all.\"",
"title": ""
},
{
"docid": "531b1aba2b2c8be716305089b22240a9",
"text": "\"There are basically two approaches, based on how detailed you want to be in your own personal accounting: Obviously the more like a business or like \"\"real\"\" accounting you want to be, the more complex you can make it, but in general I find that the purpose of personal accounting is (1) to track what I own, and (2) to ensure I have documented anything I need to for tax purposes, and as long as you're meeting those goals any reasonable approach is workable.\"",
"title": ""
},
{
"docid": "74d0fa61b92d8638efba87d10c7cae27",
"text": "This taxation guide may be helpful in sorting out some of your questions. I'm not entirely versatile with UK tax, so my answer will stay broad. I think the answer may be to consult a professional advisor. You may become non-resident but remain UK domiciled. Everybody has exactly one domicile and it is essentially their permanent home (the place where they intend to one day return and live. The test is based on your intent - do you intend to return to the UK or do you intend to make another land your permanent home? Simply traveling about the world will not establish a new domicile for you. So you may owe some taxes on your worldwide income or capital gains while a UK-domiciled non-resident, as suggested here. If it helps, the UK tax residence rules are listed by HMRC online. If your business is a corporation, there's a different analysis. You may also want to refer to the UK-BVI tax treaty. HMRC offers a tax residence calculator to help sort your residence, if you plan to return often.",
"title": ""
},
{
"docid": "9d86d2dee6b62b0b7c9130b5bfe2fd4f",
"text": "To be honest I don't know how any of this work in the US so my answer will be of very limited value to yourself, I suspect, but when it comes to the UK if you're going to get the same pay gross either way than being independent makes very little sense. Running your own business is hassle, is generally more risky (although possibly not in your case) and costs money. Some of the most obvious costs are the added NI, probably the need for an accountant, at around £1200 p/a for basic accountancy service, you are obliged by law to have liability insurance and you probably want professional indemnity insurance, this will be around £600 p/a minmum, and so on and so forth. On top of that, oficially anyway, as a contractor, you really shouldn't be getting any benefits from the client, and so health insurance, company car, even parking are all meant to be arranged by, and paid by, your company, and can't (or rather - shouldn't) be charged to the client. So - I would say - if you're seriously thinking about setting up a consultancy company, and this client is first of many - set up a company, but take into account the sums you need to earn. If you're really thinking about employment - be an employee.",
"title": ""
},
{
"docid": "dd748d1ecdd3ac92ef59b187c4bfc4f9",
"text": "How you pay Income Tax Pay As You Earn (PAYE) Most people pay Income Tax through PAYE. This is the system your employer or pension provider uses to take Income Tax and National Insurance contributions before they pay your wages or pension. Your tax code tells your employer how much to deduct. Your tax code can take account of state benefits, so if you owe tax on them (eg the State Pension) it’s usually taken automatically from your other income. Self Assessment tax returns If your financial affairs are more complex (eg you’re self-employed or have a high income) you may pay Income Tax and National Insurance through Self Assessment. You’ll need to fill in a tax return every year. Income Tax on savings and investment interest Income Tax is usually taken from interest on savings and investments automatically. Income that’s not automatically taxed You must fill in a tax return if your untaxed income is over £2,500, or if you don’t pay tax through your wages or pension. You must contact the Income Tax helpline if it’s less than £2,500.",
"title": ""
},
{
"docid": "390033140caf6afd5b6091dd66fc7e81",
"text": "\"As far as I know any business can register for VAT regardless of the nature of the business. If all the goods you sell (or services you provide) are VAT-exempt or zero-rated then you will get refunds from HMRC on VAT your business pays. Any business whose non-VAT exempt turnover (which would include zero-rated goods and services provided) exceeds the registration threshold must register, again even if that means they are \"\"forced\"\" to claim refunds. So the only question would be whether your rather nebulous activities were enough to qualify you as a business or organisation to which the VAT regime applies at all. The one-liner answer to that is generally, if goods or services are provided in return for a charge, there’s a business activity for VAT purposes Inevitably there's a much bigger body of statute and case law and it won't always be obvious whether the one-liner answer applies or not to a particular activity so it may be necessary to seek specialist advice.\"",
"title": ""
},
{
"docid": "908841e826e30f96712c7bdec6a1b499",
"text": "\"Being self-employed, your \"\"profit\"\" is calculated as all the bills you send out, minus all business-related cost that you have (you will need a receipt for everything, and there are different rules for things that last for long time, long tools, machinery). You can file your taxes yourself - the HRS website will tell you how to, and you can do it online. It's close to the same as your normal online tax return. Only thing is that you must keep receipts for all the cost that you claim. Your tax: Assuming your gross salary is £25,000 and your profits are about £10,000, you will be paying 8% for national insurance, and 20% income tax. If you go above £43,000 or thereabouts, you pay 40% income tax on any income above that threshold, instead of 20%, but your national insurance payments stop.\"",
"title": ""
},
{
"docid": "5515ade36125a97c8fbdc1347c57998a",
"text": "\"In the UK, I could start my own business - either as a self-employed person, or by starting a company. With a company, the company might have £50,000 income, £5,000 cost, and pay me a £45,000 salary. In that case the company has no profit and pays no taxes, but I personally pay income tax. Or I could pay myself any salary I like, say £20,000 salary, so I pay tax on £25,000 profit and £20,000 salary. The state actually gets less money in total if I set my salary so the company makes a profit. If I'm self employed, income minus cost is my profit and I pay taxes on that. If I don't make profit, I pay no tax. Unfortunately, I also wouldn't have any money to buy food, pay the rent, and so on and so on. I'd have the same income and pay the same taxes as someone who is unemployed. There are \"\"businesses\"\" that are just run for the enjoyment of the owner and don't make profit. Rich guy buys a farm and starts breeding race horses, that kind of thing. In that case, there is zero difference between a guy breeding race horses and calling it a \"\"business\"\" and another guy breeding race horses and calling it a hobby. Neither makes money and neither pays taxes.\"",
"title": ""
},
{
"docid": "3d26ef83f96ca1f239f366e28a6761f8",
"text": "I don't think so, but: - It depends on the product, some products are simple (Vodka) others have plenty of restrictions (Plutonium). So without you naming what your product is nobody can help you. - Regulation differ for each country. Greece and Italy are different countries. For most products you pay some import duty, the applicable VAT and some customs fees and all is well.",
"title": ""
},
{
"docid": "c2e776fb7b74820146fb41350cfb275e",
"text": "Adding to webdevduck's answer: Before you calculate your profits, you can pay money tax-free into a pension fund for the company director (that is you). Then if you pay yourself dividends, if you made lots of profit you don't have to pay it all as dividends. You can take some where the taxes are low, and then pay more money in later years. What you must NOT do is just take the money. The company may be yours, but the money isn't. It has to be paid as salary or dividend. (You can give the company director a loan, but that loan has to be repaid. Especially if a limited company goes bankrupt, the creditors would insist that loans from the company are repaid). After a bit more checking, here's the optimal approach, perfectly legal, expected and ethical: You pay yourself a salary of £676 per month. That's the point where you get all the advantages of national insurance without having to pay; above that you would have to pay 13.8% employers NI contributions and 12% employee's NI contributions, so for £100 salary the company has to pay £113.80 and you receive £88.00. Below £676 you pay nothing. You deduct the salary from your revenue, then you deduct all the deductible business costs (be wise in what you try to deduct), then you pay whatever you want into a pension fund. Well, up to I think £25,000 per year. The rest is profit. The company pays 19% corporation tax on profits. Then you pay yourself dividends. Any dividends until your income is £11,500 per year are tax free. Then the next £5,000 per year are tax free. Then any dividends until income + dividends = £45,000 per year is taxed at 7.5%. It's illegal to pay so much in dividends that the company can't pay its bills. Above £45,000 you decide if you want your money now and pay more tax, or wait and get it tax free. Every pound of dividend above £45,000 a year you pay 32.5% tax, but there is nobody forcing you to take the money. You can wait until business is bad, or you want a loooong holiday, or you retire. So at that time you will stay below £45,000 per year and pay only 7.5% tax.",
"title": ""
},
{
"docid": "5d1c66612658bf992773115012c6c163",
"text": "\"As a minor you certainly can pay tax, the government wants its cut from you just like everyone else :-) However you do get the personal allowance like everyone else, so you won't have to pay income tax until your net income reaches £10,800 (that's the figure for the tax year from April 2015 to April 2016, it'll probably change in future years). Once you're 16, you will also have to pay national insurance, which is basically another tax, at a lower threshold. The current rates are £2.80/week if you are making £5,965 a year or more, and also 9% on any income above £8,060 (up to £42,385). Your \"\"net income\"\" or \"\"profits\"\" are the income you receive minus the expenses you have to support that income. Note that the expenses must be entirely for the \"\"business\"\", they can't be for personal things. The most important thing to do immediately is to start keeping accurate records. Keep a list of the income you receive and also the expenses you pay for hardware etc. Make sure you keep receipts (perhaps just electronic ones) for the expenses so you can prove they existed later. Keep track of that net income as the year goes on and if it starts collecting at the rate you'd have to pay tax and national insurance, then make sure you also put aside enough money to pay for those when the bill comes. There's some good general advice on the Government's website here: https://www.gov.uk/working-for-yourself/what-you-need-to-do In short, as well as keeping records, you should register with the tax office, HMRC, as a \"\"sole trader\"\". This should be something that anyone can do whatever their age, but it's worth calling them up as soon as you can to check and find out if there are any other issues. They'll probably want you to send in tax returns containing the details of your income and expenses. If you're making enough money it may be worth paying an accountant to do this for you.\"",
"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": "9ecb660de546fa64db71ef3827ab31ee",
"text": "For 2014/15 it looks something like this: To make it a bit clearer, let's also plot the difference in net income for self-employment and a single person company compared to employment: Self-employment is slightly worse between £5885 and about £10,500 because Class 2 NI kicks in before the employed person starts paying any tax. After that, self-employment is better because you pay 9% Class 4 NI rather than 12% Class 1 NI. Once higher rate tax kicks in, the saving stops growing. The single-person company is most tax-efficient at all points, ignoring any accountancy costs it incurs. Strange things happen between £100k and about £135k because the withdrawal of the personal allowance kicks in at a different point when receiving dividends. We can also plot the percentage of income paid as tax for each case: The strange kink for self-employment below £10k is caused by Class 2 NI again. Employment and self-employment both gradually tend towards paying 47%, reaching 46.5% for £2m gross income. The company tends towards 44.44%, reaching 43.6% for £2m gross income.",
"title": ""
},
{
"docid": "cc5ab13ec048f5bc308e798782c73ef4",
"text": "\"Your question is based on incorrect assumptions. Generally, there's no \"\"penalty\"\", per se, to make a withdrawal from your RRSP, even if you make a withdrawal earlier than retirement, however you define it. A precise meaning for \"\"retirement\"\" with respect to RRSPs is largely irrelevant.* Our U.S. neighbours have a 10% penalty on non-hardship early withdrawals (before age 59 ½) from retirement accounts like the 401k and IRA. It's an additional measure designed to discourage early withdrawals, and raise more tax. Yet, in Canada, there is no similar penalty. Individual investments inside your RRSP may have associated penalties, such as the dreaded \"\"deferred sales charge\"\" (DSC) of some back-end loaded mutual funds, or such as LSVCC funds that generated additional special tax credits that could get clawed back. Yet, these early withdrawal penalties are distinct from the RRSP nature of your account. Choose your investments carefully to avoid these kinds of surprises. Rather, an RRSP is a tax-deferred account, and it works like this: The government allows you to claim a nice juicy tax deduction, which can reduce your income tax at your marginal rate in the year you make a contribution, or later if you should choose to defer the deduction. The resulting pre-tax money accumulated in your RRSP benefits from further tax deferral: assets can grow without attracting annual income tax on earned interest, dividends, or capital gains. You don't need to declare on your income tax return any of the income earned inside your RRSP, unlike a regular investment account. Here's the rub: Once you decide to withdraw money from your RRSP, the entire amount withdrawn is considered regular income in the year in which you make the withdrawal. Thus, your withdrawals are subject to income tax, and yes, at your marginal rate. This is always the case, whether before or after retirement. You mentioned two special programs: The Home Buyers' Plan (HBP), and the Lifelong Learning Plan (LLP). Neither the HBP nor the LLP permit tax-free withdrawals. Rather, each of these programs are special kinds of loans that you can borrow from your own RRSP. HBP and LLP loan money isn't taxed when you get it because you are required to pay it back, and you pay it back into your own RRSP: You always pay income tax at your marginal rate on your RRSP withdrawals.** * Above, I said a precise meaning for \"\"retirement\"\" with respect to RRSPs is largely irrelevant. Yet, there are ages that matter: By the end of the year in which you turn 71, you are required to convert your RRSP to a RRIF. It's similar, but you can no longer contribute, and you must withdraw a minimum amount each year. Other circumstances related to age may qualify for minor tax relief intended for retirees, such as the Age Amount or the Pension Income Credit. Generally, such measures don't significantly change the fact that you pay income tax on RRSP withdrawals at your marginal rate – these measures raise the minimum you can take out without attracting tax, but most do nothing at the margin.** ** Exception: One might split eligible pension income with a spouse or common-law partner, which may reduce tax at the margin.\"",
"title": ""
}
] |
fiqa
|
99339ab73416bacd60b8484979421466
|
Early Retirement Options (UK)
|
[
{
"docid": "cf2a335a98632f7e29015aaff6bd94a9",
"text": "It's highly unlikely that you will be able to achieve 8% and would consider myself lucky to get 4% in the current interest rate environment. You might want to read some reviews of peer-to-peer lending and even try it out some yourself. Give yourself something like 2000 Euros/Dollars and a year. If you truly need 8% to retire, then you are not ready to retire. Here in the US it increases the complexity of your tax forms. I did an experiment with lending club. Here is what I found: After 18 months of giving it a try, I decided to abandon this strategy. My money will receive better and safer returns in a dividend focused mutual fund. However, I encourage you to give it a try yourself.",
"title": ""
},
{
"docid": "442769b80fec3e8c9ad784ed5d937ea0",
"text": "Some people put money into Venture Capital Trusts for the yields they offer. The risks are different and they are considered higher risk than ordinary equities; you need to be a sophisticated investor or high net worth individual to consider them. https://www.wealthclub.co.uk/articles/investment-news/why-i-never-sold-vct/ I'm not recommending these for you, just pointing it out as another option as per the question.",
"title": ""
}
] |
[
{
"docid": "2d0ca4aa62e63f9d94c1702c75d5c991",
"text": "\"Unless your 401(k) plan is particularly good (i.e. good fund choices with low fees), you probably want to contribute enough to get the maximum match from your employer, then contribute to an IRA through a low-cost brokerage like Vanguard or Fidelity, then contribute more to your 401(k). As JoeTaxpayer said, contributions to a Roth IRA can be withdrawn tax- and penalty-free, so they are useful for early retirement. But certainly use your 401(k) as well--the tax benefits almost certainly outweigh the difficulty in accessing your money. JB King's link listing ways to access retirement money before the traditional age is fairly exhaustive. One of the main ways you may want to consider that hasn't been highlighted yet is IRS section 72(t) i.e. substantially equal periodic payments (SEPP). With this rule you can withdraw early from retirement plans without penalties. You have a few different ways of calculating the withdrawal amount. The main risk is you have to keep withdrawing that amount for the greater of five years or until you reach age 59½. In your case this is is only 4-5 years, which isn't too bad. Finally, in addition to being able to withdraw from a Roth IRA tax- and penalty-free, you can do the same for Roth conversions, provided 5 years have passed. So after you leave a job, you can rollover 401(k) money to a traditional IRA, then convert to a Roth IRA (the caveat being you have to pay taxes on the amount as income at this point). But after 5 years you can access the money without penalty, and no taxes since they've already been paid. This is commonly called a \"\"Roth conversion ladder\"\".\"",
"title": ""
},
{
"docid": "6a74565edf0db6d12f62a512085a4056",
"text": "There are two things to consider: taxes - beneficial treatment for long-term holding, and for ESPP's you can get lower taxes on higher earnings. Also, depending on local laws, some share schemes allow one to avoid some or all on the income tax. For example, in the UK £2000 in shares is treated differently to 2000 in cash vesting - restricted stocks or options can only be sold/exercised years after being granted, as long as the employee keeps his part of the contract (usually - staying at the same place of works through the vesting period). This means job retention for the employees, that's why they don't really care if you exercise the same day or not, they care that you actually keep working until the day when you can exercise arrives. By then you'll get more grants you'll want to wait to vest, and so on. This would keep you at the same place of work for a long time because by quitting you'd be forfeiting the grants.",
"title": ""
},
{
"docid": "59c5170b2b502bd0aa347a50c07582f1",
"text": "\"As noted in richardb's comment buried in the comments/debate on the other answer (and all credit for this answer should be due to him): a significant issue with the scheme as originally envisaged in the question (up to £11K pa) is that there is actually a cap on the maintenance part for over 60s: On page 28 of this \"\"Student finance - how you're assessed and paid\"\" document it says: If you're 60 or over on the first day of the first academic year of your course you can apply for a Maintenance Loan of up to £3,566, depending on your household income. Your loan will be reduced by £1 for every £5.46 of household income over £25,000, up to £43,675. If your household income is more than this you won't get any Maintenance Loan. I'd consider that to make this route considerably less attractive... and maybe that's the intention of the rule! (Although I might not think that was so true if I was actually on the UK's state pension of £6K a year and desperate. However, I was originally thinking more in terms of comparing the accumulated \"\"free money\"\" over the three years with the UK's average - and woefully inadequate - pension pot of £50K, rather than with pensioner income). I'll leave those who found the idea of exploiting government incentives so outrageous to ponder the at least as troubling ethics of discriminating against people based on their age, especially when that government apparently likes the idea of older people retraining. (Just to complicate things: I note that one of the possible criteria for applying for a \"\"special support grant\"\" - an alternative to a maintenance loan - is being over 60. That's a grant not a loan and doesn't have to be repaid, but abusing that would seem even to me to be on a par with faking disability to get benefits or similar).\"",
"title": ""
},
{
"docid": "9d80f72238439599b06de7da0a422228",
"text": "While the 55 exception noted by Joe and JB makes this less of a worry, it's worth noting that to retire early most people would need additional investments beyond a maxed out 401(k). As most people make more money later in life it is generally worth putting what you can in a 401(k) now and later when your savings would max out a 401(k) then you can start adding money to accounts that are not tax-advantaged. These additional funds can be used during the bridge period. Run the numbers yourself as these assumptions won't be true for all individuals, but this may be the piece you are missing.",
"title": ""
},
{
"docid": "8197bf68229ced6468191268846a2305",
"text": "\"I'm in my 40's, and fully paid off the mortgage early. My ex would have preferred that I'd given it to her as spending money instead. It can be said that since interest rates after year 2000 went down not up, I am a mug to have paid off early when perhaps I could have just bought more stuff like everyone else does. I looked at the 1970 to 1990 average interest rate; about 10%, and thought that it would be imprudent to have a big debt which would be crippling at 10 or 15% interest rates, so I paid it off while I could. A factor to consider is how you expect your own income to change over the next decade. If you work in shops, call centres, taxi driving, import warehousing, language translation, news writing, or anything which can be offshored or automated, then either the expectation of your salary diminishes towards the worldwide typical, or if it goes below £7.50 per hour typical then your employer goes bust. Or blags a subsidy. That is, I am a pessimist and would pay off early while possible. I don't know chinese for \"\"he's not here\"\" to say to the debt collector.\"",
"title": ""
},
{
"docid": "6274672792acbeda20f5a6b9f83f806b",
"text": "\"Just addressing the sending side: you should be able to make the transfer out of the UK tax-free, if you transfer to a \"\"Recognised Overseas Pension Scheme\"\" (ROPS). These were formerly called QROPS (\"\"Qualifying...\"\") and a lot of online resources will talk about those. The basic idea is that as long as the overseas pension scheme guarantees to follow broadly similar rules to the UK system - e.g. not allowing you to withdraw your money before retirement age - then you can transfer to it. There's a list of these schemes on the HMRC website, but in theory you still have to check for yourself that they actually follow the relevant rules. I'm not sure how to do that in practice. There are only two USA providers listed, which suggests that transferring there isn't actually very common. The Wikipedia page suggests that in practice most people transfer to a scheme in a low-tax place like Gibraltar, rather than where they actually move to. I suspect that any move will be quite expensive in fees, and from your own answer it seems the USA won't recognise it as a transfer in anyway.\"",
"title": ""
},
{
"docid": "c16ecfe43336732053c526fee708fbb1",
"text": "\"You have a large number of possible choices to make, and a lot of it does depend upon what interests you when you are older. The first thing to note is the difference between ISAs and pension-contribution schemes tax wise, which is of course the taxation point. When you contribute to your pensions scheme, it is done before taxation, which is why when you draw from your pension scheme you have to pay income tax. Conversely, your ISA is something you contribute to after you have already paid income tax - so besides the 10% tax on dividends if you hold any assets which may them, it is tax free when you draw on it regardless of how much you have accrued over the years. Now, when it comes to the question \"\"what is the best way to save\"\", the answer is almost certainly going to be filling your pension to the point where you're going to retire just on the edge of the limit, and then putting the rest into ISAs. This way you will not be paying the higher rates of tax associated with breaking the lifetime limit, but also get maximum contributions into your various schemes. There is an exception to this of course, which is the return on investment. If you do not have access to a SIPP (Self Invested Personal Pension), you may be able to receive a far higher return on investment when using a Stocks & Shares ISA, in which case the fact that you have to pay taxes prior to funding it may not make a significant difference. The other issue you have, as others have mentioned is rent. While now you may be enjoying London, it is in my opinion quite likely that will change when you get older, London has a very high-cost of living, even compared to the home counties, and many of its benefits are not relevant to someone who is retired. When you retire, it is quite possible that you will see it fit to take a large sum out of your various savings, and purchase a house, which means that regardless of how much you are drawing out you will be able to have somewhere to live. Renting is fine when you are working, but when you have a certain amount of (admittedly growing) funds that have to last you indefinitely, who knows if it will last you.\"",
"title": ""
},
{
"docid": "7bd8572aed467d1f9e285837d5171f92",
"text": "You could use a stock-only ISA and invest in Exchange Traded Funds (ETFs). ETFs are managed mutual funds that trade on open exchanges in the same manner as stocks. This changes the specific fund options you have open to you, but there are so many ETFs at this point that any sector you want to invest in is almost certainly represented.",
"title": ""
},
{
"docid": "9c5f3fa9c403ed07a04f73d4794e2a74",
"text": "\"You are thinking about it this way: \"\"The longer I wait to exericse, the more knowledge and information I'll have, thus the more confidence I can have that I'll be able to sell at a profit, minimizing risk. If I exercise early and still have to wait, there may never be a chance I can sell at a profit, and I'll have lost the money I paid to exercise and any tax I had to pay when I exercised.\"\" All of that is true. But if you exercise early: The fair market value of the stock will probably be lower, so you may pay less income tax when you exercise. (This depends on your tax situation. Currently, ISO exercises affect your AMT.) If the company goes through a phase where the value is unusually high, you'll be able to sell and still get the tax benefits because you exercised earlier. You avoid the nightmare scenario where you leave the company (voluntarily or not) and can't afford to exercise your options because of the tax implications. In many realistic cases, exercising earlier means less risk. Imagine if you're working at a company that is privately held and you expect to be there for another year or so. You are very optimistic about the company, but not sure when it will IPO or get acquired and that may be several years off. The fair market value of the stock is low now, but may be much higher in a year. In this case, it makes a lot of sense to exercise now. The cost is low because the fair market value is low so it won't result in a huge tax bill. And then when you leave in a year, you won't have to choose between forfeiting your options or borrowing money to pay the much higher taxes due to exercise them then.\"",
"title": ""
},
{
"docid": "4b0ee27131352ba2474001a33c6a0ef9",
"text": "\"I wouldn't worry about \"\"it probably wouldn't be best time for withdrawal\"\" aspect too much. With a bit of planning and organization, you could cash out investments held in one country and have them reinvested in another one in a matter of days (if not less), minimising your \"\"time out of the market\"\". If the markets are cheap when you sell, the chances are you'll be able to buy in again at much the same price. There's a small chance you miss out on the markets lurching upwards, but you might just as easily miss out on a fall and come out ahead. Old saying: \"\"time in the market is more important than market timing\"\". Tax it's hard to discuss without mentioning specific countries. e.g if you were resident in the UK you'd probably want to invest within an \"\"ISA\"\" tax-free wrapper; gains are tax free and there's no penalty for withdrawing when you leave. No idea what equivalents there are around Europe. Interestingly there seems to be some recognition by the EU that this sort of thing is an issue for an increasingly mobile workforce; was recently some news of plans for a pan-European pension savings vehicle.\"",
"title": ""
},
{
"docid": "43f5f0ff7d12fa5c9f382dac08ecce0f",
"text": "The broker that is issuing the moneys after vesting is more than likely deducting a notional amount of tax and NI based on UK income tax laws. If you are not a UK resident, then you should pay income tax on those stock options based on your own tax residency. Best thing to do is speak directly with the broker to explain the situation, ask them to not deduct anything from your stock options - but keep in mind that you will need to declare these earnings yourself and pay the correct rate of tax. From my own personal experience, the UK employer more than likely receives the net value (after the notional tax and NI have been deducted) and in usual circumstances create a tax liability on your payslip (if you were working and had earnings). If of course this deduction is being made by the employer, then you can simply ask them to correct this (most UK payroll software will automatically deduct tax and NI for payments after leaving unless manually intervened, so they probably aren't aware if it is them doing so).",
"title": ""
},
{
"docid": "6e1a49099026facd9c7a976bb9804035",
"text": "I searched for FTSE 100 fund on Yahoo Finance and found POW FTSE RAF UK 100 (PSRU.L), among many others. Google Finance is another possible source that immediately comes to mind.",
"title": ""
},
{
"docid": "f4bd63cfd882adcf0dc880fd46b13a69",
"text": "Depending what your timeframe preferences are, here are a couple of options: Stock indexes: as per Fool's investing guide, historically this had the highest return / risk ratio. On a 5-year horizont, with no extra work, this seems the best option. Premium bonds, similar to most cash ISAs currently available, have a rather rubbish ROI ATM (~3-5% AER at max) Invest it into yourself, in the form of personal development, classes & courses, or starting a business. Disadvantage: this also will carry an opportunity cost in the form of your time. On a longer timeline, however, if this improves your market value only by 1%, that pays extreme dividends over the rest of your carrier. With a single grand at hand, I'd definitely recommend going for option 3 -considering yourself as an investing vehicle, and ask yourself: how can you best improve stakeholder value? You'd be surprised at the kind of results a single grand can make.",
"title": ""
},
{
"docid": "352a2c1736f70eefe180dbab02e8999c",
"text": "Here's an Irish government publication that should give you some background information to get you started. In a nutshell, you get tax benefits, but cannot withdraw money without penalty until you reach retirement age.",
"title": ""
},
{
"docid": "592fa03742bc4c974b061669625f5b14",
"text": "That's about right. I know a friend of mine who took a redundancy package after working at a firm for forty years. He got four weeks pay for every year he worked, and then a lump sum along with his finally salary pension, as he was two years from preretirement age anyway. He walked away with about £250,000 by the end of it all I think.",
"title": ""
}
] |
fiqa
|
ae5872ed5e9facf4525d28e91f2f3c38
|
Online accounting with Stripe/PayPal transactions
|
[
{
"docid": "fbdc8cdbe1301eeba97dcafd12c8806b",
"text": "\"Crickets here, so I'll respond with what I ended up doing. At the end of each month, I download transaction data from each of Stripe and PayPal. For each, I do the following: So it is just six entries in Wave per month plus a little spreadsheet manipulation to determine revenues and fees. Takes about 10 minutes to do this. I really dislike Wave's \"\"automatic\"\" integration with PayPal. It creates a lot of entries, and it also doesn't seem reliable so it is easy for transactions to get lost.\"",
"title": ""
}
] |
[
{
"docid": "8c2ca979aeca71fecfc0e6504bfb98d4",
"text": "\"You would add your daily earnings every day. For example, you work full time job (8 hours a day) at $20/hour. At the end of the 1st day of the month, you'd add $160 to your salary account. You've earned it, even though its still almost a month till you actually get paid. So its accrued. What if you don't get paid? You've accrued it already, its on your books, but not in your wallet. You might have paid taxes on it, etc. But you don't really have it. This is what is called \"\"bad debt\"\", and eventually, after you can show that the payee is not going to pay, you write it off - remove it from your books (and adjust your taxes etc that you paid on that income already). Generally, it is a very bad idea to use accrual method of accounting for an individual or a small business. For large volume business using accrual mode solves other accounting and revenue recognition problems.\"",
"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": "27bec497641aba62dca43f9539efbc33",
"text": "Recommend using quickbooks for account management. If you use the manufacturing and wholesale you can track POs from vendors, estimates, bill payment quotes and invoicing (there's an editor to customize your set up)Also, most accountants are very familiar with this platform so come tax time they'll be able to give you a hand no problem. For accepting payments I highly suggest asking for checks. If you do accept credit cards keep in mind most payment processors charge a percent (1.5-3%) depending on transaction amounts and quantities of transactions. So you'll want to mark up your products by at least that amount. Another area is sales tax. Since you are not the end user you should be able to avoid sales tax on the items you will be selling to customers. You then charge the customer this sales tax. Not sure about NJ but in Texas we are 8.25%. I then pay the state of Texas the taxes collected quarterly. Edit: also make sure you have separate finances for the LLC. Separate checking, separate credit card, separate everything! If you end up using an account that is tied to you personally then you run into the risk of losing the protective nature of an LLC from a legal standpoint. Edit2: by separate I mean using your IRS issued EIN number to open accounts with the LLC name. When you sign anything on behalf of the company make sure to add the name of the company next to it to show the company is making the signature not you. For instance u/sexlessnights Company name, LLC",
"title": ""
},
{
"docid": "c55c405c834c45e2dcf101bef19613ad",
"text": "The answer to this question can be found in the related question Is there any online personal finance software without online banking?",
"title": ""
},
{
"docid": "32dca599bc22f9ef3264e760921905e8",
"text": "Great effort on the question. All I can advise is: If paypal does not provide the mapping table (Type, Status, Credit/Debit) you will have to build it up yourself as you go along. I would tackle it this way: Your SQL mapping table has Credit/Debit entries for all knows combinations and the Credit/Debit entry would be -1 for all. Then, as you get a list of transactions you will have to display all possible results to the user who will then tick the correct one (comparing it to the balance). You would store the Credit/Debit entry if it is unique. This way you will learn what the possible combinations are over time. Its a to the nth problem, so maybe start with a small number of transactions first. I expect you can build up pretty quickly. It will be an interesting experiment...",
"title": ""
},
{
"docid": "4a3357c6b83be6ff170ecea33ce8a78c",
"text": "I haven't worked with Xero before, but can't you just set it up as accounts payable? Put in an accounts payable for the contract. When the client makes a payment, the accounts payable goes down and the cash goes up.",
"title": ""
},
{
"docid": "83ccfe7a14924f2312a884665c1db75d",
"text": "\"For practical purposes, I would strongly suggest that you do create a separate account for each business you may have that is used only for business purposes, and use it for all of your business income and expenses. This will allow you to get an accurate picture of whether you are making money or not, what your full expenses really are, how much of your personal money you have put into the business, and is an easy way to keep business taxes separate. You will also be able to get a fairly quick read on what your profits are without doing much accounting by looking at the account balance less future taxes and expenses, and less any personal money you've put into the account. Check out this thread from Paypal about setting up a \"\"child\"\" account that is linked to your personal account and can be set up to autosweep payments into your main account, should you like. You will still be able to see transactions for each child account. NOTE: Do be careful to make sure you are reserving the proper amount out of any profits your startup may have for taxes - you don't want to mix this with personal money and then later find out that you owe taxes and have to scramble to come up with the money if you have already spent it This is one of the main reasons to segregate your startup's revenues and profits in the business account. For those using \"\"brick and mortar\"\" banking services rather than a service like Paypal: You likely do not need a business checking account if you are a startup. Most likely, you can simply open a second personal account with your bank in your name, and name it \"\"John Doe DBA Company Name\"\" (DBA = Doing Business As). This way, you can pay expenses and accept payments in the name of your startup. Check with your banker for additional details (localized information).\"",
"title": ""
},
{
"docid": "e5bd30df315f45d3433c7b6140119124",
"text": "\"I'm no accounting expert, but I've never heard of anyone using a separate account to track outstanding checks. Instead, the software I use (GnuCash) uses a \"\"reconciled\"\" flag on each transaction. This has 3 states: n: new transaction (the bank doesn't know about it yet), c: cleared transaction (the bank deducted the money), and y: reconciled transaction (the transaction has appeared on a bank statement). The account status line includes a Cleared balance (which should be how much is in your bank account right now), a Reconciled balance (which is how much your last bank statement said you had), and a Present balance (which is how much you'll have after your outstanding checks clear). I believe most accounting packages have a similar feature.\"",
"title": ""
},
{
"docid": "f584304446560ac54028376a2877659d",
"text": "Why wouldn't one of the existing crowdsourcing systems meet your needs? Yes, they charge a commission, but they have already addressed the issues you raise and specifically they provide the third-party accounting you want.",
"title": ""
},
{
"docid": "37f1468d33edbdf2cc73c45e8868ae69",
"text": "\"Actually in Finland on some bank + debit/credit card + online retailer combinations you type in your card details as you normally do, but after clicking \"\"Buy\"\" you get directed to your own bank's website which asks you to authenticate yourself with online banking credentials. It also displays the amount of money and to which account it is being paid to. After authentication you get directed back to the retailer's website. Cannot say why banks in US haven't implemented this.\"",
"title": ""
},
{
"docid": "fd38139ef1ff50c0c080ab457dd92245",
"text": "How about finding a friend with Paypal and sending them the money so they can pay your bill using a card? Withdrawals from Paypal are typically instant now.",
"title": ""
},
{
"docid": "740ca590b0233f0eb8e4fdbb08c353c3",
"text": "I would guess that this is due to the card issuer, not Paypal. Credit card transactions are tagged with a code describing the type of purchase, and some issuers disallow certain types (such as gambling).",
"title": ""
},
{
"docid": "7f90bbdd90cafa17e1bed146d3546934",
"text": "In addition to paypal, Amazon also offers a payment processing service that has micropayment pricing: For Transactions < $10:",
"title": ""
},
{
"docid": "324889240b493af55ca2ae31a15a7998",
"text": "Does the above mean I will not be able to send money to myself or my mother Yes that is right. PayPal will only be used for small trades. The credits into PayPal cannot be used to purchase anything, and will have to be credited back to the linked Bank Account. This is to ensure right reporting and taxes are being paid. You could use alternative Bank channels for getting funds.",
"title": ""
},
{
"docid": "ca1148de0b8d15d51c11b85fd3195e67",
"text": "Linking the card is primarily to give you (and Paypal) a fall-back option for funding your spending if your bank account doesn't have sufficient funds to process the charge. If the bank account has sufficient funds, it will work fine in many cases without a credit card. If you have both linked (bank and a credit card), Paypal will transfer funds immediately, as Paypal knows it has an option for getting the funds if the bank has insufficient funds. However, if you have no credit card linked or remove your only card: If you remove your only card and have a confirmed bank account, you’ll no longer be able to make instant bank payments. Instead they’ll be sent as eChecks, which take 3 to 4 working days to process. This may not matter in many cases, but it may delay things some. There may also be services who require immediate payment (and won't support PayPal if it's not immediate). There may also be some functional limitations. The one I see is primarily that some services that are geo-location-specific, Spotify for one example, use the credit card to verify that you are in a particular location (in Spotify's case, for licensing purposes). They don't seem to accept Paypal unless it's linked to a credit or debit card (even if it's verified via a bank account). I'm not sure if this is common with other services, but it's something to consider.",
"title": ""
}
] |
fiqa
|
11958653a1a84f3d951d8db787385df8
|
How to handle taxes related to affiliate marketing?
|
[
{
"docid": "2f09f6c30dc4b1608d046520b3289e5d",
"text": "Is it right that I request form W-9 or form W-8BEN (for non U.S. citizens) from the affiliate users before sending them payments? Not just OK. Required. I know that I have to send form 1099, but I don't know where does this form should go to. Should I send it to the IRS or the affiliate user or both? Both. There's also form 1096 that you need to send to the IRS. Read the instructions. Should I send form 1099 once a year or each time I make a payment to the affiliate? Once a year. Read the instructions. Do I have to send form 1099 when the money earned by the affiliate hit a certain threshold or I have to send it anyway? $600 or more requires the form, but you can send for any amount. Read the instructions. Is there any other forms or documents to request from or send to the affiliate user or the IRS? There may be additional forms. Especially if the recipient is a foreign person and you withhold taxes. Talk to your tax adviser.",
"title": ""
}
] |
[
{
"docid": "8d28aa994d28e9404b96d8ac04f34c79",
"text": "LLC doesn't explain the tax structure. LLCs can file as a partnership (1065) Scorp (1120S) or nothing at all, if it's a SMLLC. (Single Member LLC). I really enjoy business, and helping people get started. If you PM me your contact information, id be more than happy to go over any issues you may have, and help you with your current issue.",
"title": ""
},
{
"docid": "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": "3a24e8c7fb56eacce57030b2d4d34c3c",
"text": "For stocks, bonds, ETF funds and so on - Taxed only on realised gain and losses are deductible from the gain and not from company's income. Corporate tax is calculated only after all expenses have been deducted. Not the other way around. Real estate expenses can be deducted because of repairs and maintenance. In general all expenses related to the operation of the business can be deducted. But you cannot use expenses as willy nilly, as you assume. You cannot deduct your subscription to Playboy as an expense. Doing it is illegal and if caught, the tours to church will increase exponentially. VAT is only paid if you claim VAT on your invoices. Your situation seems quite complicated. I would suggest, get an accountant pronto. There are nuances in your situation, which an accountant only can understand and help.",
"title": ""
},
{
"docid": "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": "159ebc98bb6fd24aa4857ed919b18228",
"text": "Do I report it as income? Is it subject to just the same amount of taxes (~30%) as regular income? Are there any restrictions on how it can be used? It is income. You can deduct the costs of maintaining the web page and producing the software from it (have an accountant do that for you, there are strict rules on how to do that, and you can only deduct up to the income if its a hobby and not a for-profit business), but otherwise it's earned income like any other self employment income. It is reported on your schedule C or on line 21 of your 1040 (miscellaneous income), and you're also liable for self-employment taxes on this income. There are no restrictions, it's your money. Technically, who is the donation even being made to? Me, just because I own the webpage? Yes. This is for the United States, but is there any difference if the donations come from overseas? No, unless you paid foreign taxes on the money (in which case you should fill form 1116 and ask for credit). If you create an official 501(c) organization to which the donations are given, instead of you getting it directly, the tax treatment will be different. But of course, you have to have a real charitable organization for that. To avoid confusion - I'm not a licensed tax professional and this is not a tax advice. If in doubt - talk to a EA/CPA licensed in your State.",
"title": ""
},
{
"docid": "e11ac463150afa914242e4ad3e1b1a96",
"text": "It's income. It's almost certainly subject to income tax. As miscellaneous income, if nothing else. (That's what hobby income usually falls under.) If you kept careful records of the cost of developing the app, you might be able to offset those against the income... again, as with hobby income.",
"title": ""
},
{
"docid": "441d66b4f3a0b06654ca14ea69393c53",
"text": "You better consult with a tax adviser (EA or CPA) on this, my answer doesn't constitute such an advice. Basically, you're selling stuff on Kickstarter. No matter how they call it (projects, pledges, rewards - all are just words), you're selling stuff. People give you money (=pledges) and in return you're giving them tangible or intangible goods (=rewards). All the rest is just PR. So you will pay taxes on all the money you get, and you will be able to deduct some of the expenses (depends on whether its a business or a hobby, the deduction may be full or limited). It doesn't matter if you use LLC or your own account from the financial/taxation point of you, but it matters legally. LLC limits your personal liability, but do get a legal advice on this issue, and whether it is at all relevant for you. If you raise funds in 2012 you pay taxes on the money in 2012. If you go into production in 2013 - you can deduct expenses in 2013. If you're classified as a hobby, you'll end up paying full taxes in 2012 and deducting nothing in 2013. Talk to a tax adviser.",
"title": ""
},
{
"docid": "b56407de7aa2faa059ec71a962d86140",
"text": "You should look into an LLC. Its a fairly simple process, and the income simply flows through to your individual return. It will allow you to deduct supplies and other expenses from that income. It should also protect you if someone sues you for doing shoddy work (even if the work was fine), although you would need to consult a lawyer to be sure. For last year, it sounds like your taxes were done wrong. There are very, very few ways that you can end up adding more income and earning less after taxes. I'm tempted to say none, but our tax laws are so complex that I'm sure you can do it somehow.",
"title": ""
},
{
"docid": "0ddf5935ce37f66c96defd0182a0c28d",
"text": "\"This may be closed as not quite PF, but really \"\"startup\"\" as it's a business question. In general, you should talk to a professional if you have this type of question, specifics like this regarding your tax code. I would expect that as a business, you will use a proper paper trail to show that money, say 1000 units of currency, came in and 900 went out. This is a service, no goods involved. The transaction nets you 100, and you track all of this. In the end you have the gross profit, and then business expenses. The gross amount, 1000, should not be the amount taxed, only the final profit.\"",
"title": ""
},
{
"docid": "1953236f5be7555ca9b4258a6797b362",
"text": "You do actually have some profits (whatever is left from donations). The way it goes is that you report everything on your Schedule C. You will report this: Your gross profits will then flow to Net Profit (line 31) since you had no other expenses (unless you had some other expenses, like paypal fees, which will appear in the relevant category in part II), and from line 31 it will go to your 1040 for the final tax calculation.",
"title": ""
},
{
"docid": "938db83ce9d0d8d64a670ca38b919a3b",
"text": "Note: This is not professional tax advice. If you think you need professional tax advice, find a licensed professional in your local area. What are the expected earnings/year? US$100? US$1,000? US$100,000? I would say if this is for US$1,000 or less that registering an EIN, and consulting a CPA to file a Partnership Tax return is not going to be a profitable exercise.... all the earnings, perhaps more, will go to paying someone to do (or help do) the tax filings. The simplest taxes are for a business that you completely own. Corporations and Partnerships involve additional forms and get more and more and complex, and even more so when it involves foreign participation. Partnerships are often not formal partnerships but can be more easily thought of as independent businesses that each participants owns, that are simply doing some business with each other. Schedule C is the IRS form you fill out for any businesses that you own. On schedule C you would list the income from advertising. Also on schedule C there is a place for all of the business expenses, such as ads that you buy, a server that you rent, supplies, employees, and independent contractors. Amounts paid to an independent contractor certainly need not be based on hours, but could be a fixed fee, or based on profit earned. Finally, if you pay anyone in the USA over a certain amount, you have to tell the IRS about that with a Form 1099 at the beginning of the next year, so they can fill out their taxes. BUT.... according to an article in International Tax Blog you might not have to file Form 1099 with the IRS for foreign contractors if they are not US persons (not a US citizen or a resident visa holder).",
"title": ""
},
{
"docid": "44f7f02ebc9b4bba410c9a805b9ed00d",
"text": "\"If you have income - it should appear on your tax return. If you are a non-resident, that would be 1040NR, with the eBay income appearing on line 21. Since this is unrelated to your studies, this income will not be covered by the tax treaties for most countries, and you'll pay full taxes on it. Keep in mind that the IRS may decide that you're actually having a business, in which case you'll be required to attach Schedule C to your tax return and maybe pay additional taxes (mainly self-employment). Also, the USCIS may decide that you're actually having a business, regardless of how the IRS sees it, in which case you may have issues with your green card. For low income from occasional sales, you shouldn't have any issues. But if it is something systematic that you spend significant time on and earn significant amounts of money - you may get into trouble. What's \"\"systematic\"\" and how much is \"\"significant\"\" is up to a lawyer to tell you.\"",
"title": ""
},
{
"docid": "c7f98dd7ed1bf4829b4c4624c3f71b51",
"text": "\"You should probably have a tax professional help you with that (generally advisable when doing corporation returns, even if its a small S corp with a single shareholder). Some of it may be deductible, depending on the tax-exemption status of the recipients. Some may be deductible as business expenses. To address Chris's comment: Generally you can deduct as a business on your 1120S anything that is necessary and ordinary for your business. Charitable deductions flow through to your personal 1040, so Colin's reference to pub 526 is the right place to look at (if it was a C-corp, it might be different). Advertisement costs is a necessary and ordinary expense for any business, but you need to look at the essence of the transaction. Did you expect the sponsorship to provide you any new clients? Did you anticipate additional exposure to the potential customers? Was the investment (80 hours of your work) similar to the costs of paid advertisement for the same audience? If so - it is probably a business expense. While you can't deduct the time on its own, you can deduct the salary you paid yourself for working on this, materials, attributed depreciation, etc. If you can't justify it as advertisement, then its a donation, and then you cannot deduct it (because you did receive something in return). It might not be allowed as a business expense, and you might be required to consider it as \"\"personal use\"\", i.e.: salary.\"",
"title": ""
},
{
"docid": "bcfbda6f6efd84f91788beed892a5c23",
"text": "\"Donations, particularly those in the context of you providing a free service (software, libraries, etc.) are a notable grey area in tax code. Simply naming a button \"\"Donate\"\" doesn't necessarily classify the money transfer as a \"\"gift\"\". The IRS can decide that it's money you're being paid to continue your excellent work/service, making it taxable income (unless you're a registered non-profit organization). In the instance of Patreon, and many other crowd-funding services, you're providing a certain level of \"\"service\"\" for each tier of donations (such as early access or something, I'm not sure what you're offering), which means they're receiving consideration for their donations, which most likely makes it fall into taxable income (again, unless you're a registered non-profit organization). State tax law is even more convoluted, and you should consult your tax professional for clarification on your specific situation.\"",
"title": ""
},
{
"docid": "a440dc953dc925288491d3b524bca32d",
"text": "You can always reduce the income by the direct expenses required to earn it, and figure out whether it is ultimately a net profit or loss. The net profit is taxable income. The loss may be tax deductible if the underlying thing is tax deductible. For the book, the $50 revenue required a $100 expense, so that's a $50 net loss. You don't owe any income tax since it's a loss. You could take the loss as a tax deduction if you have a business trading books, or if buying the book would be tax deductible for some reason. Note that in the latter case you can only deduct the $50 not the $100. For the airline ticket, it is to compensate you for the losses you took as a result if the delayed flight. So you tally up the $22 meal you had in the airport waiting for news, the $110 on the motel room you rented or forfeited, any other way you can peg a cash value to any losses you took. Total them up, again, a net loss is only deductible if the travel is already deductible. Note that if the actual expenses (book, flight) were tax deductible for some reason, the cash-back reduces the amount of your tax deduction, so it has the same effect as the sale/gift being taxable income.",
"title": ""
}
] |
fiqa
|
e870fb46d18b9e6bc56d9d1d82237c0a
|
How does per-annum depreciation for taxes work after the first year of depreciation?
|
[
{
"docid": "5f4bc1e354155fce7135692aa703dd66",
"text": "The first method is the correct one. You bought an asset worth of $1000 and you put it on your depreciation schedule. What it means is that you get to write off the $1000 over a certain period of time (and not at once, as you do with expenses). But the value you're writing off is the $1000 regardless of how much you've written off already. Assume you depreciate in straight line over 5 years (that's how you depreciate computers for Federal tax purposes, most states follow). For the simplicity of the calculation, assume you depreciate each year as a whole year (no mid-year/mid-quarter conventions). The calculation is like this: If you sell the computer - the proceeds above the adjusted basis amount are taxed as depreciation recapture up to the accumulated depreciation amount, and as capital gains above that. So in your case - book value is the adjusted basis at the end of the year (EOY), depreciation this year is the amount you depreciate in the year in question out of the total of the original cost, and the accumulated depreciation is the total depreciation including the current year. In Maryland they do not allow depreciating to $0, but rather down to 25% of the original cost, so if you bought a $1000 computer - you depreciate until your adjusted basis is $250. Depreciation rates are described here (page 5). For computers (except for large mainframes) you get 30% depreciation, with the last year probably a bit less due to the $250 adjusted basis limitation.",
"title": ""
}
] |
[
{
"docid": "3bfae4ee3ce21e5318f8c77e2a1927e1",
"text": "I would use neither method. Taking a short example first, with just three compounding periods, with interest rate 10%. The start value y0 is 1. So after three years the value is 1.331, the same as y0 (1 + 0.1)^3. Depreciating (like inflation) by 10% (to demonstrate) gets us back to y0 = 1 Appreciating and depreciating by 10% cancels out: Appreciating by 10% interest and depreciating by 3% inflation: This is the same as y0 (1 + 0.1)^3 (1 + 0.03)^-3 = 1.21805 So for 50 years the result is y0 (1 + 0.1)^50 (1 + 0.03)^-50 = 26.7777 Note You can of course use subtraction but the not using the inflation figure directly. E.g. (edit: This appears to be the Fisher equation.) 2nd Note Further to comments, here is a chart to illustrate how much the relative performance improves when inflation is accounted for. The first fund's return is 6% and the second fund's return varies from 3% to 6%. Inflation is 3%.",
"title": ""
},
{
"docid": "51b98857496db91ad880cc721db0c57c",
"text": "\"That's a very clear explanation, thanks! So a few additional things if anyone will humor my curiosity... 1. By \"\"one-time\"\" tax, does that mean a company that has, say, $5B overseas could bring that back into the US and just be taxed $500M, then keep the remaining $4.5B? 2. Could a company choose a percentage of their overseas money to transfer into the US? Like, only bring in 8% of that $5B ($400M) and be taxed $40M, while keeping all the rest outside the US? Or would it be mandatory to bring it all over? 3. Would most companies just start that same practice of routing to tax havens again after this tax is implented?\"",
"title": ""
},
{
"docid": "8d2aec1de811964e2da70276232ae2eb",
"text": "Interesting. How would they account for it? Monthly? And if so do they modify the cost basis for each lot for the month and then restate? It's hard to imagine they do that. I have a million questions regarding this topic do you know where in the regs it is covered?",
"title": ""
},
{
"docid": "8cf8b0da9f9bd690eec82a6dad9df298",
"text": "You pay taxes on capital gains when you realize your gains by selling the investment property. Also, in the US, taxes on capital gains are computed at special rates depending on your current income level, and so when you realize your gains two years from now, you will pay taxes on the gains at the special rate then applicable to your income level for the year of sale. Remember also that the US Congress can change the tax laws at any time between now and the time you sell your stocks, and so the rates you are looking at now may have changed too.",
"title": ""
},
{
"docid": "686c79bee148b44dfd8d5893636b200c",
"text": "Does this make sense? I'm concerned that by buying shares with post tax income, I'll have ended up being taxed twice or have increased my taxable income. ... The company will then re-reimburse me for the difference in stock price between the vesting and the purchase share price. Sure. Assuming you received a 100-share RSU for shares worth $10, and your marginal tax rate is 30% (all made up numbers), either: or So you're in the same spot either way. You paid $300 to get $1,000 worth of stock. Taxes are the same as well. The full value of the RSU will count as income either way, and you'll either pay tax on the gains of the 100 shares in your RSU our you'll pay tax on gains on the 70 shares in your RSU and the 30 shares you bought. Since they're reimbursing you for any difference the cost basis will be the same (although you might get taxed on the reimbursement, but that should be a relatively small amount). This first year I wanted to keep all of the shares, due to tax reasons and because believe the share price will go up. I don't see how this would make a difference from a tax standpoint. You're going to pay tax on the RSU either way - either in shares or in cash. how does the value of the shares going up make a difference in tax? Additionally I'm concerned that by doing this I'm going to be hit by my bank for GBP->USD exchange fees, foreign money transfer charges, broker purchase fees etc. That might be true - if that's the case then you need to decide whether to keep fighting or decide if it's worth the transaction costs.",
"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": "1d6dce7e75babce4387d2c27b5804c2d",
"text": "\"No, not really. This depends on the situation and the taxing jurisdiction. Different countries have different laws, and some countries have different laws for different situations. For example, in the US, some investments will be taxed as you described, others will be taxed as \"\"mark to market\"\", i.e.: based on the FMV difference between the end of the year and the beginning of the year, and without you actually making any transactions. Depends on the situation.\"",
"title": ""
},
{
"docid": "8b27a63bdb0730b88a8c021fafa174de",
"text": "Both US GAAP and IFRS are accrual basis frameworks. 99.9% of businesses report under those frameworks (or their local gaaps, but still accrual based). Usually it's public sector entities which are cash-basis in my experience. Anyway, accrual basis has more to do with revenue recognition, not taxation, so that's not really relevant here. The value date of an invoice (ie in which moment it becomes taxable) depends on tax legislation (which sets the rules to determine the so called date of taxable event), not so much on accounting principles. In many cases taxable rules are intertwined with cash collection/payment, however, to prevent creative accounting for tax evasion purposes. For example, provisions for various uncertain future events might be required by accounting rules, but the corresponding expenses are generally not deductible for tax purposes (so you won't be able to deduct them until the event actually occurs and you pay).",
"title": ""
},
{
"docid": "fc0807c84be4f0eee1f29b291d2316d6",
"text": "Either way, (lease or buy), it's likely going to be an expense, not a depreciation. You would expense the entire lease amount - whatever that is in the year it was paid. A $2k-$3k computer probably isn't worth the trouble of recording it as a Fixed Asset and depreciating it yearly. I work for a company that buys thousands of PCs a year for its employees and we have a hard rule: If it's under $3k, it's an expense not an asset. If you were buying $20k-$50k servers, this would be a different conversation both because of the price and the life of the item. Because it's such a small amount (unless you really are buying $20k PCs), it doesn't really matter whether it's your biggest expense or not, it's likely just an expense. Though, no one is preventing you from depreciating it over 5 years if you wanted to. See: https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/sale-or-trade-of-business-depreciation-rentals/depreciation-recapture/depreciation-recapture In summary: I would say your question is more of a business sense question than a tax question. Is it worth it to you to lease instead of buying because you are getting a new PC so often? Btw: every 2 years is not that often. It's average. Whatever your decision, I think the answer for taxes is the same: Expense it all in the year it was incurred unless you really want to spread it out and depreciate.",
"title": ""
},
{
"docid": "42432f78cf19791fb19b7bd19c557543",
"text": "I think this question is best answered by simply spending 40-60 minutes looking over the tax documents from last year and tracing thru the calculations. As much as we might like to do so, we can't treat taxes like a black box. Tax law is much more complicated than it should be, but its much easier to understand taxes after you've filed them than before or during... at least you have solid numbers to look at.",
"title": ""
},
{
"docid": "fbbb19623d1f1becfb3e528e1d93ac3f",
"text": "Your administrator will pull from last year's funds first, before automatically moving on to the new year. The procedures are under guidelines from the IRS so it should be pretty standard. You likely only have to submit the claim once, but your administrator may have a special grace period form to fill out.",
"title": ""
},
{
"docid": "1169f9db654b7e89de8d8bc0a26b24e1",
"text": "The preparation for starting up of the company has lasted already more than 2 years. Let's say the company starts officially in January next year. So, in January 2014... 8 million USD is invested to purchase the equipments and the company will start selling their prdocuts right away. Imagine the company will be selling the same amount of products each year at the same price for 5 years. After 5 years it will sell the equipments for 6 million USD and cease to exist. The depreciation of equipments is divided into those 5 years. So, each year the depreciation of equipments is 400.000 USD. In despite of this, the company will make 500.000 USD per year as a profit before tax. So, the equipments are bought in Januardy 2014 (first month of the existence of the company) and sold in December 2018 (last month of the existence of the company). This is the NPV that I calculated. Is it correct?",
"title": ""
},
{
"docid": "6ea39019d596b65d43c33d9ecd3f4cc5",
"text": "If you want to predict the, the easiest solution is to get hold of a copy of last year's tax forms and fill them in with estimated numbers. Odds are that none of the more complicated deductions will apply to you this first time around, so I'd suggest just using the federal 1040EZ, and your state's equivalent, for this purpose. If it turns out that you can claim anything more than the standard deduction, that would reduce your taxes, so this is leaning toward the safe side.",
"title": ""
},
{
"docid": "df67807ae166c87b872af58baf1fe7b1",
"text": "\"Cars depreciate the most their first year after introduction. So you could buy a \"\"new\"\" car in year 2 for the optimal price, and at year 4 (when you finish paying yours off) you could buy the next car in year 2 (this is surprisingly similar to rolling options in a buy-write strategy, an arguably more constructive use of your money)\"",
"title": ""
},
{
"docid": "ebc5f2817ff75145777b6ba991c49cc5",
"text": "Profit = Sale price - Basis Basis = Purchase price - any depreciation taken, including expensing it.",
"title": ""
}
] |
fiqa
|
ed6af87c965499dd1bfb2280d10f2365
|
How to categorize shared income?
|
[
{
"docid": "0a20f2b828717286cfbfbb1a44c7c8dd",
"text": "My company did not have income of $1000 and have a $500 expense Why not? Your company received $1000 from you, and based on its agreement with the other company - transferred out half of it. How does it not translate to having $1000 income and $500 expense? When I run a report I want to see that my business has $500 of income not $1000 with a $500 expense You can write in your reports whatever you want, but if you want to see the real picture, then that is exactly what you should be expecting. That said, transferring money from yourself to your company is generally not considered income. You can have it booked as owner's equity, or a owner's loan if the company is required to repay. Unless you're paying to your company for some services provided or assets transferred, that is.",
"title": ""
}
] |
[
{
"docid": "41372fce8481716fd887860e6d3e94db",
"text": "The three places you want to focus on are the income statement, the balance sheet, and cash flow statement. The standard measure for multiple of income is the P/E or price earnings ratio For the balance sheet, the debt to equity or debt to capital (debt+equity) ratio. For cash generation, price to cash flow, or price to free cash flow. (The lower the better, all other things being equal, for all three ratios.)",
"title": ""
},
{
"docid": "ec5ecd031c5e4778c6e9e73e08aae470",
"text": "Since you're not loaning the company the money, the correct category is Equity. It's not an income type account, rather it represents the balance of Assets - Liabilities = Owner's Equity So you'd put down £100 as the starting balance of Owner's Equity, and then a Cash Balance of £100 in a cash account.",
"title": ""
},
{
"docid": "390a360d0bb3922167f3e81f7d5d6c75",
"text": "\"My wife and I have close to equal incomes, and are not young. What we have is this: Some people would classify our system as a bit draconian as we each have \"\"allowance\"\"; however, it makes sure spending does not get out of wack and we work together to meet our goals.\"",
"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": "0f8ff70696e06a1a1df44938f4de14eb",
"text": "If you have access, factset and bloomberg have this. However, these aren't standardized due to non-existent reporting regulations, therefore each company may choose to categorize regions differently. This makes it difficult to work with a large universe, and you'll probably end up doing a large portion manually anyways.",
"title": ""
},
{
"docid": "ed757364d1d17b0da0f0cf424818d2b0",
"text": "Yea, so they mention household and income....Am I supposed to count both my spouse income and my own? Because if that's true...then I'm part of the 1% at 27, yet it sure as shit doesn't feel like it.",
"title": ""
},
{
"docid": "c1de1971a83164f2f91c1ca34eb3d445",
"text": "\"Selling an asset is not earning income. You are basically moving value from one asset (the laptop) to another (your bank account.) So you reduce the equity that is \"\"value of all my electronics\"\" and you increase the asset that is your bank account. In your case, you never entered the laptop in some category called \"\"value of all my electronics\"\" so you don't have that to make a double-entry against. The temptation is high to call it income as a result. Depending on the reason for all this double-entry book-keeping for personal finances, that may be fine. Or, you can create a category for balancing and use that, and realize the (negative) value of that account doesn't mean much.\"",
"title": ""
},
{
"docid": "8e67b6911d14a79d53b0b47b4fdd2ac1",
"text": "\"Accounts track value: at any given time, a given account will have a given value. The type of account indicates what the value represents. Roughly: On a balance sheet (a listing of accounts and their values at a given point in time), there is typically only one equity account, representing net worth, I don't know much about GNUCash, though. Income and expenses accounts do not go on the balance sheet, but to find out more, either someone else or the GNUCash manual will have to describe how they work in detail. Equity is more similar to a liability than to assets. The equation Assets = Equity + Liabilities should always hold; you can think of assets as being \"\"what my stuff is worth\"\" and equity and liabilities together as being \"\"who owns it.\"\" The part other people own is liability, and the part you own is equity. See balance sheet, accounting equation, and double-entry bookkeeping for more information. (A corporate balance sheet might actually have more than one equity entry. The purpose of the breakdown is to show how much of their net worth came from investors and how much was earned. That's only relevant if you're trying to assess how a company has performed to date; it's not important for a family's finances.)\"",
"title": ""
},
{
"docid": "f58f8afc6afbfa9998c18fedb9aa1367",
"text": "I agree with Option 3 from the accepted answer (His/Hers/Joint), but with one caveat (that my wife and I are finding out). Once you have children, if your income is in the mid-range where you are not paycheck to paycheck, but are not floating in excess money either (ie, you can have a vacation, but you have to plan for it and save up for a few months to do so), the child-relative expenses begin to be a huge factor in your overall budget, such that (particularly if one partner does more of the child-related buying) it can be hard to really keep up the 3 account separation, because those child-related expenses may end up being all of one earner's paycheck. We originally did the 3 way split, where we took rent, car, and utilities from joint (ie, each transferred a reasonable portion to the joint account to cover), and just bought groceries each occasionally such that it was generally a reasonable split (as we both shopped for groceries and both earned close enough to each other that it worked out). But once we had kids, it ended up being very different, and we eventually had to more properly budget all of our funds as if they were basically joint funds. While we still do have separate accounts (and, largely, separate credit cards/etc., except for one joint card), it's almost pro forma now due to the kids.",
"title": ""
},
{
"docid": "983e84eb31d74702554938415b8ccc43",
"text": "One approach would be to create Journal Entries that debit asset accounts that are associated with these items and credit an Open Balance Equity account. The value of these contributions would have to be worked out with an accountant, as it depends on the lesser of the adjusted basis vs. the fair market value, as you then depreciate the amounts over time to take the depreciation as a business expense, and it adjusts your basis in the company (to calculate capital gains/losses when you sell). If there were multiple partners, or your accountant wants it this way, you could then debit open balance equity and credit the owner's contribution to a capital account in your name that represents your basis when you sell. From a pure accounting perspective, if the Open Balance Equity account would zero out, you could just skip it and directly credit the capital accounts, but I prefer the Open Balance Equity as it helps know the percentages of initial equity which may influence partner ownership percentages and identify anyone who needs to contribute more to the partnership.",
"title": ""
},
{
"docid": "7455319de0de59050f5b59e53c48bbe1",
"text": "\"I am not a lawyer nor a tax accountant, so if such chimes in here I'll gladly defer. But my understanding is: If you're romantically involved and living together you're considered a \"\"household\"\" and thus your finances are deemed shared for tax purposes. Any money your partner gives you toward paying the bills is not considered \"\"rent\"\" but \"\"her contribution to household expenses\"\". (I don't know the genders but I'll call your partner \"\"her\"\" for convenience.) This is not income and is not taxed. On the off chance that the IRS actually investigated your arrangement, don't call any money she gives you \"\"rent\"\": call it \"\"her contribution to living expenses\"\". If you were two (or more) random people sharing a condo purely for economic reasons, i.e. you are not a family in any sense but each of you would have trouble affording a place on your own, it's common for all the room mates to share the rent or mortgage, utilities, etc, but for one person to collect all the money and write one check to the landlord, etc. Tax law does not see this as the person who writes the check collecting rent from the others, it's just a book-keeping convenience, and so there is no taxable transaction. (Of course the landlord owes taxes on the rental income, but that's not your problem.) In that case it likely would be different if one person outright owned the place and really was charging the others rent. But then he could claim deductions for all the expenses of maintaining it, including depreciation, so if it really was a case of room mates sharing expenses, the taxable income would likely be just about zero anyway. So short answer: If you really are a \"\"couple\"\", there are no taxable transactions here. If the IRS should actually question it, don't refer to it as \"\"collecting rent\"\" or any other words that imply this is a business arrangement. Describe it as a couple sharing expenses. (People sometimes have created tax problems for themselves by their choice of words in an audit.) But the chance that you would ever be audited over something like this is probably remote. I suppose that if at some point you break up, but you continue to live together for financial reasons (or whatever reasons), that could transform this into a business relationship and that would change my answer.\"",
"title": ""
},
{
"docid": "1d40b527cb773fb000584515b7841983",
"text": "Echoing Justkt, different approaches will work for different couples. It also depends on your background, life experience, age, maturity.... Irrespective of the structure, any agreement must be based on a thorough understanding of the mechanism by which responsibility and accountability is apportioned. As in any financial relationship, when money is plentiful and covers all ends, then conflict hardly ever arises. Problems only turn up when money vanishes. Business contracts are written with a view to such conflicts and agreements within a marriage must be equatable and based on a shared understanding. So, don't worry too much about the structure. Think about thinkgs like the following: In other words, given that income between spouses is likely to be unbalanced, how do you manage this within a caring relationship so that neither feels like a charity case, a social worker, or dependent? There will not be one clear answer except that open and honest discussion on an ongoing bases can only serve to strengthen your relationship.",
"title": ""
},
{
"docid": "b2c2a2438b925a7ca203cf52bfabeaf3",
"text": "You really shouldn't be using class tracking to keep business and personal operations separate. I'm pretty sure the IRS and courts frown upon this, and you're probably risking losing any limited liability you may have. And for keeping separate parts of the business separate, like say stores in a franchise, one approach would be subaccounts. Messy, I'm sure.",
"title": ""
},
{
"docid": "6ba7e9cc2946fa22d42e2c0a8d0ac1c4",
"text": "I would just take $2000 and multiply by your marginal tax rate, weight that between the 5 other people according to their share of the prize money and ask them to give you that. From your question it seems like you all have a good working relationship, I'm sure the other partners would agree to that. I think it's the simplest solution that is also fair and equitable. Basically, you pay the tax on 2000 and they pay you back for their share of the tax. Much easier than trying to pass it through your tax return for 5 separate people for a minimal amount of $'s. In hindsight, the best way to do it would have been to 1099 the person with the lowest marginal tax rate for the year to minimize the total tax paid on the 2000. Probably only would've been a few dollars difference but still the most efficient way to do it.",
"title": ""
},
{
"docid": "beea3f671766c0cef4427097bdc05788",
"text": "Funds earned and spent before opening a dedicated business account should be classified according to their origination. For example, if your business received income, where did that money go? If you took the money personally, it would be considered either a 'distribution' or a 'loan' to you. It is up to you which of the two options you choose. On the flip side, if your business had an expense that you paid personally, that would be considered either a 'contribution of capital' or a 'loan' from you. If you choose to record these transactions as loans, you can offset them together, so you don't need two separate accounts, loan to you and loan from you. When the bank account was opened, the initial deposit came from where? If it came from your personal funds, then it is either a 'contribution of capital' or a 'loan' from you. From the sound of your question, you deposited what remained after the preceding income/expenses. This would, in effect, return the 'loan' account back to zero, if choosing that route. The above would also be how to record any expenses you may pay personally for the business (if any) in the future. Because these transactions were not through a dedicated business bank account, you can't record them in Quickbooks as checks and deposits. Instead, you can use Journal Entries. For any income received, you would debit your capital/loan account and credit your income account. For any expenses, you would debit the appropriate expense account and credit your distribution/loan account. Also, if setting up a loan account, you should choose either Current Asset or Current Liability type. The capital contribution and distribution account should be Equity type. Hope this helps!",
"title": ""
}
] |
fiqa
|
6ab565c36a1be79b81439e827b354e78
|
How prudent would it be to invest (stocks/equity) in businesses that are based on Cash transactions?
|
[
{
"docid": "865cc244d9602dce3a6c4e4f1b6bffbc",
"text": "If they're hiding their profits from the government, what makes you think they wouldn't hide their profits from their shareholders?",
"title": ""
},
{
"docid": "b81f264b75ed4b2f443dd090e38ece66",
"text": "Every listed company needs to maintain book of accounts, when you are investing in companies you would have to look at what is stated in the books and along with other info decide to invest in it.",
"title": ""
}
] |
[
{
"docid": "2c0ae24ba33f029d528764a03af25505",
"text": "Yep, but it you didn't answer my question (edit: I know it was phrased as a question, but I do know youre supposed to model changes in cash). When bankers calculate all three approaches, how do they compare them? From what I see, the conclusion of each approach gives us: * Public Company Approach: Enterprise Value * Transaction Approach: Enterprise Value * Discounted Cash Flow Approach: Enterprise Value + Minimum Level of Operating Cash Does an investment banker subtract out that minimum level of operating cash at the end of the calculation to get to a value that he can then compare?",
"title": ""
},
{
"docid": "eec3004938b5e6ba305d83947f6216ce",
"text": "I think it's a bad idea. You are taking a large amount of cash and changing it into an investment that is not liquid - if you need the money, it is expensive to get it back.",
"title": ""
},
{
"docid": "542c6fa0b2b840983295e6ed8c709c4e",
"text": "It doesn't matter which way you use. As long as your comfortable with the overall level of risk/reward in your portfolio, that's what matters. (Though I will say that there are more investment vehicles than stocks, bonds, and cash that are worth considering.)",
"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": "236c44110041e09e7184b4b49359385e",
"text": "\"Morningstar's definition of cash includes \"\"cash equivalents (fixed-income securities with a maturity of one year or less)\"\". So I'm guessing 81% of its holdings are short-term enough to fall into this category.\"",
"title": ""
},
{
"docid": "2328833836397e7b0dd33404beb1c97f",
"text": "You're correct in your implied point: Selling a cash secured put has less risk (in terms of both volatility and maximum loss) than buying the security outright. However, many brokerages don't allow cash-secured put writing in IRA accounts. There are three reasons this tends to be the case:",
"title": ""
},
{
"docid": "b95e7286d3620036ce1d7a554eb8d328",
"text": "Well, it really doesn't make sense to pay for either in cash. For these purchases, unless you're super wealthy, you won't be paying it in full. If you were to pay in full, then I don't see any practical point to withdraw that money in cash.",
"title": ""
},
{
"docid": "1749b87a6b63cb5a2c23d27a3d647519",
"text": "\"I'm in the US, so there may be idiosyncrasies with UK taxes that I'm not familiar with, but here's how I've always treated stock I get as compensation. Suppose the vested shares are worth X. If I had X in cash, would I buy my company's stock as an investment? Usually the answer is no, not because I think the stock will tank, but because there's better things I can do with that cash (pay off debt, unfortunately). Therefore I sell the shares and use the cash for something else. You have stock options. So suppose the stock value is X but you can buy it for Y. You can either: Therefore, the math is the same. If you had X in cash, would you buy your company's stock as an investment? If so, then option 2 is best, because you can get X in stock for a lower cost. (Option 3 might be better if the gain on the stock will be taxed higher, but they're pretty much equivalent if there's no chance that the stock will drop below Y) If not, then option 4 is best since you will likely get more than X-Y from selling the options that by exercising them and selling the stock (since options have time value). If option 4 is not a possibility, then option 1 is best - you pocket X-Y as \"\"income\"\" and invest it however you see fit.\"",
"title": ""
},
{
"docid": "25bba446bab6025f3ba5a43c75c5eea3",
"text": "In general, investors with a long period of time until they would need to withdraw the cash are best off holding mostly equities. While the dividends that equities would return are less than the interest you would get in peer-to-peer lending, over long periods of time not only do you get the dividends from equity investment but the value of the stock will grow faster than interest on loans. The higher returns from stocks, however, comes with more risk of big downturns. Many people pull their investments out of stocks right after crashes which really hurts their long term returns. So, in order to get the benefit of investing in stocks you need to be strong enough to continue to hold the stocks through the crash and into the recovery. As for which stocks to invest in, generally it is best to invest in low-fee index funds/etfs where you own a broad collection of stocks so that if (when) any one stock goes bust that your portfolio does not take much damage. Try to own both international and domestic stocks to get good diversification. The consensus recommends adding just a little bit of REITs and bonds to your investments, but for someone at 25 it might not be worth it yet. Warren Buffett had some good thoughts on index investing.",
"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": "7e6a30f5616e94418f406aebfface37b",
"text": "Have you looked into GnuCash? It lets you track your stock purchases, and grabs price updates. It's designed for double-entry accounting, but I think it could fit your use case.",
"title": ""
},
{
"docid": "90ed32b56190138860378694d266d676",
"text": "\"Finance is ALL about obscure theoretical points. This one actually isn't even that obscure, kind of like a big gaping whole that nobody addresses. So to address your \"\"minimum cash\"\" level point. That's what I'm working towards. Check this: So if you are selling your company, and all of the potential buyers are public companies, you would adjust your working capital balances in your model to match the public company market benchmark (ie: days payable outstanding, days receivable outstanding). This would be some sort of \"\"added value\"\" that a public company would bring to the mix. You should do the same for cash. You would benchmark what level of cash the comparable public companies hold (possibly as a % of revenue?), and apply that as the level of operating cash. You're counter argument would be that some firms may choose to hold on to excess levels of cash for a period of time (Apple), skewing \"\"minimum cash levels\"\" upward. That's true, but over a period of time, investors would either (1). demand the excess cash back or (2) investors would sell shares because the company is not earning a sufficient return on equity. My second point is half baked and not fully thought through but it goes along with the idea that a company will dividend out excess cash if it cannot reach the hurdle rate demanded by investors. Thank you for continuing the conversation with me, I think you're the only one that gets it.\"",
"title": ""
},
{
"docid": "50f0f55d05c9ca3afe2902f82d83e655",
"text": "You can't have even a hundred dollars without it being invested somewhere. If it's cash, you're invested in some nation state's currency. If that currency is USD, you have lost about 6% so far this year. But what if you were in the stock market? It's been doing pretty well, no? Thing is, American stocks are priced in American dollars. You have to put those variables together to see what a stock has really been doing.",
"title": ""
},
{
"docid": "f71e16876c49a2516f62da64a0d1f7c0",
"text": "\"It's worth pointing out that most \"\"cash\"\" deals are actually debt financed, at least in part. A quick review of the 8K tells us they plan on debt financing the entire transaction with some senior notes and not use any of the 15B on their BS. This is fairly typical these days because debt is cheaper then the foregone interest on cash.\"",
"title": ""
},
{
"docid": "538fe0fb7780d4da227f8ac29f58e5f1",
"text": "\"For any sort of investment you need to understand your risks first. If you're going to put money into the stock or bond market I would get a hold of Graham's \"\"The Intelligent Investor\"\" first, or any other solid value investing book, and educate yourself on what the risks are. I can't speak about real estate investing but I am sure there are plenty of books describing risks and benefits of that as well. I could see inflation/deflation having an effect there but I think the biggest impact on the landlord front is quality of life in the area you are renting and the quality of the tenant you can get. One crazy tenant and you will be driven mad yourself. As for starting a business, one thing I would like to say is that money does not automatically make money. The business should be driven by a product or service that you can provide first, and the backing seed capital second. In my opinion you will have to put energy and time worth much more than the 100k into a business over time to make it successful so the availability of capital should not be the driving decision here. Hope this helps more than it confuses.\"",
"title": ""
}
] |
fiqa
|
a5988c0766947c42e49b3dd8eb4e3abc
|
Why buy stock of a company instead of the holding company who has more than 99% of the stocks
|
[
{
"docid": "6f8084cf2a2404bfadf188ad59b9e254",
"text": "In a situation like this, I presume you'd invest in the child company if you thought that the child company would increase in value at a higher rate than the parent. You'd invest in the parent company if you thought the parent company would perform well as a whole, but you did not want to assume the risk of an individual company underneath it. Say the child company is worth 100 million, and the parent company is worth 500 million. You've invested a sum of money in the child company. The child company performs very well, and increases in value by, say, 20 million. As the parent company owns the child, we could say it also increases in value by roughly 20 million. The difference is proportional - Your investment in the child sees a 20% gain in value, whereas your investment in the parent sees a 4% gain in total value, as in this example the parent company, which owns nearly 100% of the child company, is worth 5x more and thus proportionally sees 1/5 the increase in value, due to it being worth more as a whole. Think of it similarly to a mutual fund or ETF that invests in many different stocks on the market. As the market does well, that mutual fund or ETF does well, too. As the mutual fund is made up of many individual stocks, one stock performing very well, say at a 10-20% increase in value, does not raise the value of the ETF or mutual fund by 10-20%. The etf / mutual fund will perform slightly better (Assuming all other components remain equal for this example), but only proportionally to the fraction of it that's made up of the stock that's performing well.",
"title": ""
},
{
"docid": "bb301699c1b1d2af9ab15db1823ae5fe",
"text": "Also VW has more brands, i.e. is more diversified This isn't necessarily a good thing for investing. It makes the company less likely to go down, but it limits your portfolio. For example, say you think that Hyundai is a good alternative to Volkswagen (VW) but really like Audi. If you buy VW, you get some Audi but a lot more of the rest of VW. Then if you bought Hyundai, you'd be overrepresented in that segment of the market. Audi may not be structured uniquely, but it is still the only company selling Audi brand cars. Perhaps someone thinks that those models will do well. That person may think that Audi will do exceptionally well in its niche. Having many brands isn't necessarily great. General Motors had something like sixteen brands before declaring bankruptcy. It only has twelve now. Now, it sounds like you feel the opposite about it. You don't particularly like Audi as a stock and like VW better. Your reasons sound perfectly reasonable (I know little about either company). It may even be that VW is the only one buying Audi stock, because everyone else has the same view as you.",
"title": ""
}
] |
[
{
"docid": "52ab18a2a7ca03e479b2e9b8ed29d002",
"text": "You'll own whatever fraction you bought. To own the company (as in, boolean - yes or no) you need to buy 100% of the outstanding stock. RE controlling the company, in general the answer is yes - although the mechanism for this might not be so straight forward (ie. you may have to appoint board members and may only be able to do so at pre-set intervals) and there may be conditions in the company charter designed to stop this happening. Depending on your jurisdiction certain ownership percentages can also trigger the need to do certain things so you may not be able to just buy 50% - in Australia when you reach 20% ownership you have to launch a formal takeover bid.",
"title": ""
},
{
"docid": "184e33992f587192ee5f6cbe68a089b5",
"text": "Depends on the structure of the company and what shares are outstanding. If the pink sheet stock has no voting power then buying all that stock doesn't get you any control at all. On the other hand, if the outstanding shares only represent 20% of the company's overall shares, then buying all the shares isn't likely enough to have a controlling interest. Thus, you'll have to dig into the details. If you want an example of where I'd have my doubts, look at Nestle's stock which has the ticker of NSRGY. There can be companies that are structured with stock on multiple exchanges that can also be a challenge at times. There is also something to be said if you own enough stock in a company that this has to be disclosed to the SEC when you buy more.",
"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": "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": "5f505ea025ad3b724d57c8c6297ce71a",
"text": "When you buy a stock, the worst case scenario is that it drops to 0. Therefore, the most you can lose when buying a stock is 100% of your investment. When you short a stock, however, there's no limit on how high the stock can go. If you short a stock at 10, and it goes up to 30, then you've lost 200% on your investment. Therefore shorting stocks is riskier than buying stocks, since you can lose more than 100% of your investment when shorting. because the price might go up, but it will never be as big of a change as a regular price drop i suppose... That is not true. Stocks can sometimes go up significantly (50-100% or more) in a very short amount of time on a positive news release (such as an earnings or a buyout announcement). A famous example occurred in 2008, when Volkswagen stock quintupled (went up 400%) in less than 2 days on some corporate news: Porsche, for some reason, wants to control Volkswagen, and by building up its stake has driven up the price. Hedge funds, figuring the share price would fall as soon as Porsche got control and stopped buying, sold a lot of VW shares short. Then last weekend, Porsche disclosed that it owned 42.6 percent of the stock and had acquired options for another 31.5 percent. It said it wanted to go to 75 percent. The result: instant short-squeeze. The German state of Lower Saxony owns a 20 percent stake in VW, which it said it would not sell. That left precious few shares available for anyone else. The shorts scrambled to cover, and the price leaped from about €200, or about $265, to above €1,000.",
"title": ""
},
{
"docid": "8fd22fb4b04a3bab76b172ea9a18a837",
"text": "Something to consider is that in the case of the company you chose, on the OTC market, that stock is thinly traded and with such low volume, it can be easy for it to fluctuate greatly to have trades occur. This is why volume can matter for some people when it comes to buying shares. Some OTC stocks may have really low volume and thus may have bigger swings than other stocks that have higher volume.",
"title": ""
},
{
"docid": "d9b868a06fb178e5790de8cb625cead1",
"text": "\"The answer to your question has to do with the an explanation of \"\"shares authorized, issued and outstanding.\"\" Companies, in their Articles of Incorporation, specify a maximum number of shares they are authorized to issue. For example purposes let's assume Facebook is authorized to issue 100 shares. Let's pretend they have actually issued 75 shares, but only 50 are outstanding (aka Float, i.e. freely trading stock in the market) and stock options total 25 shares. So if someone owns 1 share, what percentage of Facebook do they own? You might think 1/100, or 1%; you might think 1/75, or 1.3%; or you might think 1/50, or 2%. 2% is the answer, but only on a NON-diluted basis. So today someone who owns 1 share owns 2% of Facebook. Tomorrow Facebook announces they just issued 15 shares to Whatsapp to buy the company. Now there are 65 shares outstanding and 90 issued. Now someone who owns 1 share of Facebook own only 1/65, or 1.5% (down from 2%)! P.S. \"\"Valuation\"\" can be thought of as the price of the stock at the time of the purchase announcement.\"",
"title": ""
},
{
"docid": "08731cc1aa3d6b5299b0f83c6ebf6b87",
"text": "I was looking at NAT and NAO, NAT owns 20% of NAO. They trade opposite each other on the price of oil, low is good for NAT, bad for NAO. In bad times the other company's stock would probably rise, so they could trim excess shares to keep a stable monetary holding. This would create cash in bad times, in good times they could buy more, creating a floor as well for the other.",
"title": ""
},
{
"docid": "0c7b7bc49b3a18d2c21e9f2ddc23d02c",
"text": "A share of stock is a small fraction of the ownership of the company. If you expect the company to eventually be of interest to someone who wants to engineer a merger or takeover, it's worth whatever someone is willing to pay to help make that happen or keep it from happening. Which means it will almost always track the company's value to some degree, because the company itself will buy back shares when it can if they get too cheap, to protect itself from takeover. It may also start paying dividends at a later date. You may also value being able to vote on the company's actions. Including whether it should offer a dividend or reinvest that money in the company. Basically, you would want to own that share -- or not -- for the same reasons you would want to own a piece of that business. Because that's exactly what it is.",
"title": ""
},
{
"docid": "d6cf37f3a6cb233421ff55451b1b31b2",
"text": "1 reason is Leverage.... If you are buying out of the money options you get much more bang for your buck if the stock moves in your favor. The flipside is it is much more likely that you would lose all of your investment.",
"title": ""
},
{
"docid": "e44598dada0a8ebf91496f7b40fd3b2c",
"text": "Shares are partial ownership of the company. A company can issue (not create) more of the shares it owns at any time, to anyone, at any price -- subject to antitrust and similar regulations. If they wanted to, for example, flat-out give 10% of their retained interest to charity, they could do so. It shouldn't substantially affect the stock's trading for others unless there's a completely irrational demand for shares.",
"title": ""
},
{
"docid": "5939f1d283af184f432800ab3ed5f171",
"text": "Another benefit of holding shares longer was just pointed out in another question: donating appreciated shares to a nonprofit may avoid the capital gains tax on those shares, which is a bigger savings the more those shares have gone up since purchase.",
"title": ""
},
{
"docid": "50b45c1c876ea95463299d91bebd5c70",
"text": "There are a few reasons, dependent on the location of the company. The first, as you mentioned is that it means that the employee is invested in the companies success - in theory this should motivate the employee to work hard in order to increase the value of their holdings. Sometimes these have a vestment period which requires that they hold the stock for a certain amount of time before they are able to sell, and that they continue working at the company for a certain amount of time. The second, is that unlike cash, providing stocks doesn't come out of the companies liquid cash. While it is still an expense and does devalue the shares of other shareholders, it doesn't effect the daily working capital which is important to maintain to ensure business continuity. And the third, and this is for the employee, is tax reasons. In particular for substantial amounts. Of course this is dependent on jurisdiction but you can often achieve lower tax rates on receiving shares vs a cash equivalent sum, as you can draw out the money over time lowering your tax obligation each year, or other methods which aren't possible to look into now. Hope this helps.",
"title": ""
},
{
"docid": "c0a75c6f74188ba156f3b7ab5fda265f",
"text": "First, the stock does represent a share of ownership and if you have a different interpretation I'd like to see proof of that. Secondly, when the IPO or secondary offering happened that put those shares into the market int he first place, the company did receive proceeds from selling those shares. While others may profit afterward, it is worth noting that more than a few companies will have secondary offerings, convertible debt, incentive stock options and restricted stock that may be used down the road that are all dependent upon the current trading share price in terms of how useful these can be used to fund operations, pay executives and so forth. Third, if someone buys up enough shares of the company then they gain control of the company which while you aren't mentioning this case, it is something to note as some individuals buy stock so that they can take over the company which happens. Usually this has more of an overall plan but the idea here is that getting that 50%+1 control of the company's voting shares are an important piece to things here.",
"title": ""
},
{
"docid": "c3a98c4cdebde920a4f48f427c33fca1",
"text": "Because people bought their shares under the premise that they would make more money and if the company completely lied about that they will be subject to several civil and criminal violations. If people didn't believe the company was going to make more money, they would have valued their shares lower during the IPO by not forming much of a market at all.",
"title": ""
}
] |
fiqa
|
598f51b4900e3b6566c0f68b34ca8704
|
Do I have to pay taxes in the US if my online store sells to US customers even though I don't live in the US?
|
[
{
"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": "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": "48b2fd3b012dabac3583f3775f1f943d",
"text": "If you are a US resident (not necessarily citizen) then yes, you do have to pay capital gains taxes on any capital gains, including interest from assets oversees (like interest from a savings account). Additionally you have to report all your foreign bank accounts according to FATCA (https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca).",
"title": ""
},
{
"docid": "fde0a3995bf32d9d9647f1f627bac675",
"text": "Am I required to send form 1099 to non-US citizens who are not even residing in the US? Since they're not required to file US taxes, do I still have to send the form to them? That's tricky. You need to get W8/W9 from them, and act accordingly. You may need to withhold 30% (or different percentage, depending on tax treaty they claim on W8). If you withhold taxes, you also need to file form 1042. I suggest you talk to a tax professional. Is it fine to expose my ITIN (taxpayer identification number) to individuals or companies who I send the form to them. Since the form requires me to write my TIN/EIN, what would be the risks of this and what precautions should be taken to avoid inappropriate/illegal use? No, it is not OK. But if you pay these people directly - you don't have much choice, so deal with it. Get a good insurance for identity theft, and don't transact with people you don't trust. One alternative would be to pay through a payment processor (Paypal or credit cards) - see your next question. I send payments via PayPal and wire transfer. Should I send form 1099-MISC or 1099-K? Paypal is a corporation, so you don't need to send 1099 to Paypal. Whatever Paypal sends to others - it will issue the appropriate forms. Similarly if you use a credit card for payment. When you send money through Paypal - you don't send money directly to your business counterparts. You send money to Paypal.",
"title": ""
},
{
"docid": "22c0f2cf46cd1c218084c88abdbc96d4",
"text": "This is bullshit. The US government requires taxes to be paid in USD. There's your intrinsic value. If you want to be compliant with the federal law, your business and you as an individual are required to convert assets or labor into USD to pay them.",
"title": ""
},
{
"docid": "5712bdc7208402f56051e2fd71d54a61",
"text": "Let me restate question for clarity. Facts: Question: Are there any taxes for this transaction? Answer: (Added improvements provided by Eric) Generally No. Generally, it is not considered income until you sell and the sale price is greater than the purchase price. But with currency differences, there is an additional complication, section 988 rules apply. It could result in ordinary income or loss.",
"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": "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": "2e2e6106a973d42de10c86d789345266",
"text": "Yes you do. You're under the jurisdiction of at least one country where you're resident, or where you're citizen. You may be under jurisdiction of more than one country. Each country has its own laws about what and how should be taxed and countries have treaties between them to resolve jurisdiction issues and double taxation situations, so you should talk to a tax accountant licensed to provide you with an advice.",
"title": ""
},
{
"docid": "a9fce735a06d3dd36302147dbd99a66d",
"text": "It depends and I would not just jump into conclusion as I have seen cases where offering some services are not U.S. sourced income. I'll advise you speak with a knowledgeable tax professional.",
"title": ""
},
{
"docid": "706f67d0d5dc56796e24af80837f47ae",
"text": "Here is the solution: any money made inside the United States will be taxed under US tax law. You want to do business here, open up a US headquarters that handles all the sales tracking and reporting. No tax dollars, no operations inside the US. The united states carries such bulk buying power that companies will be forced to abide by its rules.",
"title": ""
},
{
"docid": "04b3ee3f698ca5b4f450524d8a56f4aa",
"text": "\"Am I eligible for declaring my earnings to the IRS? You're always eligible. You're probably asking whether you're required. In the US it doesn't matter where you deposit the money, it matters where you earn it. Money is earned where the services are provided. This is called \"\"sourcing\"\". So if you are working in a foreign country - you're only subject to the US laws to the extent you're a US citizen/permanent resident or qualify for the substantial presence test.\"",
"title": ""
},
{
"docid": "2148f54cd790ae6431fc9768685838ae",
"text": "This person must pay taxes in both the overseas country and in the U.S. This is unusual; generally, only the U.S. demands this. Depending on the specific country, he would likely not be taxed twice as the U.S. generally recognises tax paid in a different country. Note there are some gotchas, though. For example, although Canada has a generally higher tax scheme than the U.S., you may still end up owing tax if you use the Tax-Free Savings Account system in Canada, as that is not recognised in the U.S. As to whether or not this person should form a company, that is far too broad a question. It's going to depend in large part on the tax situations of the countries involved. This person needs to consult an accountant specialising in this situation. That is, on personal versus business tax and on tax involving U.S. citizens. Yes, this person can and indeed must file and pay taxes in the U.S., from outside the U.S.",
"title": ""
},
{
"docid": "3078a9b101176a07d9507d44a6890d1d",
"text": "It's technically correct to say BK will still pay taxes on all profits made here in the US, the problem here is that it's very easy to structure this whole thing so that there are no US profits. Company A sells itself to Company B, which it also owns. Company A transfers all its' intellectual property to Company B which then charges Company A a fee to use it. The fee is structured so that Company A makes zero profit and Company B makes all the money.",
"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": "93da9b3719b9275f2c71b80fb4bc99be",
"text": "Most of the years I filed while a non-resident of the US, I didn't owe a dime to the US government. Same was actually true for Canada, though I did have some income there that was eligible for taxation. AFAIK, even if I hadn't, I would have been required to file, but perhaps that isn't necessary for everyone.",
"title": ""
}
] |
fiqa
|
9103048fa364c4d0396c8f885caa59b6
|
Is it possible to block previously authorized ACH access?
|
[
{
"docid": "677afd9ef329ac743ab987505762a37a",
"text": "I had a similar situation a while ago, and here's what I learned: What are our options here to ensure that this company can't retry to take our money again via ACH? Close existing account and create a new one that has different account number? Yes. As a temporary solution keep ~$0 balance in the account so that their request for $840 can't be fulfilled? However, would our bank incur any fees because of insufficient funds each time the other company tries to charge us again? Bad idea. You may incur penalties for returned payment, or the bank may honor the payment and charge you overdraft fees. Provide to our bank the service termination notice that proves that we are not in business with the other company anymore and effectively block them. However, termination notice has only our signature Bank doesn't care. ACH withdrawal is akin to a check. The assumption is that the other side has entitlement. You can put stop payment once its processed and try to reverse it claiming fraud, but the end result will be #1: you'll end up getting a new account set up, while they try to recover the money. This is one of the reasons I'm reluctant allowing standing ACH authorizations any more. Generally, the American banking system is very much geared against the consumers, and in many ways is very retarded. In a more advanced countries (which is almost any other country than the US), the standing withdrawal authorization goes through your bank and can be revoked.",
"title": ""
}
] |
[
{
"docid": "7c3f579b87cbfc4c757f73a01266ff8a",
"text": "\"(I agree with the answers above; would just like to make a couple of additional points.) It's a good and simple strategy to try it out with a small amount as suggested by @JoeTaxpayer♦. It's also generally safe to assert that card issuers currently don't receive or actively look at itemized transaction details. But that does not mean they cannot in the future. Some stores utilize level 3 data processing, which tells the card issuers exactly what you bought in a transaction. An example of level 3 data being utilized to reject rewards is with Discover, which announced a 10% cashback reward for any transactions made with Apple Pay last year. It later introduced an additional term to exclude gift card purchases. And this has been verified to be effective - no more reward on gift card purchases; clawback of cashback on existing gift card transactions. As far as I know, Amex does receive and look at some level 3 data retrospectively. That does not necessarily mean they will claw back your cashback after initially rewarding the 6%. But it might show up if you ever trigger an account review, and be used as evidence of your \"\"abuse\"\" of the program (which BTW is defined rather subjectively). There has been many cases of account shutdowns because of this. Card issuers are also trying to do a better job preventing \"\"abuses\"\" by proactively setting caps on rewards (as opposed to closing those accounts afterwards and taking the rewards away altogether). Given the trend in recent years, I have to speculate that at some point the card issuers would put clear language in the terms against gift card purchase and enforce it effectively (if they haven't already). This reward game is constantly changing. It's good while it lasts. Just be prepared and don't get surprised when things go south.\"",
"title": ""
},
{
"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": "15a2c99870047a0f0da6754e8d2abb9e",
"text": "Hence why I pay bill by bill and don't authorize automatic withdrawals. Are you telling me your online banking and/or utility company don't allow you to make non automatic payments online? If so I guess thats the answer to OP's question...",
"title": ""
},
{
"docid": "b2e6376aaa77401edff9df0489e48a2e",
"text": "You claimed that you could pick out stolen funds, hidden within the block chain, by examining transactions. I pointed out that stock transactions are all widely published, and asked if you could pick out which trades were done using illicit information. The parallel is clear.",
"title": ""
},
{
"docid": "8e9e89ee49bbbee7ded9f41224cb3f05",
"text": "With Mint you are without a doubt telling a third party your username and password. If mint gets compromised, or hires a bad actor, technically there isn't anything to stop shenanigans. You simply must be vigilant and be aware of your rights and the legal protections you have against fraud. For all the technical expertise and careful security they put in place, we the customers have to know that there is not, nor will there ever be, a perfectly secure system. The trade off is what you can do for the increased risk. And when taken into the picture of all the Other* ways you banking information is exposed, and how little you can do about it, mint.com is only a minor increase in risk in my opinion. *See paypal, a check's routing numbers, any e-commerce site you shop at, every bank that has an online facing system, your HR dept's direct deposit and every time you swipe your debit / credit card somewhere. These are all technically risks, some of which are beyond your control to change. Short of keeping your money in your mattress you can't avoid risk. (And then your mattress catches fire.)",
"title": ""
},
{
"docid": "6cc787c66286e2c2fb1e5324f4a23d80",
"text": "\"From my days in e-commerce they break down like this? The company doesn't know a debit from a credit card. Got the Visa logo, then it is a Visa through the company's payment gateway. The gateway talks to the bank and that is where the particulars for money is figured out. When I programmed gateway interfaces, I had the option to \"\"authorize\"\" or check for funds (which didn't reserve anything, just verified funds existed), run for batch (which put a hold on the funds and collected them at the end of the night) or just take the money. Most places did a verify during the early checkout stages and then did a batch at the end of the night. The nightly batch allows a merchant to cancel a transaction without getting charged a fee. The \"\"authorize\"\" doesn't mean the money is tied up, although that might be your banks policy. Furthermore, an authorize can only last for so many days. This also explains why most of your banks don't report your transactions to you the day of. There is a bunch more activity on your card than the transactions that complete.\"",
"title": ""
},
{
"docid": "346dde80264c35ac1d211efd5b83ad38",
"text": "\"My gym has a habit of randomly increasing our monthly payment with a $20 \"\"Special Fee\"\" a couple times a year. This charge was not initiated until after I signed up, and signed authorization for a set monthly fee. The agreement I signed included no wording of this fee, so I have not given them permission to charge me this fee. I also have received no type of notification of this fee prior to it being charged to my credit card on file. This seems very illegal to me. Am I right? What course of action might I have to get this stopped?\"",
"title": ""
},
{
"docid": "9b4a5fff5ef3a98fcf333a137464c7af",
"text": "Deliberately breaking transactions into smaller units to avoid reporting requirements is called structuring and may attract the attention of the IRS and/or law enforcement agencies. I'm not sure what the specific laws are on structuring with respect to FBAR reporting requirements and/or electronic transfers (as opposed to cash transactions). However, there's been substantial recent publicity about cases where people had their assets seized simply because federal agents suspected they were trying to avoid reporting requirements (even if there was no hard evidence of this). It is safer not to risk it. Don't try to structure your transactions to avoid the reporting requirements.",
"title": ""
},
{
"docid": "b3d005b0ec91fddd9622700f0599a84d",
"text": "US checking accounts are not really secure, though many people use them. One form of check fraud has been highlighted by Prof. Donald Knuth and carried out by Frank Abagnale, as portrayed in the film Catch Me If You Can. Basically, anyone can write a check that would draw from your account merely by knowing your account number and your bank's ABA routing number. With those two pieces of information (which are revealed on every check that you write), anyone can print a working check, either using a laser printer with MICR (magnetic ink character recognition) toner, or by placing an order with a check-printing company. The only other missing element is a signature, which is a pretty weak form of authentication. When presented with such a check, your bank would probably honor it before finding out, too late, that it is fraudulent. A variant of this vulnerability is ACH funds transfers. This is the mechanism through which you could have, say, your utility company automatically withdraw money from your account to pay your bill. Unfortunately, the transfer is initiated by the recipient, and the system relies largely on trust with some statistical monitoring for suspicious patterns. Basically, the whole US checking system is built with convenience rather than security in mind, since other institutions are able to initiate withdrawal transactions by knowing just the ABA number and account number. In practice, it works well enough for most people, but if you are paranoid about security, as you seem to be, you don't want to be using checks. The European system, which has largely eliminated checks in favor of payer-initiated push transactions, is safer by design.",
"title": ""
},
{
"docid": "7f27667221cca30f0a98511cc22f04d9",
"text": "I'm always hesitant to use local credit unions because I love accessing all atms fee free, having services available 24/7, having robust, safe and audited online services, and having a big enough bank that all major third party tools interface with it. Joe Schmo Local Credit Union has a lot of good services, but audited and secure online banking? No fee nationwide ATMs? Native interfacing to major tools? I just don't see it often. I shudder to think of the security at small bank websites, frankly.",
"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": "4bd3c727e2113cfaf0a8352244f5832a",
"text": "I'm looking for another one right now. Here's what I've found: Los Alamos National Bank (www.lanb.com) has tokens ($5?), but I think they only open accounts for New Mexico residents. I've had one for several years. USAA Savings Bank (usaa.com) has tokens ($5 or free, I don't remember). I'm pretty sure you do NOT need to be a USAA member to open an account. I've had one for a couple of years. Several banks (Frost Bank, American National Bank of Texas, Amegy Bank, and probably many, many more) offer them as part of their Treasury Management accounts, meant for big businesses and charged for accordingly. Happy State Bank (in, where else, Happy, Texas) has a web page saying they have them but their services charges were more than I wanted to pay. ClearSky Bank (an Internet bank started by Chesapeake Bank) claims on their web page to have them but I haven't verified that yet. Still looking...",
"title": ""
},
{
"docid": "1b863978b0cd56fbbaf244b4f50d9570",
"text": "https://twitter.com/webster/status/906346071210778625 Important to know that people just discovered the pin number to thaw your credit (after you initialize a credit freeze) on Equifax is just the timestamp on when you request it. This is bad news because if someone is aware of a time frame, they may be able to brute force this if they don't have proper protection (which, let's be honest, at this point let's just assume they don't). This is lazy coding at it's finest. Quite a few today have confirmed this.",
"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": "7f60f3491884525065cfe44ca428df27",
"text": "Gnucash uses aqbanking, so I'd suggest looking at aqbanking to see if it will do what you want. It seems to be actively developed (as of 26.2.2011), but the main page is in German and my German is a bit rusty... You might also try asking on the gnucash-users list.",
"title": ""
}
] |
fiqa
|
667c9adcee6b016abfa22663f71ab1b5
|
How can a school club collect money using credit cards?
|
[
{
"docid": "daaa039e808d165597234fd11e103a13",
"text": "Large and small universities have procedures in place regarding the use of the universities name, logo, facilities, and budget. They should have in place guidelines regarding the collection and use of funds from members, and participants. These guidelines are what allows you to have an account with the university. Generally these are not kept in the credit union but are with the university treasurer. I would approach this as if I knew nothing about how to get an officially recognized club or organization started. They should then provide you with all the rules and policies regarding money for student organizations. These policies may also discuss how to collect cash, checks, and credit cards. Some universities also allow the use of special card readers to process the special debit card attached to your university ID. The 10% fee charged by the university is typical. They will need to account for your funds, while maintaining their tax exempt status. If you get fully inline with their policies that will allow you to avoid tax issues.",
"title": ""
},
{
"docid": "b55c9ab7182e830d25cd7db9d3e80f7c",
"text": "You should check with the Office of Student Affairs (or equivalent) at your University to see if you can accept Credit Cards. Many will only allow you to accept student organization dues paid in cash, check, or money order. Many universities will also provide your organization with basic operating funds, if you request it. Your first point of contact should be your faculty adviser, though. Your best bet would be to just use cash. Learn where the nearest ATMs are. If you are set on using credit cards, set up a PayPal account and just use it to reimburse the person who fronts the money (cover the markup). Everyone will have to have a PayPal account set up, linked to their credit card. You can avoid fees by using a bank account. If you're so inclined, you can set up a Business account and have a PayPal Debit Card, but you'll want to check with your adviser / University by-laws to see if you're allowed. Don't expect any of these to work as website implementations. As you're a University group, you will undoubtedly be meeting in person such that an exchange of cash/check/money order would be trivial In short, you'll need to check into the rules of your University. Credit cards generally carry processing fees, charged to the merchant, which (on its own) carries some tax implications.",
"title": ""
}
] |
[
{
"docid": "0dbc73b704ace2fd555de902aee30592",
"text": "\"The basic way that these \"\"work\"\" is this: Every year I have to deposit 3500 to remain active in the company, else my account gets expired. You are paying money into the system. The only way you make any money is to: By my calculation I(or my child nodes) have to get 18 people to join to break-even my investment. Intuitively this should tell you that: What normally happens in this sort of thing is that people get conned/excited/tricked/whatever and sign a few of their friends up, but then quickly run out of people to bother/annoy/hassle/harass into joining and then they lose money on the whole thing.\"",
"title": ""
},
{
"docid": "28aca8fc12242a63427a0c031f083621",
"text": "I don't know of any that are comparable to credit cards. There's a reason for that. Debit cards, being newer, have a much lower interchange rate. Since collecting on debt is risky and less predictable, rewards / miles are paid from those interchange fees. This means with a debit card there's less money to pay you with. So what can you do? Assuming your credit isn't terrible, you can just open a credit card account and pay in full for purchases by the grace period. I don't know how all cards work, but my grace period allows me to pay in full by the billing date (roughly a month from purchase) and incur no finance charges. In effect, I get a small 30 day loan with no interest, and a cash back incentive (I dislike miles). You're also less liable for fraud via CC than debit.",
"title": ""
},
{
"docid": "644275a147020db39087c586d7c15694",
"text": "\"I don't think credit cards support depositing money into to begin with. Anyone could deposit money to a Credit Card acccount. All they need is your bank's name, Visa/Mastercard, and 16 digit number. It is done through the \"\"Pay Bills / Make Payments\"\" function in online banking. So tell me, what does it mean that PayPal will transfer the money to my VISA card You can use the new balance for spending via Credit Card, the effect is same as making a payment from your chequing account to credit card account. Will it simply just get transferred to my bank account by the local bank after that Some banks would refund the excess amount from your Credit Card to your Chequing Account after a while, but most don't. People keep credit balance on credit card to make a purchaes larger than credit limit. For example, if your credit limit is $1000, balance is $0, and you made $500 payment to the credit card, you can make a purchase of $1500 without asking for credit limit increase.\"",
"title": ""
},
{
"docid": "013e7bbdcf2f60f8c14ed6aeb7d90a95",
"text": "\"This is most likely protecting Square's relationship with Visa/Mastercard/AMEX/etc. Credit card companies typically charge their customers a much higher interest rate with no grace period on cash advances (withdrawals made from an ATM using a credit card). If you use Square to generate something that looks like a \"\"merchandise transaction\"\" but instead just hand over a wad of banknotes, you're forcing the credit card company to apply their cheaper \"\"purchases\"\" interest rate on the transaction, plus award any applicable cashback offers†, etc. Square would absolutely profit off of this, but since it would result in less revenue for the partner credit card companies, that would quickly sour the relationship and could even result in them terminating their agreements with Square altogether. † This is the kind of activity they are trying to prevent: 1. Bill yourself $5,000 for \"\"merchandise\"\", but instead give yourself cash. 2. Earn 1.5% cashback ($75). 3. Use $4,925 of the cash and a $75 statement credit to pay your credit card statement. 4. Pocket the difference. 5. Repeat. Note, the fees involved probably negate any potential gain shown in this example, but I'm sure with enough creative thinking someone would figure out a way to game the system if it wasn't expressly forbidden in the terms of service\"",
"title": ""
},
{
"docid": "cb34523687a4afcc5c5686483dfc1f27",
"text": "\"I would use a \"\"virtual credit card\"\" which is basically a fake card that cannot be charged. http://credit-card-generator.2-ee.com/q_virtual-credit-card-generator.htm\"",
"title": ""
},
{
"docid": "4ff8fb52d27b585de7a4038e93152626",
"text": "In the UK at least, we have Credit Unions. Credit Unions are not-for-profit organisations that don't pay interest on your balance, but instead give you a share of their profits at the end of the year (or at least my local branch do). This normally equates to around 1% of my balance.",
"title": ""
},
{
"docid": "6f04c572febf901d91fa7fbf164c5f1f",
"text": "Your chief problem seems to be that you're mixing Visa (credit cards) and Step2 (a European Automated Clearing House). Credit cards are primarily an American concept, but do work worldwide especially in travel&tourism industry. The Credit Card companies are financial institutions themselves and operate similar to international banks They're typically acting as intermediaries between the customer's bank and the retailer's bank, so this works even if those two banks have no existing agreements. This is expensive, though. Step2 is a cheaper European system which eliminates the middle man. It allows the consumer's bank to directly pay the retailer's bank. VISA is not a member of Step2.",
"title": ""
},
{
"docid": "ecad50d0648a674b4523a69676b615e9",
"text": "credit cards are almost never closed for inactivity. i have had dozens of cards innactive for years on end, and only one was ever closed on me for inactivity. i would bet a single 1$ transaction per calendar year would keep all your cards open. as such, you could forget automating the process and just spend 20 minutes a year making manual 1$ payments (e.g. to your isp, utility company, google play, etc.). alternatively, many charities will let you set up an automatic monthly donation for any amount (e.g. 1$ to wikipedia). or perhaps you could treat yourself to an mp3 once a month (arguably a charitable donation in the age of file sharing). side note: i use both of these strategies to get the 12 debit card transactions per month required by my kasasa checking account.",
"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": "4571505cd5e76a598b1090e109add091",
"text": "\"A lot of credit card companies these days uses what they call \"\"daily interest\"\" where they charge the interest rate for the number of days till you pay off what you spent. This allows them to make more money than the \"\"period billing\"\". The idea of credit, theoretically, is that there isn't really a day when you can borrow without paying interest - in theory\"",
"title": ""
},
{
"docid": "5ac9a4cfd8b76a5ee60eb07001219f44",
"text": "\"A few ideas: If you can find cards that don't have fees, you could use re-loadable debit/gift cards as your \"\"envelopes\"\". You can write the purpose for each card on its face. Carrying around more than a few cards will get unwieldy fast -- how many categories do you need? Use the rewards card strategy that was recommended to you. Put all of your spending on this. Carry a slip of paper in your wallet for each of your categories of spending. When you charge against a category, punch/mark/tear off a piece of the paper according to some scheme that will allow you to track the amount. You don't have to carry the envelopes around with you all the time. You wouldn't carry around the grocery envelope all the time -- unless you often just randomly decide to go grocery shopping while you're out and about. When you are going out and know you need to have cash for a certain purpose, pull some money from your envelope, put a paper clip around it with maybe a slip of paper, and put it into your wallet. You could carry around a few different categories of money this way without too much hassle. This requires planning your spending for the day. (The best way to avoid spending money is to not have it.)\"",
"title": ""
},
{
"docid": "d60942b11b6c901e01348d1e8c3fa46f",
"text": "There is no special activity type (or provider) for this situation. Depending on the car rental agency, it is either a normal charge, and they later return the charge as necessary; or it is a normal authorization (like in a restaurant) that does never get confirmed (so it falls off the credit card after about three days).",
"title": ""
},
{
"docid": "f858b32f420e644bcc515ce8d8da0566",
"text": "\"Most credit cards allow you to take \"\"cash advances\"\", but the fees and limits for cash advances are different than for regular purchases. You can buy stock after taking a cash advance from your credit card. When you make a cash advance, you normally pay the credit card company a fee. When you make a regular purchase, the merchant (ie, the stockbroker) pays a fee. Additionally, credit card companies can make merchants wait up to 3 months to actually receive the money, in case the transaction is disputed. Your stockbroker is unlikely to want to pay the fee, accept the delay in receiving the funds, and risking that you will dispute the transaction. Having said that, many FOREX brokers will accept credit card deposits (treated as purchases), although FOREX can be considerably riskier than the stock market. Of course, if you max out your credit cards and lose all your money, you can normally negotiate to pay back the debt for less than the original amount, especially since it's unsecured debt.\"",
"title": ""
},
{
"docid": "50b54ee0f2d50fba4547d1c2c497b452",
"text": "A debit card takes the funds right from your account. There's no 'credit' issued along the way. The credit card facilitates a short term loan. If you are a pay-in-full customer, as I am, there's a cost to lend the money, but we're not paying it. It's part of the fee charged to the merchant. Thus the higher transaction cost.",
"title": ""
},
{
"docid": "1749b87a6b63cb5a2c23d27a3d647519",
"text": "\"I'm in the US, so there may be idiosyncrasies with UK taxes that I'm not familiar with, but here's how I've always treated stock I get as compensation. Suppose the vested shares are worth X. If I had X in cash, would I buy my company's stock as an investment? Usually the answer is no, not because I think the stock will tank, but because there's better things I can do with that cash (pay off debt, unfortunately). Therefore I sell the shares and use the cash for something else. You have stock options. So suppose the stock value is X but you can buy it for Y. You can either: Therefore, the math is the same. If you had X in cash, would you buy your company's stock as an investment? If so, then option 2 is best, because you can get X in stock for a lower cost. (Option 3 might be better if the gain on the stock will be taxed higher, but they're pretty much equivalent if there's no chance that the stock will drop below Y) If not, then option 4 is best since you will likely get more than X-Y from selling the options that by exercising them and selling the stock (since options have time value). If option 4 is not a possibility, then option 1 is best - you pocket X-Y as \"\"income\"\" and invest it however you see fit.\"",
"title": ""
}
] |
fiqa
|
acd95aa80cbf045df0ec924b4620d59d
|
Advantages of Shareholder over Director in new Company
|
[
{
"docid": "f62aa109816414a75f7b2f8d110a475d",
"text": "I don't know Australian law, but I will give my US perspective here. The custom in the US is for officers and directors to be indemnified by the corporation, and that LLCs have an even broader power to indemnify (even to remove the duty of loyalty!). Moreover, directors will typically be able to purchase D&O insurance to protect them from loss in the event of liability. For US corporations (not LLCs), the duty of care (prudence) requires that directors behave responsibly in weighing major decisions, and consult experts and specialists before coming to rash decisions. It usually becomes a court case in the context of a large public company in the midst of an acquisition event. The only people with standing (in the US) are shareholders. If all the other shareholders are directors, then it may be hard for them to blame you. Additionally, if you are concerned about the propriety of your actions, there may be sources to rely on. First, discussion with your fellow directors can be a helpful guide (though will not usually immunize you from any accusation of wrongdoing), and disclosure tends to cure almost any accusation of breaching the duty of loyalty. Second, boards often secure the advice of legal counsel, and sometimes bring on lawyers as members or will outright hire counsel for the board. Third, there may be services that will provide you with generic advice (e.g. UK Companies House and US-based IOD), which might set you at ease a little bit. I don't know the details of Australian law, as I say. But my sense of common law countries is that, like the US, they are primarily concerned about negligence (incompetently or imprudently neglecting to understand the business and make informed decisions), disloyalty (fraudulently engaging in self-interested transactions that either hurt the company or should have been offered to the company), and recklessness (not bothering to seek out information). As long as you are active, informed, engaged, and not engaging in secret deals outside the company (especially deals where either side is competing with the company), then that would be more than sufficient under the US standard. If you are concerned about liability, then inquire into indemnifications by the company (in the US, the company can usually pay all legal costs of directors), insurance, and legal counsel. I imagine your business partners are no more savvy than you are. My impression is you are overreacting to relatively rare and exotic expression of corporate law (at least in the US). But I'll close by repeating that I don't know Australian corporate law.",
"title": ""
},
{
"docid": "c802c5a8765525396bb86c842ec26502",
"text": "I know the general principles of acting as a director in a company, and am familiar with the rights of shareholders. In the last ten years or so, I believe Australia has introduced legislation that strongly punishes those directors who do not act in a professional or prudent manner. While I will of course attempt to fulfill the duties required - I am new to conducting business at this level, and am concerned about mistakenly breaching some unknown rule/law and being subject to repercussions that I just don't know about. As you have already stated, the key to being director in a company is the additional responsibility. Legally you can be held in breach. At the same time you will be able to influence your decision much better if you a director and thus safeguard your interest. If you are only a shareholder, you cannot be held responsible for decision by company, individual malpractice may still be applicable, but this is less of a risk. However over a period of time, the board can take certain decision that may marginalize your holding in the company.",
"title": ""
}
] |
[
{
"docid": "e881f1eca19a7e25e124723441ae8f3e",
"text": "Another way to decide would be to do a fair valuation of the company agreeable to both the partners. Lets assume when you started the company it was worth $10,000 and to acquire 75%, you must have put $7,500 worth of money and effort. Similarly, the other partner must have put $2,500 worth of time and money. Now say after 2 years, you both agree that company is worth $50,000. And say now the company needs $10,000 worth of investment. Whoever invests that money should get 20% (10k/50k) of the company. Or each $1,000 will buy 2% in the company. Post this investment the equity division would be First investor (you) 75% of 80% = 60 % Second investor (your partner) 25% of 80% = 20% Third (new) investor = 20% Now, if you alone decide to put all the money you stake will be 60 + 20 = 80% and your partner will be reduced to 20%. If you guys want to maintain equity as it was (75-25), you need to put money in the same ratio ($7500 and $2500). If you do that- First investor 60% + 15% (for $7,500) = 75% Second investor 20% + 5% (for $2,500) = 25%. Please know for IP-centric company valuation is very subjective. But, do make an effort to do the valuation at every stage of the company so that you can put a number in terms of equity for each investment.",
"title": ""
},
{
"docid": "3f66d5baa80fec1f570bf779849b435e",
"text": "Also keep note - some companies have a combined CEO/Chairman of the board role. While he/she would not be allowed to negotiate contracts or stock plans, some corporate governance analysts advocate for the separation of the roles to remove any opportunity for the CEO to unduly influence the board. This could be the case for dysfunctional boards. However, the alternate camps will say that the combined role has no negative effect on shareholder returns. SEC regulations require companies to disclose negotiations between the board and CEO (as well as other named executives) for contracts, employee stock plans, and related information. Sometimes reading the proxy statement to find out, for example, how many times the board meets a year, how many other boards a director serves on, and if the CEO sits on any other board (usually discouraged to serve on more than 2) will provide some insight into a well-run (or not well-run) board.",
"title": ""
},
{
"docid": "f6cafb8253a880df1e4cecfe0f1ae1c1",
"text": "\"If you swap the word \"\"shareholder\"\" for \"\"investor\"\" I think it helps clarify things. If you owned 51% of the company you'd get to say what to do with the cash, would you not? Managers are smart and successful, but ultimately just employees. Companies are beholden to their shareholders. In a more practical sense, I would think the board (representing shareholders) and the upper management would have to come up with a plan. But shareholders have the ultimate say.\"",
"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": "4e18de0fd8f9319a9c913d4939e763d4",
"text": "\"It's actually the other way around. Distributions in an LLC are usually based on each member's equity share, although the operating agreement can specify how often such distributions are made. Shareholders in a corporation can receive dividends, but those are determined by the corporation's board and can vary depending on the class of stock each shareholder owns. Preferred-class shareholders, who may hold a smaller overall fraction of the company's outstanding shares than the common stock shareholders, may receive disproportionately larger dividends per share than common stock shareholders, which is one of the (many) reasons that preferred stock is a better choice when it is available. Take, for instance, what Berkshire Class \"\"A\"\" shareholders receive in dividends per year compared to Class \"\"B\"\" shareholders. Here's a good link from LegalZoom that can explain what you're asking about: Explanation of LLC distributions I hope this helps. Good luck!\"",
"title": ""
},
{
"docid": "2c7239f7076a29cf3ad11d03d0eb6bdf",
"text": "Not really on the corporate finance side, so excuse me if my explanation seems a bit verbose. Nobody *wants* to give away control of their company, but investors are going to demand a pretty steep discount on your equity if you don't give them some way to steer management. Control is valuable, and to this extent, voting shares should always be worth *at least* as much as non-voting shares. If the owner still retains 51% of the company, however, then the voting shares provide essentially no benefit over non-voting, barring the founder's sudden divestiture. With this in mind, there's basically no reason to issue voting shares in the first place. On the other hand, with 40% of the voting power the founder's still have a key vote and will rarely be overturned unless a supermajority (84%) of the other investors disagree. This still gives them *de facto* control while offering equity holders some degree of security if the founders were ever to suddenly lose their mind. This added security allows the voting shares to trade at a premium over non-voting, which in turn allows the company to raise more money from their equity issuance.",
"title": ""
},
{
"docid": "18945ab0486249685c08f982046f8d69",
"text": "\"I'm sorry, unless the employee has a contract he need not be rewarded during successful periods. However, the shareholder does have such a contract: the articles of incorporation. Your quasi-communist ideology might characterize this situation as also unfair, but the fact remains that an investor is more valuable to a company than an employee is. Furthermore, an investor takes on risk, something an employee does not do. When I purchase CAT stock, I may very well lose everything. I am the last in the long line of creditors. However, the employee does not stand to lose anything, and is much higher in the line of creditors. The days of Sinclair's \"\"The Jungle\"\" are over in this country. CAT has no obligation to pay above-market wages to its employees.\"",
"title": ""
},
{
"docid": "0ada391b851e4f03449e58bdfff9259c",
"text": "\"Many thanks for thedetailed response, appreciate it. But I am still not clear on the distinction between a public company and the equity holders. Isn't a public company = shareholders + equity holders? Or do you mean \"\"company\"\" = shareholders+equity holders + debt holders?\"",
"title": ""
},
{
"docid": "ce98c234306e5b450314f6d30b23a592",
"text": "Setting up an entity that is partially foreign owned is not that difficult. It takes an additional 1-1.5 months in total, and in this particular case, you guys would be formed as a Joint Venture. It will cost a bit more (about 3-5000). If you're serious about owning a part of a business in China, you should carefully examine what he means by 'more complicated'. From my point of view, I have set up my own WOFE in China, and examined the possibilities of a JV and even considered using a friend to set up the company under their personal name as a domestic company (which is what your supervisor is doing), any difference between the three are not really a big deal anymore, and comes down to the competency of the agencies you are using and the business partner themselves. It cost me 11,000 for a WOFE including the agency and government registration fees (only Chinese speaking). You should also consider the other shareholders who may be part of this venture as well. If there are other shareholders, and you are not providing further tangible contribution, you will end up replaced and penniless (unless of course you trust them too...), because they are actually paying money to be part of the business and you are not. They will not part with equity for you. I'm not a lawyer, but think you should not rely on any promises other than what it says on a company registration paper. Good luck!",
"title": ""
},
{
"docid": "2f6fc677d6cb6bd6df28c89bea847238",
"text": "Another person, not a shareholder or director, will be treated as when a bank loans you money. You are loaning out money and you are sort of getting interest income out of it or some other benefit, which needs to be put down in you company's annual return. Full source on the HMRC website. But for a shareholder or director is different matter. Check the HMRC source for sure and check with your accountant, if you have one. If you owe your company money You or your company may have to pay tax if you take a director’s loan. Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if: If the loan was more than £10,000 (£5,000 in 2013-14) If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must: You must report the loan on your personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest. If you paid interest below the official rate If you’re a shareholder and director, your company must: You must report the interest on your personal Self Assessment tax return. You may have to pay tax on the difference between the official rate and the rate you paid.",
"title": ""
},
{
"docid": "2e53928f128307a21a43fe26ba4fc132",
"text": "\"You can learn very little from it. Company directories are often given share options or shares as a bonus, and because of that they are unlikely to buy shares. When they sell shares, you'll hear people shouting \"\"so-and-so sold his or her shares, they must know something bad about the company\"\". The truth is that you can't eat or drink shares. If that company director owning shares worth a million dollars wants to buy a new Ferrari, he will find that Ferrari doesn't give free cars to people owning lots of shares. He actually has to sell the shares to get the money for the car, and that's what he does.\"",
"title": ""
},
{
"docid": "1eebb6fe1711a3950d7b67ffa1a5a0a6",
"text": "Well, if one share cost $100 and the company needs to raise $10000, then the company will issue 100 shares for that price. Right? However, say there's 100 shares out there now, then each share holder owns 1/100th of the company. Now the company will remain the same, but it's shared between 200 shareholders after the issuing of new shares. That means each share holder now owns 1/200th of the company. And hence only gets 1/200th of their earnings etc.",
"title": ""
},
{
"docid": "69e4603c713071cd9e01609a98732949",
"text": "Stock trading (as opposed to IPO) doesn't directly benefit the company. But it affects their ability to raise additional funds; if they're valued higher, they don't need to sell as many shares to raise a given amount of money. And the stockholders are part owners of the company; their votes in annual corporate meetings and the like can add up to a substantial influence on the company's policies, so the company has an interest in keeping them (reasonably) happy. Dividends (distributing part of the company's profits to the stockholders) are one way of doing so. You're still investing in the company. The fact that you're buying someone else's share just means you're doing so indirectly, and they're dis-investing at the same time.",
"title": ""
},
{
"docid": "d86b13bd601e7df442d84da6045192f9",
"text": "\"This is going to vary tremendously from country to country (and even from state to state, in some cases). In general, though: Sole proprietorship: LLC: There are a lot of permutations depending on local law. One thing that isn't actually much of an advantage is the \"\"limited liability\"\" component of the LLC. Simply put: for a really small company the majority shareholders are usually going to be \"\"forced\"\" to stand surety for the company in their personal capacity. Limited liability only becomes available once the company has quite a lot of cash/assets (or the illusion of a lot of cash/assets). Update - noticed two further questions that appear very similar: Should all of these be merged?\"",
"title": ""
},
{
"docid": "a14bffe08685cbcd145cdf1e51818c1e",
"text": "Say the company has created 500 shares [or whatever number]. You have 10 shares [equivalent of 2%]. Now when new capital is needed, generally more shares are created. Say they create 100 more shares and sell it to venture capital to raise funds. After this happens; Total Shares: 500+100 = 600 You own: 10 shares Your Ownership % = 1.66% down from 2% Like wise for other older shareholder. The New Venture guy gets 16.66% of ownership. More funds would mean more growth and overall the value of your 10 shares would be more depending on the valuation.",
"title": ""
}
] |
fiqa
|
fe53dd5006d4c2b53c52e7923802b931
|
Multi-state K-1 earnings to S-Corp
|
[
{
"docid": "f22a212586d8b23b70bd6ceb830ee793",
"text": "I'm not sure why you think that it matters that the distribution goes to an S-Corp vs an individual tax payer. You seem to think it has any relevance to your question, but it doesn't. It only confuses your readers. The situation is like this: LLC X is deriving income in State #2. It has two members (I and S) residents of State #1. Members I and S pay all their taxes to State #1, and don't pay taxes to State #2. State #2 audited member I and that member now needs to pay back taxes and penalties to State #2 on income derived from that State. Your question: Does that mean that member S should be worried, since that member was essentially doing the exact same thing as member I? My answer: Yes.",
"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": "c249f2db210d2bec37e5e6f9a3ce423f",
"text": "\"My Schwab panel has the following options: As an example, when I go in to \"\"Wire Transfer,\"\" it prompts me to select which Schwab account, then Domestic or International wire, then amount etc. This will likely depend on the brokerage, I don't think Scottrade or Zecco/Tradeking was this integrated. Personally, I keep brokerage funds pretty well segregated from the remainder of my finances. I transfer money in and out from a more used checking account to keep the accounting more simple.\"",
"title": ""
},
{
"docid": "4e4e535b4613931d4d62fb77b3f3c122",
"text": "Basically, no. You have retirement plan options and can either go with a Roth option, which won't change your current tax burden, or go with a traditional plan, which is tax deductible but won't change your business deductions or self-employment taxes. This article has an explanation of options for setting up SEP or Solo 401k plans. Key quote for all the pre-tax retirement plans: Because pre-tax employer and employee contributions are deducted in the same way, neither one is more tax-efficient than the other. The article goes on to say that if you were an S Corp or LLC that elected to be taxed as an S Corp, a Solo 401(k) plan would allow the business to make an employer contribution to your 401(k) and even then there's no tax advantage to the employer contribution. Conclusion for S-corps: [Employer contributions] would reduce the amount of income from the S-corporation that would be passed through to you as the owner, thereby reducing your income tax. But, because this income is not subject to payroll taxes in the first place, these contributions will not reduce your payroll taxes.",
"title": ""
},
{
"docid": "b5dca99a685e3a33d3939c04c8107c93",
"text": "From the instructions: If you do not need to make any adjustments to the basis or type of gain or loss (short-term or long-term) reported to you on Form 1099-B (or substitute statement) or to your gain or loss for any transactions for which basis has been reported to the IRS (normally reported on Form 8949 with box A checked), you do not have to include those transactions on Form 8949. Instead, you can report summary information for those transactions directly on Schedule D. For more information, see Exception 1, later. However, in case of ESPP and RSU, it is likely that you actually do need to make adjustments. Since 2014, brokers are no longer required to track basis for these, so you better check that the calculations are correct. If the numbers are right and you just summarized instead of reporting each on a separate line, its probably not an issue. As long as the gains reported are correct, no-one will waste their time on you. If you missed several thousand dollars because of incorrect calculations, some might think you were intentionally trying to hide something by aggregating and may come after you.",
"title": ""
},
{
"docid": "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": "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": "8c4eec481cd96016588a5da0051cb9b8",
"text": "Profits and losses in a partnership, LLC or S-corp are always reported proportional to the share of ownership. If you have a 30% share in a partnership, you will report 30% of the profit (or loss) of the respective tax year on your personal return. If you look at Part II, section J of your K-1, it should show your percentage of ownership in the entity. All numbers in Part III should reflect the amount of your share (not the entity's total amounts, which will be on Form 1065 for a partnership):",
"title": ""
},
{
"docid": "3ef191bd6b7281c763458553dff54681",
"text": "First, the annual report is just that, a snapshot that shows value at the beginning and end of the period. Beginning = Aug 08 = $105B End = Aug 09 = $89B Newsletter date May 10 = $96B Odd they chose end of August as it's not even a calendar quarter end. The $16B was market loss during that period. Nearly half of that seemed to be recovered by the time this newsletter came out. The balance sheet also has to show deposits and payments made to existing retirees. I haven't looked at the S&P numbers for those dates, but my gut says this is right. The market tanked and the plan was down, but not too bad. Protect? The PBGC guarantees pensions up to a certain limit. I believe that in general, teachers are below the limit and are not at risk of a reduced benefit. You do need to check that your plan is covered. If not, I believe the state would take over directly. I hope this helps.",
"title": ""
},
{
"docid": "23061d98412c27df8c5b17ecfd36c5a8",
"text": "The balance sheet and income statements are located in the 10-K and 10-Q filings for all publicly traded companies. It will be Item 8.",
"title": ""
},
{
"docid": "bbf48adc1557e2e46c2031c34e371115",
"text": "SXL is a Master Limited Partnership so all of the income is pass-through. Your equity purchase entitles you to a fraction of the 66% of the company that is not owned by Energy Transfer Partners. You should have been receiving the K-1s from SXL from the time that you bought the shares. Without knowing your specific situation, you will likely have to amend your returns for at most 6 years (if the omitted amount of gross income exceeds 25% of your gross income originally stated as littleadv has graciously pointed out in the comments) and include Schedule E to report the additional income (you'll also be able to deduct any depreciation, losses etc. that are passed through the entity on that form, so that will offset some of the gains). As littleadv has recommended, speak with a tax professional (CPA/EA or attorney) before you take any further steps, as everyone's situation is a bit different. This Forbes article has a nice overview of the MLP. There's a click-through to get to it, but it's not paywalled.",
"title": ""
},
{
"docid": "e51fdeb51cecb92c7a69bc78db232a18",
"text": "No, it will show on the LLC tax return (form 1065), in the capital accounts (schedules K-1, L and M-2), attributed to your partner.",
"title": ""
},
{
"docid": "7ca594024cad43676e532bdd3be3a86d",
"text": "No, it's not all long-term capital gain. Depending on the facts of your situation, it will be either ordinary income or partially short-term capital gain. You should consider consulting a tax lawyer if you have this issue. This is sort of a weird little corner of the tax law. IRC §§1221-1223 don't go into it, nor do the attendant Regs. It also somewhat stumped the people on TaxAlmanac years ago (they mostly punted and just declared it self-employment income, avoiding the holding period issue). But I did manage to find it in BNA Portfolio 562, buried in there. That cited to a court case Comm'r v. Williams, 256 F.2d 152 (5th Cir. 1958) and to Revenue Ruling 75-524 (and to another Rev. Rul.). Rev Rul 75-524 cites Fred Draper, 32 T.C. 545 (1959) for the proposition that assets are acquired progressively as they are built. Note also that land and improvements on it are treated as separate assets for purposes of depreciation (Pub 946). So between Williams (which says something similar but about the shipbuilding industry) and 75-524, as well as some related rulings and cases, you may be looking at an analysis of how long your property has been built and how built it was. You may be able to apportion some of the building as long-term and some as short-term. Whether the apportionment should be as to cost expended before 1 year or value created before 1 year is explicitly left open in Williams. It may be simpler to account for costs, since you'll have expenditure records with dates. However, if this is properly ordinary income because this is really business inventory and not merely investment property, then you have fully ordinary income and holding period is irrelevant. Your quick turnaround sale tends to suggest this may have been done as a business, not as an investment. A proper advisor with access to these materials could help you formulate a tax strategy and return position. This may be complex and law-driven enough that you'd need a tax lawyer rather than a CPA or preparer. They can sort through the precedent and if you have the money may even provide a formal tax opinion. Experienced real estate lawyers may be able to help, if you screen them appropriately (i.e. those who help prepare real estate tax returns or otherwise have strong tax crossover knowledge).",
"title": ""
},
{
"docid": "93b6457e8a48c4363e86f317dbc0934e",
"text": "From 26 CFR 1.1012(c)(1)i): ... if a taxpayer sells or transfers shares of stock in a corporation that the taxpayer purchased or acquired on different dates or at different prices and the taxpayer does not adequately identify the lot from which the stock is sold or transferred, the stock sold or transferred is charged against the earliest lot the taxpayer purchased or acquired to determine the basis and holding period of the stock. From 26 CFR 1.1012(c)(3): (i) Where the stock is left in the custody of a broker or other agent, an adequate identification is made if— (a) At the time of the sale or transfer, the taxpayer specifies to such broker or other agent having custody of the stock the particular stock to be sold or transferred, and ... So if you don't specify, the first share bought (for $100) is the one sold, and you have a capital gain of $800. But you can specify to the broker if you would rather sell the stock bought later (and thus have a lower gain). This can either be done for the individual sale (no later than the settlement date of the trade), or via standing order: 26 CFR 1.1012(c)(8) ... A standing order or instruction for the specific identification of stock is treated as an adequate identification made at the time of sale, transfer, delivery, or distribution.",
"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": "e86ce0a96fa86c9a6148bec403e66783",
"text": "\"The $100,000 is taxed separately as \"\"ordinary income\"\". The $350,000 is taxed at long-term capital gains of 15%. Capital gains is not taxed at 20% until $415,050. Even though $100,000 + 350,000 = $450,000, only $350,000 can be taxed at capital gains. The total ordinary income tax burden will be $31,986 if single, in California. Caveat: By creating a holdings corporation (C-corp), you can section 351 that $100,000 into the C-corp for tax deferment, which won't be taxed until you take money from the corporation. Since you will hold 100% of the voting stock, all distributions will be considered pro rata. Additionally, you can issue yourself a dividend under the rules of 26 USC §§243-246 (a greather-than-80% shareholder who receives a dividend can write-off 100% of said dividend). As long as that dividend doesn't trigger §§1.243-246 of The Regulations by keeping the distribution just under 10% of E&P i.e. $10,000. Wages are deductible against basis so pay yourself $35,000 and keep $55,000 in the corporation and you can decrease the total liabilities down to $22,000 from $31,000, which includes the CA franchise tax. You don't have to pay yourself any money out a corporation to use the money.\"",
"title": ""
}
] |
fiqa
|
d32c49b0f71ece6323c24cda5dd3c2ab
|
Bank statements - should I retain hardcopies for tax or other official purposes (or keep digital scanned copies)?
|
[
{
"docid": "8c0d1ce03947d1f4d6f5848f144ecc88",
"text": "\"In the UK Directgov don't specify anything more than \"\"records\"\", which leads me to think that a digital copy might be acceptable. With regards to bank statements, individuals (i.e. not self-employed, or owning a business) need to keep them for between 12 and 15 months after your tax return, depending on when you filed it. Source: Record keeping (individuals and directors) - Directgov\"",
"title": ""
},
{
"docid": "8287deab56f34b7c3f331d8e74600458",
"text": "I am in the United States. There is no need to keep the statements in any form forever. Once the bank gives you a 1099 stating how much interest you have earned, you don't need to keep them. If you only have them in electronic form, that is good enough for the IRS. When you do need to show a bank statement, such as when applying for a loan, the loan company will be keeping a copy. It doesn't matter if it was a scan from the original, from a printed PDF, or if you printed it from your archives. In the US they used send the original check back to the person who wrote it, so they could keep it for their records. Then many banks went to carbons, but if you paid extra they would send you the original. Now the bank that cashes the check scans the check and destroys the original. If you want a copy for your records it only exists as a scanned image.",
"title": ""
},
{
"docid": "1a101e11d5333f88ccbb83c345bf8b83",
"text": "Digital records are fine, but record-keeping practices are important. Be consistent.",
"title": ""
}
] |
[
{
"docid": "52814076ebf3e11bea5315414acf2240",
"text": "There does not appear to be a way to export the customers and invoices nor a way to import them into another data file if you could export them. However, as said in the comments to your question, your question seems predicated upon the notion that it is 'best practice' to create a new data file each year. This is not considered necessary It should be noted that GnuCash reports should be able to provide accurate year-end data for accounting purposes without zeroing transactions, so book-closing may not be necessary. Leaving books unclosed does mean that account balances in the Chart of Accounts will not show Year-To-Date amounts. - Closing Books GnuCash Wiki The above linked wiki page has several methods to 'close the books' if that is what you want to do - but it is not necessary. There is even a description on how to create a new file for the new year which only talks about setting up the new accounts and transactions - nothing about customers, invoices etc. Note that you can 'close the books' without creating a new data file. In summary: you cannot do it; but you don't need to create a new file for the new year so you don't need to do it.",
"title": ""
},
{
"docid": "5493b56dbf36492b0b5cf5afc1cb83df",
"text": "\"The simple answer is...get everything you can. If you're closing the account then you want to have as complete a record as possible for yourself just for the sake of playing it safe. There's no such thing as having \"\"too much information\"\" when it comes to your financial records. You can never tell when something will come up that requires information from years past that you thought you'd never need, and if you don't have it, then what? This is a matter of being prudent, and while it make take some effort to obtain the records, it's better to be safe than sorry. Good luck!\"",
"title": ""
},
{
"docid": "7bc9bafc8f76b5eec74092070fadfde0",
"text": "There are certain standards that modern checks need to meet. These aren't required by law, but banks today generally insist on them. If you are able to meet these standards and print your own checks at home, you are allowed to do so. One way this is commonly done is with purchased check blanks and check printing software. Office supply stores sell check blanks that fit into standard computer printers. This check paper includes the necessary security features of checks, and using the check printing software, you can print your personal information, including your name & address, your bank's name and address, and your account numbers. The account numbers on the bottom of the checks are called the MICR code, which stands for Magnetic Ink Character Recognition. Normally, these numbers were printed with special magnetic ink, which was used in automated check reading machines. Checks that you purchase from your bank still use magnetic ink; however, modern check readers are optical, and don't require magnetic ink. So you should be able to print checks with your printer using standard ink/toner, and not have a problem. Without purpose-specific check printing software, you could still buy blank check paper from the store, and with a little trial-and-error you could print using Excel. The biggest challenge with doing this would be printing the MICR code: you would probably need to install an MICR font on your computer and play around with the size and location until you get it where you want it. Doing a little Googling, I see that there are some check printing Excel templates out there, but I haven't tried any of these, and it is unclear to me whether they actually print the MICR, or whether they assume that you have blank checks with the MICR account number and check numbers already printed. Without purchasing blank check paper, you won't have any of the security features, such as microprinting, watermarks, erasure protection, anti-photocopying background, etc. As you mentioned, if you are depositing checks via mobile phone app, as some banks now allow, none of these security features are doing any good. The problem, however, is that you are not writing checks for yourself; you are writing checks to other people, and you have no way of knowing whether or not their banks are going to give them trouble with your checks. There is enough check fraud out there that lots of bank tellers are very cautious. I recommend sticking with check paper that has the security features because, if nothing else, it will make your check look more like a real check.",
"title": ""
},
{
"docid": "aa97ca1911310dad466a3476df53c3ca",
"text": "Regarding your specific types: If you can't part with anything, sure, scan them. Also, there are lots of opportunities to sign up for eStatements with just about any financial provider. They want you to sign up for them, because it reduces their expenses. If you still like having paper around (I do admit that it's comforting in a way) then you can usually prune your paper a bit by statement (getting rid of T&C boilerplate, advertisements, etc.) or by consolidation (toss monthly when the quarterly consolidation statement arrives; toss the quarterly when the yearly arrives).",
"title": ""
},
{
"docid": "ce52603664902ae8e7733c89c63ff044",
"text": "\"For me, the main benefit of using duplicate checks is that the copy is created automatically. If I had to take an extra step, whether taking a photo or writing on a stub, I would probably not always remember to do it. There is also the issue that you might need to write a check when you don't have your smartphone with you, or it is broken or has a dead battery, etc. There are various pros and cons of having an electronic record versus a paper record. A paper copy of a check is more vulnerable to physical loss or intrusion, but an electronic record is more vulnerable to hacking. You also have to keep the images organized somehow, and take care of data security and backups for the images. You'll have to evaluate which is the greater concern for you. A minor side point is that check duplicates often omit the account number and obscure your signature. A photo of the original check would include both of these. As far as \"\"evidence\"\", it seems to me they're both equally good evidence that you wrote the check - but that's not really that useful. In most sorts of disputes, what you would need to prove is that you actually delivered the check to the intended recipient, and neither the photo nor the paper copy is evidence of that. You could have written the check, taken your photo / copy, and then torn it up.\"",
"title": ""
},
{
"docid": "d64099471aa35102fd9efc062d5d8077",
"text": "Although if you count only your data, it would be quite less 10 MB, multiply this by 1 million customers and you can see how quickly the data grows. Banks do retain data for longer period, as governed by country laws, typically in the range of 7 to 10 years. The online data storage cost is quite high 5 to 10 times more than offline storage. There are other aspects, Disaster recover time, the more the data the more the time. Hence after a period of time Banks move the data into Archive that are cheaper to store but are not available to online query, plus the storage is not optimized for search. Hence retrieval of this data often takes few days if the regulator demands or court or any other genuine request for data retrieval.",
"title": ""
},
{
"docid": "00b3c587b025b5ae800f89468ba7f5d0",
"text": "To be on the safe side - you'll want to get the full invoice. You don't need to actually print them, you can save it as a PDF and make sure to make your own backups once in a while. Only actually print them when the IRS asks you to kill some trees and send them a paper response, and even then you can talk to the agent in charge and check if you can email the digital file instead. The IRS won't ask for this when you file your taxes, they will only ask for this if you're under audit and they will want to actually validate the numbers on your return. You'll know when you're under audit, and who is the auditor (the agent in charge of your case). You'll also want to have some representation when that happens.",
"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": "06347da072b82d84f07b4c9d441f3931",
"text": "Assuming US,but the principles apply in many (not all) places: If the bills are legitimate and issued by the federal government, they're legal tender and you can spend or deposit them. Old bills, especially silver certificates, may be worth more than their face value to collectors (or may not). Bills issued by banks, by the confederate states, or something like that have only collector's value (which will vary depending on exactly what they are and their condition). The value of money from another country will depend on the issuing country and exchange rates, of course. There's nothing wrong with windfall cash. The IRS may ask some nosy questions about it to make sure you aren't trying to hide something, but if you aren't deliberately trying to cheat them or hide something illegal that's generally harmless at worst.",
"title": ""
},
{
"docid": "83e752498d950fa1929674cf05ec2108",
"text": "\"The short answer is \"\"it depends\"\", mainly on the type of record and how old it is. Most retained records should be organized by year first, then by type. Have a look at this: http://www.bankrate.com/finance/personal-finance/how-long-to-keep-financial-records.aspx Typically, you should do the following:\"",
"title": ""
},
{
"docid": "425030da8e9d713084ca7d3e8ef48786",
"text": "In general, you don't need to keep bills around for more than a few months. The exceptions are: anything that was itemized on your federal or state income taxes. You want to keep these around for seven years in case of an audit by the IRS brokerage statements buying/selling stocks, bonds, mutual funds, etc. You need to know how much you bought a stock for when you sell it, to calculate capital gains. information relating to major renovations to your house. This can be used to reduce the gain when you sell. anything relating to a business, again for tax and valuation purposes. When selling a house, the last years worth of utility bills might be useful, to show potential buyers. However, I get almost all of my recurring bills electronically now. They get saved and backed up. In that case, its easier to just keep everything than to selectively delete stuff. It takes very little space, is easier to find things than in paper files, and is much less hassle when moving than boxes full of paper.",
"title": ""
},
{
"docid": "11df2c61d4b972e329f7d49fe185d5b9",
"text": "I am no expert on the situation nor do I pretend to act like one, but, as a business owner, allow me to give you my personal opinion. Option 3 is closest to what you want. Why? Well: This way, you have both the record of everything that was done, and also IRS can see exactly what happened. Another suggestion would be to ask the GnuCash maintainers and community directly. You can have a chat with them on their IRC channel #gnucash, send them an email, maybe find the answer in the documentation or wiki. Popular software apps usually have both support people and a helpful community, so if the above method is in any way inconvenient for you, you can give this one a try. Hope this helps! Robert",
"title": ""
},
{
"docid": "a6c958f80703d863eece8776a95b0b4a",
"text": "I don't like keeping my tax information online. Personally, I buy TaxCut from Amazon for $25-30. I store my info securely on resources under my control. Call me a luddite or a weirdo, but I also file using paper, because I don't see the advantage of paying for the privilege of saving the government time and money.",
"title": ""
},
{
"docid": "ca4f820b9bdb5a53b055950641355db2",
"text": "Do not try to deposit piece wise. Either use the system in complete transparence, or do not use it at all. The fear of having your bank account frozen, even if you are in your rights, is justified. In any case, I don't advise you to put in bank before reaching IRS. Also keep all the proof that you indeed contacted them. (Recommended letter and copy of any form you submit to them) Be ready to also give those same documents to your bank to proove your good faith. If they are wrong, you'll be considered in bad faith until you can proove otherwise, without your bank account. Do not trust their good faith, they are not bad people, but very badly organized with too much power, so they put the burden of proof on you just because they can. If it is too burdensome for you then keep cash or go bitcoin. (but the learning curve to keep so much money in bitcoin secure against theft is high) You should declare it in this case anyway, but at least you don't have to fear having your money blocked arbitrarily.",
"title": ""
},
{
"docid": "0ff87b4504eaa0cf33d2b696582f47ef",
"text": "\"I think the \"\"right\"\" way to approach this is for your personal books and your business's books to be completely separate. You would need to really think of them as separate things, such that rather than being disappointed that there's no \"\"cross transactions\"\" between files, you think of it as \"\"In my personal account I invested in a new business like any other investment\"\" with a transfer from your personal account to a Stock or other investment account in your company, and \"\"This business received some additional capital\"\" which one handles with a transfer (probably from Equity) to its checking account or the like. Yes, you don't get the built-in checks that you entered the same dollar amount in each, but (1) you need to reconcile your books against reality anyway occasionally, so errors should get caught, and (2) the transactions really are separate things from each entity's perspective. The main way to \"\"hack it\"\" would be to have separate top-level placeholder accounts for the business's Equity, Income, Expenses, and Assets/Liabilities. That is, your top-level accounts would be \"\"Personal Equity\"\", \"\"Business Equity\"\", \"\"Personal Income\"\", \"\"Business Income\"\", and so on. You can combine Assets and Liabilities within a single top-level account if you want, which may help you with that \"\"outlook of my business value\"\" you're looking for. (In fact, in my personal books, I have in the \"\"Current Assets\"\" account both normal things like my Checking account, but also my credit cards, because once I spend the money on my credit card I want to think of the money as being gone, since it is. Obviously this isn't \"\"standard accounting\"\" in any way, but it works well for what I use it for.) You could also just have within each \"\"normal\"\" top-level placeholder account, a placeholder account for both \"\"Personal\"\" and \"\"My Business\"\", to at least have a consistent structure. Depending on how your business is getting taxed in your jurisdiction, this may even be closer to how your taxing authorities treat things (if, for instance, the business income all goes on your personal tax return, but on a separate form). Regardless of how you set up the accounts, you can then create reports and filter them to include just that set of business accounts. I can see how just looking at the account list and transaction registers can be useful for many things, but the reporting does let you look at everything you need and handles much better when you want to look through a filter to just part of your financial picture. Once you set up the reporting (and you can report on lists of account balances, as well as transaction lists, and lots of other things), you can save them as Custom Reports, and then open them up whenever you want. You can even just leave a report tab (or several) open, and switch to it (refreshing it if needed) just like you might switch to the main Account List tab. I suspect once you got it set up and tried it for a while you'd find it quite satisfactory.\"",
"title": ""
}
] |
fiqa
|
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