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Reasons Why People Ask, “Can I Deduct Rental Car Costs on My Income Tax?”
Car and truck renters today are frequently asking themselves the question “Can I deduct rental car costs on my income tax?” The reason for this is that legislation is going crazy in the implementation of taxes on car & truck rentals. This has made the car rental companies most unhappy to say the least.
There is a group that has been formed, it is called the Coalition against Discriminatory Car Rental Excise Taxes. In over 80% of the states in the USA there are more than one hundred different types of taxes relating to car and truck rental. Way back in the 1990’s there was a only a tenth of such taxes.
In Maine, the inhabitants there were able to for a while prevent an increase of 10-12.5 % increase in the taxes when renting a car or truck. This suited all parties associated with car rental, obviously not the law makers as they did not receive their taxes.
Taxes can be as high as twenty percent imposed on rentals. Large corporations are paying amounts close to $5 million annually in car rental taxes.
These taxes are legislated so that cities can meet their budgets. There is widening hole in the budget and deficit forces theses taxes to be imposed. Whilst this is understandable it does not make sales for car rental companies any easier. They do not want to perceived as in the tax collection business and the increased prices due to the tax has reduced sales. The Coalition against Discriminatory Car Rental Excise Taxes was formed three years ago and consists of eight car rental groups and the National Business Travel Association. Apart from fighting against legislation on taxes they also educate consumers on the taxes.
5% tax is what you will pay when you hire a car in New Jersey. This very tough as they are already paying five dollars daily in various types of taxes.
Wisconsin charge more than three times their New Jersey counterparts. They have a mass transit project that needs funding and this is the reason for the exorbitant taxes.
It is reported by the coalition that the they want to increase tax by two and a half dollars in Michigan. The taxing just seems to go on and on.
Rail projects need funding in the state of Florida. They are trying to increase taxes there by two dollars and this would increase the current tax levied by a whopping fifty percent!
It is generally accepted by people outside of the coalition and consumers that the taxes are needed for all the various projects. The coalition fiercely fights against the taxes.
Like the rest of the world the USA has been devastated by the world recession. The state of the economy in the USA is in tatters and this is the main reason for all these taxes.
Sometimes money is allocated to a certain project and when the project is completed that money is no longer available for the project. It all of a sudden gets allocated elsewhere. No wonder consumers ask ” can I deduct car rental costs on my income tax?”
A wide selection of reliable auto vehicles is provided to satisfy your needs for a car rental. Choose from economy, standard and intermediate sizes, including pickup trucks, for your next car rental Vancouver.
Income Tax Deductions FAQ:
Question: Do Tax Deductions Defeat The Purpose Of The Income Tax?
Every year, more aren’t paying anything and are actually getting money back. But wasn’t the point of the income tax was for the government to receive money from us to go towards schools, roads, police, etc?Answer: The Income Tax we have today is not what it started out to be. It was started out as a Tax on the top 1% of the Wealthy in this country, with a top rate of 7%. Is that what you see today? It was targeted at the wealthy, just as Obama wants to do today, with a rate that “would not really affect them”, because they had so much money. In reality most of those that are getting refunds are paying taxes but the withholding is higher than needed to cover their taxes, the real fact is that the government is using your money interest free until they return it in the form of a refund. As far as the tax breaks, they really are not needed. What is really needed is what both John f. Kennedy and Ronald Reagan did, reduce the tax rates, allow the people to keep more of their money so that they can spend it and through the consumers spending they create the need for more products which generates more jobs that ends up generating more revenue for the government. Past history has shown that when the government lowers the tax rates, unemployment go down, money coming into the government goes up. But when the government raises tax rates, unemployment rises, and money coming into goes down. Why the liberals refuse to see this is beyond me, the evidence is there, all they have to do is look at it.
Question: What is an independant hairstylist’s income tax deductions?
Answer: You can claim a wide variety of tax deductions. Basically any expense that relates to your business. This includes: shampoo, conditioner, shears, scissors, etc.
Question: Where can I deduct capital expenses for stock purchases in my income tax return?
Answer: The basis of stocks or bonds you own generally is the purchase price plus the costs of purchase, such as commissions and recording or transfer fees. The basis and date of purchase are normally entered on Schedule D.
Question: If after computing your income tax, and NOT owing any tax, do you still have to file a return?
I have computed my income tax, and deductions and find that I don’t owe any taxes for 2009 because I was unemployed, and received only unemployment insurance and social security income..Because of my deductions for family, home, property taxes, etc. and my low income, no taxes are due.. Do I still have to file?Answer: Of course you are obligated to file your tax return, it is your responsibility to show IRS you don’t owe. Per IRS calculations you would owe, because they treat each taxpayer as Single, Standard Deduction. File your tax return.
Question: For property tax deduction on federal income taxes, what date is important?
My loan servicer withdrew my property taxes from my escrow on 12/30/2009. The taxes were received by the city treasurer on 1/18/2010. I was under the assumption that it was the date that the money was received that was important. After a call to the city treasurer I am not so sure. They informed me that it is the date the money is withdrawn from escrow that is important. I’d like to get confirmation before I claim the deduction on my taxes.Answer: You use the property tax for the date it was PAID. The paid date, as far as the IRS is concerned, is the date it was taken out and PAID from your escrow account. Yes, you can use the property tax paid 12/30/09 on your 2009 return.
Question: Tax deduction for low income worker. What the difference?
I have never worked before so I don’t know about this. Let’s say, I will be making only 10,000 a year and have 1000 withheld. So my total comes out to 9000. When I file my income tax. Can I do tax deduction such as moving expense, interest expense and so on. Or will it not make a difference because I am not wealthy?Answer: Moving expenses can be claimed only if you were required to move for a job and it was more than 50 miles. The only interest expense you can claim if for mortgage interest or if it was business or investment related. (not interest on credit cards or personal loans). And these can only be deducted if you file the long form, 1040, and Schedule A, itemized deductions.
With an income of only 10,000 and if you are single and don’t have any other income, your standard deduction would be $5700 and your personal exemption is $3650, that adds up to $9350 taking your taxable income down to $650. So you really would be entitled to a refund if you had $1000 withheld. Are you sure that $1000 was withheld for federal taxes? That is very high. You would have a refund for sure, and may be eligible for an Earned Income credit.
If this is too confusing for you it might be a good idea to have your taxes prepared for you this year. Your local library or your town usually offers free tax preparation for low income tax payers.
But you can go on the IRS website and click on “efile”. There you can file your taxes free and since it would be a very simple tax return it should be quite easy for you.
Question: Income taxes – gay couple – property tax & mortgage interest deductions?
My partner and I bought a condo this year. It makes more sense this year for me to take all the property tax and mortgage interest deductions (Our total tax bill is $600 less than if we split it or if my partner takes it.)In the future, will I have to take the total deductions every year, or can we change in the future who takes the deductions?
Answer: The IRS is starting to take a closer look at situations where 2 people own an asset, whether it’s a house or a joint bank account.
You are to take the deductions in accordance with your interest in the property and the amount you paid. If you both own half, pay half, you deduct half. If you both own half and one of you pays the full amount, you still only get to deduct half.
Question: Do I have to file for sate income tax if I lost money?
I live in CA. I have a Rental property in IN. After deduction my rental income in IN was (-$6000). So since I didn’t make any money in IN. Do I still have to file for IN state income tax?Answer: If that is your only income in Ind, yes, you need to file the rental income even if it is a loss but it will be non resident state income tax.
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Insurance Quotes For Financial Protection
Insurance policies provide protection for your finances. If you are involved in an automobile accident, a car insurance policy can pay your expenses. If you get sick, a health insurance policy can pay your medical bills and if your home is damaged a homeowners policy can pay for repairs. There is no doubt that insurance is an important part of financial planning, but first you must get insurance quotes.
There are all types of insurance policies, all designed to offer different kinds of coverage. You can find policies to protect your home, your automobile and your business. Although insurance offers good protection against financial loss, not everyone needs the same types of protections. When you have determined what you need, you can find the policy that is right for you at the right price.
Life insurance can be purchased in a number of different ways. Coverage can be obtained on you own, by purchasing a policy independently from an insurance company. Many employers offer life insurance policies to employees, as part of their benefits program. Today, life insurance can also be purchased on the Internet, directly from insurance companies, or from independent insurance brokers.
Car insurance is certainly a good form or protection against damages to your finances, but in many communities the law also requires it. Car owners searching for car insurance quotes can visit an agent, contact a car insurance company or work with an independent broker. Regardless of who you turn to, you can find insurance comparisons that will show you the types of coverages available.
Obtaining health coverage through an employer is the most traditional way to protect individuals and families. Medical policies can also be purchased for families and individuals by contacting an agent or company directly. Today, a large number or online brokerage firms also offer medical insurance, and consumers can compare policy coverages and prices online in the comfort of a home or office.
A home is a huge investment for most families, and it is important to have adequate insurance coverage. Lenders that loan money for purchasing homes usually require the borrower to purchase homeowner coverage. Homeowners coverage can be purchased through agents of insurance companies, as well as through independent brokers.
Renter need to protect their belongings as much as a home owner. If an apartment is damaged in a fire or flood, a renters insurance policy can help replaced items that are damaged or lost. In order to obtain a quote for a renters policy, consumers can shop online for an independent broker, visit a local agent or contact an renters insurance companies directly.
Searching for insurance has changed over the years. Today consumers can turn to the Internet for almost anything, and insurance is no exception. A wealth of websites offer information for consumers to use when searching for information or for quotes. By turning to the Internet, consumers can find insurance quotes, comparisons and information about buying a policy.
Insurance is a smart idea and offers good protection against financial loss. When emergencies or unforeseen losses arise, insurance can step in to pay the bills that you might not be able to pay on your own. Purchasing a policy starts with getting insurance quotes, and today there are more ways than ever to search for a policy.
Too be competitive these days there are many insurance companies that offer auto insurance quotes, where you can get your auto insurance online
Insurance Quotes FAQ:
Question: What is the best way to compare auto insurance quotes?
I am needing to find new car insurance, and I of course would like to shop around for the best deal. Can anyone recommend a good site that will compile your information and give you multiple accurate quotes from different companies? I am leery to enter my information into a third party database, so confidentiality, professionalism and no spam is a must.Answer: Geico is good and others too. For a true comparison use the binder from your current insurnace so that the quotes you get are for the same levels on insurance that you have. Make sure you understand the coverage too.
Question: How to check multiple car insurance quotes at once?
We are in Tacoma WA and currently have progressive as auto insurer and we want to know what is the best way to check multiple insurance quotes?Answer: Getting a quote over the net is convenient and quick, but often times VERY inaccurate. The quote is often given without actually running your MVR (motor vehicle report) because that costs the company money and you haven’t paid any yet. Most all companies will run your consumer report (which credit is only one small factor of) and it won’t be run during the quoting process, it will be run after you purchase. This is the reason so many people are dissatisfied at their next renewal or shortly after their purchase when the real bill comes. Now, let’s discuss what you’re actually asking. You want prices, but didn’t mention anything about coverage. Before you buy based on premiums, please research what you are buying and whom you’re buying it from. What happens at claim time? Who will offer you the most for your totaled vehicle? How will you be treated? Is it a toll-free phone number that will be helping you in your time of need or a real person whom you can see? Please contact an agent and a company that is highly rated for their customer service and claim payment ability.
Question: How do I get auto insurance quotes from more than 1 company?
Trying to get auto insurance quotes by using one website. Is there such a website? Or do I go to each one separatley?Answer: You can go to all of the major companies individually, or you can do multiple quote comparisons. There are different websites that will have several quotes to choose from; esurance.com is one example.
Question: What is the easiest way to get health insurance quotes?
What is the easiest way to get health insurance quotes without being harassed by sales people?Answer: Unfortunately, most sites online will take your contact information and distribute it to several insurance agents or agencies, all of whom will try to contact you and compete for your business. Many of them advertise this – they tell you that they will generate multiple quotes for you to sift through; those are the ones you want to be wary of.
Try picking one place that sells affordable health plans and contact them directly. I recommend iCan Benefit.
Question: How to get insurance quotes in the most efficient way?
So, I called and called. Got some quotes. Chose the most reasonable rate. But then the insurance companies turned around and increased premium after I had the policy, usually with B.S kind of reasons, e.g. there is a crack in a few decorative bricks..How do I do it better next time. Or they’re there to rip you off no matter what you do?
Answer: Never heard of this happening. Use an insurance broker and let them do the work. They’re free to use and they’re your advocate.
Question: Where is the best place for auto insurance quotes?
Recently I have had to change auto insurance providers for multiple reasons. So now I am looking for the best place to get auto insurance quotes from.Answer: I would call a local independent agent in your town. S/he will get you the best rates because they represent several companies. I would also contact a couple of the big companies to make sure you are getting a good rate.
Question: Does getting quotes from car insurance companies lower your credit score?
I’ve heard that every time you apply for a credit card, get insurance quotes, etc. your credit score gets lowered.Answer: No it does not. While insurance companies do look at a persons credit now to help set rates, this is a soft pull and has no affect on your credit score.
Question: Where can I get free life insurance quotes?
I need a website that gives free life insurance quotes?Answer: Try Progressive or Gerber Life.
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Are Long Term Insurance Policies Recession Proof?
Long Term Insurance Policies can be made recession proof if you take one with an option for inflation adjustment. This will help improve the value of the benefit that will be eventually paid out. Care Insurance Policies come with an inflation adjustment option providing three options for interest – compound, simple and flat rate.
For example, in the first option for inflation adjustment, the dollar value of the premium is considered to be increased by 5 per cent for each policy year calculated as compound interest. But with the compounded interest option in inflation protection choice for Long-Term Care Policies, the premium can cost as much as 50 per cent more. This is considered a good choice if the person who is being insured is below 65 years of age considering that the policy can be expected to continue longer.
In case of a simple-interest option, the same 5 per cent is raised each policy year but the calculations are based on simple interest. This is considered a good choice if the person being insured is over 65 years of age. The compounded interest option would be more beneficial if the policy continued for at least 12 to 14 years.
The option of flat benefit is the cheapest option in Long Term Care Insurance and is considered the best option if the person being insured is in his early to late 70s. Tax deduction eligibility also makes policies somewhat recession proof. But this depends on costs, gross income adjustments, current age, options and the insurance provider etc.
You can also choose how soon the payment for care can be begun once the insured person is eligible. This helps increase the value of your benefit considering that it can be availed of only when exactly needed. This is called the elimination period. A longer elimination period will surely come with a lower payment of insurance premium. Elimination can be 0, 30 or 90 days.
To ensure that your Insurance policy is recession proof it is better to take one as an individual rather than to depend on a group policy provided by your organization for all its employees. In case of a group-policy, the risk of losing the coverage if the person insured loses his job is quite a possibility.
A Long-Term Care-Insurance can be made recession proof with two practical steps anyone can take. You should not delay any significant medical care. It is better to take care of it before the issues arise. Also, if there are any valid disability claims do consider whether you actually need to take them immediately or not because it may impact your employment situation and your future career prospects. This may interfere with your premium payment capacity.
Parmar Keyur is an experienced writer and Internet marketing professional based in Ahmedabad, India.
Long Term Insurance FAQ:
Question: Is Long Term Care Insurance combined with Life insurance is good or better separate policy?
It’s a difficult to get started to buy Long Term Insurance , it’s expensive and maybe will never use it. Life Insurance at least you know you will die sooner or later. I was offered a combined insurance with Nationwide Ins… now confused if that is a good idea.Answer: Typically a “rider” policy (something added on to/combined with a life policy) has a considerable amount of limitations compared to a separate policy. It would be in your best interests to make sure you understand the differences between this LTC rider and a stand alone policy.
Contact a broker to find the best prices on either. A broker can shop around for you and make sure you are getting the best deal. I don’t know much about Nationwide insurance, but I’m sure they aren’t the best at everything for everyone…a broker can help you determine who is best for your situation.
As for maybe never using LTC? I doubt it…most good plans will pay out of you only need supervision in doing 2 of a 6 functions of daily living…something as simple as a separated shoulder/broken arm or a badly twisted thumb can result in a payout. Many will stay in force and pay out multiple times throughout a lifetime as well. Odds of it paying out are far greater than not.
Question: Suggest some excellent long term insurance plans in LIC which can create a substantial corpus at end maturity?
The plan can be one which can either act as a pension policy or would give some good returns. Also suggest should I go for life cover or without cover.Answer: It is not clear whether you want only investment or risk cover. If you are looking for long term investments (at least 3-5 years) consider investing in some good diversified equity Mutual funds. SIP is the best instrument. For risk cover you may consider Term Insurance, which are very cheaper. Term Insurance does not have a maturity value.
Question: How do you work with long term insurance companies?
I own an in-home elderly care agency, however, due to the fact that the services are expensive, most clients can’t pay out of pocket, so I need to begin billing their long term care insurance company. I’m wondering, what is the process to begin working and getting paid from long term insurance companies?Answer: Not many people have long term care insurance and they certainly can’t buy it when they already need it. Try contacting some of the major players, such as Metlife and Hartford and ask them.
Question: How can assets be protected?
My mother and father in law are both in a nursing home. They do not have any long term insurance. They own two houses and some farmland. I am concerned they might eventually lose these assets.Answer: Your right to be concerned. You need to make an appointment with a certified financial planner.
Question: Is their help to pay on expenses when you have someone in the nursing home?
I have a grandfather in a nursing home and he was told he couldn’t get long term insurance because of a mistake that was made by the doctor saying he went in because of a heart attack. That was not true. He fell and broke his hip and was only going in for rehab. Now the Physical Therapists are telling my grandmother that he will have to stay there indefinitely and he will not be able to come back home. Well one of my grandmothers options is to divorce him because she cannot pay what they want each month. She is trying to get info from a lawyer and see what all her assets are. She doesn’t want to lose everything and I’m doing the best I can since I just got laid off from my job that went overseas. I want to know if their is something that we can do to get help financially.Answer: It depends on your state laws. In many states, there are provisions for people to apply for public aid, but the spouse may keep the home if he/she is still alive.
The first issue, is that the diagnostic code needs to be changed, after which he should be eligible to apply for it to be covered under Medicare. Once he’s used up his medicare days and medicare reserve days, he will most likely be eligible to apply for public aid. If he divorces your grandmother, he’ll actually have to sell the house and use that money before being eligible for public aid.
It varies between states, but there are usually laws to protect the spouse.
Question: Does anyone know if medicare will pay for nursing home care. I will be confined to a nursing home but don’t have any long term insurance.
Answer: Medicare’s rules with regard to nursing home care are rather confusing and very often misunderstood. Medicare will generally only cover ’skilled care’ (ordered by a doctor and provided by nurses, etc) delivered in a Medicare approved facility as long as that care is directly related to a prior hospital stay for the same condition. Even then, however, the coverage is typically limited to 100 days and the standard Medicare apportionment applies with regard to just how much they’ll pay (80% paid by Medicare with the other 20% being your responsibility). Custodial care (assistance with daily living) is NOT covered by Medicare and 100% of the cost is usually the patient’s responsibility. If you have a Medigap (aka Medicare supplement) plan or a Medicare Advantage Plan provided by a private health insurer, then there MAY be some coverage but that varies from plan to plan.
Question: My long term insurance pays $100 a day increasing by 5% per year what will it pay after 15 years?
Answer: You did not specify simple or compound. That will be an option when you purchase your Long Term Care policy.
Your daily benefit using simple after 15 years will be $175.00
If you compound the daily benefit the amount will be $207.89
When you are comparing the cost of these options you will note the additional premium is significantly higher for the compounded increase.
Question: It worth to invest in ULIP or Traditional insurance plan based on current market condition.!?
I am looking for a long term insurance plan with premium paying term of 20 or 25 years. Is it worthwile to invest in a ULIP or a traditional insurance plan. I am looking purely from savings and investment point of view.Answer: If you are looking at pure investment then why you are looking towards insurance plans. They are very costly investment. Even in long term. Check the charges of ULIP before deciding. Also traditional policies give return of 5-6% only.
Looking at your question , it looks you have not decided on level of risk as you are confused in Traditional policy & ULIP. I will advice you a low cost solution of PPF & Mutual Funds.
PPF has a term of 15 years, which can be extended to 20 years. It gives true 8.5% return taxfree. Mutual funds can give you true NAV return in long term (without entry /exit charges) if you invest directly with mutual fund company.
Don’t take insurance route for saving. Go for term insurance if your target is insurance.
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Buy Sell Agreements – What is the Purpose?
What is a buy sell agreement?
It is a contract that is generally done between business associates when one of the partners wants to buy out the other partner’s share of the business in case of some particular events. Examples of these events are bankruptcy, death, disability, divorce or retirement.
The agreement is usually connected to the insurance policy on both partner’s life. The insurance policy gives the interested partner the money needed to buy out the other partner’s interest. The buy sell agreement is made in such a way that the business makeup made to own the business does not matter.
Forms of buy sell agreements:
1. Cross Purchase Agreement is a deal wherein the surviving owners should be the buyers. On the death or during a serious illness of the other partner, the surviving partner can buy out the shares of the sick or deceased partner.
2. Another type of agreement is called as corporate entity redemption. In this type of agreement, the company agrees to buy out the interest of the sick or the deceased partner or owner. The partner or owner shall receive cash from the company in return for the purchase or cancellation of the deceased or sick partner’s shares.
Financing the Agreement
A buy sell agreement is usually funded using an insurance policy. The policy or policies, depending on the situation of the parties, can be obtained under one of the following agreements:
Cross Ownership- this is when the owners own policies against each other.
Discretionary Trust- is where a trustee will hold a policy on the behalf of the owners.
Principal Ownership- is where the owner of the business holds a policy on himself.
Company Ownership is where the company will hold all the policies on the behalf of the owners.
The buy sell agreement will have to affirm the worth of the business involved and how the worth is calculated when an agreement is needed. The agreement should also state if the price to be applied will be its book price, agreed price, appraised praise upon the agreement, or its capitalization of its profits during time of the agreement. Clients should ask for a legal advice of what is the best arrangement for them.
In case a buy sell agreement will happen and will result to the payment of a life insurance policy, it will only be exempted from capital gains tax if the gain or loss is due to the following reasons: the gain or loss is made by the original owner of the policy, or if the gain or loss is made by a body that purchased the policy or the gain or loss is made by a trustee of a superannuation fund.
A total disability insurance policy is only exempted from capital gains tax if the policy is owned by the insured owner. On the other hand, it is subject to capital gains tax if the policy is owned by the business. Careful consideration should be imposed if the owner of the business holds the policy upon himself.
Buy Sell Agreements FAQ:
Question: I need language for a buy-sell agreement?
What is appropriate language for a buy sell agreement where one shareholder names the price and the other decides whether to buy or sell?Answer: Since we are talking about a critical part of your business, the best advice is to let a lawyer draw something up for you.
Question: Discuss the importance of having a Buy/Sell Agreement among business owners?
Answer: Without a buy/sell agreement, if any partner suffers disability or death, the other partners will have to end up working with the beneficiary or the surviving spouse who might have no business knowledge.
A “funded” buy/sell agreement is a peace of mind where life insurance are used to fund the surviving partners with assets to buy out the beneficiaries portion of the business.
Question: How do I buyout a shareholder in our company?
We do not have a buy-sell agreement in place and I want to buy out my Dad and his wife from our company. They own together a total of 71% and I currently own 19%. My Dad has cancer and he is extremely hard headed and refuses to let go of the company. He is very old school and also refuses to do what is necessary for us to prosper and survive. I’m trying to make his life easier and force him out of the company. However, I cannot find anywhere on the net a buyout agreement that fits my situation. I have seen buy-sell agreements which to my understanding, those are agreements set in place when you form a company which you and your partners agree on. So, can anyone help me out with a good place to find the type of agreement I’m looking for?Answer: Without a written agreement in the By-laws, I don’t know how it would be possible to force 71% shareholders to sell. They have controlling interest; you would have to reach an agreement on the sales price. Maybe you should consider (or threaten) to go out own your own. If you want your own business, you may have to start over.
Perhaps legal advice is in order if you want to pursue a buyout.
Question: I need to locate a specific attorney?
I’m an optometrist and I plan to buy a practice and I need to locate an attorney that deals with contracts and buy/sell agreements. Where would I start to look for such an attorney?Answer: You’re looking for a business lawyer, but you may not find anybody specializing in that area if your area is not a big urban center.
Any competent attorney in general practice will be able to help you, but you should try to find a lawyer who has some experience in buying and selling a professional, especially medically related, business, and that won’t be as easy.
If there are optometrists who won’t be competing with you in surrounding towns or cities, call them and ask who they used.
Question: I have an agreement to buy something via email. The person no longer wants to sell to me. Can I sue and win?
It is a fairly large transaction ($20K) so I’m thinking it would be worth going after. I have seen online that emails can be considered legally binding. Also, I am in another state than where the person/product is located.Answer: I really doubt you would win. Unless you paid for the item and they did not deliver, it still belongs to them. So at any time they can decide to keep it. Even retail stores can refuse to sell merchandise to customers.
Question: What legal rights do you have if your partner tells you to get out and will not pay you for the business.?
Is a corporate meeting a legal paper for the court of law. We had a corporate meeting in which the one owner agreed on a price for the business. We did not have a buy sell agreement in our corporate papers. We are now going to court for this matter.Answer: It depends on the laws in your state, on what documents were signed when the partnership was formed, a lot of different things. A reputable attorney will be able to explain it, and can probably help you further.
Question: Is the business I bought still mine if I lost my original document of purchasing and buying business?
I bought a restaurant business 3 months ago, and I lost the “selling and buying agreement”. I am paying mortgage for this business. Is this business still mine after I lost the original document? I still have the copy though. I haven’t called the notary who helped us with the purchasing of the business, is it possible to get another one?Answer: Your copy should be sufficient – Just publish your DBA and open a bank account w/name of business and you as the owner/operator. As long as your checks are paying the bills, nobody will question your ownership.
Question: Can I as a majority owner (51%) of an s corporation, force a buyout from my partner(49%) due to his inadequacy?
There is nothing stated in our bylaws about a buyout nor do we have a buy/sell agreement. Do I still have the right to force a buyout?Answer: NO! There are NO duties required of a shareholder except to report taxes on earnings.
If they are a Director of the Corporation, A shareholder meeting may be called, and a vote taken to remove them as a director. If the vote passes, they will be removed as director.
If they are an Officer of the corporation, a Board Meeting may be called to vote to remove that person as an officer of the corporation. If the motion passes, they will be removed. The actions of the boards will eventually have to be approved at the next shareholder meeting.
As a 49% shareholder, that person also has the right to request a special shareholder meeting.
You may make that person an offer to purchase their shares, and IF they accept it, the board will have to approve the transfer and log it in the Corporate Stock Transfer book.
All shareholders MUST be notified of any shareholder meetings by the corporate secretary, or sign a waiver of notice at the meeting, or any actions taken at that meeting will be void. So don’t even think about not notifying that person.
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Certified Business Brokers – Are They Right For You?
Navigating into the business world alone is an almost impossible task. If you want to acquire or sell your business, a little professional help will put you on the right track.
The work involved in planning and making a business deal is complicated and it takes a lot of expertise to get out of it from the better end. Certified business brokers are the kinds of people who can make the deal for you and give you the best layout on how to dispose or purchase a business. Many investors make the mistake of buying or selling their business too quickly because they thought it is the best move for their financial careers.
Certified business brokers have the right experience, knowledge and connections to give their clients accurate information about their business ventures. They are skilled in predicting the market and can tell you almost foolproof predictions on how the business will perform in the future. For those who want to sell their businesses getting help from certified business brokers will help them come up with targeted marketing plans that will attract the kinds of buyers they want for their businesses.
Brokers will have the right kind of resources to materialize marketing plans and be able to implement them efficiently. A good business broker will be able to classify buyers and will save you the time of dealing with buyers who don’t fit to the category. Hiring business brokers will allow you the needed time to fully prepare your business for the change of hands.
Hiring certified business brokers should also be considered by entrepreneurs wanting to buy prospective businesses. If you’re a neophyte in business and it is your first time buying a business you will need plenty of help to get your head around things. A business broker will help you determine the precise market value of the business you’re eyeing to buy.
It is not enough to have sufficient theoretical knowledge about business. Nothing beats first-hand experience and certified business brokers do have that edge to hand you the best offers you can get. A business broker has unlimited contacts in the business world and he can get you a deal that is not even listed on papers yet. Businesses that are being offered on the market don’t always divulge enough information for the buyer to decide if he wants to buy one. Weeding out which one fits your criteria is time-consuming but a business broker can do the work for you.
Looking for certified business brokers is not a random process. If you want to get the best services and achieve better results you should look for brokers that belong to reputable broker firms. A reliable broker firm must be in operation for more than three years and must have good feedback from previous clients. Choose a broker that has a wide experience in the industry of your interest or choice.
He’ll be able to give valuable advice about the market price and worth of the business you’re selling or buying. When you approach a potential business broker you should ask him what his usual marketing plans are so you’ll know if he is the right one for your business venture.
Your business broker must be qualified to do the job and should make decision-making easier for you. Even if you already hired one, still conduct your own independent research so you’ll personally know you and your business broker are making realistic marketing approach.
Business Brokers FAQ:
Question: What commissions do business brokers get paid?
Answer: Generally, it’s about the same that real estate brokers get on small commercial transactions…about 10%.
Question: Do business brokers approach perspective businesses to “drum up business”?
If approached by a business broker asking if you are interested in selling your business, is this just their way of marketing or do they generally have a client already interested in purchasing your business?Answer: Sometimes they do and sometimes they don’t. It’s like real estate and it’s legitimate for them to call and solicit.
Question: Which is the best Business Brokers in Ireland?
Looking to sell my business. Which Irish business brokers or transfer agent should I go to?Answer: The Best Business Brokerage is BizSales Business Brokers in Dublin and Newry.
Question: How much does business brokers typically charge to sell your business? Percentage or Set fee?
Answer: It is usually a percentage. Most want 25-35% though. A set price doesn’t usually work. These figures are for just the business not the real-estate. If you own the property then they usually charge 6-10%.
Question: Tell me about BBN, Business Brokers Network?
I have a job offer from this group. Has anyone really attempted to work for this company? They want quite a bit of money up front to join their group. I am curious to know if anyone has worked or is working for this company?Answer: It’s not a salary or wage job. Those are the fees to be able to use their name at your sales presentations and to share data on their network.
If you aren’t an established salesperson, you need to get established before joining these guys. They buy and sell BUSINESSES. All types of businesses, which means you need to know a lot more than your typical sales rep about EVERYTHING.
Question: What do business brokers charge to sell a business?
Answer: Anywhere from 6 to 12%. But, the fee is negotiable.
Question: Who is the president of UNITED STATES BUSINESS BROKERS, LLC™ (USBIZCORP™)?
I’m looking to contact the head of this national business broker franchise system.Answer: The owner, president, and CEO is William T. Buckley, Jr. (known as Tom Buckley).
Question: Do business brokers charge commission if you’re the buyer and hire a broker to buy a suitable small business?
Or does it work like residential brokers where buyers don’t have to pay any commission?Answer: Usually there are more than 1 broker or agent involved… 1 for the seller and 1 for the buyer.
They BOTH get a cut in most cases, and have clauses in their contracts that they get paid if you go around them to sell the business.
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What You Should Know About Company Mergers
Unpredictability is the nature of business. When a company experiences difficulty in maintaining its productive status it will then execute survival measures to make sure that it will be able to sustain its operations. Businesses always have insurances and plans for this kind of setback and one of them is to engage in merger.
Company mergers are a popular trend in the corporate arena these days. Simply put, a merger is the marriage of two companies wherein assets and business operations are combined to attain a more stable status. In this situation, it is to be expected than one company is weaker than the other and in some ways merger is much more like acquisition. Where acquisition is a total buyout, merger is a fusion of the two companies’ business operations.
Company mergers are always a gamble on both parts, although, if you look at it, there’s more to gain on the small company’s side than on the bigger company’s. If the weaker company doesn’t perform well even with the contribution of the stronger company’s resources, it can have a huge negative impact on the contributor. But if the weaker company gains momentum in their operation as a result of the merger, then the stronger company benefits largely from the merger. This is because when the two companies agreed to merge, the smaller company had to grant more shares to the stronger company’s single share.
Shareholders should protect their investments and know more about company mergers if merger is in the offing. As an investor, you should know the key information about the merger and study the profile of the company concerned. You must have a clear picture of the benefits that are directly your concern and other relevant financial information.
If you are the owner of the weaker company, it would benefit you greatly if your company will pick up performance after the merger. By this time, your company will earn intangible assets like goodwill which was not present when you first establish your business. Goodwill doesn’t have a definite measurement of value but there’s always a good chance of it to be overvalued. That’s definitely a score on the owner’s side.
Company mergers are not entirely the owners’ sole decisions. Investors have a say on whether a merger is the best move for the company to take or not. If you are a shareholder, you should analyze the scenario carefully and if you think that a merger is a wrong decision or will bring financial gain for the company, then you should exercise your right as a part-owner to have a modicum of influence over the process of decision-making.
Company mergers should be looked at all angles. Financial matters are not the only concern. How will the merger affect the present employment rate of your company? Maybe the partner company have policies that go against your principles. As an investor, you should take these into considerations seriously. Even if financial gain is the bigger issue, unrelated financial matters still figure in the deal and the future of the company.
If merger is the only option for the company to survive and if as a shareholder you’re opposed to this decision, you can always sell your shares and get out. But it is a decision you shouldn’t be hasty with. Look at all the benefits and look where your investment will figure in the future. If the financial status and guiding principles of the merging company suit your needs then it is worth sticking it out.
Company Mergers FAQ:
Question: The company I work at was recently “acquired” by another company?
The company that acquired us specializes in mergers & acquisitions. Their office is in Beverly Hills, CA. We have offices in DC and Raleigh, NC.Their claim to fame is that they buy companies that aren’t working very well, fix them up, and then sell them. Before they do that, they make a lot of changes to trim the fat. Usually this means a change in management. They have bought and sold most, though not all, the companies they acquired.
What do you think the chances are that I will lose my job? I asked my manager and he said that we are a very lean company so he didn’t think they could lay people off. He thinks they will hire more people.
Answer: It is not possible at this point to know whether you will lose your job, because that depends on why they buy your company and what is wrong with your company. You and your coworkers will lose jobs if your company has been losing money, if your company has no chance to be profitable, if your company’s products are out of date, etc, if the only value of your company is its assets and intangibles. In that case, they will get rid of all people, and sell the assets of the company.
Question: How can company mergers lower average costs?
How do they take advantage of economies of scale. I don’t understand how 2 companies merging together can cut the average production cost per unit. I am guessing less staff will be one, but can’t think of anymore. What do you think?Answer: You can get better deals if you buy in volume. Many such deals scale with increase volume. You may get a better discount. You have more clout and many be able to get a better discount even if the company does not offer on.
Also you might be able to better optimize you transportation grid. say moving a customer of A who is near company B to company B delivery center could mean that you have less transportation cost.
Question: How do mergers and acquisitions affect a company’s liquidity, share price?
In general terms, for the larger company, who is acquiring or in the case of a merger (such as Symantec-VERITAS), how is the company’s financial ratios and statistics affected? E.g how would Symantec’s stats be affected in the example above.Answer: In many cases the acquiring company’s share price and liquidity are negatively affected. The reason is simple, the acquiring company has just expended assets on a business venture that has an uncertain outcome.
If the acquiring company is able to integrate the acquired company’s strengths with its own, the upside will be much better than organic growth would allow in the same time period.
That said, the ability to fully integrate seems a feat beyond the reach of even very good companies.
For failed acquisitions look at Quaker Oats acquisition of Snapple a few years ago. Once they had Snapple in house they were totally unprepared to leverage the asset.
For successes look at Nature’s Bounty roll up of so-called “natural products” manufacturers. Very well done indeed.
Question: Where can you find company mergers and takeovers?
Is there any place you can find that data?Answer: Well in a perfect world you should not be able to find out about mergers or takeovers before they happen but we know this isn’t a reality. I don’t know how familiar you are with options but one of the tips a merger or takeover could be happening is in unusually high option volume on a stock with no new news out there. I’m sure there are web sites out there that specialize in this but I don’t know what they are and they probably cost you money to have access to it. I’d go the options route if I was you.
Question: How do mergers historically affect a company’s stock? How do acquisitions typically affect a company’s stock?
Answer: Some mergers and acquisitions are great successes and some flop miserably (like Chrysler and Daimler-Benz). There is both opportunity and risk. On Average Merger’s and Acquisitions destroy shareholder value.
Question: Who makes the ultimate decision for company buyouts and mergers?
Answer: The company that is buying the other one after they do Due Diligence.
Question: How long does a fortune 100 company merger take?
How long does it take a large corporation to complete a merger? After the necessary forms are filed with the SEC and FTC how long does it take a company to start heavy personnel reorganization and initiate their go to market changes?Answer: There is no one answer to that. Every single transaction is unique. Could be 2 months, 3 years or it could wind up getting dropped by either company.
Question: What is it called when a subsidiary mergers with its parent company?
Answer: It is still called a merger. Sometimes it is called a Vertical Integration. It is usually done because one has a recognizable name and the other doesn’t.
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The Basics of Home Equity Lines of Credit
When people are looking for a line of credit, one option they will come across is a home equity line of credit. Before you select this type of financing plan, it is important to understand what it is and how the plan works so that you can determine if a home equity line of credit is right for you.
A home equity line of credit is a type of revolving credit where the collateral for the loan is your home. With this type of financing plan, a lender will approve an applicant for a set amount of credit. The amount is based on taking a certain percentage of the appraised value of the home and deducting that amount from the balance owed on the current mortgage. Home equity credit lines are often used for big expenses such as home renovation, medical expenses, education bills, etc. But remember, the mortgage rate will affect how you pay back this debt.
Most home equity lines of credit plans will involve setting a specific time period where one can borrow the money, such as 5 or 10 years. This is referred to as the ‘draw’ period. When the term ends, one can be given the choice to renew the line of credit. Plans can vary such as one plan may permit repayment over a set or fixed period and other plans may require full repayment at the end of the period. Once approved, one is usually able to withdraw the funds up to the set limit whenever they need it. One can withdraw either in person or using a credit card. As well, there may be certain conditions attached such as requiring a minimum amount to be withdrawn each time.
When looking for a credit line plan that you can afford, make sure you understand what interest rate comes with the plan and the extra fees and charges. For instance, there is usually a fee for a home appraisal, an application fee, and there are closing costs. Closing costs will include such fees as taxes, title search, attorney fees, preparing the credit line, filing the documents, and title and property insurance.
It is important to remember that a variable interest rate is a rate that will increase or decrease depending on market conditions and a fixed rate is the set interest rate for the term of the credit line. For most cases, home equity lines of credit involve a variable rate. Some lenders may offer a temporary discounted interest rate for their home equity line plans as a promotional tool. However, this is usually for a short period. As well, some variable rate plans offer limits to how much your payment can increase or decrease. Rates and other costs will vary among lenders so it is important to comparison shop.
Because one’s home is used as collateral, the lender’s risk is lower; therefore rates tend to be lower. This is advantageous for many because the amount one saves can be hundreds of dollars. If you are interested in acquiring a loan, a home equity line of credit is one option you may want to consider. The most important thing to remember with this type of financing is if you do not repay the amount you borrow, including the interest, you could lose your home.
There are a tonne of different ways someone can save money and invest in. We offer some of the best GIC rates. We also offer competitive mortgage rates available. Do your research online and find the best rates.
Home Equity Lines of Credit FAQ:
Question: Will the bank likely terminate my HELOC if I pay it off?
I have a house with no mortgage except for my home equity line of credit. I have nearly paid it off, but I hesitate to pay off the last $100 because I wonder if an automated program is likely to terminate the HELOC if I do. Are banks ending HELOCs on homes with no other mortgage?Answer: When you initially signed up for your heloc there was an expiration date for the heloc. Either find your paperwork or go to the bank and ask what the expiration date is. Actually, it’s usually right on your monthly billing, the portion that says unused amount would indicate the amount you have open to use. However, you don’t know for how long. Just before expiration, go in and extend your existing heloc (no changes except for expiration date) if you don’t renew then, you’ll end up having to reapply entirely including those fees. So you don’t want to miss the date.
Question: Does taking out a home equity line hurt my credit score?
My broker opened up a home equity line for me where I was borrowing 100% of the available line. It seems like it reduced my credit score quite drastically.Answer: Of course it reduced your credit score. You vastly increased your debt-to-income ratio, and you burned through the entire line of credit. Maxing out any credit card or line of credit (like a home equity line of credit) is bad news for your score. Pay it down on a very regular basis and get borrowed funds below half of the limit as urgently as possible. A large monthly payment on a very regular basis (monthly) will start bringing your score back upwards within 6 months.
Question: I paid $4.5 in interest to a Home Equity Line of Credit but did not show in the efile. Is it a problem?
I just got the document from the bank. This loan was used for personal use. Do I have to amend the return? I don’t care about the tax benefit.Answer: The interest paid on equity loan funds used for “personal” reasons do not qualify as a tax deduction. However, if personal use included renovations on the home then it becomes deductible. The amount you are mentioning is basically a non issue in either case.
Question: Can a co homeowner pull out a double mortgage alone?
I have a home jointly, can either party pull out a second mortgage or a home equity line of credit on the house without the other persons agreement?Answer: Not legally – if you are co-signers on the mortgage or second, you are both legally liable for the debt. This contract cannot be abrogated by one party unilaterally. If one party was to pull out, the second party could sue for 1/2 the payment (assuming this was the agreement).
The only way to remove the second party’s name from the second mortgage is for the first party to re-finance the mortgage in his/her name solely.
Obviously, the party trying to pull out of the second would remain as joint title holder (assuming the parties are the same) on the house.
Question: Use savings to pre-pay mortgage?
I have $18K in cash. My portion of a Home Equity Line of Credit for about $17K. I am thinking of using the savings to pay off my share of the HELOC and then replacing it at a rate of about $700/Month. I will have about $850K in stocks and can still borrow back up to $30K on the HELOC so my short term emergency needs can be met if need be. I have confirmed the ability to borrow. I like having the money in cash but even after the tax break, I think it makes sense to pay off the HELOC.Answer: I would pay it off. If you for sure will replace the money and feel comfortable if something happens that you have an emergency fund to get at, then I would do it. I don’t like having debt and the amount you are going to pay in interest while you pay this off will be a lot more then the amount you will gain in interest. The key is making sure each month you are banking the 700 to get your savings back.
Question: How can I get rid of my home equity line of credit?
I have done loan modification with my first mortgage.Answer: If there is an outstanding balance of “zero” on your equity line, you can ask the bank issuing the line to cancel it. Effectively, what they do is reduce the available line to zero and close the account. If you still have a balance, the only way you can “get rid” of it is to pay it off and then follow steps above.
Question: I have a 20,000 line of credit with bank of america, is this better than a home equity line of credit?
Answer: Interest rates are the key factor, with the most important thing to realize is that the interest on the home equity line of credit is tax deductible, where as the interest on the BofA line of credit is not.
So unless the BofA interest rate is significantly lower than what you could get through the Home Equity Line, then it would not be better.
Question: What is the meaning of HELOC maturing?
Wachovia is saying my home equity line of credit is maturing, what does this mean?Answer: A HELOC is written for a specific number of years. When it reaches the end of that period it is “mature”. At that point you need to either have it completely paid off or refinance it.
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Home Buyers Guide – What to Do When a Mortgage Application is Turned Down
Mortgage application rejection is one of the most dreaded things for homeowners and is pretty much a serious concern for most us right now. The good news is there are practically quite a number of easy ways by which we can get ourselves out of this rut. The first thing that you must have to consider is your credit score. In fact, most of the cases of mortgage loan application rejections are due to low credit score. However, it is not enough for us to go out straight and blame it all to our Beacon score as there are other variables that also impact on our loan application.
There are three major things that we have to assess if we get turned down by the lender:
• Low Beacon score
• Low income
• Current credit portfolioThe general rule is that, if you are on the negative side on one or more of these 3 items then there is a high probability that your mortgage application will be turned down.
Turned Down Due to Low Beacon Score
If you are turned down by your lender, this means that your loan application was rejected due to bad credit. Specifically, your Beacon score was not able to meet the underwriting guidelines of the lending company. Is there anything that you can do after you have been turned down due to low credit score? The first thing that you must do is to get more details of the assessment of your application from your lender. It is important for you to clarify with your lender the general guidelines that they follow in the approval of mortgage loan applications.
The lender may not be as forthcoming as you would want them to be in sharing with you all the information that you seek from them. Nonetheless, it won’t hurt if you seek clarification and inquire for more details. What is important is that you are able to learn if there are other reasons, aside from your low credit score, that led to the rejection of your loan application. In this way, you will be able to know which aspects you need to focus and improve on.
On the other hand, if you were turned down primarily because of your low credit score, then it is crucial for you to determine how far out your score is from their accepted norm. You have to ask the lender the minimum credit score that they require for the approval of mortgage loan applications. Further, you must also clarify with the lender their required credit score for mortgage loans with the lowest interest rate.
These are practically two aspects of mortgage loans that you must understand vis-a-vis your credit score. You will have to know the credit score that you need to have in order to get your loan application approved and the credit score that you need to work on in order to qualify for the loan that offer the lowest interest rate.
Finally, you must remember that lenders don’t adopt the same underwriting rules. This only means that the assessment made by one lender may significantly differ from the assessment of another lender. These underwriting criteria may have major differences from one lender to the other lenders.
The rejection of mortgage loan application can be a serious issue only if you consider it as such. If you are able to develop the proper mindset, then this unfortunate incident may even turn out to be blessing in disguise. This “unfortunate” experience will give you the opportunity to assess your financial capacity and readiness from the lender’s point of view.
Learn how to sell your own house here: For Sale By Owner
If you’re looking to buy a home from an FSBO listing check here: FSBO Listings
Mortgage Application FAQ:
Question: Mortgage application?
My partner and I want to apply for a joint mortgage,he’s got a clean record but I have a few defaults on my file. Will they approve the application or will it be denied? Am making arrangements to get the defaults paid to date.Answer: Easiest way to know is to just go and apply for a mortgage. Find someone that doesn’t charge an application fee, and give them your w2’s and pay stubs and apply for the loan. you’ll find out much faster that way. Don’t be shy or ashamed if you do, ask what steps you need to take to get approved.
Question: How to prevent identity fraud when someone has your mortgage application information?
I got a letter from my mortgage company saying that an employee “may” have sold the information off my application. They have fired the person, but the deed is already done. What should I do?Answer: Call the 3 credit reporting agencies and put a fraud alert on your account. This is free and it is critical that you do this as soon as possible. You may also consider getting new credit cards in the event that information was on your application. Monitor your credit cards very closely and your bank account, too. This is a recipe for disaster and you must be proactive as it is very hard to resolve problems after they occur.
Question: Are you supposed to have to pay to submit a mortgage application?
I found a mortgage company online that says they can help people with low credit scores and low down payments to buy a house, they sent me an application but the thing is it says I have to pay $69 to submit the application, is this a normal practice?Answer: There is no charge to apply for a mortgage. But if you’re dealing with a company that helps finance people with low credit scores it is certainly a possibility that there is an application fee. There are cost associated with pulling credit reports and the bank will charge that to the customer. If you have bad credit it’s a strong possibility you may be denied then the bank will lose that money, so in order to avoid a loss, they charge the fee to you. Most of the time it’s non-refundable.
Question: Does a mortgage application use your gross annual income, or gross monthly income to qualify you?
I work full time for 7 months out of the year, and part time for 5 months out of the year, how will that effect a mortgage application? My pay stubs show my yearly salary, but for those 5 months I have lower dollar pay checks.Answer: They will use the monthly average of your gross yearly income. Generally they use a 2 year average if you are not salaried employee. They will need to verify income off 2 years of tax returns for most loan programs unless you receive w2’s in which case they generally use the most recent w2 and YTD income off your current pay stubs to determine income.
Question: What would happen if I lied about my age on a mortgage application?
I would like to lie about my age on a mortgage application. I have 730 Fico, a 400K Gross small business corp and 30K in brokerage account. However if I disclose my low age my broker and agent might not take me seriously. What will happen if I list an incorrect age?Answer: Assuming the bank bothers to check the credit report before issuing the loan, you will simply be denied. If the mortgage is actually issued and then the bank learns what happened, the bank will sue you to rescind the mortgage on the basis of fraud. You will be forced to pay back all amounts due immediately. If you cannot, then you will lose your house.
You could also face criminal charges for fraud. Since you have to sign everything you submit to get the loan, including an affidavit that you did not lie about anything, that will be really easy to prove. Therefore, you will go to jail.
Question: Rental history for a new mortgage application?
I have had a good rental history for the past couple of years, but in order to pay off some debt I plan to live with some relatives rent free for about 4-6 months. The problem is my relatives will not tell anyone I lived there, therefore I cannot use them as part of my rental history. How will a unverifiable 6 months of rental history affect my mortgage application? If I rent an apartment or a room I would not be able to pay off the debt I have very quickly. Any thoughts?Answer: Well, if you get a rent free letter from your relatives that state your relationship and that you live there rent free you can be okay.
If you have a 12 month clean past mortgage history prior to living with relatives for 6 months and can prove it with 12 months canceled checks and a verification of rent from your landlord you should be okay.
FHA loans would accept this. Some applicants do not even have a rent history. Someone who is 20 and lived with their parents rent free for 20 years needs to get a rent free letter and they still get approved even with no rent history.
Question: How do I get my $400 mortgage application fee back from Taylor Bean & Whitaker?
I went through a mortgage broker to refinance my home. The broker placed my loan with Taylor Bean & Whitaker. I was fully qualified and approved for the loan. However, before the loan could close, the federal government shut down Taylor Bean & Whitaker. The mortgage broker informed me of the situation and offered to place me with a different lender at a higher rate. At this point, am I entitled to a refund of my $400 application fee? I’d like to walk away from this mess.Answer: You will not get your money back easily, however you should try to get to the bottom of this. Consumers who received loans through Taylor, Bean & Whitaker who want to know whether they are entitled to a refund should contact the company at (352) 671-0178 or the state banking department at (800) 446-7467.
Question: Do appraisal on house first then do mortgage application?
Is this weird if a buyer does an appraisal first before doing his mortgage application? I thought you do both at the same time.Answer: You should get pre-qualified for a mortgage before you do anything. The appraisal occurs after the mortgage application.
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Clarifying Common Misconceptions About Home Appraisals
There are a considerable number of home buyers who have faulty perception of the appraisal process. You have to understand that within the realm of valuation of real estate, no two properties are exactly alike. Each of these properties has basic differences and a professional home appraiser must have the expertise and experience in order to develop a fairly accurate assessment of its real value. Home appraisal is not a common experience for most home buyers. This is the main reason why we tend to develop divergent views about this valuation process. It is under this context that most of us develop misconceptions about the home appraisal process and the significance of its results.
Home appraisal is basically a survey activity performed by a professional in order to develop an expert opinion on the market value of a real estate property. Home appraisal is usually done for a lending company or a bank as a prerequisite for the approval of a mortgage application by a home buyer. The essential elements of a home appraisal report shall include information and data related to the overall condition of the property, the neighborhood, variables that contribute to the sale of similar homes and the time spent in selling similar properties. The appraisal report may be presented as a comparable sales analysis or a cost assessment of value.
Here are some of the common misconceptions and facts about home appraisal:
Misconception #1 – The main reason why home appraisal is done is to protect buyers from possible overpricing of homes offered for sale
Fact – The home appraisal activity is useful for both the seller and the buyer. However, the main purpose of the home valuation activity is to protect the interest of the lending company. Lending companies don’t want to end up with overpriced properties as security to the loans that they offer to homebuyers.
Misconception #2 – Home appraisal is done through the use of a common formula. The home valuation formula usually involves the determination of price per square area to get the exact value of the home.
Fact – The home appraisal process takes into account other intangibles such as the location and proximity to public facilities and amenities, the overall state of the property, the condition of the community as well as the current selling prices of similar properties in the area.
Misconception #3 – You can improve the valuation of your home through proper housekeeping
Fact – Dusty dressers and dirty linens are not considered in the home appraisal. However, chipped paints, worn out carpets, damaged flooring, inoperable appliances and cracked walls are considered in the home valuation process.
Misconception #4 – Anyone can become a professional home appraiserFact – You have to meet the minimum requirements in terms of basic qualifications, course completion and examination, and supervised experience in order to become a licensed home appraiser.
Misconception #5 – Home appraisers are not duty bound to report defects of homes to potential buyers
Fact – Home appraisers are obligated to report defects and potential problems of the home being surveyed to home buyers who are applying for a loan that will be secured by the FHA.
Misconception #6 – An appraisal report can be used in lieu of home inspection report
Fact – Notwithstanding the disclosure requirement for FHA-backed mortgages, a home appraisal report cannot be used as substitute for a home inspection report. The appraisal report is an expert opinion of a home valuation professional that primarily serves the interest of lenders while the home inspection report is a summary of the overall state of the real estate property that is primarily used by buyers as guide in their home buying decisions.
Learn how to sell your own house here: For Sale By Owner
If you’re looking to buy a home from an FSBO listing check here: FSBO ListingsHome Appraisals FAQ:
Question: Is there a reason I need to be at home appraisal?
My husband and I are buying our first home and I was just wondering if anyone else was present for their home appraisal. (not to be confused with the home inspection, which we already had) I heard that it is not necessary for us to be there, but our realtor set it up for us to go. Are there any benefits to being there for this? I heard the appraiser won’t even be able to tell us the value they place it at. We would have to request this from the bank…. so what’s the point of us going to this?Answer: In a typical sale situation, the appraiser is working contractually for the buyer’s lender and is not allowed to discuss his/her findings with anyone other than the lender. It is generally unnecessary for anyone else to be present. Unlike the home inspector, the appraiser is primarily recording factual data. Any questions about the property that do arise generally need to be answered by the seller.
Looking at the property is part of the early phase of the appraisal process, and with an average type property, will probably constitute less than 10% of the time that will eventually go into the finished appraisal. In other words, the appraiser does not have an opinion of value at that point and will not even discuss a range (as that is an appraisal also, and the appraiser can be held to it).
Unless you’re just curious to see what they do, there’s almost nothing to be gained by being present.
Question: Should I have to pay for a 2nd home appraisal on a home if the underwriter found the 1st unsatisfactory?
Answer: Yes if you want the mortgage.
Question: How can I get a home appraisal?
I need a home appraisal. Is it possible for me to get one from someone outside of my local area? I’m in a small town and I know the locals will try to put the lowest value to sell it off low to a local.Answer: Hire a property appraiser. Most will only work locally because real estate is local. Your homes value is base of the sale value of the other homes around it and nothing else. Some appraisers will offer a replacement value mainly for insurance purposes, but this will not be accurate if you are looking to sell the home or for tax purposes.
Going elsewhere depends on why you want the appraisal. If you are looking to sell or for tax reasons anything you get off the Internet would not be acceptable. You might be able to hire an appraiser from a neighboring town, but since an official appraisal requires a visit to the home, it would be up to the appraiser if they are willing to travel.
Question: New home construction/land appraisal value?
I am considering having a new construction home built on “my” piece of property. My confusion is what happens when it comes time for appraisal. Is it a 1+1=2 type of situation – example: If I buy a piece of land for $50,000 and have a $250,000 house built on it, will the end appraisal be worth $300,000?? Or is the appraisal only judging on the house and would I “be out” the 50 grand for the land?Answer: What you pay for either the house or the land does not necessarily reflect the final appraisal price. The appraisal value will be determined by the appraiser based upon its current market value as a ‘package’ when completed. If you pay too much for either the land or the house, such overpayment won’t reflect in your final appraisal.
You can pay too much for the land, and, as well, you can ‘overbuild’ the house with too many extravagances. While those extravagances will bring you SOME value in appraisal, they won’t bring the full dollar cost you paid to have them added.
Question: Appraisal vs Actual Home Value?
My home was appraisal in 495K last year and we had a loan for 385K with 6.1% interest rate. Now we are trying to refinance and the bank has appraisal the house in 315K (-180K in a year) in order to lower the interest rate to 5.5%. Of course now, the loan is higher than the appraisal. I’m very confused and I wonder if this is a bad deal? What will happen when I sell the house?Answer: An appraisal is supposed to be the actual home value. A 36% drop in a single year sounds a little excessive. Did your area drop a lot? CA, AZ or Vegas? Miami? If you said yes to any of those areas, it might be true.
This sounds like a case where the lender has become much more conservative and is deliberately using appraisers who come in low. This is one way that banks are avoiding lending money. You cannot get a loan for more than the property is ‘worth’. This re-finance, with this lender, is dead.
Question: Appraisal on home?
What happens if the appraisal comes back too low or too high? This is confusing to me. Do you have to be offered the exact price of what it was worth?Answer: The appraisal is mostly to see if the bank will grant you a mortgage based on what a professional says the house is worth. If your bid is higher than the Appraised price the bank might not give you the mortgage and you could share this with the sellers and possibly get a lower price. If your bid is lower than the appraised price, great you don’t have to worry about a thing and the bank will gladly give you a mortgage.
Question: How much is our work worth in an Appraisal?
Our home was built in 2008 by hired contractors. We did the finishing work on the inside. How does an appraiser calculate our time and money we put into our home? Is it worth as much as if we had hired someone else to do it?Answer: The details will not really matter. They go by general condition, square footage, number of bedrooms, and compare those to sales in the area. As long as you did not do any work that required a permit that you did not obtain your appraisal should be the same no matter who did the finishing.
Question: How to do good in an home appraisal?
I am getting my home appraised in 2 days. What can I do in that short of a time to help the appraisal out?Answer: Much of what an Appraiser looks at centers upon condition of the property, so a 2 day window is generally not enough to make an impact through any type of major repairs.
Ultimately, an Appraiser is going to measure how a buyer will likely react toward your property…so, just as if you were getting your place ready to list for sale, try and see everything through the eyes of prospective buyers and prepare accordingly. To this end, being clean and clutter free goes a long, LONG way. Consider temporarily storing things to reduce clutter.
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Free Tips For Selling a Business
There are two common reasons why entrepreneurs decide to sell their business at some point. Commonly, entrepreneurs choose to sell the business for profitability and possibility of gaining further capital for business expansion. On another note, some entrepreneurs contemplate of selling the business for more personal reasons such as retirement, personal security or desire to concentrate on a more private, quality life.
In any case, any wise entrepreneur must seriously evaluate sensible tips for selling a business before deciding to execute such. There are many points to consider guaranteeing profitability of such action. Most financial advisers shell out the ten-point “tips for selling a business” strategy which is basically just a summary of the practical and sensible tactics all entrepreneurs must know.
The strategy suggests that first of all, an entrepreneur must secure an honest-to-goodness business valuation. Professional valuation may be secured from external audit companies, financial consultancy firms, even banks. The presentation of the business to these outside groups would enable the entrepreneur to understand the actual value and profitability of his business before he decides to put a “price tag” to it to a potential buyer.
One of the most crucial tips for selling a business is that the entrepreneur must be ready to have an ordered collection of his financial records. Any new investor or business buyer would best understand the profitability and potential of a business by evaluating financial information of the business being sold. Such information gives the new buyer the understanding of possible losses and future gains of the business before he decides to acquire it. Transparency is one of the factors any potential business buyer considers before he invests on any venture. The more formal, the more organized, the clearer the statements are – the better for the business seller.
Furthermore, a diligent entrepreneur about to sell his business must source outside consultation specifically to understand what must be the most favorable deal setup. It should be noted that the deal structure is dependent on the company structure as tax situations and profit-sharing set-ups affect the deal. There are varying deal factors depending on the type of business – sole proprietorship, partnership, corporation, franchise, and the likes. The amount of the sale of the business depends on the complexity or simplicity of the business set-up.
Another of the many tips for selling a business an entrepreneur should seriously practice is that he should always enforce to make a good impression by maintaining order in his business operations. For instance, if a future buyer would visit a cupcake shop business being sold to him, he would not want to see chaos, disorganization and mess as such reflects poor management team. This he may interpret as a poor organization or group to transact with.
If a business seller manages to go beyond feeding the potential buyer with good impression, he should next be prepared with all his legal paperwork to further the transaction. All relevant business papers – old and current – must be ready and in order.
Selling a Business FAQ:
Question: Selling a business. Reinvesting Capital Gains to Avoid Taxation?
I am selling domains and websites, so I assume that it would just be assets since there is no inventory of any kind. I am looking to take the “profits” or gains from the sale of these websites and create a secondary company to reinvest the business funds into real property. Is this a way to avoid paying on the capital gains? I’m a sole proprietor and taking a 30% hit could mean hundreds of thousands of dollars. I will be essentially buying my own home and putting it under the company as well. All in all I am looking for the best ways to reinvest the funds to pay as little as possible, with my primary goal paying off both of these homes.Answer: Reinvestment of capital has never been the way to avoid taxes. If you are selling the product you created you have to pay taxes on profit (the difference between your revenue and expenses). Whatever you decided then to do with your money is your choice. It doesn’t affect income taxation. Second of all, acquisition of another assets ( 2 houses) has never been an expense (that’s what lowers your taxes). It could later become an expense if u r renting houses to other people or use them for your business through depreciation of the cost through many years. But then, it’s all in the future. As of now, it will not lower your taxes. If these houses are your primary residence (one at a time of course) and you live there for 2 years and sell them, let’s say in 4 years (2 years in one house and 2 in another) you can exclude gain on sale up to $250K or $500K if you are married filing jointly from your income.
Question: How do I minimize taxes Selling a small business s corporation?
I’m selling a business and obviously want to minimize taxes. I’m familiar with the 1031 exchange but was wondering if there are other options. Regardless of the 1031 I need to reinvest the majority of the money into two businesses.Answer: Without knowing the complete picture, I can only offer the following advice.
A. With 1031, you point out you still need to reinvest it. Do you want to reinvest and postpone the gain? And wait until something happen and step-up method without paying the income tax. Remember if Republican take over, they will have no Estate Tax. And there is no step-up.
B. With the current tax rate, you may want to consider sale the S corp as sale of stock.
When you sell stock, gains or losses are generally treated as capital gains or losses. Some items — goodwill, most real property gains, and any appreciation over the original cost of equipment — qualify as capital gains. On the other hand, when you sell individual business assets, such as inventory or equipment, much of the gain is considered ordinary income. Gains from inventory, publicly traded securities, and depreciation recapture are not eligible for installment reporting. And if you offer seller financing, you should know that if the total value of installment payments exceeds $5 million in a year, interest is charged on deferred taxes.
Question: What does it mean if you’re selling a business, and a potential buyer asks this?
“Would a new buyer be able to see a profit after making a typical loan payment for the dollar amount you need? If not, can you estimate an anticipated turn-around profit time?” I’m a little confused as to what exactly she is asking me here. What exactly does she want to know?Answer: I’ve got an MBA, and I’m not certain what she’s asking for. Regardless the other issue here, is that it is her job to do the due diligence. She’s the one that needs to be calculating this stuff out based on her own projections.
The minute you provide ANY of those projections, you have assumed a huge liability when she DOESN’T meet those projections for whatever reason, legitimate or not. These are things that she needs to be prepared to do on her own.
Question: I am selling a business and assigning the lease. Can the landlord increase rent,cam,deposit?
The current lease under “assignment and rider” does not say it could increase. I thought the buyer gets the lease as I have it under contract.Answer: You are breaking the lease, so depending on your lease, and the state you are in, the landlord does not have to honor it any more.
Question: How to put a free advertisement for selling a business real estate on the Internet?
Answer: This one is very low cost, not “free”, but it reaches over 500,000 people monthly: BizBuySell is the Internet’s most heavily trafficked exchange for businesses for sale.
Question: Upon selling a business property, what tax bracket does the depreciation & long term gains fit into?
I have heard depreciation fits into one formula and long term cap gain fits into anotherAnswer: This can be complex depending upon the situation.The depreciation is recaptured at ordinary rates and the gain above that is capital gain. Accelerated vs. straight line also comes into play here. Difficult to explain in specifics since no example was given.
Question: How much are the taxes when selling a business, Example: $1,000,000?
Answer: How much taxes you pay depends on (a) the selling price for your business, (b) your cost for that business, (c) types of assets you are selling: shares, tangible assets like car, equipment, or intangible like goodwill.
If the selling price is below the original cost of an asset, there will be a loss, meaning no taxes to be paid from selling the business.
Question: What are the implications of selling a business that is registered as a c-corp?
Answer: None. Technically you are not selling the corporation you are selling the stock in the corporation. The effect on you is no different than if you sold stock in General Motors or Microsoft.
There are some alternatives to consider. For example you could sell the assets of the corporation or sell the assets, liabilities, and tax loss (if you are not profitable). You could also sell the assets and liabilities and then in a separate transaction sell the corporate shell. In the first two cases it is the corporation — not you — that is making the sale. In the third case the corporation is selling the assets and liabilities and you are selling your stock in the corporation.