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bge-retrieval-data-ivf-passage-pruning-fixed-50K

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[ { "docid": "0fe8ad531b8303ea06ea6b21256025fe", "text": "I don't believe Saturday is a business day either. When I deposit a check at a bank's drive-in after 4pm Friday, the receipt tells me it will credit as if I deposited on Monday. If a business' computer doesn't adjust their billing to have a weekday due date, they are supposed to accept the payment on the next business day, else, as you discovered, a Sunday due date is really the prior Friday. In which case they may be running afoul of the rules that require X number of days from the time they mail a bill to the time it's due. The flip side to all of this, is to pick and choose your battles in life. Just pay the bill 2 days early. The interest on a few hundred dollars is a few cents per week. You save that by not using a stamp, just charge it on their site on the Friday. Keep in mind, you can be right, but their computer still dings you. So you call and spend your valuable time when ever the due date is over a weekend, getting an agent to reverse the late fee. The cost of 'right' is wasting ten minutes, which is worth far more than just avoiding the issue altogether. But - if you are in the US (you didn't give your country), we have regulations for everything. HR 627, aka The CARD act of 2009, offers - ‘‘(2) WEEKEND OR HOLIDAY DUE DATES.—If the payment due date for a credit card account under an open end consumer credit plan is a day on which the creditor does not receive or accept payments by mail (including weekends and holidays), the creditor may not treat a payment received on the next business day as late for any purpose.’’. So, if you really want to pursue this, you have the power of our illustrious congress on your side.", "title": "" }, { "docid": "639cc7a31d1d784762a35b44780f1a2c", "text": "You definitely have an argument for getting them to reverse the late fee, especially if it hasn't happened very often. (If you are late every month they may be less likely to forgive.) As for why this happens, it's not actually about business days, but instead it's based on when they know that you paid. In general, there are 2 ways for a company to mark a bill as paid: Late Fees: Some systems automatically assign late fees at the start of the day after the due date if money has not been received. In your case, if your bill was due on the 24th, the late fee was probably assessed at midnight of the 25th, and the payment arrived after that during the day of the 25th. You may have been able to initiate the payment on the company's website at 11:59pm on the 24th and not have received a late fee (or whatever their cutoff time is). Suggestion: as a rule of thumb, for utility bills whose due date and amount can vary slightly from month to month, you're usually better off setting up your payments on the company website to pull from your bank account, instead of setting up your bank account to push the payment to the company. This will ensure that you always get the bill paid on time and for the correct amount. If you still would rather push the payment from your bank account, then consider setting up the payment to arrive about 5 days early, to account for holidays and weekends.", "title": "" }, { "docid": "300207fb417715762863a5b3d7fa6275", "text": "It's likely that your bill always shows the 24th as the due date. Their system is programmed to maintain that consistency regardless of the day of the week that falls on. When the 24th isn't a business day it is good to error on the side of caution and use the business day prior. It would have accepted using their system with a CC payment on the 24th because that goes through their automated system. I would hazard a guess that because your payment was submitted through your bank and arrived on the 23rd it wasn't credited because a live person would have needed to be there to do it and their live people probably don't work weekends. I do much of my bill paying online and have found it easiest to just build a couple days of fluff into the schedule to avoid problems like this. That said, if you call them and explain the situation it is likely that they will credit the late charge back to you.", "title": "" } ]

[ { "docid": "133464c876056ea6f006d3b68d5352cd", "text": "In the US there is no set date. If all goes well there are multiple dates of importance. If it doesn't go well the budget process also may include continuing resolutions, shutdowns, and sequestrations.", "title": "" }, { "docid": "f2001e382087977d58faadeb8485548a", "text": "I'm not familiar with Gnucash, but I can discuss double-entry bookkeeping in general. I think the typical solution to something like this is to create an Asset account for what this other person owes you. This represents the money that he owes you. It's an Accounts Receivable. Method 1: Do you have/need separate accounts for each company that you are paying for this person? Do you need to record where the money is going? If not, then all you need is: When you pay a bill, you credit (subtract from) Checking and debit (add to) Friend Account. When he pays you, you credit (subtract from) Friend Account and debit (add to) Checking. That is, when you pay a bill for your friend you are turning one asset, cash, into a different kind of asset, receivable. When he pays you, you are doing the reverse. There's no need to create a new account each time you pay a bill. Just keep a rolling balance on this My Friend account. It's like a credit card: you don't get a new card each time you make a purchase, you just add to the balance. When you make a payment, you subtract from the balance. Method 2: If you need to record where the money is going, then you'd have to create accounts for each of the companies that you pay bills to. These would be Expense accounts. Then you'd need to create two accounts for your friend: An Asset account for the money he owes you, and an Income account for the stream of money coming in. So when you pay a bill, you'd credit Checking, debit My Friend Owes Me, credit the company expense account, and debit the Money from My Friend income account. When he repays you, you'd credit My Friend Owes Me and debit Checking. You don't change the income or expense accounts. Method 3: You could enter bills when they're received as a liability and then eliminate the liability when you pay them. This is probably more work than you want to go to.", "title": "" }, { "docid": "c7925c388a4ae383d3f58c8a67ecb5e9", "text": "Maybe it's just because of the foundation date. If I start a company on August 1st, I would like its FY starts on that date too, in order to track my first whole year. Would be quite useless to finish my year on December, after just five months. I want to have data of my first year after a twelve months activity.", "title": "" }, { "docid": "cfbb547b620fea17de7b1d8d8b42af06", "text": "it means that 20% of my closing balance each day will be added up over the course of a month and then given once the month is over. Yes apart from the typo 0.20% of every day balance. The rate itself is quoted for a year, so for a day it will be (Px0.20)/(100x365). Where P = The principal amount of every day. The credits will be every month-end. For leap year will be 366. Check with your Bank quite a few Banks still use the old convention of 360 days in year.", "title": "" }, { "docid": "c522e1e5a10c5380d40f06148f473874", "text": "In addition to the company-specific annual business cycle reasons and company-specific historical reasons mentioned in the other answers, there is another reason. Accounting firms tend to be very busy during January (and February and March) when most companies are closing and auditing their calendar-year books. If a company chooses its fiscal year to end at a different time of year, the accounting firms are more available, and the auditing costs might be lower.", "title": "" }, { "docid": "af8082def21f44a1b9f418f3c16c3302", "text": "\"Trying to figure out how much money you have available each day sounds like you're making this more complicated than it needs to be. Unless you're extremely tight and you're trying to squeeze by day by day, asking \"\"do I have enough cash to buy food for today?\"\" and so on, you're doing too much work. Here's what I do. I make a list of all my bills. Some are a fixed amount every month, like the mortgage and insurance premiums. Others are variable, like electric and heating bills, but still pretty predictable. Most bills are monthly, but I have a few that come less frequently, like water bills in my area come every 3 months and I have to pay property taxes twice a year. For these you have to calculate how much they cost each month. Like for the water bill, it's once every 3 months so I divide a typical bill by 3. Always round up or estimate a little high to be safe. Groceries are a little tricky because I don't buy groceries on any regular schedule, and sometimes I buy a whole bunch at once and other times just a few things. When groceries were a bigger share of my income, I kept track of what I spent for a couple of months to figure out an average per month. (Today I'm a little richer and I just think of groceries as coming from my spending money.) I allocate a percentage of my income for contributions to church and charities and count this just like bills. It's a good idea to put aside something for savings and/or paying down any outstanding loans every month. Then I add these up to say okay, here's how much I need each month to pay the bills. Subtract that from my monthly income and that's what I have for spending money. I get paid twice a month so I generally pay bills when I get paid. For most bills the due date is far enough ahead that I can wait the maximum half a month to pay it. (Worst case the bill comes the day after I pay the bills from this paycheck.) Then I keep enough money in my checking account to, (a) Cover any bills until the next paycheck and allow for the particularly large bills; and (b) provide some cushion in case I make a mistake -- forget to record a check or make an arithmetic error or whatever; and (c) provide some cushion for short-term unexpected expenses. To be safe, (a) should be the total of your bills for a month, or as close to that as you can manage. (b) should be a couple of hundred dollars if you can manage it, more if you make a lot of mistakes. If you've calculated your expenses properly and only spend the difference, keeping enough money in the bank should fall out naturally. I think it's a lot easier to try to manage your money on a monthly basis than on a daily basis. Most of us don't spend money every day, and we spend wildly different amounts from day to day. Most days I probably spend zero, but then one day I'll buy a new TV or computer and spend hundreds. Update in response to question What I do in real life is this: To calculate my available cash to spend, I simply take the balance in my checking account -- assuming that all checks and electronic payments have cleared. My mortgage is deducted from my checking every month so I post that to my checking a month in advance. I pay a lot of things with automatic charges to a credit card these days, so my credit card bills are large and can't be ignored. So subtract my credit card balances. Subtract my reserve amount. What's left is how much I can afford to spend. So for example: Say I look at the balance in my checkbook today and it's, say, $3000. That's the balance after any checks and other transactions have cleared, and after subtracting my next mortgage payment. Then I subtract what I owe on credit cards. Let's say that was $1,200. So that leaves $1,800. I try to keep a reserve of $1,500. That's plenty to pay my routine monthly bills and leave a healthy reserve. So subtract another $1,500 leaves $300. That's how much I can spend. I could keep track of this with a spreadsheet or a database but what would that gain? The amount in my checking account is actual money. Any spreadsheet could accumulate errors and get farther and farther from accurate values. I use a spreadsheet to figure out how much spending money I should have each month, but that's just to use as a guideline. If it came to, say, $100, I wouldn't make grandiose plans about buying a new Mercedes. If it came to $5,000 a month than buying a fancy new car might be realistic. It also tells me how much I can spend without having to carefully check balances and add it up. These days I have a fair amount of spending money so when, for example, I recently decided I wanted to buy some software that cost $100 I just bought it with barely a second thought. When my spending money was more like $100 a month, lunch at a fast food place was a big event that I planned weeks in advance. (Obviously, I hope, don't get stupid about \"\"small amounts\"\". If you can easily afford $100 for an impulse purchase, that doesn't mean that you can afford $100 five times a day every day.) Two caveats: 1. It helps to have a limited number of credit cards so you can keep the balances under control. I have two credit cards I use for almost everything, so I only have two balances to keep track of. I used to have more and it got confusing, it was easy to lose track of how much I really owed, which is a set up for getting in trouble.\"", "title": "" }, { "docid": "117688752ea927341f36a9f0a79df182", "text": "A debt is created when the service is rendered or the goods are sold to you. The bill is simply a way of recording the debt and alerting you to it.", "title": "" }, { "docid": "4f1b1c566e68e180bc8d2edd76e7676a", "text": "\"But I have been having a little difficulty to include the expenditure in my monthly budget as the billing cycle is from the 16th to 15th of the next month and my income comes in at the end of the month. Many companies will let you change the statement date if you want, so one way to do this would be to request your bank to have statements due at the end of the month or first of month. You can call and ask, this might resolve your problem entirely. How can I efficiently add the credit card expenditure to my monthly budget? We do this using YNAB, which then means our monthly budget is separate from our actual bank accounts. When we spend, we enter the transaction into YNAB and it's \"\"spent.\"\" Additionally, we just pay whatever our credit card balance is a day before the end of the month so it is at $0 when we do our budget discussion at the end of each month.\"", "title": "" }, { "docid": "4fd0d70975a9e25e6f4df9b653ffceee", "text": "\"I cannot answer the original question, but since there is a good deal of discussion about whether it's credible at all, here's an answer that I got from Bank of America. Note the fine difference between \"\"your account\"\" and \"\"our account\"\", which does not seem to be a typo: The payment method is determined automatically by our system. One of the main factors is the method by which pay to recipients prefer to receive payments. If a payment can be issued electronically, we attempt to do so because it is the most efficient method. Payment methods include: *Electronic: Payment is sent electronically prior to the \"\"Deliver By\"\" date. The funds for the payment are deducted from your account on the \"\"Deliver By\"\" date. *Corporate Check: This is a check drawn on our account and is mailed to the pay to recipient a few days before the \"\"Deliver By\"\" date. The funds to cover the payment are deducted from your account on the \"\"Deliver By\"\" date. *Laser Draft Check: This is a check drawn on your account and mailed to the pay to recipient a few days before the \"\"Deliver By\"\" date. The funds for the payment are deducted from your account when the pay to recipient cashes the check, just as if you wrote the check yourself. To determine how your payment was sent, click the \"\"Payments\"\" button in your Bill Pay service. Select the \"\"view payment\"\" link next to the payment. Payment information is then displayed. \"\"Transmitted electronically\"\" means the payment was sent electronically. \"\"Payment transaction number\"\" means the payment was sent via a check drawn from our account. \"\"Check number\"\" means the payment was sent as a laser draft check. Each payment request is evaluated individually and may change each time a payment processes. A payment may switch from one payment method to another for a number of reasons. The merchant may have temporarily switched the payment method to paper, while they update processing information. Recent changes or re-issuance of your payee account number could alter the payment method. In my case, the web site reads a little different: Payment check # 12345678 (8 digits) was sent to Company on 10/27/2015 and delivered on 10/30/2015. Funds were withdrawn from your (named) account on 10/30/2015. for one due on 10/30/2015; this must be the \"\"corporate check\"\". And for another, earlier one, due on 10/01/2015, this must be the laser draft check: Check # 1234 (4 digits) from your (named) account was mailed to Company on 09/28/2015. Funds for this payment are withdrawn from your account when the Pay To account cashes the check. Both payments were made based on the same recurring bill pay payment that I set up manually (knowing little more of the company than its address).\"", "title": "" }, { "docid": "f76bbbe3bdcffd70db05c0c0aa87e869", "text": "How about the fact that when a stranger calls me at 3pm on a Tuesday it means only a few things: * I've forgotten to pay a bill * Someone I know is in the hospital * Someone wants my opinion on something I don't care about At 3pm on a Tuesday (like nearly every other weekday afternoon) I'm busy. I answer the phone to ensure it isn't a forgotten bill or someone in the hospital, but it's usually someone trying to sell me stuff or ask for my opinions. I always decline. BECAUSE I'M BUSY, LIKE EVERY OTHER WORKING ADULT WITH A FAMILY!", "title": "" }, { "docid": "e3d56be34cfc8de0abbc03ac42ee8256", "text": "As with most things accounting/tax related it depends. In general though yes. As an example, if the client were to buy equipment on credit before fiscal year end, in lets say December, but did not pay until the next year started in January, then under cash basis they would not have the purchase accounted for until they made payment. That means they could not claim any deductions from the purchase. Under accrual, the purchase would have been put on the books in December, when the equipment was installed, and they would have been able to claim any deductions.", "title": "" }, { "docid": "845b0104a1698b092c1d865f1661ebdc", "text": "A loan is most generally a liability, a part of the balance sheet. Expenses & income are part of the income statement. Income is the net of revenues after expenses. The interest is an expense on the income statement, but the loan itself does not reside there unless if it is defaulted and forgiven. Then it would become a revenue or contra-expense, depending on the methodology. The original purpose of the income statement is to show the net inflows of short term operational accruals which would exclude new borrowing and repaid loans. The cash flow statement will better show each cash event such as borrowing debt, repaying debt, or paying off a bill. To show how a loan may have funded a bill, which in theory it directly did not because an entity, be it a person or business, is like a single tank of water with multiple pipes filling and multiple pipes extracting, so it is impossible to know which exact inflow funded which exact outflow unless if there is only one inflow per period and one outflow per the same period. That being said, with a cash flow statement, the new loan will show a cash inflow when booked under the financing portion, and paying a bill will show a cash outflow when booked under the operating portion. With only those two transactions booked and an empty balance sheet beforehand, it could be determined that a new loan funded a bill payment.", "title": "" }, { "docid": "b288f4246d6d89e0c58cf716df4993bd", "text": "\"$500, this is called \"\"cash basis\"\" accounting. A large company might handle it otherwise, counting shipments/billings as revenue. Not you. Yet.\"", "title": "" }, { "docid": "5f4c85a0ec524834a22e73607839809b", "text": "I wrote a small Excel-based bookkeeping system that handles three things: income, expenses, and tax (including VAT, which you Americans can rename GST). Download it here.", "title": "" }, { "docid": "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": "d55b27429ba53a663bc7257aa958fc75", "text": "\"I am going to keep things very simple and explain the common-sense reason why the accountant is right: Also, my sister in law owns a small restaurant, where they claim their accountant informed them of the same thing, where a portion of their business purchases had to be counted as taxable personal income. In this case, they said their actual income for the year (through their paychecks) was around 40-50K, but because of this detail, their taxable income came out to be around 180K, causing them to owe a huge amount of tax (30K ish). Consider them and a similarly situated couple that didn't make these purchases. Your sister in law is better off in that she has the benefit of these purchases (increasing the value of her business and her expected future income), but she's worse off because she got less pay. Presumably, she thought this was a fair trade, otherwise she wouldn't have made those purchases. So why should she pay any less in taxes? There's no reason making fair trades should reduce anyone's tax burden. Now, as the items she purchased lose value, that will be a business loss called \"\"depreciation\"\". That will be deductible. But the purchases themselves are not, and the income that generated the money to make those purchases is taxable. Generally speaking, business gains are taxable, regardless of what you do with the money (whether you pay yourself, invest it, leave it in the business, or whatever). Generally speaking, only business losses or expenses are deductible. A purchase is an even exchange of income for valuable property -- even exchanges are not deductions because the gain of the thing purchased already fairly compensates you for the cost. You don't specify the exact tax status of the business, but there are really only two types of possibilities. It can be separately taxed as a corporation or it can be treated essentially as if it didn't exist. In the former case, corporate income tax would be due on the revenue that was used to pay for the purchases. There would be no personal income tax due. But it's very unlikely this situation applies as it means all profits taken out of the business are taxed twice and so small businesses are rarely organized this way. In the latter case, which is almost certainly the one that applies, business income is treated as self-employment income. In this case, the income that paid for the purchases is taxable, self-employment income. Since a purchase is not a deductible expense, there is no deduction to offset this income. So, again, the key points are: How much she paid herself doesn't matter. Business income is taxable regardless of what you do with it. When a business pays an expense, it has a loss that is deductible against profits. But when a business makes a purchase, it has neither a gain nor a loss. If a restaurant buys a new stove, it trades some money for a stove, presumably a fair trade. It has had no profit and no loss, so this transaction has no immediate effect on the taxes. (There are some exceptions, but presumably the accountant determined that those don't apply.) When the property of a business loses value, that is usually a deductible loss. So over time, a newly-purchased stove will lose value. That is a loss that is deductible. The important thing to understand is that as far as the IRS is concerned, whether you pay yourself the money or not doesn't matter, business income is taxable and only business losses or expenses are deductible. Investments or purchases of capital assets are neither losses nor expenses. There are ways you can opt to have the business taxed separately so only what you pay yourself shows up on your personal taxes. But unless the business is losing money or needs to hold large profits against future expenses, this is generally a worse deal because money you take out of the business is taxed twice -- once as business income and again as personal income. Update: Does the business eventually, over the course of the depreciation schedule, end up getting all of the original $2,000 tax burden back? Possibly. Ultimately, the entire cost of the item is deductible. That won't necessarily translate into getting the taxes back. But that's really not the right way to think about it. The tax burden was on the income earned. Upon immediate replacement, hypothetically with the exact same model, same cost, same 'value', isn't it correct that the \"\"value\"\" of the business only went up by the amount the original item had depreciated? Yes. If you dispose of or sell a capital asset, you will have a gain or loss based on the difference between your remaining basis in the asset and whatever you got for the asset. Wouldn't the tax burden then only be $400? Approximately, yes. The disposal of the original asset would cause a loss of the difference between your remaining basis in the asset and what you got for it (which might be zero). The new asset would then begin depreciating. You are making things a bit more difficult to understand though by focusing on the amount of taxes due rather than the amount of taxable gain or loss you have. They don't always correlate directly (because tax rates can vary).\"", "title": "" }, { "docid": "547b4e9e1520ac085e0ddc41d12abe56", "text": "It sounds like something is getting lost in translation here. A business owner should not have to pay personal income tax on business expenses, with the caveat that they are truly business expenses. Here's an example where what you described could happen: Suppose a business has $200K in revenue, and $150K in legitimate business expenses (wages and owner salaries, taxes, services, products/goods, etc.) The profit for this example business is $50K. Depending on how the business is structured (sole proprietor, llc, s-corp, etc), the business owner(s) may have to pay personal income tax on the $50K in profit. If the owner then decided to have the business purchase a new vehicle solely for personal use with, say, $25K of that profit, then the owner may think he could avoid paying income tax on $25K of the $50K. However, this would not be considered a legitimate business expense, and therefore would have to be reclassified as personal income and would be taxed as if the $25K was paid to the owner. If the vehicle truly was used for legitimate business purposes then the business expenses would end up being $175K, with $25K left as profit which is taxable to the owners. Note: this is an oversimplification as it's oftentimes the case that vehicles are partially used for business instead of all or nothing. In fact, large items such as vehicles are typically depreciated so the full purchase price could not be deducted in a single year. If many of the purchases are depreciated items instead of deductions, then this could explain why it appears that the business expenses are being taxed. It's not a tax on the expense, but on the income that hasn't been reduced by expenses, since only a portion of the big ticket item can be treated as an expense in a single year.", "title": "" }, { "docid": "61de18f1f7c5f12ef51739de5e6f5d9a", "text": "Expenses are where the catch is found. Not all expenditures are considered expenses for tax purposes. Good CPAs make a comfortable living untangling this sort of thing. Advice for both of your family members' businesses...consult with a CPA before making big purchases. They may need to adjust the way they buy, or the timing of it, or simply to set aside capital to pay the taxes for the profit used to purchase those items. CPA can help find the best path. That 10k in unallocated income can be used to redecorate your office, but there's still 3k in taxes due on it. Bottom Line: Can't label business income as profit until the taxes have been paid.", "title": "" } ]

[ { "docid": "ae96ebf7c42b5aa8611e7c1b9890c299", "text": "First - get a professional tax consultation with a NY-licensed CPA or EA. At what point do I need to worry about collecting sales taxes for the city and state of New York? Generally, from the beginning. See here for more information on NYS sales tax. At what point do I need to worry about record-keeping to report the income on my own taxes? From the beginning. Even before that, since you need the records to calculate the costs of production and expenses. I suggest starting recording everything, as soon as possible. What sort of business structures should I research if I want to formalize this as less of a hobby and more of a business? You don't have to have a business structure, you can do it as a sole proprietor. If you're doing it for-profit - I suggest treating it as a business, and reporting it on your taxes as a business (Schedule C), so that you could deduct the initial losses. But the tax authorities don't like business that keep losing money, so if you're not expecting any profit in the next 3-4 years - keep it reported as a hobby (Misc income). Talk to a licensed tax professional about the differences in tax treatment and reporting. You will still be taxed on your income, and will still be liable for sales tax, whether you treat it as a hobby or as a business. Official business (for-profit activity) will require additional licenses and fees, hobby (not-for-profit activity) might not. Check with the local authorities (city/county/State).", "title": "" }, { "docid": "b54f359812447b459ce484e396958a5f", "text": "Alright, IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses Business and personal use. If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expense based on the miles driven for each purpose. Example. You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense Obviously nothing helpful in the code. So I would use option 1, weight the maintenance-related mileage by the proportion of business use. Although if you use your car for business a lot (and perhaps have a spouse with a car), an argument could be made for 3. So I would consider my odds of being audited (even lower this year due to IRS budget cuts) and choose 1 or 3. And of course never throw anything away until you're room temperature.", "title": "" }, { "docid": "20ddde4441bb0e5a4d7ee4f81e44300d", "text": "According to the Illinois Department of Revenue, you don't have to file any taxes that are specific to a LLC, only your personal taxes. LLC on Federal level is disregarded, instead you submit all your business income/expenses on Schedule C. On the state level - it seems to be the same (only individual tax return). Consult your state certified tax specialist. That is not the case in other states, for example in California LLC has to file its own tax return and pay its own taxes, in additional to the individual taxes.", "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": "1be25d189c6efb019fd87a53bad1e3a2", "text": "\"Before filing your first business tax return, you will need to choose a taxation method, either corporation or partnership. If you choose a partnership, then it's moot - your business income flows through to your personal taxes via form K-1. Also, regardless of your taxation method, you should consult a legal expert, since having your business pay off your personal debt would almost always be counted as income to you, and may cause you to lose the personal liability protections provided by the LLC (aka \"\"piercing the corporate veil\"\"). Having a single-member LLC with no employees, you have to be very careful how you manage the finances of the business. Any commingling of personal and business could jeopardize your protections.\"", "title": "" }, { "docid": "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": "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": "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": "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": "819197acdc0e88afc44350dcccd999eb", "text": "\"I believe you have to file a tax return, because state tax refund is considered income effectively connected with US trade or business, and the 1040NR instructions section \"\"Who Must File\"\" includes people who were engaged in trade or business in the US and had a gross income. You won't end up having to pay any taxes as the income is less than your personal exemption of $4050.\"", "title": "" }, { "docid": "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": "5d86ebab266bf0a5d9f55be7a5222389", "text": "I am assuming this is USA. While it is a bit of a pain, you are best off to have separate accounts for your business and personal. This way, if it comes to audit, you hand the IRS statements for your business account(s) and they match your return. As a further precaution I would have the card(s) you use for business expenses look different then the ones you use for personal so you don't mess another one up.", "title": "" }, { "docid": "32637ccc9962c2adcab62d05df912a25", "text": "The short answer is you are not required to. The longer answer depends on whether you are referring to your organization as a sole proprietorship in your state, or for federal taxation. For federal tax purposes, I would suggest filing each side job as a separate Sch C though. The IRS uses the information you provide about your sole proprietorship to determine whether or not your categorization of expenses makes sense for the type of business you are. This information is used by the IRS to help them determine who to audit. So, if you are a service based business, but you are reporting cost of goods sold, you are likely to be audited.", "title": "" }, { "docid": "f06119600d3aea07f3eb0978ad02434e", "text": "You would report it as business income on Schedule C. You may be able to take deductions against that income as well (home office, your computer, an android device, any advertising or promotional expenses, etc.) but you'll want to consult an accountant about that. Generally you can only take those kinds of deductions if you use the space or equipment exclusively for business use (not likely if it's just a hobby). The IRS is pretty picky about that stuff.", "title": "" }, { "docid": "621d30c4812c6b44ec2e8bab6810ce01", "text": "This depends on the nature of the income. Please consult a professional CPA for specific advise.", "title": "" } ]

[ { "docid": "055d64e9212902773d010efb3a9dc787", "text": "Is it possible to pay off my balance more than once in a payment period in order to increase the amount I can spend in a payment period? Yes you can pay off the balance more than once even if its not due. This will get applied to outstanding and you will be able to spend again. If so, is there a reason not to do this? There is no harm. However note that it generally takes 2-3 days for the credit to be applied to the card. Hence factor this in before you make new purchases. I just got a credit card to start rebuilding my credit. Spending close to you credit limit does not help much; compared to spending less than 10% of your credit limit. So the sooner you get your limit on card increased the better.", "title": "" }, { "docid": "e87963dd9db9ade93d95922c402a5976", "text": "Banks only send your balance to credit bureaus once a month; usually a few days after your statement date. Thus, as long as your usage is below 10% in that date range, you're ok. Regarding paying it off early: sure. Every Sunday night, I pay our cards' charges from the previous week. (The internet makes this too easy.)", "title": "" }, { "docid": "c542659b600028132d55a74bad21e011", "text": "Is it possible to pay off my balance more than once in a payment period in order to increase the amount I can spend in a payment period? Yes, but you should only do that if you expect an expense that is larger than your limit allows. Then, provide an extra payment before your expense occurs since it will take longer for the issuer to apply it to the outstanding balance. For instance, when going on holiday you could deposit additional money to increase your balance temporarily. That said if your goal is to improve your credit score I would recommend using the card, staying within your limit and pay it off every month. The 2 largest factors going into calculating your credit score are: By paying off the balance each month you After 6-9 months you can probably get a bigger limit, to improve your score. I wouldn't change to a different card or get a second one, as some issuers will run a check on your creditscore that lowers it temporarily. Also: you're entitled to a free credit report each year. I'd recommend asking for one every year so you can keep track on how your credit score improves. It also gives you the opportunity to check for mistakes on your report. Check here for more information: http://www.myfico.com/crediteducation/whatsinyourscore.aspx", "title": "" }, { "docid": "e06d6bd51690e4af9b4c793e5175d161", "text": "The card you have is one where you had to deposit an amount equivelent to your card limit -a secured limit credit card. Capital One is one if the primary cards of this type. The typical rules of credit card usage and building your credit, do not apply. So, yes, you want to use the card as much as possible and pay off your balance as often as is necessary to keep your limit freed up. You can actually pay the full balance plus 10%, and gain a little extra limit. Use your card as much as possible and call them and ask for a limit increase every three months. usually about 4 - 5 months in, they will increase your limit and do so without asking for a corresponding security deposit. This is really cool, because it means you are becoming credit-worthy. I know so much about this because I applied for this card for my son and am helping him in his attempt to repair his credit. His score increased by almost 200 points last year.", "title": "" } ]

[ { "docid": "3214ebb04e28fd0dda794aa50304dcb3", "text": "There are a number of ways to get out of debt. First, stop spending on that card. You could apply for a 0% APR credit card and if you qualify with a credit limit equal (or higher) than what you have now, then you could transfer the balance and start on paying that down. You could also work out a payment plan with Chase - they would rather have some of the money vs. none of it. But you need to reach out sooner rather than later to avoid having it sent to collections. Since your cash flow is terrible, you could also pick up a second or third part time job - deliver pizzas, work at the mall, whatever, to help increase your cash flow and use that money to pay down your debts. The Federal Trade Commission has some resources on how to cope with debt.", "title": "" }, { "docid": "3852438eadf70d4f64b7605211bd9ba7", "text": "\"Stop spending on the CC with the revolving balance. After the discussion below I feel I should clarify that what I am advocating is that you make your \"\"prepayment\"\" (though I disagree with calling it that) to the existing CC. Then, rather than spending on that card, spend somewhere else so you won't accrue any interest related to your spending. At the end of the month, send any excess to the account that has a balance. This question is no different than I have $X of cash, should I let it sit in a savings account or should I send it to my CC balance? Yes, 100%, you should send this $750 to your CC balance. Then, stop spending on that CC and move your daily spending to cash or some other place that won't accrue interest at all. The first step to paying off debt is to stop adding to the balance that accrues interest. It's not worth the energy to determine the change in the velocity of paydown by paying more frequently when you could simply spend on a separate card that doesn't accrue any interest because you pay the entire balance every month. The reason something like this may be advisable on a HELOC but not a CC is the interest rate. A HELOC might run you 4% or 5% while your CC is probably closer to 17%. In one situation your monthly interest is 0.4% and in the other your monthly interest is 1.4%. The velocity of interest accrual at CC rates is just too high to justify ever putting regular spending on top of an existing revolving balance. Additionally, I doubt there is anyone who is advocating for anyone to charge their HELOC for daily spending. You would move daily spending to somewhere that isn't accruing interest no matter what. You would use a HELOC to pay down your CC debt in a lump or make a large purchase in a lump. Your morning coffee should never be spent in a way that will accrue interest immediately, ever. Stop spending on the CC(s) that are carrying a balance. (period) Generally credit cards have a grace period before interest is charged. As long as a balance isn't carried from one statement period to the next you maintain your grace period. If you spend $100 in the first month you have your card, say the period is January 1 to January 31, you'll get a statement saying you owe $100 for January and payment is due by Feb 28. If you pay your $100 statement balance before February 28 you won't pay any interest, even if you charged an additional $500 on February 15; you'll simply get your February statement indicating your statement balance is $500 and payment is due by March 31, still no interest. BUT. If you pay $99 for January, leaving just a single dollar to roll over, you now owe interest on your entire average daily balance. So now you'll receive your February statement indicating $501 + interest on approximately $233.14 of average daily balance ($1 carried + $500 charged on Feb 15) due by March 31. That $1 you let roll over just cost you $3.26 in interest ($233.14 * 0.014). AND. Now that balance is continuing to accrue interest in the month of March until the day you make a payment. It typically takes two consecutive months of payment-in-full before the grace period is restored. There is no sense in continuing to spend on a CC that is carrying a balance and accruing interest even if you intend to pay all of your current month spending entirely. You can avoid 100% of the interest related to your regular spending by simply using a different card, and no rewards will beat the interest you're charged.\"", "title": "" }, { "docid": "28598daeb092fe76f9e27383470837c4", "text": "Note: the question is tagged united kingdom, this is a UK focussed answer practices elsewhere may be different). A balance transfer moves your debt from one credit card to another. This can be a good way to get a debt onto a lower (often zero) interest rate. There will usually be a transfer fee but with a good balance transfer deal the effective interest rate even after taking the fee into account can be very good and there are even some deals with 0% interest and no fee. Indeed if you keep on top of things credit cards are often the cheapest way to borrow. Normally a balance transfer is done to a new card that is applied for specifically for the purpose but sometimes it can make sense to transfer a balance to an existing card. However to take advantage of this you need discipline. You need to make absoloutely sure that you fully comply with the rules of the deal and in particular that you pay at least the minimum payment on time. You should also be aware that the rate will usually jump up at the end of the interest free period, you could do another balance transfer but assuming you will be able to do that is risky as it depends on what market conditions and your credit rating look like at the time. Ideally you should have a plan for paying off the card before the interest free period expires. In general you should be aiming to pay down your debts. Living beyond your means is very bad and carrying debt long term should only be done if you have an extremely good reason. You should regard the balance transfer as a tool to help you clear your debts quicker, not as a way to avoid paying them. If you go on a spending spree after your balance transfer you will just have dug yourself deeper in debt. See http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards for more on the techniques and the current best cards.", "title": "" }, { "docid": "399b94cafae1981298f8c7b2e307857e", "text": "I am like you with not acknowledging balances in my accounts, so I pay my credit card early and often. Much more than once a month. With my banks bill pay, I can send money to the credit card for free and at any time. I pay it every two weeks (when I get paid), and I will put other extra payments on there if I bought a large item. It helps me keep my balances based in reality in Quicken. For example, I saved the cash for my trip, put the trip on my credit card, then paid it all off the day after I got home. I used the card because I didn't want to carry the cash, I wanted the rewards cash back, I wanted the automatic protection on the car rental, and I couldn't pay for a hotel with cash. There are many good reasons to use credit cards, but only if you can avoid carrying a balance.", "title": "" }, { "docid": "31c61107cbb1960483b060f69ec90c1f", "text": "\"As far as I agree to everyone saying that \"\"you should stop borrowing\"\" & etc, I see a lot of sense of getting balance transfer cards if you are actually paying it off. Considering a scenario, you have a CC with balance of $5000 on each at roughly ~24% interest which results in ~$1200 interest per year. Your minimum due is ~$110, where you are paying $100 / mo for only interest and ~$10 / mo to cover your balance. If minimum is all you can pay with your current cash flow - yes, pleease do a balance transfer. Assuming your transfer cost is 3% and 0% interest for 21 months ( as many CCs do now ) your cost will be $150, but paying off $110 / month for 21 months you will pay off roughly $2000 off your balance, instead of ~$210 if you were paying only your minimum due. After 21 months - you'll have a balance of ~$3000 ( instead of $4800 ) and then you can repeat. If your cash flow gets better - please make as many more / bigger payments any time you can to reduce the balance and you'll pay off sooner.\"", "title": "" }, { "docid": "de2025b241f8fe7e14defc87ce78a3fd", "text": "\"One key point that other answers haven't covered is that many credit cards have a provision where if you pay it off every month, you get a grace period on the interest. Interest doesn't accrue at all unless you rollover a non-zero balance. But if you do, you pay interest on the average balance, not the rolled-over balance, for the entire month. You have to ask yourself what you are trying to accomplish with your credit history? Are you trying to maximize your \"\"buying power\"\" (really, leverage)? Or are you trying to make sure that you get the best terms on a moderately sized loan (house mortgage, car note)? As JohnFx and losthorse already noted, it's in the banker's best interest to maximize the profit they make off of you. Of course, that is not in your best interest. Keeping a credit card balance from month to month definitely feeds the greedy nature of the financing beast. And makes them willing to take more risks, because the returns are also higher. But those returns cost you. If you are planning to get sensible loans in the future, that you can comfortably afford, you won't need a maxed credit score. You won't get the largest loan amounts, but because you are doing the sensible thing and making a large down payment, the risk is also very low and you'll find lenders willing to give you a low interest rate. Because even though the reward is lower than the compulsive purchaser who pays an order of magnitude more in financing fees, the return/risk ratio is still very favorable to the bank. Don't play the game that maximizes their return. That happens when you have a loan of maximum size, high interest rate, and struggle to make payments, end up missing a couple and paying late fees, or request forbearance which compounds the interest. Play to minimize risk.\"", "title": "" }, { "docid": "e6e3bd403ff62470cfd7ae67cf18581d", "text": "\"Using the card but paying it off entirely at each billing cycle is the only \"\"Good\"\" way to use a credit card. If you feel like you will be tempted to buy more than you can pay back don't use credit. As far as furnishing the apartment, the best thing to do would be to save and pay cash, but if you want to use credit the credit available at stores would be a far better deal than carrying it on a card.\"", "title": "" }, { "docid": "e15014b08ba4abe3f2756ff8658de847", "text": "If you want to ensure that you stop paying interest, the best thing to do is to not use the card for a full billing cycle. Calculating credit card interest with precision ahead of time is difficult, as how you use the card both in terms of how much and when is critical.", "title": "" }, { "docid": "b1ec5b1cd6585ec8dbb45a4727ef590f", "text": "First, before we talk about anything having to do with the credit score, we need the disclaimer that the exact credit score formulas are proprietary secrets that have not been revealed. Therefore, all we have to go on are broad generalities that FICO has given us. That having been said, the credit card debt utilization portion of your score generally has at least two components: an overall utilization, and a per-card utilization. Your overall utilization is taken by adding up all your credit card debt and all your credit limits and dividing. Using your numbers above, you are sitting at about 95%. The per-card utilization is the individual utilization of each card. Your five cards range in utilization from 69% to 100%. Paying one card over another has no affect on your overall utilization, but obviously will change the per-card utilization of the one you pay first. So, to your question: Is it better on the credit score to have one low-util card and one high-util card, or to have two medium-util cards? I haven't read anything that definitively answers this question. Here is my advice to you: The big problem you have is the debt, not the credit score. Your credit card debt should be treated like an emergency that needs to be taken care of as quickly as you possibly can. Instead of trying to optimize your credit score, you should be trying to minimize the number of days until all of your credit cards are completely paid off. The credit score will take care of itself once you get your financial situation back on track. There is debate about the order in which one should pay off their debts, but the fact of the matter is that the order is not as significant as the intensity at which you pay them all off. Dedicate yourself to getting rid of the debts as fast as possible, and it won't matter much which order they get paid off in. Finally, to answer your question, I recommend that you attack the card debt one at a time instead of trying to pay them off evenly. Not because it will optimize your credit score, but because it will help you focus your debt-reduction energy as you work on resolving your debt emergency. Fortunately, the credit utilization portion of the credit score has no history, so once you pay all of these off, the utilization portion of your score will get better immediately, and the path you took to get there will be irrelevant. After the credit cards are completely paid off, and you have resolved never to spend money that you don't have again, it is time to work on the student loans....", "title": "" }, { "docid": "088bc40143b1fd1c3a082150fd2b9a91", "text": "Credit cards are meant to be used so generally it doesn't hurt your credit score to use them. To top it off you even get an interest grace period so you don't have to rush home and pay balances as soon as they're charged. In general you accrue charges during your statement period, we'll call it September 1 through September 30. The statement due date is something like 20 days after the close of the statement period, so we'll call it October 20. As long as you habitually pay your entire statement balance by the due date you will never pay interest. You charge your laptop on September 3, it shows up on your statement as $1,300, you pay $1,300 on October 18, you pay no interest. However, if you pay $1,000 on October 18 leaving a $300 balance to be carried in to the next statement period (a carried balance) you will pay interest. Generally interest is calculated based on your average daily balance during the statement period, which is now be the October 1 to October 31 period. You'll notice that you didn't pay anything until the October 18, that means the entire $1,300 will be included in your average daily balance up to the 18th of the month. Add to that, anything else you charge on the card now will be included in your average daily balance for interest charge calculation purposes. The moral of the story is, use your card, and pay your entire statement balance before the due date. Now how much will this impact your credit score? It's tough to say. Utilization is not a bad thing until it's a big number. I've read that 70% utilization and over is really the point at which lenders will raise an eyebrow and under 30% is considered excellent. If you have one card and $1,300 is a significant portion of your available limit, then yes you should probably pay it down quickly. Spend six or so months using the card and paying it, then call your bank and ask for a credit line increase.", "title": "" }, { "docid": "902d883dc904b70b034cc564964afb21", "text": "\"Credit Cards typically charge interest on money you borrow from them. They work in one of two ways. Most cards will not charge you any interest if you pay the balance in full each month. You typically have around 25 days (the \"\"grace period\"\") to pay that off. If that's the case, then you will use your credit card without any cost to yourself. However, if you do not pay it in full by that point, then you will owe 19.9% interest on the balance, typically from the day you charged the payment (so, retroactively). You'll also immediately begin owing interest on anything else you charge - typically, even if you do then pay the next month the entire balance on time. It's typically a \"\"daily\"\" rate, which means that the annual rate (APR) is divided into its daily rate (think the APR divided by 365 - though it's a bit different than that, since it's the rate which would be 19.9% annualized when you realize interest is paid on interest). Say in your case it's 0.05% daily - that means, each day, 0.05% is added to your balance due. If you charged $1000 on day one and never made a payment (but never had to - ignore penalties here), you'd owe $1199 at the end of the year, paying $199 interest (19.9*1000). Note that your interest is calculated on the daily balance, not on your actual credit limit - if you only charge $100, you'd owe $19.90 interest, not $199. Also note that this simplifies what they're actually doing. They often use things like \"\"average daily balance\"\" calculations and such to work out actual interest charged; they tend to be similar to what I'm describing, but usually favor the bank a bit (or, are simpler to calculate). Finally: some credit cards do not have a grace period. In the US, most do, but not all; in other countries it may be less common. Some simply charge you interest from day one. As far as \"\"Standard Purchases\"\", that means buying services or goods. Using your credit card for cash advances (i.e., receiving cash from an ATM), using those checks they mail you, or for cash-like purchases (for example, at a casino), are often under a different scheme; they may have the same rate, or a different rate. They likely incur interest from the moment cash is produced (no grace period), and they may involve additional fees. Never use cash advances unless you absolutely cannot avoid it.\"", "title": "" }, { "docid": "d905851f6af654a18f454d523e3f11ce", "text": "If we're including psychological considerations, then the question becomes much more complicated: will having a higher available credit increase the temptation to spend? Will eliminating 100% of a small debt provide more positive reinforcement than paying off 15% of a larger debt? Etc. If we're looking at the pure financial impact, the question is simpler. The only advantage I see to prioritizing the lower interest card is the float: when you buy something on a credit card, interest is often calculated for that purchase starting at the beginning of the next billing cycle, rather than immediately from the purchase date. I'm not clear on what policies credit card companies have on giving float for credit cards with a carried balance, so you should look into what your card's policy is. Other than than, paying off the higher interest rate card is better than paying off the lower interest rate. On top of that, you should look into whether you qualify for any of the following options (presented from best to worst):", "title": "" }, { "docid": "50c75465204744c58de6b39d0835eca9", "text": "\"To expand on @JoeTaxpayer's answer, the devil is actually in the fine print. All the \"\"credit-card checks\"\" that I have ever received in the mail explicitly says that the checks cannot be used to pay off (or pay down) the balance on any other credit card issued by the same bank, whether the card is branded with the bank logo or is branded with a department-store or airline logo etc. The checks can be used to pay utilities, or even taxes, without paying the \"\"service fee\"\" that is charged for using a credit card for such payments. The payee is paid the face amount of the check, in contrast to charges on a credit card from a merchant who gets to collect only about 95%-98% of the amount on the \"\"charge slip\"\". Generally speaking, balance transfer offers are a bad deal regardless of whether you pay only the minimum amount due each month or whether you pay each month's statement balance in full by the due date or anything in between. The rest of this answer is an explanation in support of the above assertion. Feel free to TL;DR it if you like. If you make only the minimum payment due each month and some parts of the balance that you are carrying has different interest rates applicable than other parts, then your payment can be applied to any part of the balance at the bank's discretion. It need hardly be said that the bank invariably chooses to apply it to pay off the lowest-rate portion. By law (CARD Act of 2009), anything above the minimum payment due must be applied to pay off the highest-rate part (and then the next highest rate part, etc), but minimum payment or less is at the bank's discretion. As an illustration, suppose that you are not using your credit cards any more and are conscientiously paying down the balances due by making the minimum payment due each month. Suppose also that you have a balance of $1000 carrying 12% APR on Card A, and pay off the entire balance of $500 on Card B, transferring the amount at 0% APR to Card A for which you are billed a 2% fee. Your next minimum payment will be likely be $35; computed as $10 (interest on $1000) + $10 transfer fee + $15 (1% of balance of $1500). If you make only the minimum payment due, that payment will go towards paying off the $500, and so for next month, your balance will be $1500 of which $1035 will be charged 1% interest, and $465 will be charged 0% interest. In the months that follow, the balance on which you owe 1% interest per month will grow and the 0% balance will shrink. You have to pay more than the minimum amount due to reduce the amount that you owe. In this example, in the absence of the balance transfer, the minimum payment would have been $20 = $10 (interest on $1000 at 1% per month) + $10 (1% of balance) and would have left you with $990 due for next month. To be at the same point with the balance transfer offer, you would need to pay $30 more than the minimum payment of $35 due. This extra $30 will pay off the interest and transfer fee ($20) and the rest will be applied to the $1000 balance to reduce it to $990. There would be no balance transfer fee in future months and so the extra that you need to pay will be a little bit smaller etc. If you avoid paying interest charges on credit cards by never taking any cash advances and by paying off the monthly balance (consisting only of purchases made within the past month) in full by the due date, then the only way to avoid paying interest on the purchases made during the month of the balance transfer offer is to pay off that month's statement in full (including the balance just transferred over and the balance transfer fee) by the due date. So, depending on when in the billing cycle the transfer occurs, you are getting a loan of the balance transfer amount for 25 to 55 days and being charged 2% or 3% for the privilege. If you are getting offers of 2% balance transfer fees instead of 3%, you are probably among those who pay their balances in full each month, and the bank is trying to tempt you into doing a balance transfer by offering a lower fee. (It is unlikely that they will make a no-transfer-fee offer.) They would prefer laughing all the way to themselves by collecting a 2% transfer fee from you (and possibly interest too if you fail to read the fine print) than having you decline such offers at 3% as being too expensive. Can you make a balance transfer offer work in your favor? Sure. Don't make any purchases on the card in the month of the balance transfer or during the entire time that the 0% APR is being offered. In the month of the transfer, pay the minimum balance due plus the balance transfer fee. In succeeding months, pay the minimum balance due (typically 1% of the balance owed) each month. All of it will go to reducing the 0% APR balance because that is the only amount owing. Just before the 0% APR expires (anywhere from 6 to 24 months), pay off the remaining balance in full. But remember that you are losing the use of this card for this whole period of time. Put it away in a locked trunk in the attic because using the card to make a purchase will mean paying interest on charges from the day they post, something that might be totally alien to you.\"", "title": "" }, { "docid": "021ab4e60a9013fa5bf1683fee77c014", "text": "\"If you look around online and read about credit scores, you'll find all kinds of information about what you should do to maximize your credit score. However, in my opinion, it just isn't worth rearranging your life just to try to achieve some arbitrary score. If you pay your bills on time and are regularly using a credit card, your score will take care of itself. Yes, you can cut up the card you don't like and keep the credit card account open. The bank may close your account at some point in the future because of a lack of activity, but if they do, don't worry about it. You have other accounts that you are using. Personally, I don't like having open credit accounts that I'm not using; I close accounts when I'm done with them. I realize that it goes against everything that you will read, but my score is very high and my oldest open credit card account is 2 years old. Don't let them scare you into credit activity that you don't want just to try to \"\"win\"\" at the credit score.\"", "title": "" }, { "docid": "49d00cb08b23d1d2103174fcafd21f4c", "text": "If you are refering to company's financial reports and offerings, the required source for companies to disclose the information is the SGX website (www.sgx.com) under the Company Disclosure tab. This includes annual statements for the last 5 years, prospectus for any shares/debentures/buy back/etc which is being offered, IPO offers and shareholders meetings. You may also find it useful to check the Research section of the SGX website where some of the public listed companies have voluntarily allowed independent research firms to monitor their company for a couple of years and produce a research report. If you are referring to filings under the Companies Act, these can be found at the Accounting and Regulatory Authority (ACRA) website (www.acra.gov.sg) and you can also purchase extracts of specific filings under the ACRA iShop. To understand the Singapore public listing system and the steps to public listing, you may find it useful to purchase one of the resource documents available for Singapore law, finance, tax and corporate secretaryship which are sold by CCH (www.cch.com.sg). Specifically for public listing the Singapore Annotated Listing Manual may help. It is common practice for companies here to employ law firms and research firms to do the majority of this research instead of doing it themselves which I one of the reasons this information is online but perhaps not so visible. I hope I have understood your question correctly!", "title": "" } ]

[ { "docid": "fc961d78af0c6dc47b70cb7aedb508bc", "text": "\"Not at all. The Millionaire Next Door offers a book full of anecdotes on couples that earned money and saved their way to being millionaires. I believe about 1/3 or so had businesses, but the rest were employed and simply saved wisely. $3860/yr saved for 40 years at 8% will return $1M. Adjust the numbers to hit a million sooner or reach a higher goal. The Author might be accused of survey bias. This is the phenomenon of studying the final results without looking at the pool of people years prior. Little Adv' is correct that while 1/3 of millionaires may have gotten that way by starting a business, that says nothing about how many businesses need to start to find the one millionaire that resulted. I view the book more as a lesson of \"\"spend beneath your means\"\" and focus on his anecdotes of the dual income couples who saved their way to this status. If you are in no rush, get this book from your library and spend the few hours to read it. In response to my Friend Dilip's comment, MoneyChimp offers a good look at compound growth (for the S&P) over time. The 40 years ending 2012, which obviously include the 'lost decade,' returned a CAGR of 9.78%. Not to be confused with the average 11.43%. When I pull the numbers for each year's return and apply an annual $3860 deposit, the 40 years ends with $2.2M. A 1% fee, or 1% lower return resulted in $1.6M. If 8% isn't conservative, of course you can run the numbers you wish. The 40 years contained both a lost decade and two great ones. Will the 3 decades post-lost average to get the Quad-Decade period to 8%+? I don't know.\"", "title": "" }, { "docid": "feb4a846685b398f7f94f265a827fdde", "text": "That's actually a pretty good way to get bankrupt quick. You can get rich quick through lottery, gambling, mere saving or investing wisely, or marrying someone from the Kennedy or Bush clans. Starting a business is one of the ways to become a millionaire, but definitely not the only one.", "title": "" } ]

[ { "docid": "6ceab9657a3d0586b638a48107e7f043", "text": "\"It is difficult to become a millionaire in the short term (a few years) working at a 9-to-5 job, unless you get lucky (win the lottery, inheritance, gambling at a casino, etc). However, if you max out your employer's Retirement Plan (401k, 403b) for the next 30 years, and you average a 5% rate of return on your investment, you will reach millionaire status. Many people would consider this \"\"easy\"\" and \"\"automatic\"\". Of course, this assumes you are able to max our your retirement savings at the start of your career, and keep it going. The idea is that if you get in the habit of saving early in your career and live modestly, it becomes an automatic thing. Unfortunately, the value of $1 million after 30 years of inflation will be eroded somewhat. (Sorry.) If you don't want to wait 30 years, then you need to look at a different strategy. Work harder or take risks. Some options:\"", "title": "" }, { "docid": "8031cefc62322a4ac0c426c8089c9342", "text": "If you could find a breakdown, I suspect that it would show not just that they are self employed but own their own company. There are many people that are self employed, many of them make a good living at it, but are not millionaires. My neighbour the plumber is a perfect example of this sort of self-employed and comfortable but not rich person. The key to wealth growth is to own (a significant part of) a company. It one way to leverage a smaller amount of money to something much larger. Plough your profits back in to the company to grow it, pay yourself reasonably for some time as the company grows. After it is some size, you can afford to pay yourself more of the profits, if not sell it as a going concern to someone else. One last thought - I am assuming that your book is claiming that they made their money through self-employment, instead of choosing to become self employed after striking rich somewhere. If I were to win the lottery, I might then become a self-employed something, but in that case it was not my self-employment that got me there.", "title": "" }, { "docid": "e32750c2a6673fe9611e33a247683f10", "text": "There is no 1 2 3 to being successful. Everyone's story is different but generally there is some composition of connections, networking, dedication and opportunity involved. Anyone offering easy steps to being financially successful is a scammer and anyone willing to buy into it is a chump. Go out and build a network, learn and offer product/service that has demand is the most general you can be.", "title": "" }, { "docid": "8dbf1e3859ea0f37d09621daca437b12", "text": "\"I can name far more non-real estate millionaires than those who are. That statistic isn't only not valid, it's not even close. Update: The correct quote is \"\"90% of all Millionaires become so through owning Real Estate\"\" and it's attributed to Andrew Carnegie. Given that he was born in 1835, I can imagine that his statement was true at he time, but not today.\"", "title": "" }, { "docid": "96387f55bb095db0193bdbe95e7499a8", "text": "\"The \"\"coin flip\"\" argument made in the article is absurd. My old boss had a saying, \"\"the harder I work, the luckier I get.\"\" He came from nothing, worked maniacally to become an Olympian, and later in life became a multi-millionaire. This is a common story among self-made people. I DO think that the rich have significant advantages: education, contact networks, access to startup capital, etc. These are very helpful, but don't assure success. Their lack is not insurmountable by the ambitious. I also think those advantages have expanded in recent years. Monetary policy has resulted in a large pool of investable funds being made available to to the financial sector, who earn high incomes with rent-seeking tactics.\"", "title": "" }, { "docid": "9752468477b80a382ab4d26802656041", "text": "Stay in school, learn everything you can, and spend as little money as possible. And realize that the chances of you dropping out and becoming a millionaire are much lower than the chances of you staying in school and becoming a millionaire. You're unlikely to be a good investor if you make bets with negative expected payoffs.", "title": "" }, { "docid": "55bfc7c29e7dcdd310cf7e7ef83a0a2a", "text": "Think about Wall Street. It's the most highly paid occupation in the world and it's nothing but a casino. I don't think the article is saying that success is only luck, or that there aren't successes built far more on genius than luck, but that luck is the main factor in the majority of cases of great wealth.", "title": "" }, { "docid": "cd0b25899dfe8a0d7965310d6cfc769b", "text": "Playing the markets is simple...always look for the sucker in the room and outsmart him. Of course if you can't tell who that sucker is it's probably you. If the strategy you described could make you rich, cnbc staff would all be billionaires. There are no shortcuts, do your research and decide on a strategy then stick to it in all weather or until you find a better one.", "title": "" }, { "docid": "86ab87896262194cc99c45974a9aa070", "text": "Well, I'm sorry that you're so thin-skinned. Here's a simple logical relation that I think absolutely holds true: hard work is neither necessary nor sufficient for success. It's certainly to be valued, but not as a form of cult worship. There are so many people who are smarter, more tenacious and work harder than anyone you've ever known -- and they were cut down by malaria, murder, or a god damned piano falling on their heads. Them are the breaks. For every billionaire/famous person out there, there're at least 100 also-rans with analogous talent and prospects (at one point). Chance rules us all, and it takes NOTHING away from the hard-working to admit that.", "title": "" }, { "docid": "cf436e92c85791cdbc4cce4ca62c946d", "text": "\"I think there's a measure of confirmation bias here. If you talk to somebody that started a successful business and got a million out of it, he'd say \"\"it's easy, just do this and that, like I did\"\". If you consider this as isolated incident, you would ignore thousands of others that did exactly the same and still struggle to break even, or are earning much less, or just went broke and moved on long time ago. You will almost never hear about these as books titled \"\"How I tried to start a business and failed\"\" sell much worse than success stories. So I do not think there's a guaranteed easy way - otherwise we'd have much more millionaires than we do now :) However, it does not mean any of those ways is not worth trying - whatever failure rate there is, it's less than 100% failure rate of not trying anything. You have to choose what fits your abilities and personality best - frugality, risk, inventiveness? Then hope you get as lucky as those \"\"it's easy\"\" people are, I guess.\"", "title": "" }, { "docid": "830c22493df84f489ab96bc12292586f", "text": "Million Dollar Marketing Machine is a top tier business venture that offers the new business owner the opportunity to make large sums of money earning money in sums greater than $500 per transaction. The financial transactions can be as high as $12,000. Each business owner collects their own money and they have the opportunity to have their own websites set up by the company of Million Dollar Marketing Machine. Previously known as Million Dollar Marketing Formula. Affiliation to the Pizza Box Business.", "title": "" }, { "docid": "755734d3e74f8d0f325e9cc3619f9836", "text": "I disagree that it is a silly way to do business. I think many industries are actually moving in the direction of MLM. The whole idea with a successful MLM like amway is that they spend no money on advertising. Did you know most companies spend about a third of their revenue back into advertising? Amway instead pays back that money as a bonus to their distributors. I can't remember which year off the top of my head but a couple years ago amway paid back over 4 billion dollars in bonus to their people. Now look at Uber, they are kind of cutting out the middle man also. Interesting right?", "title": "" }, { "docid": "021516207d5c08333ad713b6cfa33be8", "text": "Just to punch it in, my friend owns bars/restaurants and is a multi millionaire at the age of 29. His career choice wasn't corporate ladder, but entrepreneur. I'm investing his wealth and he is giving me a generous deal, I'm starting my own investment firm and having him as a client is the only client I need to be potentially a millionaire as well too. Don't pigeonhole yourself like everyone else does, but also know what you are capable of. Some people just aren't made to be their own boss as much as they say they could so it takes a bit of swallowing your pride and moving along to your best pathway. I could no way ever work for someone else so I swallowed my pride in a way and went my own path by saying bye to the corporate world. Some people think this is the ultimate goal, but I would relinquish potentially moving up that ladder and having that sort of prestige etc.", "title": "" }, { "docid": "03fbd56cba1fc579188b5bc0c78a0e81", "text": "Robert Kiyosaki repeatedly stressed that starting your own business is risk free and the easiest way to get rich, yet he's never done it - and has actually failed in business 3 times. He won't release his real estate investment history or his stock market investments. After failing many times he had no money until he joined network marketing groups to sell these books, he has made his money from his courses and books and has probably lost money from actual investments - I say this because most of his property investments were bought when market prices were very high. He's also stated that he essentially speculates on stock prices, when his broker phones him with the idea that a stock is about to go up he will shift lots of money into those stocks. If you'd like to read more, this exposes everything about him: [http://www.johntreed.com/Kiyosaki.html#bothsides](http://www.johntreed.com/Kiyosaki.html#bothsides) [Wall street journal article about him and Donald Trump.](http://online.wsj.com/article/SB116052181216688592.html?mod=money_page_left_hs) [Another video about 'get rich quick real estate gurus' ](http://www.youtube.com/watch?v=wx2KMUvqRIM&feature=player_embedded) This is turning into a cult following with people spending thousands on credit cards to go to these courses and receive this poor advice, please watch this BBC documentary to see the way people are acting about this 'get rich quick real estate' scheme: [BBC Iplayer link](http://www.bbc.co.uk/iplayer/episode/b017xgn6/Money_Who_Wants_to_be_a_Millionaire/)", "title": "" }, { "docid": "fbe4d5b5d491227204c8a50186fca60a", "text": "any business selling for only 1,000 will not be worth getting into. marketing alone should cost you more than that if you have any genuine hope of turning a profit. buy some books instead. work for someone, learn the ropes, read books, practice what you read at work, then start something with your savings in 5 years.", "title": "" } ]

[ { "docid": "2e98394f8d6cda6221a19b8b24729f04", "text": "You're not paying taxes three times but you are paying three different taxes (or more). Sales tax is a business expense, just like costs of goods sold or interest on a loan. Then, depending on how you structure the business, the net income of the business just hits you personally and you pay income taxes. You can work with a tax person to lend some efficiency to this on a long term basis, but it's not like you pay all the taxes against your gross receipts. Whether or not you can make this profitable is a whole different issue.", "title": "" }, { "docid": "86f371260e89d31a0477118e8f490e2c", "text": "\"Actually, calculating taxes isn't that difficult. You will pay a percentage of your gross sales to state and local sales tax, and as a single-owner LLC your profits (after sales taxes) should pass through to your individual tax tax return (according to this IRS article. They are not cumulative since they have different bases (gross sales versus net profit). That said, when determining if your future business is profitable, you need to ask \"\"what aspects of the business can I control\"\"? Can you control how much each item sells for? Increasing your prices will increase your gross margins, which should be higher than your fixed and variable costs. If your margins do not exceed your costs, then you will note be profitable. Note that as a vendor you are at a slight disadvantage to a retailer, since tax has to be baked in to your prices. A retailer can advertise the pre-tax price, and pass-through sales tax at the point of sale. However, people expect to pay more at a vending machine, so the disadvantage is very small (you aren't directly competing with retailers anyways).\"", "title": "" } ]

[ { "docid": "e65ca832826c13679b69f21901aa6230", "text": "First, you should probably have a proper consultation with a licensed tax adviser (EA/CPA licensed in your State). In fact you should have had it before you started, but that ship has sailed. You're talking about start-up expenses. You can generally deduct up to $5000 in the year your business starts, and the expenses in excess will be amortized over 180 months (15 years). This is per the IRC Sec. 195. The amortization starts when your business is active (i.e.: you can buy the property, but not actually open the restaurant - you cannot start the depreciation). I have a couple questions about accounting - should all the money I spent be a part of capital spending? Or is it just a part of it? If it qualifies as start-up/organizational expenses - it should be capitalized. If it is spent on capital assets - then it should also be capitalized, but for different reasons and differently. For example, costs of filing paperwork for permits is a start-up expense. Buying a commercial oven is a capital asset purchase which should be depreciated separately, as buying the tables and silverware. If it is a salary expense to your employees - then it is a current expense and shouldn't be capitalized. Our company is LLC if this matters. It matters to how it affects your personal tax return.", "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": "f61047fb54b551445d857275dd22d5d3", "text": "\"These kinds of questions can be rather tricky. I've struggled with this sort of thing in the past when I had income from a hobby, and I wanted to ensure that it was indeed \"\"hobby income\"\" and I didn't need to call it \"\"self-employment\"\". Here are a few resources from the IRS: There's a lot of overlap among these resources, of course. Here's the relevant portion of Publication 535, which I think is reasonable guidance on how the IRS looks at things: In determining whether you are carrying on an activity for profit, several factors are taken into account. No one factor alone is decisive. Among the factors to consider are whether: Most of the guidance looks to be centered around what one would need to do to convince the IRS that an activity actually is a business, because then one can deduct the \"\"business expenses\"\", even if that brings the total \"\"business income\"\" negative (and I'm guessing that's a fraud problem the IRS needs to deal with more often). There's not nearly as much about how to convince the IRS that an activity isn't a business and thus can be thrown into \"\"Other Income\"\" instead of needing to pay self-employment tax. Presumably the same principles should apply going either way, though. If after reading through the information they provide, you decide in good faith that your activity is really just \"\"Other income\"\" and not \"\"a business you're in on the side\"\", I would find it likely that the IRS would agree with you if they ever questioned you on it and you provided your reasoning, assuming your reasoning is reasonable. (Though it's always possible that reasonable people could end up disagreeing on some things even given the same set of facts.) Just keep good records about what you did and why, and don't get too panicked about it once you've done your due diligence. Just file based on all the information you know.\"", "title": "" }, { "docid": "ac8916af592d24f229674bf1f89c93c2", "text": "If this is something you plan to continue doing it would make sense to create it as it's own business entity and then to get non-profit status eg: 501c3. Otherwise I'm pretty sure you have to think of it as YOU receiving the money as a sole proprietor - and file a couple more tax forms at the end of the year. I think it's a Schedule C. So essentially if you bring in $10,000, then you spend that $10,000 as legit business expenses for your venture your schedule C would show no profit and wouldn't pay taxes on it. BUT, you do have to file that form. Operating this way could have legal implications should something happen and you get sued. Having the proper business entity setup could help in that situation.", "title": "" }, { "docid": "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": "c2c9a9969e6b2773320f3dfe7362f70a", "text": "You actually don't need an accountant. They'll be expensive and at this early a stage unnecessary - what you need is a good bookkeeper who can keep track of what comes in and what goes out. You'll need that to know if you're making money or not and to show the government at the end of the year. Get a copy of QuickBooks and pick up Bookkeeping for Dummies to at least get a sense for what's going on. Have you registered as a sole proprietorship? Make sure you have a vendor's permit so you can legally sell your services in Ontario. You may need to collect HST, in which case you'll need to register for an HST # and submit it on a quarterly basis. Whatever you do, don't fuck with the government - they can freeze your bank accounts to get money they're owed. You need to keep money on hand to pay for any taxes you might owe on the business, ESPECIALLY if it's a sole proprietorship where you'll be tempted to treat profit as income. You don't want to end up with nothing in the bank at the end of the year and $40k owing to the CRA. Get a separate bank account - don't mix personal and business, it's messy. Expense everything you reasonably can.", "title": "" }, { "docid": "8b58d6d2384df96a0da2dd16cc72d0ff", "text": "To me this is a tax structure that is working as it should. The tax code is providing strong incentives for Starbucks to expand. During the initial breakthrough period they are incurring significant expenses. These huge costs are being offset somewhat by the provisions in the tax code. The government in this case has provided a system by which Starbucks is encouraged to grow their volume of future taxable revenue. Simple :-) Edit: After further review of the article, it's not quite as simple as I made it out to be in my above comment. I think the point is still valid however.", "title": "" }, { "docid": "4de05fffb7ec3efd621672cdc743e956", "text": "\"One way to do these sorts of calculations is to use the spreadsheet version of IRS form 1040 available here. This is provided by a private individual and is not an official IRS tool, but in practice it is usually accurate enough for these purposes. You may have to spend some time figuring out where to enter the info. However, if you enter your self-employment income on Schedule C, this spreadsheet will calculate the self-employment tax as well as the income tax. An advantage is that it is the full 1040, so you can also select the standard deduction and the number of exemptions you are entitled to, enter ordinary W-2 income, even capital gains, etc. Of course you can also make use of other tax software to do this, but in my experience the \"\"Excel 1040\"\" is more convenient, as most websites and tax-prep software tend to be structured in a linear fashion and are more cumbersome to update in an ad-hoc way for purposes like tax estimation. You can do whatever works for you, but I would recommend taking a look at the Excel 1040. It is a surprisingly useful tool.\"", "title": "" }, { "docid": "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": "0fb8ad9020bf14fbf901fe9c1f18a4c4", "text": "\"If you receive a 1099-MISC from YouTube, that tells you what they stated to the IRS and leads into most tax preparation software guided interviews or wizards as a topic for you to enter. Whether or not you have a 1099-MISC, this discussion from the IRS is pertinent to your question. You could probably elect to report the income as a royalty on your copyrighted work of art on Schedule E, but see this note: \"\"In most cases you report royalties in Part I of Schedule E (Form 1040). However, if you ... are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ (Form 1040).\"\" Whether reporting on Schedule E or C is more correct or better for your specific circumstances is beyond the advice you should take from strangers on the internet based on a general question - however, know that there are potentially several paths for you. Note that this is revenue from a business, so if you paid for equipment or services that are 100% dedicated to your YouTubing (PC, webcam, upgraded broadband, video editing software, vehicle miles to a shoot, props, etc.) then these are a combination of depreciable capital investments and expenses you can report against the income, reducing the taxes you may owe. If the equipment/services are used for business and personal use, there are further guidelines from the IRS as to estimating the split. These apply whether you report on Sch. E, Sch. C, or Sch C-EZ. Quote: \"\"Self-Employment Income It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040. Use Form 1040, Schedule C, Profit or Loss from Business, or Form 1040, Schedule C-EZ, Net Profit from Business (Sole Proprietorship) to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income. Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer. Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs.\"\"\"", "title": "" }, { "docid": "bc325b7dfcb54008801d23fc67003673", "text": "Its best you start this venture as a Business entity. Whatever the customer pays you is your income. Whatever you pay to the hotel will be your expenses. Apart from this there will be other expenses. So essentially difference between your income and expense will be the profit of the entity and tax will be on the profit. If you do not want to start an Business entity and pay as an individual then please add the country tag, depending on the country there may different ways to account for the funds.", "title": "" }, { "docid": "a4e58727a5c4014e2a94305aaf66c17a", "text": "If the business activities are closely related you could combine them into a single Schedule C, but in your case it sounds like it should be two separate Schedule C's. The loss from one will offset profit from the other, and your self-employment and income taxes will be based on the net of the two businesses. Any business can generate losses, make sure your expenses are reasonable and documented, there are plenty of resources out there for helping you decide which expenses are proper for each business. There is some truth to the warning that not showing profit in 2/5 of years can raise flags at the IRS, and they may deem your business a hobby, which disallows losses. That is not a hard rule, legitimate businesses can lose money for years on end without issue, if you're trying to make money at it, you'll likely be fine.", "title": "" }, { "docid": "6a3930677138f2537c529212874e7a12", "text": "Hey there...You asked me earlier to take a look at this.I will send you later, when I get home a small plan that helped me a lot when I opened my bar, with a lot of nice things that you should be careful...And tbh I don't think a degree is that important.They will teach you how to manage a business in general, you will only use just a small percent from that knowledge...You can learn a lot of things strictly for managing a bar/restaurant by yourself, from books and internet...For me experience was very important (I was a bartender for 4 years, my brother was a waiter)...In 4 years we learned almost everything that we needed.The taxes should be made by an accountant (Here in Europe every company needs an accountant, this is the law.) Where do you live and what age are you ?", "title": "" }, { "docid": "806e9a3ed65f7aa9a2cea31e6a32d23f", "text": "\"I don't know what you mean by \"\"claim for taxes,\"\" I think you mean pay taxes. I'm not sure how corps function in Canada but in the US single owner limited liability entities typically pass the net income through to the owner to be included in their personal tax return. So it seems all of this is more or less moot, because really you should probably already be including your income sourced from this project on your personal taxes and that's not really likely to change if you formed something more formal. The formal business arrangements really exist to limit the liability of the business spilling over in to the owner's assets. Or trouble in the owner's life spilling over to interrupt the business operation. I don't know what kind of business this is, but it may make sense to set up one of the limited liability arrangements to ensure that business liability doesn't automatically mean personal liability. A sole proprietorship or in the US we have DBA (doing business as) paperwork will get you a separate tax id number, which may be beneficial if you ever have to provide a tax ID and don't want to use your individual ID; but this won't limit your liability the way incorporating does.\"", "title": "" }, { "docid": "61de18f1f7c5f12ef51739de5e6f5d9a", "text": "Expenses are where the catch is found. Not all expenditures are considered expenses for tax purposes. Good CPAs make a comfortable living untangling this sort of thing. Advice for both of your family members' businesses...consult with a CPA before making big purchases. They may need to adjust the way they buy, or the timing of it, or simply to set aside capital to pay the taxes for the profit used to purchase those items. CPA can help find the best path. That 10k in unallocated income can be used to redecorate your office, but there's still 3k in taxes due on it. Bottom Line: Can't label business income as profit until the taxes have been paid.", "title": "" } ]

[ { "docid": "43544cf49d9103aa148b03b6f70b5ce4", "text": "Ask your colleagues! I know that sounds obvious, but just go to where people who do your sort of business hang out (or better, find some venture capital firms and ask their portfolio companies). It's not something people would keep secret from you...", "title": "" }, { "docid": "d5d2969e3095dd87f04b0ffbbdb58be3", "text": "Check your local better business bureau. They can tell you who is in business, who's bonded, and who has had a lot of complaints levied against them for shoddy practices.", "title": "" }, { "docid": "c68d940b558813b57eb63f1bf1324a2d", "text": "People to ask: Granted I live in a small town, but when the same guy's name comes up more than once that's who you should hire...", "title": "" }, { "docid": "d1f7fe158bdbb3b8634828acc9ac4633", "text": "Ask for at least 10 references. Ask for 10 because it will be harder for them to refer you to ringer references like their family or friends.", "title": "" }, { "docid": "6d78f4b17c9d6c973abc5b0d6a83d9fb", "text": "I have had better experiences with accountants in smaller towns. It seems they are used to working with small businesses and their reputation is very important to them.", "title": "" }, { "docid": "da6133a494b25f496cbb955cd65ff21e", "text": "The first place to look for an accountant is the American Institute of Certified Public Accountants which has a directory of CPAs, accounting companies, and local accounting societies. I was also looking for one for my own small firm. It really helps.", "title": "" }, { "docid": "6e1d042d845a3ded83660b9fd7eb6eb0", "text": "Consult your local Small Business Administration office - they may have resources that can help you find what you're looking for.", "title": "" }, { "docid": "f0aed14ebdb745589147bf106ba7b8f4", "text": "Look for an accountant who brings not only expertise in number crunching, but consulting and business planning - a full package.", "title": "" } ]

[ { "docid": "12d1a8b507f62f4a0cec0bd65c453fa8", "text": "\"They are under the radar, but are very strong in Europe and Asia. Deal size will be middle market transactions in North America, a stark contrast to its accounting clients. The good: -established pipeline from accounting and consulting partners & contacts -much better work life balance than most IBs, no 100 hour weeks -widely known name brand -experience working on more than straight forward sell side deals; people underestimate the knowledge and skills you learn through being involved in turnarounds, refinancings, buy side advisory, etc. Cons: -exit opportunities are more limited -pay will be below street -partner \"\"buy in\"\" can be incredibly frustrating I will say that generally KPMG prefers CPAs (even for non-accounting positions) and requires 3-4 years of experience. But, considering you have the interview, they felt you were worth talking with.\"", "title": "" }, { "docid": "276388f53db8e90d4b87333a7c07e18a", "text": "Generally speaking no person or program is really going to be able to help you lower your current tax burden, most tax decisions are done well before you reach the tax time. You either qualify for the deduction/credit or your don't. Where a good accountant will really be able to help you out is in planning that will limit your future tax burden. Particularly if you run a small business or are very wealthy you will probably want to consider using an accountant. I would always avoid the large scale tax prep places like HR Block they provide the same or lower quality service for a higher price than the software. I run a small business and do my own taxes using turbo tax, but my business isn't overly complex Sole prop, no employees, couple 1099's simple expenses (nothing to amortize) etc.", "title": "" }, { "docid": "c5473f78e89bb5a997d4a8fd639073f8", "text": "I'm glad keshlam and Bobby mentioned there are free tools, both from the IRS and private software companies. Also search for Volunteer Income Tax Assistance (VITA) in your area for individual help with your return. A walk-in tax clinic strength is tax preparation. CPAs and EAs provide a higher level of service. For example, they compile and review your prior year's return and your current year, although that is not relevant to your current situation. EAs and CPAs are allowed to represent you before the IRS. They can directly meet or contact the IRS and navigate audits and other requests on your behalf. Outside of tax season, an accountant can help you with tax planning and other taxable events. Some people do not hire a CPA or EA until they need representation. Establishing a relationship and familiarity with an accountant now can save time and money if you do anticipate you will need representation later. Part of what makes the tax code complicated is it can use very specific definitions of a common word. Furthermore, the specific definition of a phrase or word can change between publications. Also, the tax code uses all-encompassing definitions and provide detailed and lengthy lists that are not exhaustive; you may not find your situation listed or described in the tax code, yet you are responsible for reporting your taxable events. The best software cannot navigate you through your tax situation like an accountant. Lastly, some of the smartest people I have met are accountants and to get the most out of meeting with them you should be as familiar as possible with your position. The more familiar you are with accounting, the more advanced knowledge they can share with you. In short, you will probably need an accountant when: You need to explain yourself before the IRS (representation), you are encountering varying definitions in the tax code that have an impact on your return, or you have important economic activities that you are unsure of appropriate tax treatment.", "title": "" }, { "docid": "37d3deae559faa027f581038480369ba", "text": "Should I go see a CPA? Not unless you are filing paperwork for a corporation. A CPA (Certified Public Accountant) is a certification required to file certain paperwork for a corporation. In any other situation, you don't need a CPA and can just use a regular accountant. You could conceivably go to a tax accountant, but unless you are doing something complicated (like your own business) or are rich enough that everything is complicated, you should not need to do so.", "title": "" }, { "docid": "419c2cebfdf3fcf5bc0590e713494556", "text": "I have a CPA. They said that it isn't possible. However, I've seen on message boards that it indeed IS possible, multiple times. I'll likely reach out to another CPA. However, I am interested to hear from somebody who has done this before, so that I at least have a name or defined process for what I'm attempting to do.", "title": "" }, { "docid": "095938096f0729953b2f9a910c9744aa", "text": "Hi, are you a business lawyer and do you happen to know the answer? I tried asking someone at a Small Business Center but I think he started getting annoyed at all my questions and starting becoming curt so I stopped asking even though I still wasn't clear on all the answers yet.", "title": "" }, { "docid": "c4d74a187ce9d827a308f17fa8561d36", "text": "okay, I was thinking of an investment advisor. I believe in not doing it alone too. But i don't believe in just one more person. Investing advisors, tax advisors, business and law. I don't go to an advisor bc I can't balance my monthly budget and also want to save, you know. Questions more like, highest growth sectors, diversified strategies, etc. And right, they wouldn't get fired bc their client is still happy, (even though their losing money during a record bull market). Guy must be a good sales man. I'd just want to know that my advisors performance is decent relative to the market. But again, I'm not handing over checks to people, only speaking with them. edit: Yes, the average person should worry about making their kids soccer games and shit, not necessarily the markets and what their investment is worth in 30yrs", "title": "" }, { "docid": "1bc58462d1b93a9debd7c1241a6979f9", "text": "\"I am perfectly qualified to not use an accountant. I am a business professor, and my work crosses over into accounting quite a bit. I would certainly find a CPA that is reputable and hire them for advice before starting. I know a physicist who didn't do that and found they ended up with $78,000 in fines. There are a number of specific things an accountant might provide that Quickbooks will not. First and foremost, they are an outsider's set of eyes. If they are good, they will find a polite way to say \"\"you want to do what?!?!?!\"\" If they are good, they won't fall out of their chair, their jaw won't drop to the floor, and they won't giggle until they get home. A good accountant has seen around a hundred successful and unsuccessful businesses. They have seen everything you may have thought of. Intelligence is learning from your own mistakes, wisdom is learning from the mistakes of others. Accountants are the repositories of wisdom. An accountant can point out weaknesses in your plan and help you shore it up. They can provide information about the local market that you may not be aware of. They can assist you with understanding the long run consequences of the legal form that you choose. They can assist you in understanding the trade-offs of different funding models. They can also do tasks that you are not talented at and which will take a lot of time if you do it, and little time if they do it. There is a reason that accountants are required to have 160 semester hours to sit for the CPA. They also have to have a few thousand field hours before they can sit for it as well. There is one thing you may want to keep in mind though. An accountant will often do what you ask them to do, so think about what you want before you visit the accountant. Also, remember to ask the question \"\"is there a question I should have asked but didn't?\"\"\"", "title": "" }, { "docid": "6006ef38d0fc100958476f3a31823b0b", "text": "This is a general rule of thumb that has worked for myself, as well as my Father, Brother and Sister. We all own separate businesses. Mine is B2B, my Father is a freelance architect, my Brother is a plumber, my Sister is a CPA. This is pretty much standard practice for what is required from a franchisee for a franchiser, as well. It may not apply to all businesses, but that can be easily determined by anyone reviewing this list, unless they're complete idiots. So, thank you, Mr. Obvious.", "title": "" }, { "docid": "eaa2180e94ca419c10d2db37381389b7", "text": "I'm not directly affiliated with the company (I work for one of the add-on partners) but I can wholeheartedly recommend Xero for both personal and business finances. Their basis is to make accounting simple and clean, without sacrificing any of the power behind having the figures there in the first place.", "title": "" }, { "docid": "d7a6eff56f3a33ccc3d36c129fba03cd", "text": "\"Although they may have some similar functions, CPAs and Enrolled Agents operate in two rather different areas of the accounting \"\"space.\"\" CPAs deal with financial statements, usually of corporations. They're the people you want to go to if you are making an investment, or if you own your own business, and need statements of pretax profit and loss prepared. Although a few of them are competent in taxation, the one thing many of them are weak at is tax rules, and this is where enrolled agents come in. Enrolled agents are more concerned with personal tax liability. They can 1) calculate your income taxes, and 2) represent you in hearings with the IRS because they've taken courses with IRS agents, and are considered by them to be almost \"\"one of us.\"\" Many enrolled agents are former IRS agents, actually. But they are less involved with corporate accounting, including things that might be of interest to stock holders. That's the CPA's province.\"", "title": "" }, { "docid": "1dc280dc659eba1a66c2474e3a5ccbfd", "text": "It depends on the person. i will take turbo tax over any mediocre or poor accountant ANY DAY. You get consistent, accurate tax preparation with the software (desktop - not the online version) I was in a housing rental partnership with my brothers and one of them insisted on using his accountant... what a mistake. I have been using turbo tax for 10+ years and have always been happy. It handles my non trivial situation with ease: I am happy with it but have to admit I don't have a good accountant to compare it to. I see no reason to go to an accountant except for planning purposes. Just for tax prep it is more than worth it and more than you will need.", "title": "" }, { "docid": "668cecf9dd78bc8eeb8ac981a1655342", "text": "Take a look at http://en.wikipedia.org/wiki/Comparison_of_accounting_software, in particular the rows with a market focus of 'personal'. This is probably one of the more complete lists available, and shows if they are web-based (like Mint) or standalone (like Quicken or Microsoft Money).", "title": "" }, { "docid": "32b44a14f4784baafbf92a7751d9d834", "text": "You're correct, there's always a conflict of interest in private professions whether you're a CPA, doctor or lawyer. There's always a possibility of backroom dealings. The only true response is that governmental bodies like the SEC, IRS and otherwise affiliated private organizations like the AICPA can take away your license to practice, send you to jail, or fine you thousands of dollars and ruin your life - if you're caught. I would personally draw a line between publicly traded corporations, amoral as you said, and public accounting. A CPA firm's responsibility is to the public even though they aren't a governmental body. Accounting records are required to do business with banks and the IRS. Without public confidence in the profession, CPA firms wouldn't exist. It's truly an incentive to do a good job and continually gain confidence. They incidentally make money along the way.", "title": "" }, { "docid": "b2c2a2438b925a7ca203cf52bfabeaf3", "text": "You really shouldn't be using class tracking to keep business and personal operations separate. I'm pretty sure the IRS and courts frown upon this, and you're probably risking losing any limited liability you may have. And for keeping separate parts of the business separate, like say stores in a franchise, one approach would be subaccounts. Messy, I'm sure.", "title": "" } ]

[ { "docid": "be563df8add84c300bc12ad439293eec", "text": "I think much of that info is hidden behind pay-walls. Here is one site I've found. http://www.feinsearch.com/ Another that is for non-profits only is guidestar. http://www.guidestar.org/rxg/products/nonprofit-data-solutions/product-information/guidestar-premium/advanced-nonprofit-search.aspx", "title": "" }, { "docid": "28f1eeb458705240b060a9534edfc293", "text": "\"In most cases you cannot do \"\"reverse lookup\"\" on tax id in the US. You can verify, but for that you need to have more than just the FEIN/SSN. You should also have a name, and some times address. Non-profits, specifically, have to publish their EIN to donors, so it may be easier than others to identify those. Other businesses may not be as easy to find just by EIN.\"", "title": "" }, { "docid": "7a8387b86082efe0612f9fd4a3c72bbf", "text": "If the organization is a non-profit. You can search by EIN on Charity Navigator's website FOR FREE. https://www.charitynavigator.org/", "title": "" }, { "docid": "dc2b1071dc0a591bb00427ba3c3f5688", "text": "If it is Texas company, you can try doing a taxable entity search on the Texas Comptroller website.", "title": "" } ]

[ { "docid": "8f4c080735d5f2b965340b162ba88a58", "text": "Google is your friend. If you buy me a beer, I might be as well. By the way DOD is the ticker. Dogs of the Dow ETF", "title": "" }, { "docid": "0ff87b4504eaa0cf33d2b696582f47ef", "text": "\"I think the \"\"right\"\" way to approach this is for your personal books and your business's books to be completely separate. You would need to really think of them as separate things, such that rather than being disappointed that there's no \"\"cross transactions\"\" between files, you think of it as \"\"In my personal account I invested in a new business like any other investment\"\" with a transfer from your personal account to a Stock or other investment account in your company, and \"\"This business received some additional capital\"\" which one handles with a transfer (probably from Equity) to its checking account or the like. Yes, you don't get the built-in checks that you entered the same dollar amount in each, but (1) you need to reconcile your books against reality anyway occasionally, so errors should get caught, and (2) the transactions really are separate things from each entity's perspective. The main way to \"\"hack it\"\" would be to have separate top-level placeholder accounts for the business's Equity, Income, Expenses, and Assets/Liabilities. That is, your top-level accounts would be \"\"Personal Equity\"\", \"\"Business Equity\"\", \"\"Personal Income\"\", \"\"Business Income\"\", and so on. You can combine Assets and Liabilities within a single top-level account if you want, which may help you with that \"\"outlook of my business value\"\" you're looking for. (In fact, in my personal books, I have in the \"\"Current Assets\"\" account both normal things like my Checking account, but also my credit cards, because once I spend the money on my credit card I want to think of the money as being gone, since it is. Obviously this isn't \"\"standard accounting\"\" in any way, but it works well for what I use it for.) You could also just have within each \"\"normal\"\" top-level placeholder account, a placeholder account for both \"\"Personal\"\" and \"\"My Business\"\", to at least have a consistent structure. Depending on how your business is getting taxed in your jurisdiction, this may even be closer to how your taxing authorities treat things (if, for instance, the business income all goes on your personal tax return, but on a separate form). Regardless of how you set up the accounts, you can then create reports and filter them to include just that set of business accounts. I can see how just looking at the account list and transaction registers can be useful for many things, but the reporting does let you look at everything you need and handles much better when you want to look through a filter to just part of your financial picture. Once you set up the reporting (and you can report on lists of account balances, as well as transaction lists, and lots of other things), you can save them as Custom Reports, and then open them up whenever you want. You can even just leave a report tab (or several) open, and switch to it (refreshing it if needed) just like you might switch to the main Account List tab. I suspect once you got it set up and tried it for a while you'd find it quite satisfactory.\"", "title": "" }, { "docid": "9e6f5a82008f9330d2061b78d7cbadd5", "text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year", "title": "" }, { "docid": "bb00d5b05640be0a5d62991982d1123f", "text": "\"90% sounds like \"\"principal place of business\"\" but check these IRS resources to make sure.\"", "title": "" }, { "docid": "a226142728bbc8549afc706baf5fdc7c", "text": "\"Depending on how the check was made out, you may be able to file a DBA (\"\"doing business as\"\"), which would give you the business name locally. Then open an account under that name and deposit the check. Or simply go back to the customer and say \"\"hey, I don't have yhe company bak account open yet; could I exchange this check for one made out to me personally?\"\" That's how I've been handling hobby income under a company name. (I really do ned to file that DBA!)\"", "title": "" }, { "docid": "fe924b06b4f744985a5c1a50c6871e3b", "text": "\"In your words, you want to \"\"easily determine whether an item was purchased as part of our individual accounts, or our combined family account.\"\" It's not clear exactly to me what kind of reporting you're trying to get. (I find a useful approach here to be to start with the output you're trying to get from a system, and then see how that maps to the input you want to give the system.) Here's some possibilities:\"", "title": "" }, { "docid": "b528f29ebaead09e2665fc7058ec1a55", "text": "Institute of Supply Management, specifically their Report on Business. Good forward looking indicator. As far as the weekly report, I'd probably read it, maybe even contribute, but I more of a lurker on this sub. I saw your question and have had some similar experiences so I thought I could help you out.", "title": "" }, { "docid": "23b8c89a673ed3d13114a805d1a96364", "text": "If you're researching a publicly traded company in the USA, you can search the company filings with the SEC. Clicking 'Filings' should take you here.", "title": "" }, { "docid": "caf9996540ad9416b6f19f1b62ae2743", "text": "\"Short answer - matching your firms stock record or box to the records of a depository or fund family. Any differences are referred to as \"\"breaks\"\" and need to be resolved promptly otherwise action like covering or moving to suspsense are required. There are rules surrounding suspense, that may be valuable reading. Let me know if you have any specifics or want more detail. I made a few assumptions but that is the broadest view of a firms asset reconciliation (FINRA passed some recent rules that take this even deeper into \"\"firm\"\" accounts).\"", "title": "" }, { "docid": "02652a2907593af155500446726db5b3", "text": "Usually your best bet for this sort of thing is to look for referrals from people you trust. If you have a lawyer or other trusted advisor, ask them.", "title": "" }, { "docid": "6e1d042d845a3ded83660b9fd7eb6eb0", "text": "Consult your local Small Business Administration office - they may have resources that can help you find what you're looking for.", "title": "" }, { "docid": "095938096f0729953b2f9a910c9744aa", "text": "Hi, are you a business lawyer and do you happen to know the answer? I tried asking someone at a Small Business Center but I think he started getting annoyed at all my questions and starting becoming curt so I stopped asking even though I still wasn't clear on all the answers yet.", "title": "" }, { "docid": "9b42ee8b333f4eda0048aaa07d6c5a1c", "text": "Edgar Online is the SEC's reporting repository where public companies post their forms, these forms contain financial data Stock screeners allow you to compare many companies based on many financial metrics. Many sites have them, Google Finance has one with a decent amount of utility", "title": "" }, { "docid": "fa264c0b4db8dbcd91ad2b8a7eedcc17", "text": "I do know the business connection, but this article seems more political than business oriented. I'm just sick of the cesspool of anti-trump stuff on reddit leaking out of the typical subs. Everything policy wise can have an affect on the business climate, but that doesn't mean it's necessarily a business topic.", "title": "" }, { "docid": "04f8c79101781d940bc848bc38ac0671", "text": "S&P/TSX 60 VIX (CAD) is an equation and as the implied volatility of two close to the money TSX 60 options change, the output changes. This is why the intra-day price fluctuates on a graph like a traded product. Although VIXC can't be traded, it can still be used as an important signal for traders. The excerpt is from slide 12, more information can be found here. https://www.m-x.ca/f_publications_en/vixc_presentation_en.pdf Futures (stage 2) Options, ETFs, OTC Products (stage 3) have not been implemented.", "title": "" } ]

[ { "docid": "f9d027050a1ff82cef6501837a729850", "text": "\"Yes, it applies to control groups. If I remember correctly common ownership rules are used to determine \"\"Applicable Large Employer\"\" status but if the time comes to owe a penalty, only the actual entity missing the mark will owe a penalty, not the entire control group. This is an excerpt from Section 4980H (the section that lays out employer requirements and penalties) (16) Employer. The term employer means the person that is the employer of an employee under the common-law standard. See § 31.3121(d)-1(c). For purposes of determining whether an employer is an applicable large employer, all persons treated as a single employer under section 414(b), (c), (m), or (o) are treated as a single employer. Thus, all employees of a controlled group of entities under section 414(b) or (c), an affiliated service group under section 414(m), or an entity in an arrangement described under section 414(o), are taken into account in determining whether the members of the controlled group or affiliated service group together are an applicable large employer. For purposes of determining applicable large employer status, the term employer also includes a predecessor employer (see paragraph (a)(36) of this section) and a successor employer. Link to the Federal Register\"", "title": "" } ]

[ { "docid": "8730be753a1406fab4444dcbb40296f3", "text": "Here are the SEC requirements: The federal securities laws define the term accredited investor in Rule 501 of Regulation D as: a bank, insurance company, registered investment company, business development company, or small business investment company; an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million; a charitable organization, corporation, or partnership with assets exceeding $5 million; a director, executive officer, or general partner of the company selling the securities; a business in which all the equity owners are accredited investors; a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person; a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes. No citizenship/residency requirements.", "title": "" }, { "docid": "2b78bf9194ab24b85908b4b33e98048c", "text": "\"When it's actually in the interests of taxpayers, duespayers, or shareholders for execs to upgrade to get work done / be prepared, there's no conflict between the interests of agent and principal, and the entire issue is moot. But assuming we should treat business execs as a special case doesn't address the question. If governmental and union leadership \"\"should fly coach\"\", shouldn't c-corp execs?\"", "title": "" }, { "docid": "0e022d9aac9463e8ea086f50cd59a0e1", "text": "Doesn't matter what the product is, whether it's a tangible good or a service, a business is still a business and must be run as thus. If you don't run a hospital properly, as a business that provides a service, then that hospital is soon to be threatened with closure or state take-over.", "title": "" }, { "docid": "4b7a260193ecd89e558737bd9632b6e6", "text": "Americans with Disabilities Act (ADA) specifies wheelchair ramp requirements as well as access guidelines, specifications that most business organizations which are into the manufacturing of ramps have to meet. Usually, residential applications don’t need to meet ADA requirements, guidelines and specifications.", "title": "" }, { "docid": "0d5f1455758d9b22e82fe037b6ccc6f3", "text": "The insurance company is must assume you do have a preexisting condition you are unaware of. The reason for that is that Affordable Care Act precludes the Insurance company from denying coverage of them if you do. Insurance companies are businesses. They are in business to make money(unless you have a nonprofit insurer). They can not do that if you can buy insurance only when you need for them to pay out. So even though you may not have a preexisting condition, they are precluded from requiring an examination that would detect the most expensive preexisting conditions (hidden cancers, neurological, autoimmune disorders). So the companies must do what takes business sense and either deny you coverage or charge a rate that covers the risk they would be forced to take. In your question on travel there was a response that suggested you get international health insurance instead of travel health insurance that would be considered credible coverage. You are trying to save money which on a personal level is a good idea. However that is against the societal and business need that you maintain health coverage during your healthy times to cover the costs of those who need expensive treatment. So you will be monetarily penalized should you choose to reenter the society of insured people. Once you have paid the higher rate for up to 18 months you should be able to get a better policy for people who have had continuous coverage. Alternately you may be lucky enough to start working for a company that provides health insurance with out requiring continuous coverage.", "title": "" }, { "docid": "33a82e50f4873ea3969a1e81d48b046c", "text": "\"Agreed, but often it seems that gray area is exactly what these \"\"innovations\"\" are looking for. Repeatedly pushing down onto the struggling individual the past responsibilities of the wealthy corporation. Say this thing picks up steam and is revitalizing Walmart. John is walking out the door and \"\"critical\"\" deliveries need to be made. John was a bit short last month and couldn't wait for the 2 week insurance reimbursement process. So despite the team lead's prodding, didn't upgrade his insurance coverage this month. He didn't want to be \"\"that guy\"\" so didn't confirm/deny getting modifying coverage to the lead. The team lead asks John to take the packages, but doesn't really follow through on the insurance check. John wrecks his car and his back. John's insurance company rejects the claim. The team lead and John are fired because not checking/having the insurance was against written policy, but winked and nodded away all the way back up to the #1 online retailer spot. So often, obstacles are easily surmounted. I get the \"\"personal responsibility\"\" angle for all involved, but social/financial pressure can be brutal. The problem is that situations are left as is and the moneyed parties are \"\"enrichingly ignorant\"\". My guess is few compile stats on SOL Uber/Lyft drivers in similar situations.\"", "title": "" }, { "docid": "5ddecc487c3d4865f2e081af8cc1eba1", "text": "I dont think we disagree. I believe the notion of control is elusive in this day and age. We have leverage or influence at best. I agree that if the government is asked to invest or subsidize in another organization, it has the right, as should any investor, to expect that its opinions will be heard and its interests will be protected. In that context, if any investor decides that its interests extend to amending management compensation, I think that is reasonable.", "title": "" }, { "docid": "99401b3b5c735753eddc7b08da0635c1", "text": "Despite the ACA offering generous deductions, a lot of small businesses still cannot afford the initial capital involved in offering health insurance plan to their employees... Therefore we cannot take advantage of these deductions... Putting us at a disadvantage for finding low-to-mid skilled workers, to the larger corporations that are now mandated to offer the benefits..", "title": "" }, { "docid": "9c5afb3157bb8da6260dd6eef07271ae", "text": "That's your assumption, but the details are there are different tiers of liability depending on the level of employees you have. Have 5,000+ you must pay this increased level of medical insurance or other liabilities. So if he has 7,000 employees and increased liabilities would happen at 5,000+ ---- sounds like there's a $$ incentive to decrease to 4,999. That's not emotion, that's just business. The irony would be if he sold to a Chinese company, that cuts employee benefits and wages and sends most of the profit home while employing tax shelters to yield as little as possible in taxes.", "title": "" }, { "docid": "9cc5592131287813f5a0567b2fff8c9a", "text": "I don't have preexisting conditions. I am only speaking of how *my own personal* healthcare situation got worse because of the ACA. I did used to use the dental and vision portions of my company-provided insurance regularly but I don't have that as part of my ACA insurance because again, it is unaffordable.", "title": "" }, { "docid": "b33b239d31da5096123862b83c6b75f3", "text": "By extending your logic both BNSF and GEICO would be nearly thhe same companies as both have majority ownership of warren buffet. How companies act IS defined by the theater of competition and regulation. Sears ca and US are two very different companies with no operational overlap (other than sears brand name)", "title": "" }, { "docid": "ab26c2d506d0baed1f40594083ed200a", "text": "The tax incentives for employer sponsored health insurance were designed to incentivize employers to provide the insurance and for employees to purchase the insurance. Since your situation does not meet the requirements to take advantage of this incentive, you can not. In the near future you should be able to take part in the government sponsored exchanges. This may spur changes in how this works.", "title": "" }, { "docid": "b266013fea10adc50a12245328216415", "text": "There are a lot of moving parts, individual premiums and annual increases have little to do with employer premiums and annual increases and vice versa. Most people think of XYZ insurer as a single company with a single pool of insured folks. This common knowledge isn't accurate. Insurers pool their business segments separately. This means that Individual, small business, mid-size business, and large business are all different operating segments from the viewpoint of the insurer. It's possible to argue that because so many people are covered by employer plans that individual plans have a hard time accumulating the required critical mass of subscribers to keep increases reasonable. Age banded rating: Individual coverage and small group coverage is age rated, meaning every year you get older. In addition to your age increase, the premium table for your plan also receives an increase. Employers with 100+ eligible employees are composite rated (in general), meaning every employee costs the same amount. The 18 year old employee costs $500 per month, the 64 year old costs $500 per month. Generally, the contributions an employee pays to participate in the plan are also common among all ages. This means that on a micro level increases can be more incremental because the employer is abstracting the gross premium. Composite rating generally benefits older folks while age rating generally benefits younger folks. Employer Morale Incentive: Generally the cost to an employee covered by an employer plan isn't directly correlated to the gross premium, and increases to the contribution(s) aren't necessarily correlated to the increases the employer receives. Employers are incentivised by employee morale. It's pretty common for employers to shoulder a disproportionate amount of an increase to keep everyone happy. Employers may offset the increase by shopping some ancillary benefit like group life insurance, or bundling the dental program with the medical carrier. Remember, employees don't pay premiums they pay contributions and some employers are more generous than others. Employers are also better at budgeting for planned increases than individuals are. Regulators: In many of the states that are making the news because of their healthcare premium increases there simply isn't a regulator scrutinizing increases. California requires all individual and small group premiums to be filed with the state and increases must be justified with some sort of math and approved by a regulator. Without this kind of oversight insurers have only the risk of subscriber flight to adjust plan provisions and press harder during provider contract negotiations. Expiring Transitional Reinsurance Fee and Funds: One of the fees introduced by healthcare reform paid by insurers and self-insured employers established a pot of money that individual plans could tap to cope with the new costs of the previously uninsurable folks. This fee and corresponding pot of money is set to expire and can no longer be taken in to account by underwriters. Increased Treatment Availability: It's important that as new facilities go online, insurer costs will increase. If a little town gets a new cancer clinic, that pool will see more cancer treatment costs simply as a result of increased treatment availability. Consider that medical care inflation is running at about 4.9% annually as of the most recent CPI table, the rest of the increases will result from the performance of that specific risk pool. If that risk pool had a lot of cancer diagnoses, you're looking at a big increase. If that risk pool was under priced the prior year you will see an above average increase, etc.", "title": "" }, { "docid": "21f7f766f152e5ee0c687d0465e8f0be", "text": "\"It's required by law. 12 USC 1759 (b) requires that membership in a credit union be limited to one or more groups with a \"\"common bond\"\", or to people within a particular geographic area. For lots more gory details on how this is interpreted and enforced, you can read the manual given to credit unions by the National Credit Union Administration, which is their regulatory agency.\"", "title": "" }, { "docid": "65a58ef0375ce0dc273460f030224e16", "text": "\"J Gruber's consulting reports for the various states (Minnesota, Wisconsin, etc). * http://www.washingtonpost.com/blogs/ezra-klein/post/jon-gruber-on-the-premiums-in-health-care-reform/2011/08/25/gIQAN0TUWS_blog.html ...and the article it addresses (which included some numbers from the reports): * http://dailycaller.com/2012/02/11/obamacare-architect-expect-steep-increase-in-health-care-premiums/ Note that Gruber has made a whole spectrum of claims (from initially claiming that premiums would go DOWN for a consulting agreement with the Obama administration, to later \"\"revisions\"\" showing significant increases {to varying degrees depending on the individuals specific demographic}), to wit: >Gruber’s new reports are in direct contrast Obama’s words — and with claims Gruber himself made in 2009. Then, the economics professor said that based on figures provided by the independent Congressional Budget Office, “[health care] reform will significantly reduce, not increase, non-group premiums.” >During his presentation to Wisconsin officials in August 2011, Gruber revealed that while about 57 percent of those who get their insurance through the individual market will benefit in one way or another from the law’s subsides, an even larger majority of the individual market will end up paying drastically more overall. >“After the application of tax subsidies, **59 percent of the individual market will experience an average premium increase of 31 percent,”** Gruber reported. >The reason for this is that an estimated 40 percent of Wisconsin residents who are covered by individual market insurance don’t meet the Affordable Care Act’s minimum coverage requirements. Under the Affordable Care Act, they will be required to purchase more expensive plans. >Asked for his own explanation for the expected health-insurance rate hikes, Gruber told TheDC that his reports “reflect the high cost of folding state high risk pools into the [federal government's] exchange — without using the money the state was already spending to subsidize those high risk pools.” Note: Emphasis added. Note 2: To begin with, an \"\"average\"\" increase of 31% qualifies as \"\"significant\"\" (hell, it's a lot more than merely \"\"significant\"\", that's a HUGE increase); and secondly, that is an AVERAGE, meaning that while some of the people in that \"\"59%\"\" will probably not see such a high increase, a fairly large segment {and per the provisions of the Act versus current premium calculation methods, we KNOW these will be \"\"young healthy singles\"\", and especially males} will face increases that are substantially HIGHER than 31%, and in fact will probably be in the nature of double or triple previous premiums {as would be required in order to meet another provision of the act, that highest premiums for older/sicker pool members cannot be higher than 3x that of the youngest/lowest tier premiums -- and if the company is to balance the books, it can only \"\"bring down\"\" the one end if it makes a compensating increase at the other end.}) None of that is \"\"rocket science\"\" and it is entirely predictable. (The only things that would be \"\"odd\"\" would be that anyone should expect anything different, and that Gruber's initial claims of across the board lower costs were ever accepted in the first place.)\"", "title": "" } ]

[ { "docid": "0feaebba070c6c0fa61decfec8db2cb2", "text": "Your best approach is to assess rent levels in your local area for offices of a similar size. You need to take into account all the usuals - amenities, parking, etc, just as if your home-office was provided by a third-party. Get your $/sq ft and work out the monthly amount. With this figure, you need to then work out what % of it you can charge. If the space is used exclusively for the business, charge 100%. If it's used about half the time, charge 50%, etc. I would strongly advise you to do two things - 1. make sure your accountant and your attorney help you get this squared away. 2. document everything about how you arrived at the cost. Nothing fancy, but dates, realtors, addresses, $/sq foot. A simple table will do. By doing these two things, if the IRS should come around to chat, you should be covered.", "title": "" }, { "docid": "5a615eaaf29fdac7979f7a831c284c25", "text": "\"If you are talking about a home office, you don't \"\"charge\"\" the business anything. If the area is used exclusively as an office you pro-rate by square footage just the actual expenses. TurboTax recent published an article \"\"Can I Take the Home Office Deduction?\"\" which is a must read if you don't understand the process. (Note: I authored said article.)\"", "title": "" }, { "docid": "5231937629f4b8e90d974bc1ce6b52da", "text": "In Canada I think you'd do it as a % of square footage. For example: Then you can count 20% of the cost of the of renting the apartment as a business expense. I expect that conventions (i.e. that what's accepted rather than challenged by the tax authorities) may vary from country to country.", "title": "" }, { "docid": "0d8cc97b73642c71c5a8013e9f2f0629", "text": "\"In the UK it all comes down to what HMRC will allow you to charge without taxing you on the \"\"rent profit\"\" and not hitting capital gain tax when you sell the house, it may not all count as your \"\"main home\"\" if some is rented out. (http://www.accountingweb.co.uk/ is a good place to ask this type of questions in the uk)\"", "title": "" }, { "docid": "b716bade03dd6b48d556e5f54e846855", "text": "It depends on the structure of your business. Are you a sole proprietor filing Schedule C on your 1040, or an S-corp, or part of a partnership? The treatment of a home office will differ depending on business entity.", "title": "" }, { "docid": "6cf3d98f83f8d22c5222e2e9560689cd", "text": "To be confident in your solution, and get the best solution for you, consult a local accountant, preferably one who is specialized in taxes for businesses. Or muddle through the code and figure it out for yourself. The primary advantage in consulting with an accountant is that you can ask them to point out ways you can restructure your expenses, debts and income in order to minimize your tax burden. They can help you run the numbers for the various options and choose the one that is right, numerically.", "title": "" } ]

[ { "docid": "7e6a5a540c60faee2f81e922e2fa4a79", "text": "There are many ways to value a business. Here is a simple method to get a ball park number on most businesses. This business is made of two parts. For the real estate: For the business: I would consider this type of small business riskier than the stock market and so you should expect a higher return. Maybe 15 or 20%? If the rental business makes $50k profit (not revenue) and that is 20% return of your investment, the business is worth $250k. If the business makes no money or if they only make money because they don't take a salary then this is a hobby and not a business. There's no business to buy here and you are just bidding on the real estate to do with what you please. The assets worth $600k and the business worth $250k would be added together for a fair sale price of $850k. Adjust for your actual numbers and you should be able to get a ball park of what you think the business is worth. If you do the math and it works out that you'll make 1-3% on your business, compare that to investing in other places. If it works out that you'll make 40% on your money that's pretty awesome too.", "title": "" }, { "docid": "cc944b121bd06b9a75a12eae2177827d", "text": "It actually depends on the services provided. If you're renting through AirBnB, you're likely to provide much more services to the tenants than a traditional rental. It may raise it to a level when it is no longer a passive activity. See here, for starters: Providing substantial services. If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Use Form 1065, U.S. Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. For information, see Publication 334, Tax Guide for Small Business. Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. For a discussion of “substantial services,” see Real Estate Rents in Publication 334, chapter 5", "title": "" }, { "docid": "c478ce517a23b24c5fa2356c7eeac393", "text": "They are two different animals. When you rent you are purchasing a service. The landlord, as your service provider, has to make a profit, pay employees to do maintenance, and buy materials. The price of these things will increase with inflation, and that rolls into your rent price. Taxes also are passed to the tenant, and those tend to only go upward. Market forces of supply/demand will drive fluctuation of prices as well, as other posts have described. When you buy, you are purchasing just the asset - the home. This price will also be driven by supply/demand in the market, but don't try to compare it to buying a service. Cheers!", "title": "" }, { "docid": "c83e47cb9631f83ce924a41ea510ae86", "text": "\"You are suggesting that a 1% return per month is huge. There are those who suggest that one should assume (a rule of thumb here) that you should assume expenses of half the rent. 6% per year in this case. With a mortgage cost of 4.5% on a rental, you have a forecast profit of 1.5%/yr. that's $4500 on a $300K house. If you buy 20 of these, you'll have a decent income, and a frequently ringing phone. There's no free lunch, rental property can be a full time business. And very lucrative, but it's rarely a slam dunk. In response to OP's comment - First, while I do claim to know finance fairly well, I don't consider myself at 'expert' level when it comes to real estate. In the US, the ratio varies quite a bit from area to area. The 1% (rent) you observe may turn out to be great. Actual repair costs low, long term tenants, rising home prices, etc. Improve the 1.5%/yr to 2% on the 20% down, and you have a 10% return, ignoring appreciation and principal paydown. And this example of leverage is how investors seem to get such high returns. The flip side is bad luck with tenants. An eviction can mean no rent for a few months, and damage that needs fixing. A house has a number of long term replacement costs that good numbers often ignore. Roof, exterior painting, all appliances, heat, AC, etc. That's how that \"\"50% of rent to costs\"\" rule comes into play.\"", "title": "" }, { "docid": "d555d27781530f9f3c7f60fcdbc25d0d", "text": "\"You don't need an \"\"MBA\"\" to evaluate the performance of a bar. There is usually a dumb ratio for any industry which sets the expected turnover and bottom line. Basically one figure that can be given to an experienced bar owner and he'll know that the top and bottom line should be. Not knowing the bar industry, your area or grade of location etc I'd guess cost of sales (i.e. drink), you apply that against the typical gross margin % and you'll know what the turnover figure should be, and apply it to the typical net profit % and know what the bottom line should be. Wouldn't surprise me if an experienced guy could figure all that out just from the floorspace area and rent, with a bit of local knowledge. It should go without saying that if these are underperforming, it doesn't tell you why. Maybe your manager is swindling you, maybe he's crap, maybe the owners took crappy decisions like inappropriate fit out, crap marketing, crap location, etc, forcing manager to price low. Also bear in mind that the average includes all the really experienced bar owners so it can already be a tough target.\"", "title": "" }, { "docid": "f844bc2e005a7a9e65887aa5f7ce63e9", "text": "I think what you have here is actually TWO agreements with your sister, and explicitly splitting it into two agreements will bring some clarity. The first is ownership of and responsibility for the building. The second is each of your personal use of a unit. Here's what you do: Treat ownership as if you're not living there. Split the down payment, the monthly mortgage, taxes and insurance, responsibility for cost of maintenance, etc. as well as the ownership and benefit of the building 70%/30%. Put all that in a contract. Treat it like a business. Second, lease those units to yourselves as if you were tenants. And yes, I means even with leases. This clarifies your responsibilities in a tenant capacity. More to the point, each of you pays rent at the going rate for the unit you occupy. If rent from all three units equals the monthly expenses, nothing more needs to be done. If they're more than the monthly expenses, then each of you receives that as business income on that 70%/30% breakdown. If those three rents are less than the monthly expenses, then each of you are required to make up the difference, again at 70%/30%. Note: if any of those expenses are utilities, then they should be apportioned via the rent -- just as you would if you'd rented out the whole building to strangers. 2nd note: all that can be done with ledger entries, rather than moving money around, first as rent, then as expense payments, then as payouts. But, I think it will benefit all of you to explicitly pay rent at first, to really clarify your dual relationship as joint owners and as tenants. Final note: I think this is a stickier situation than you may think it is. Familial relationships have been destroyed both by going into business together, and by renting to family members. You're doing both, and mixing the two to boot. I'm not saying it will destroy your relationship, but that there's a solid risk there. Relationship destruction comes from assumptions and vague verbal agreements. Therefor, for the sake of all of you, put everything in writing. A clear contract for the business side, and clear leases for the tenant side. It's not about trust -- it's about understood communication and positive agreement on all important points.", "title": "" }, { "docid": "2942264051e628907e9f3b75ce82ec96", "text": "\"What you charge them depends on what kind of use you want them to have of the house. Your use of the term \"\"roommate\"\" implies you're imagining, well, a roommate-type situation where everyone has full access to all common areas. This is the usual situation when multiple people jointly rent a house that none of them owns. In this situation all the roommates are essentially equals. But if you own the house and are renting it out, you can do whatever you want. A lot of people would not look for \"\"roommates\"\" but for \"\"lodgers\"\" or \"\"tenants\"\" --- you rent one room to a person, and you decide what the terms are for their use of the rest of the house. That means you get to decide if/when they use the kitchen, if/when they get to use your dishes, what they can do in the back yard, etc. In this situation the roommates are not your equals. You own the property and you set the terms for everyone else. (To clarify after reading the other answer: by \"\"not your equals\"\" I don't mean to imply that renters aren't equal as human beings to the landlord or should be treated as lowly peasants or anything like that. I just mean that they need not have equal decision-making powers with regard to the housing itself.) I would say the big difference is the social dynamic: personally, I wouldn't feel comfortable renting out rooms to \"\"roommates\"\" unless I was quite sure I would get along with them --- basically, the kind of people I would actually rent with, not just rent to. If you do rent roommate-style, and everyone has essentially equal access to all the facilities of the house, I'd say it's reasonable to split all house expenses roughly equally (with perhaps some adjustments for differences in amenities, like if one person has a larger bedroom than others). If you rent tenant-style, where you're not expecting them to be your buddies, the best way to determine a reasonable rent is to find other people renting similar rooms and see how much they're charging. Craigslist is a great way to do that; you can also ask around to people you know.\"", "title": "" }, { "docid": "d0a8dfb3b7af002ee8840658871d052e", "text": "I suggest that you first decide on what %'s of the home value you each have a legal claim to. Then split the mortgage using the same %'s. Then, if someone feels their % is slightly higher, they are compensated because they 'own' a correspondingly higher share of the house. Use the same %'s for downpayments (which may mean that an 'adjustment' payment might be required to bring your initial cash outlay from 70/30 into the %'s that you agree to). Tenant income gets split the same way. Utilities are a bit more difficult - as heating depends more on square feet, but water and hydro depend more on how many people are there. You can try to be really precise about working out the %'s, or just keep it simple by using the same %'s as the mortgage.", "title": "" }, { "docid": "edb9e13ff8bd76b8a2234de5e8102d48", "text": "Rent should be nailed to costs + a pre-defined profit limit. Anything above the profit margin gets taxed away. Instead, people are gouged of a good portion of their incomes while landlords make out like bandits. Although I imagine the response to such a scheme would just be convoluted accounting tricks.", "title": "" }, { "docid": "87391b5769bbc4e6cf5227334a5e7922", "text": "Your calculations are good as far as they go, but there are lots of other factors and pros and cons to each decision. Yes, you should certainly compare the monthly rent to what your mortgage payments would be, as you have done. Yes, you should consider how long you might live there. If you do move out, how difficult will it be to sell the house, given market conditions in your area? If you try to rent it, how difficult is it to find a tenant, and what rent could you expect to receive? Speaking of moving out and renting the place: Who will manage the property and do maintenance? Would you still be close enough to do this yourself? Would you be willing and able to spend the time? Or would you have to hire someone? Also, what if the tenant does not pay the rent? How difficult is it to evict someone in your area? Speaking from personal experience, I own a rental property in Ohio, and the law says you can evict someone with 3 days notice. But in practice they don't just leave, so then you have to take them to court. It takes months to get a court date and months longer before the police actually show up to order them out of the house. And you have to pay the lawyer and court fees. In that time they're living in your property rent free. In my case one tenant also totally trashed the place and stole everything that wasn't nailed down -- I had to spend $13,000 on repairs to a house worth a fraction of what you're talking about. Being a landlord is NOT just a matter of sitting back and collecting rent checks: there's a fair amount of work and a lot of risk. What do you have to pay the realtor, and what other closing costs would you have to pay? Where I live, realtors typically charge 6 to 7%. You may also have to pay for an appraisal, title search, and bunch of other little fees. Mortgage interest is deductible on your federal income taxes. Rent is not. If you own and something needs to be repaired, you have to pay for it. If you rent, the landlord has to pay for it. If you own, you can do pretty much what you like with the property -- subject to zoning ordinances and building codes and maybe homeowners association rules, but you should have a pretty good amount of leeway. If you want to install ceiling fans or remodel the kitchen or add a deck, it's up to you. If you're renting, it's up to the landlord to decide what you can do to the property. And if he agrees to let you do some upgrade, when you're done, it belongs to him. With a condo, you are not usually responsible for exterior maintenance, like mowing the lawn and trimming the bushes and washing the outer walls. With a house, you are. You might pay someone to do this, which adds to the cost, or you might do it yourself, which takes time. Insurance on a condo or aparment is much less than insurance on a house. In my area, anyway. You should investigate those costs. If you buy, eventually you own the place and don't have to pay a mortgage any more. If you rent, you continue to pay forever. (Even if you don't live in the same house forever, as long as you don't take a terrible loss when you sell you should then have some money left over to apply to the next house, so you are still building equity.) Some of these pros and cons are easily quantifiable. Others are probabilities, like how likely is it that your water heater will fail?, and how long is it likely to take to find a buyer if you want to sell? And others are pretty subjective.", "title": "" }, { "docid": "d8b7786c9df393ebf88eb4238d98e569", "text": "\"For US punters, the Centre for Economic and Policy Research has a Housing Cost Calculator you can play with. The BBC provides this one for the UK. For everyone else, there are a few rules of thumb (use with discretion and only as a ball-park guide): Your example of a Gross Rental Yield of 5% would have to be weighed up against local investment returns. Read Wikipedia's comprehensive \"\"Real-estate bubble\"\" article. Update: spotted that Fennec included this link at the NY Times which contains a Buy or Rent Calculator.\"", "title": "" }, { "docid": "0b74ae43593376c509c0450f1ca4c0e7", "text": "A good quick filter to see if a property is worth looking at is if the total rent for the property for the year is equal to 10% of the price of the property. For example, if the property is valued at $400,000 then the rent collected should be $40,000 for the entire year. Which is $3,333.33 per month. If the property does not bring in at least 10% per year then it is not likely all the payments can be covered on the property. It's more likely to be sinking money into it to keep it afloat. You would be exactly right, as you have to figure in insurance, utilities, taxes, maintenance/repair, mortgage payments, (new roof, new furnace, etc), drywall, paint, etc. Also as a good rule of thumb, expect a vacancy rate of at least 10% (or 1 month) per year as a precaution. If you have money sitting around, look into Real Estate Investment Trusts. IIRC, the average dividend was north of 10% last year. That is all money that comes back to you. I'm not sure what the tax implications are in Australia, however in Canada dividends are taxed very favourably. No mortgage, property tax, tenants to find, or maintenance either.", "title": "" }, { "docid": "52d2669e7b9531556d89fd5c4944a25b", "text": "\"The value of getting into the landlord business -- or any other business -- depends on circumstances at the time. How much will it cost you to buy the property? How much can you reasonably expect to collect in rent? How easy or difficult is it to find a tenant? Etc. I owned a rental property for about ten years and I lost a bundle of money on it. Things people often don't consider when calculating likely rental income are: There will be times when you have no tenant. Someone moves out and you don't always find a new tenant right away. Maintenance. There's always something that the tenant expects you to fix. Tenants aren't likely to take as good a care of the property as someone who owned it would. And while a homeowner might fix little things himself, like a broken light switch or doorknob, the tenant expects the landlord to fix such things. If you live nearby and have the time and ability to do minor maintenance, this may be no big deal. If you have to call a professional, this can get very expensive very quickly. Like for example, I once had a tenant complain that the water heater wasn't working. I called a plumber. He found that the knob on the water heater was set to \"\"low\"\". So he turned it up. He charged me, I think it was $200. I can't really complain about the charge. He had to drive to the property, figure out that that was all the problem was, turn the knob, and then verify that that really solved the problem. Tenants don't always pay the rent on time, or at all. I had several tenants who apparently saw the rent as something optional, to be paid if they had money left over that they couldn't think of anything better to do with. You may get bad tenants who destroy the place. I had one tenant who did $10,000 worth of damage. That include six inches deep of trash all over the house that had to be cleared out, rotting food all over, excrement smeared on walls, holes in the walls, and many things broken. I thought it was disgusting just to have to go in to clean it up, I can't imagine living like that, but whatever. Depending on the laws in your area, it may be very difficult to kick out a bad tenant. In my case, I had to evict two tenants, and it took about three months each time to go through the legal process. On the slip side, the big advantage to owning real estate is that once you pay it off, you own it and can continue to collect rent. And as most currencies in the world are subject to inflation, the rent you can charge will normally go up while your mortgage payments are constant.\"", "title": "" }, { "docid": "1ad15cc152475532f730dd9fb23cb2b3", "text": "Nofel. So basically I wanted to know how to calculate that how much should I be paying for car or rent etc? I'm not big on percentages. Instead, I prefer hard numbers based on what you owe and what you earn. Here are rules of successful budgeting which I developed when deep in debt. They apply to everyone: After going through this exercise, you definitely might realize that you need to move to a less expensive apartment, or trade your car in for something smaller, drink less, etc. Or even get a second job.", "title": "" }, { "docid": "7eee3defcfeb74a9808a4cca6339b60d", "text": "\"First of all to answer the basic question \"\"Is one method correct? Might it depend on local laws?\"\" Yes it does depend on local laws. Because ultimately the business will have to file forms with the sate/county/city. These forms are going to ask for the total sales based on the tax category (tax free, x%, y%). Each transaction could have parts that fall into each category. The local taxing authority decides what goes into each category. The local taxing authority also determines how often the business needs to submit the taxes. They can even decide to base the rates used by where the customer lives. A business is not required to charge directly for sales tax. That is why frequently at sporting events, the price on the menu notes that all sales taxes are included. I suppose not directly charging a sales tax makes the monthly calculation harder, but the state will still get their money. Rounding up at the end of the entire transaction is enough to make sure they collect enough taxes, so they don't have to dip into their profits.\"", "title": "" } ]

[ { "docid": "72b1e6985173d4f438917c27830348c5", "text": "Not doing this would defeat the entire purpose of a VAT. The reason for a VAT rather than a simple sales tax is that it's harder to evade. Having a simple sales tax with the type of rates that VAT taxes typically are is unworkable because evasion is too easy. Imagine I'm a retailer. I buy products from a wholesaler and sell them to consumers. With a sales tax, if I don't charge the customer sales tax, the customer is happy and I don't care (assuming I don't get caught). And if I keep the sales tax but don't report the sale, I make a lot of money. Now, imagine a VAT. If I don't charge the customer the VAT, I lose money since I paid the VAT on the wholesale products. And if I don't report the sale, how do I claim my VAT refund?", "title": "" }, { "docid": "ebe7bab9b048af3bcc0e783606e7074e", "text": "But why can't two companies exchange goods directly without paying VAT? This would make the famous carousel fraud scam impossible and businesses won't have to deal with complicated refunds. Sales tax in the United States works as you describe. Sales tax is charged only to end customers, not to businesses that themselves charge sales tax. But this means that a criminal business can charge tax and just pocket it unless someone else reports it. They can also evade income tax the same way. Not to mention other issues like cross jurisdiction taxes (e.g. internet sales often evade sales tax). The whole point of a Value Added Tax (VAT) is that they charge at each level. This creates a system where each buyer reports the tax paid to the seller so as to be able to deduct it. So the seller has to pay the VAT that they charged. Or the tax authorities know and can revoke their VAT license. If only the end user is charged tax, then fraud is easier than under a VAT. So easy, I doubt they have a special name for it. The fraudulent business just collects tax from end users and disappears. Or simply fails to record those transactions. You could call it missing transaction record fraud, but why bother? It's just straight up tax fraud. The complexity of the carousel fraud arises from the difficulty of evading a VAT.", "title": "" } ]

[ { "docid": "ce76c6101a3f1577a11cca8495cebfc4", "text": "It's quite common for VAT-registered businesses to quote ex-VAT prices for supply to other businesses. However you're right that when you make an order you will be invoiced and ultimately have to pay the VAT-inclusive price, assuming your supplier is VAT registered. If you're not clear on this then you should check since it obviously makes quite a difference. Since your business is not VAT-registered you cannot charge VAT to your customers.", "title": "" }, { "docid": "472b1c3431cd2096d17855cf59342fd4", "text": "\"I'm thinking about visiting the UK and I'm wondering which things are affected by the VAT and which are not. Most consumer goods are subject to VAT at the standard rate. Most food sold in shops is zero-rated, with the exception of a handful of luxury foods. Food in cafes/restaurants and some takeaway food is subject to VAT at the standard rate. Most paper books are zero rated (IIRC books that come with CDs are an exception). Some services are exempt, insurance is a notable one, so are some transactions with charities. Some small buisnesses and sole traders may not be VAT registered in which case there is no VAT for you to pay (but they can't reclaim VAT on the goods and services they buy). (there is a distinction between zero-rated and exempt but it's not relavent to you as a customer). Some goods have special rules, notably second hand goods. Prices are normally given inclusive of VAT. The exception to this is suppliers who mostly deal in business to business transactions. Also as a non-UK resident is there a way to get a rebate/reimbursement on this tax? There is something called the \"\"retail export scheme\"\" which can get you a refund but there are a number of catches.\"", "title": "" }, { "docid": "e64e4e41b617d2c494ffa890cb6abe93", "text": "After a bit of rooting around the HMRC sites, I found this page which says this: One key difference is that digitised products are classed as electronically-supplied services for VAT and customs duties. These services are: For VAT purposes, the place of supply of these services is the country in which the customer lives. If you supply electronic services to a business customer in another European Union (EU) country, the customer accounts for any VAT due in that country. You should not charge UK VAT. If you supply electronic services to a consumer, charity or government body in another EU country, you have to account for UK VAT. If you supply electronic services to anyone in a country outside the EU, you don't pay any VAT. If, as a UK business, you buy electronic services from a company outside the UK, you have to account for VAT. If I read this correctly, I as the supplier of the website need to account for VAT only if the sponsor is a consumer, charity or government body in another EU country. It is not covered in this site, but I assume I must also account for VAT for a customer based in the UK. So in answer to the original question, a customer from Canada (which is currently outside the EU) would account for the VAT themselves, and I would simply charge the gross amount.", "title": "" }, { "docid": "f86d87919d214c8e6ea495e3ad086ded", "text": "The technical answer is defined by the laws of state you live in but most (all?) states with a sales tax have some form of use tax. Where if you buy something in another state for use in your home state you are technically liable for sales tax on it regardless of whether the merchant charged you tax on it or not. I don't think many people actually pay the use taxes, and enforcement generally seems rare.", "title": "" }, { "docid": "cbe990789e2fb4be1cceafe3db9efa52", "text": "The scenarios you describe are obviously easy to catch. It is reasonably defined in tax law, but more needs to be done to exert the spirit of the rules. The problem is that when international businesses are cross charging there is limited information the tax offices have to argue the toss - for example a UK tax office cannot audit the accounts of its US parent in order to decide whether a cross charge representing license fees and marketing costs is fair - but these types of transaction are one of the primary mechanism for avoiding taxes. These are therefrom inferred by the UK companies accounts but not 'in the open' in the sense that they can be easily challenged with accurate information. And that is why it happens, people know about it, but it is still not easy to stop.", "title": "" }, { "docid": "3d26ef83f96ca1f239f366e28a6761f8", "text": "I don't think so, but: - It depends on the product, some products are simple (Vodka) others have plenty of restrictions (Plutonium). So without you naming what your product is nobody can help you. - Regulation differ for each country. Greece and Italy are different countries. For most products you pay some import duty, the applicable VAT and some customs fees and all is well.", "title": "" }, { "docid": "f49a5014e4b988839b195d6185eb3018", "text": "Because lobbying. Otherwise such tax optimization schemes would be counteracted with laws after their discovery by our law-making entities... who can be ~~paid~~ lobbied. Personally I believe if your company uses a country's infrastructure to sell goods for a profit, then you should pay a fair share of that profit to support that infrastructure you use. If you don't want to pay, just don't do business there. But lobbying can alter that logic.", "title": "" }, { "docid": "9fed7947cf3797ff10394446994e2c9d", "text": "The most important thing to remember is that being VAT registered, you must add VAT to every bill, so every bill will be 20% higher. If the bill payer is a company, they don't care because they deduct the 20% VAT from their own VAT bill. If the bill payer is a private person, their cost of your services has just gone up by 20% and it is going to hurt your business. So the question is, what kind of customers do you have? But if your customers are companies, then the flat rate scheme mentioned above is very little work and puts a nice little amount of extra cash in your pocket (suitable if your bills are mostly for your work and not for parts that you buy for the customer and bill them for).", "title": "" }, { "docid": "1696e133d9048ca93a8b41f2129658b7", "text": "https://www.ato.gov.au/Business/GST/ Some of the costs are indeed related to the conversion rate, which, as we all know,changes daily. You don't say whether you're using a credit card. If so, some cards do charge foreign transaction fees; some do not. However, Australia, like many European countries, does use a VAT system. Therefore your charges will be increased. Please be aware that these taxes are built into the economic system. In many cases, you van apply for and receive a waiver to be reimbursed if the purchase is made through a duty free store.", "title": "" }, { "docid": "6b590adfbf41f34aee714780ff043bb5", "text": "Some items are VAT Exempt or Reduced, but in short you will pay it on almost any all consumer goods. Assuming you are a visitor to the UK from a non-EU nation then Her Majesty will refund you with the appropriate paperwork", "title": "" }, { "docid": "c852169f4c8bddf4abd32fba18f150e9", "text": "They take in a *lot* through Corporation Tax, so it'd be relatively unfair to non-business owners and non-shareholders to put it onto VAT and income tax. In the Starbucks case, they'd still want to get the money out of the country so would end up paying no more tax than now. One alternative along the lines you state, though, would be to crank up capital gains and dividend taxes to match what's taken in by Corporation Tax now. After all, those are the other ways (than income) for owners and shareholders to extract value from corporations and would be tricky to dodge unless you're outside of the EU.", "title": "" }, { "docid": "f0e35b50511df8a0a78fcdf833adddd5", "text": "Compliance issues vary from country to country and, in the US, state to state as well. There'll be a number of levels, though: Bear in mind that it is not that these taxes and responsibilities don't apply to sole traders or unregistered businesses, it's just that being registered signals your existence and introduces the bureaucracy to you all at once. Update: Your accountant should manage your company and consumer tax calculations and submissions on your behalf (and a good one will complete all the paperwork on time plus let you know well in advance what your liability is, as well as offer advice on reducing and restructuring these liabilities). You're probably on your own for local taxes unless your accountant deals with these and is local to even know what they are.", "title": "" }, { "docid": "f3cb37eeb83f058f405b20ac90fddb52", "text": "There's one huge difference. Generally speaking, the entire burden of paying VAT is intended to be placed upon end consumers, and not upon businesses themselves. So ditching corporation tax and increasing VAT would mean shifting a huge amount of the tax burden from corporations to every-day people. Such a policy could kill the party that attempted to push it.", "title": "" }, { "docid": "21d4e1e1342a71f70549aee9c0eb3e5b", "text": "IANAL, I have not been VAT registered myself but this is what I have picked up from various sources. You might want to confirm things with your solicitor or accountant. As I understand it there is a critical difference between supplying zero-rated goods/services and supplying exempt goods/services. If the goods/services are zero-rated then the normal VAT rules apply, you charge VAT on your outputs (at a rate of 0%) and can claim back VAT on your inputs (at whatever rate it was charged at, depending on the type of goods.. If the goods/services are exempt you don't charge and VAT on your outputs and can't claim back any VAT on your inputs. (Things get complicated if you have a mixture of exempt and non-exempt outputs) According to http://oko.uk/blog/adsense-vat-explained adsense income is a buisness to buisness transaction with a company in another EU country and so from a supplier point of view (you are the supplier, google is the customer) it counts as a zero-rated transaction.", "title": "" }, { "docid": "73665670f8f89a0dfc6e8dd8afc68fdb", "text": "A $100K house and $100K are not equivalent assets. Here's a hypothetical... You and I both work for the same company, and both get a $100K bonus (yes, I said it's hypothetical). You decide to use the $100K to pay off your house. I put the money in the bank. Six months later, our company lays both of us off. I have $100K in the bank. I can last for quite a while with that much money in the bank. You have a house, but you can't get a mortgage or home equity loan, because you don't have a job. The only way you can access the money is by selling the house, which requires you to pay money to a real estate agent and perhaps taxes, and leaves you looking for a place to live. That assumes there isn't something systemic going on - like the credit crash - and there is credit available for somebody else to buy your house.", "title": "" } ]