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How does delta of an option change with time if underlying price is constant? | The question is always one of whether people think they can reliably predict that the option will be a good bet. The closer you get to its expiration, the easier it is to make that guess and the less risk there is. That may either increase or decrease the value of the option. |
Do I need to prove 'Garage Sale' items incurred a loss | -Alain Wertheimer I'm a hobbyist... Most (probably all) of those older items were sold both prior to my establishing the LLC This is a hobby of yours, this is not your business. You purchased all of these goods for your pleasure, not for their future profit. The later items that you bought after your LLC was establish ... |
Why would anyone buy a government bond? | There are a few other factors possible here: Taxes - Something you don't mention is what are the tax rates on each of those choices. If the 4% gain is taxed at 33% while the 3% government bond is taxed at 0% then it may well make more sense to have the government bond that makes more money after taxes. Potential chang... |
How much of my capital should I spend on subscribing to a stock research company? | To complement farnsy's answer, I want to warn people against market prediction scams. If they give uniformly distributed buy/sell predictions to 256 people, one of them will get eight correct predictions in a row. They are trading a few cents of Amazon server time for 3% of your capital. |
How to pay taxes on YouTube if I'm a dependent? | The Form 1040 (U.S. tax return form) Instructions has a section called "Do You Have To File?". Below a certain income, you are not required to file a tax return and pay any tax. This amount of income at which you are required to file depends on several things, including your dependency status (you are a dependent of ... |
Double entry for mortgage | The £500 are an expense associated with the loan, just like interest. You should have an expense account where you can put such financing expenses (or should create a new one). Again, treat it the same way you'll treat interest charges in future statements. |
Dividend Yield | Hart's answer regarding the difference between an index and a stock aside, remember that dividend yield is a passive measure. It takes the announced dividend (which is a $/share amount) and divides it by the current market price. So you can't assume that if you buy a stock that had a dividend yield of 4% for $100 th... |
Why do people always talk about stocks that pay high dividends? | The upvoted answers fail to note that dividends are the only benefit that investors collectively receive from the companies they invest in. If you purchase a share for $100, and then later sell it for $150, you should note that there is always someone that purchases the same share for $150. So, you get $150 immediately... |
Long(100%)-Short(-100%) investment explanation | When portfolio positions are reported in percentages, those percentages are relative to the portfolio's base equity. When you start out, that is equal to the cash you have in a portfolio. Later it's the net equity of the portfolio (i.e., how much money you could withdraw if you were to exit all your positions). If yo... |
Why do people buy stocks at higher price in merger? | Without any highly credible anticipation of a company being a target of a pending takeover, its common stock will normally trade at what can be considered non-control or "passive market" prices, i.e. prices that passive securities investors pay or receive for each share of stock. When there is talk or suggestion of a p... |
How much do large sell orders affect stock price? | In general, how does a large open market stock sale affect prices? A very general answer, all other things being equal, the price will move down. However there is nothing general. It depends on total number of shares in market and total turn over for that specific shares. The order book for the day etc. What is the max... |
Reason for “qualified” buyer requirements to exercise stock options/rights spun off from parent company? | Accredited investors are required to have 1 million in assets (not including primary residence) or $200,000/yr income for the last 3 years. These kinds of regulations come from the SEC, not the company involved, which means the SEC thinks it's a risky investment. If I recall correctly, [someone I know] had to submit ev... |
Any problem if I continuously spend my credit card more than normal people? | How will going from 75% Credit Utilization to 0% Credit Utilization affect my credit score? might answer your question if US based. In the US, what counts is what shows on the bill. I've run $20K through a card with a $10K limit, but still ended the month under $2K by making extra payments. As long as you stay ahead o... |
Credit rating in Germany | The SCHUFA in Germany works a bit different from the FICO score in the US. My background: I am a German currently living in the US. The information others want to see from the SCHUFA are a bit different. If you want to example rent a house or an apartment, the landlord often wants to see a SCHUFA statement which only s... |
Contribute to both a SEP IRA and solo Roth 401(k)? | In addition to the normal limits, A Solo 401(k) allows you to contribute up to 20% of net profits (sole proprietor) or 50% of salary (if a corporation), up to $49,000. Note that the fees for 401(k) accounts are higher than with the IRA. See 401(k)s for small business. |
How much should a new graduate with new job put towards a car? | In a very similar situation as yours, I bought a used motorcycle for $3000. It was still reasonably new, very reliable, and with California weather, you can use it year-round. It reduced my time in traffic, and it had very low fuel and maintenance costs. The biggest expense was tires. The biggest pitfall in buying a mo... |
Can travel expenses be deducted from Form 1040A if they were used to gather material for a book? | Hobby expenses are not tax deductible. Business expenses are, but only if it's a bona fide business. First they look at profitability: if you reported a net profit (i.e. paid taxes) in your first 3 years, they will believe you rant on Youtube for a living. Remember, by the time they get around to auditing you, you'... |
What is the future of 401(k) in terms of stability and reliability? | My guess is that the point is that yields on bonds and cash equivalents is so low that inflation will cause the inflation-adjusted returns to be negative. There is something to be said for how much inflation can eat out of investment returns. At the same time, I would note the occupation of the person making that post ... |
Stocks in India, what is the best way to get money to US | From India Point of view; someone may put the US point of view ... As an NRI you are not supposed to hold an Ordinary Demat Account. Please have this converted to NRO NON-PINS ASAP. Related Question Indian Demat account If the shares were purchased before 1-Oct-2004, they are liable for Long Term Capital Gains tax in I... |
How much money should I lock up in my savings account? | Firstly well done on building a really sold base of savings. An emergency fund needs to have two key characteristics: Be enough to get you through a typical emergency event (often seen as approx. ~6 months’ salary in your style of situation assuming you have no dependents etc) Be liquid and available to you instantly i... |
Selling put and call Loss Scenario Examples | Here's a simple example for a put, from both sides. Assume XYZ stock trades at $200 right now. Let's say John writes a $190 out of the money put on XYZ stock and sells this put to Abby for the premium, which is say $5. Assume the strike date, or date of settlement, is 6 months from now. Thus Abby is long one put opti... |
What expenses do most people not prepare for that turn into “emergencies” but are not covered by an Emergency Fund? | Here's a few. Is this what you're looking for? Also this should probably be a community wiki. |
Should I Pay Off my Student Loan Debts First or Invest in an Index Fund? | Pay off the debt first. Life circumstances change without notice, and starting any stage of life with a debt puts you at a disadvantage. Luckily, your debt is small. Please also consider accumulating a 6 month emergency fund before making investments. This will further protect you when life hands you a curveball. |
Safe method of paying for a Gym Membership? | Shady isn't quite the right word. They know that most of their customers are going to quit soon after they begin -- as in "before the end of January" -- so they lock you in while you're motivated. And of course they're going to make it difficult for you to quit. No choice but to read their contract, understand it com... |
How to automate the tracking of ratios and other values for a set of stocks or ETFs? | Spreadsheets need not be static, they can pull data from the web. This article describes the method you seek. |
How can I buy an ETF? | First of all, you'll need a securities account. Nowadays, most large banks offer this as a standard product for all their customers, though it may require some extra paperwork. Then you need to buy shares in the ETF. This is indeed typically done through the stock market, but there are alternatives. Some banks will sel... |
Should I charge my children interest when they borrow money? | Going from personal experience, my parents let my brother and me borrow money from them all the time. However there was always some noteworthy things to take into account. As an example, I borrowed a large sum of money on my student loan (we will just say it was $50,000). I had saved nearly $30,000 on my own and my par... |
Making $100,000 USD per month, no idea what to do with it | If you are making that much, don't waste your time here. Pay a few hundred bucks for a consultation with a fee-only certified financial planner. (Not one of the "free" services, which make their money via commissions on sales and are thus motivated to direct you to whatever gets them the largest commission.) In fact, i... |
Should I take a student loan to pursue my undergraduate studies in France? | Stripping away the minutia, your question boils down to this: Should I take a loan for something that I may not be able to repay? The correct answer, is "No". |
In a competitive market, why is movie theater popcorn expensive? | A better question would be to ask "Why don't movie theaters charge to use the bathroom?", or "Why don't movie theaters charge for parking?". In America, either government regulation or the mall itself forbids charging for parking, or limits the amount that can be charged for parking. This tends to be more true in subur... |
Do retail traders get any advantage from learning methods of mathematical of finance? | If it could, it seems yet to be proven. Long Term Capital Management was founded by a bunch of math whizzes and they seem to have missed something. I'd never suggest that something has no value, but similar to the concept that "if time travel were possible, why hasn't anyone come back from the future to tell us" I'd ... |
Is debt almost always the cause of crashes and recessions? | While debt increases the likelihood and magnitude of a crash, speculation, excess supply and other market factors can result in crashes without requiring excessive debt. A popular counter example of crashes due to speculation is 16th century Dutch Tulip Mania. The dot com bubble is a more recent example of a speculati... |
Where do I invest my Roth IRA besides stock market and mutual funds? | Many investment companies are also offering target retirement date portfolios to invest in. They manage reducing the risk over time so you don't have to worry about it if you choose not to. |
Clear example of credit card balance 55 days interest-free “trick”? | There are always little tricks you can play with your credit card. For example, the due date of your statement balance is not really set in stone as your bank would like you to believe. Banks have a TOS where they can make you liable to pay interest from the statement generation date (which is a good 25 days before you... |
Should one only pursue a growth investing approach for Roth IRAs | What asset allocation is right for you (at the most basic the percentage if stocks vs bonds; at the advanced level, percentage of growth vs value, international vs domestic etc) is a function of your age, retirement goals, income stability and employment prospects until retirement. Roth IRA is orthogonal to this. Now... |
Oversimplify it for me: the correct order of investing | Organize your expenses in order of the rate of return, and pay them in that order. By far the highest rate of return on your list is: Nowhere else are you going to see an immediate 100% return (or 50%, depending on the company's matching policy) on every dollar you allocate to this pot. Second would probably be: Money... |
Should I buy a house with a friend? | I'd be curious to compare current rent with what your overhead would be with a house. Most single people would view your current arrangement as ideal. When those about to graduate college ask for money advice, I offer that they should start by living as though they are still in college, share a house or multibedroomed ... |
Is engaging in stocks without researching unwise? | Stock recommendations and price history are an unwise way to invest. People that recommend stocks are usually compensation for recommending it. They are paid directly by third parties, that can be paid in shares, they can simply own the stock themselves and if the stock goes up they can sell it to new investors at a hi... |
Hobby vs. Business | You can list it as other income reported on line 21 of form 1040. In TurboTax, enter at: - Federal Taxes tab (Personal in Home & Business) - Wages & Income -“I’ll choose what I work on” Button Scroll down to: -Less Common Income -Misc Income, 1099-A, 1099-C. -The next screen will give you several choices. Choose "Oth... |
What happens to people without any retirement savings? | I'm afraid you have missed a few of the outcomes commonly faced by millions of Americans, so I would like to take a moment to discuss a wider range of outcomes that are common in the United States today. Most importantly, some of these happen before retirement is ever reached, and have grave consequences - yet are ofte... |
What happens when a stock gets delisted? | When a delisting happens, the primary process involves, the firm or the entity, trying to buy everyone out so that they can take the firm private by delisting from the stock exchanges. As the firm wants to buy everyone out, the current owners of the equity have the upper hand. They wouldn't want to sell if they believe... |
For very high-net worth individuals, does it make sense to not have insurance? | Indeed, there is conservation of money. If the insurance companies have those big buildings and television commercials and CEOs, then that money comes from only one place: the insurance premiums of customers. To say insurance is a good deal is either The benefit and cost of insurance for most: Indeed, of all the answ... |
What is S/P in “Tax Deduction S/P”? | From reading the manual, SP means summary punching. Summary punching is the automatic preparation of one total card to replace a group of detail cards. |
Why do 10 year-old luxury cars lose so much value? | I think this can be answered by answering the question "Who buys 10 year old cars?". Generally speaking those buyers are very price conscious. They are looking to save money on transportation rather than following the herd of people participating in the car payments merry-go-round. The cost of parts, repairs, and g... |
Multi-Account Budgeting Tools/Accounts/Services | I know of websites that do this, but I don't know of banks that do. Is there any reason you want to do this at a bank rather than use a service? My main concern with using a bank for this would be the risk of overdraft fees |
How can one go short in Uber? | Pay someone a fee to borrow their private Uber shares, then sell those private shares to someone else, then find someone else you can buy their private shares from for less than the net of the proceeds you made selling the borrowed shares you sold plus the fees you've paid to the first person and return your newly purc... |
Is there any real purpose in purchasing bonds? | Here are my reasons as to why bonds are considered to be a reasonable investment. While it is true that, on average over a sufficiently long period of time, stocks do have a high expected return, it is important to realize that bonds are a different type of financial instrument that stocks, and have features that are a... |
standard method for learning more about a specific sector? (particularly biotech sector) | The important piece here is not necessarily understanding intimate details of biological engineering per se, but rather understanding how the business operates as a singular unit. It is also important to understand the business case for a firm, the evolution of demand for its products/services and the cost of its reven... |
Where to park money while saving for a car | I would split the savings as you may need some of it quickly for an emergency. At least 1/2 should be very liquid, such as cash or MMA/Checking. From there, look at longer term CDs, from 30 day to 180 day, depending upon your situation. Don't be surprised if by the time you've saved the money up, your desire for the ... |
Where I can find the exact time when a certain company's stock will be available in the secondary market? | Very often, the word secondary market is used synonymously with the stock market as we all know it. In this case, the primary market would be the "closed" world of VCs, business angels, etc to which stock market investors do not have access, e.g. the securities are not trading on a public stock market. |
I would like to publicly share the details of my investment portfolio. What websites add value in this regard? | This is going to be a bit of a shameless plug, but I've build a portfolio tracking website to track your portfolio and be able to share it (in read-only mode) as well. It is at http://frano.carelessmusings.com and currently in beta. Most portfolio trackers are behind a login wall and thus will lack the sharing functio... |
Everyone got a raise to them same amount, lost my higher pay than the newer employees | The same thing happened to me when I worked retail during my college years. I agree that it is unfair however, it is what it is. With that being said, there may be several factors that you should consider: the new employees might have more experience or qualifications then you, your work performance based on your manag... |
splitting a joint mortgage - one owner in home | Definitely get a lawyer to write up all the details of the partnership in a formal agreement. If your ex does not want to do this, that is a bad sign. You both need to be clear about expectations and responsibilities in this partnership, and define an exit strategy in the case one of you wants out. This is the most fai... |
Some stock's prices don't fluctuate widely - Is it an advantages? | Apart from making money from the price difference, some stocks also give dividends, or bonus issues. For long term investors whom are looking for steady income, they may be more interested with the dividend pay-out instead of the capital-appreciation. |
Principal 401(k) managed fund fees, wow. What can I do? | I would even say 1% is not even reasonable in this age. The short answer is there probably isn't much you can do directly. However, there are a few things to consider: |
How do I set up my finances when first moving out? | The first thing you need to do is to set yourself a budget. Total all your money coming in (from jobs, allowances, etc.) and all your money going out (including rent, utilities, loan repayments, food, other essential and the luxuries). If your money coming in is more than your money going out, then you are onto a posi... |
What to do with a 50K inheritance [duplicate] | **I would encourage you to clear all your debts and remain debt free, then you can consult a financial manager-for investing purposes that fits your needs and goals. There are so many investment vehicles out, but the best of all is in real estate which requires lots of money. For your case I would prefer money marke... |
Risk to Reward Ratio Calculation | If you plan to take profit at $1.00 then your profit will be $40. Then, if you set your stop at $0.88 then your loss if you get stopped will be $20. So your Reward : Risk = 2:1. Note, that this does not take into account brokerage in and out and any slippage from the price gapping past your stop loss. |
How could the 14th amendment relate to the US gov't debt ceiling crisis? | It's a disturbing development -- someone is floating the idea that the executive has the ability to issue debt without the consent of congress to measure the public's reaction. Why disturbing? Because people are using language like this: The president, moreover, can move quickly, but court cases take time. “At the poin... |
How can I save money on a gym / fitness membership? New Year's Resolution is to get in shape - but on the cheap! | Look for discounts from a health insurance provider, price club, professional memberships or credit cards. That goes for a lot of things besides health memberships. My wife is in a professional woman's association for networking at work. A side benefit is an affiliate network they offer for discounts of lots of thing... |
Where can I get interesting resources on Commodities? | Here are some pretty big name news agencies which have a section dedicated to commodities: CNN Bloomberg Reuters |
Why do banks finance shared construction as mortgages instead of financing it directly and selling the apartments in a building? | Why should a bank get into construction specifically? Lots of business opportunities require capital. Conceivably banks could build factories, develop consumer electronics, complete with SpaceX, etc. It's all capital in, profits out, with varying levels of risk and returns. There's nothing special about constructing ap... |
In a house with shared ownership, if one person moves out and the other assumes mortgage, how do we determine who owns what share in the end? | The ownership of the house depends on what the original deed transferring title at the time of purchase says and how this ownership is listed in government records where the title transfer deed is registered. Hopefully the two records are consistent. In legal systems that descended from British common law (including ... |
Did an additional $32 billion necessarily get invested into Amazon.com stock on October 26th, 2017? | The market capitalization of a stock is the number of shares outstanding (of each stock class), times the price of last trade (of each stock class). In a liquid market (where there are lots of buyers and sellers at all price points), this represents the price that is between what people are bidding for the stock and wh... |
Long term investing alternative to mutual funds | You are not limited in these 3 choices. You can also invest in ETFs, which are similar to mutual funds, but traded like stocks. Usually (at least in Canada), MERs for ETFs are smaller than for mutual funds. |
Can two companies own stock in each other? | I was looking at NAT and NAO, NAT owns 20% of NAO. They trade opposite each other on the price of oil, low is good for NAT, bad for NAO. In bad times the other company's stock would probably rise, so they could trim excess shares to keep a stable monetary holding. This would create cash in bad times, in good times t... |
Recommended education path for a future individual investor? | My plan is that one day I can become free of the modern day monetary burdens that most adults carry with them and I can enjoy a short life without these troubles on my mind. If your objective is to achieve financial independence, and to be able to retire early from the workforce, that's a path that has been explored be... |
Does bull/bear market actually make a difference? | To short: Of course, you may always buy some index correlated ETF that eliminates the above. They use stock futures on the index, and you simply buy the "shorting ETF" in your non-margin account. However, they are surprisingly high cost, and despite the intended correlation, have significant drag. It's a much safer wa... |
Should I really pay off my entire credit card balance each month or should I maintain some balance? | Always pay on time, and stop listening to whoever is telling you not to -- they are clueless. Credit cards are revolving accounts with a grace period. The balance owed is due on the statement date, and you have a grace period of 20-40 days to pay. Paying bills on time is the single most important thing that you can do... |
Will there always be somebody selling/buying in every stock? | Many people assume that if the price of something is $10 and they have 1,000 of that thing, they should expect to be able to sell them for something around $10,000. Such an assumption may hold much of the time, but it doesn't always. Worse, the cases where it fails to hold are often those where it would be relied upo... |
Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy? | You own the stock at $29.42 At $40, the stocks is called at $26. You can't add the call premium, as it's already accounted for. The trade is biased towards being bearish on the stock. (I edited and added the graph the evening I answered) Not the pretiest graph, but you get the idea. With that $29.42 cost, you are in t... |
Why use accounting software like Quickbooks instead of Excel spreadsheets? | I would say that all of the reasons you list in your question are valid, and I would add the following... You are in the landscaping business, not the accounting business. If you manage everything in spreadsheets, at least one of you has to become the bookkeeper and leave the landscaping to the others. Spreadsheets are... |
Car Loan upside down--refinance before selling? | As for refinancing: Many institutions charge up-front fees when doing any type of vehicle loan. Typically this is in the neighborhood of 1% the value of the loan, with a floor of $100 (although this may vary by lender). However, for the loan the be secured by the vehicle, the principle value must be less than the colla... |
Selling high, pay capital gains, re-purchase later | Ignoring brokerage fees and the wash-sale rule (both of which are hazardous to your health), and since the 15% LTCG tax is only on the gain, the stock would have to drop 15% of the gain in price since you originally purchased it. |
Do I have to pay a capital gains tax if I rebuy the same stock within 30 days? | Yes, you would have to report the gain. It is not relevant that you traded the stock previously, you still made a profit on the trade-at-hand. Imagine if for some reason this type of trade were exempt. Investors could follow the short term swings of volatile stocks completely tax-free. |
UK companies house - what can I glean from an abbreviated balance sheet? | What this abbreviated balance sheet tells you is that this company has negative equity. The liabilities are greater than the value of the assets. The obvious problem for the company who wants to do business with you is that they are going to have a real hard time accessing credit to pay off any debts that they incur ... |
How is Massachusetts state tax on unrealized capital gains calculated? | Massachusets does no such thing. The 5.25% tax is only on realized gains. "Unearned" means "doesn't tie to your trade/business", i.e.: is not gained through your personal performance. |
How can contractors recoup taxation-related expenses? | Anything is negotiable. Clearly in the current draft of the contract the company isn't going to calculate or withhold taxes on your behalf - that is your responsibility. But if you want to calculate taxes yourself, and break out the fees you are receiving into several "buckets" on the invoice, the company might agree ... |
American living abroad and not working for an American company - tax reporting and bank accounts | The IRS taxes worldwide income of its citizens and green card holders. Generally, for those Americans genuinely living/working overseas the IRS takes the somewhat reasonable position of being in "2nd place" tax-wise. That is, you are expected to pay taxes in the country you are living in, and these taxes can reduce t... |
Corporate Coverdell ESA Tax Liability | Not sure how authoritative it is, but according to this site, yes: Can a corporation, partnership or other non-living entity make the contribution to an ESA? Yes. The tax law does not restrict the ability to make contributions to living individuals. Corporations and other entities may make contributions without regard ... |
What are the options for a 19-year-old college student who only has about $1000? | If you're looking for ways to turn $1000 into more, don't just think of ways it can make money -- also consider whether there are any ways you can use it to save money. Among the advantages of this approach is that you're not taxed for reducing your expenditures. The good news is that there are a lot more ways to save ... |
Highest market cap for a company from historical data | Everything would depend on whether the calculation is being done using the company's all-time high intraday trading price or all-time high closing price. Further, I've seen calculations using non-public pricing data, such as bid-offer numbers from market makers, although this wouldn't be kosher. The likelihood is that ... |
How dividend payout happens | You will need to buy a stock before the ex-dividend date to receive the dividends. You can sell a stock on the ex-dividend date or after and you will receive the dividends. So if the ex-dividend date is the 5th August, you need to buy before the 5th and you can sell on the 5th or after, to receive the dividends. Defini... |
Is threatening to close the account a good way to negotiate with the bank? | I would hold off on making that threat (closing your account). First, because as others have said, it's not likely to help. And second, assuming you're willing to make good on that threat, you should only play that card as a final absolute last resort, because if it fails, and you close your account, there is little to... |
Why would people sell a stock below the current price? | Why would people sell below the current price, and not within the range of the bid/ask? There are many scenarios where this is deliberate but all of them boil down to the fact that the top level's bid doesn't support the quantity you're trying to sell (or is otherwise bogus[1]). One scenario as an example: You're day-t... |
I'm thinking of getting a new car … why shouldn't I LEASE one? | I never understood why people lease rather than buy or finance. I'm financing a new civic 09 @ 0.9%. At the end of the 5 year terms I will have paid less than $800 in interest. |
Economics Books | The free Yale Course taught by Bob Shiller called Financial Markets is really good. Find it on youtube, iTunes U, academic earth, or yale's site. |
How will I pay for college? | First, it's clear from your story that you very likely should be able to receive some financial aid. That may be in the form of loans or, better, grants in which you just get free money to attend college. For example, a Pell grant. You won't get all you'd need for a free ride this way, but you can really make a dent... |
On paper I have 1 share in my company. How can I sell a smaller percentage of my company to another party? | You actually have a few options. First, you can do a share split and then sell an equal number of shares from both you and your wife to maintain parity. Second, you can have the company issue additional shares/convert shares and then have the company sell the appropriate percentage to the third party while the rest is ... |
Is it a good investment for a foreigner to purchase a flat/apartment in China? | I think a greater problem would be the protection of your property right. China hasn't shown much respect for the property rights of its own citizens - moving people off subsistence farms in order to build high-rise apartments - so I'm not certain that a foreigner could expect much protection. A first consideration i... |
Official site to follow Warren Buffet's Berkshire Hathaway change in investment holdings? | The official source is the most recent Form 13F that Berkshire Hathaway, which is filed with the Securities & Exchange Commission on a quarterly basis . You can find it through the SEC filing search engine, using BRKA as the ticker symbol. and then looking for the filings marked 13-FR or 13-FR/A (the "/A" indicates a... |
When transferring money between two parties, under what circumstances is it considered taxable income? | A loan is not a taxable income. Neither is a gift. Loans are repaid with interest. The interest is taxable income to the lender, and may or may not be deductible to the borrower, depending on how the loan proceeds were used. Gifts are taxable to the donor (the person giving the gift) under the gift tax, they're not a t... |
Should I make more conservative investments in my company 401(K) if I'm going to leave the job in a couple of years? | It doesn't make a difference if you will be keeping it in the 401K or transferring it to an IRA, it is still retirement money that you plan on investing for decades. Pre-Enron many employees invested significant amounts of their retirement funds with the employer. One of the risks was that if a single stock was down a... |
Why is property investment good if properties de-valuate over time? | Some of the other answers mention this, but I want to highlight it with a personal anecdote. I have a property in a mid-sized college town in the US. Its current worth about what we paid for it 9 years ago. But I don't care at all because I will likely never sell it. That house is worth about $110,000 but rents for $15... |
Is it legal to not get a 1099-b until March 15? | If one looks at the "Guide to Information Returns" in the Form 1099 General Instructions (the instructions that the IRS provides to companies on how to fill out 1099 and other forms), it says that the 1099-B is due to recipient by February 15, with a footnote that says "The due date is March 15 for reporting by trustee... |
Help! I've cancelled their service, but this company continues to bill my credit card an annual fee. What can I do? | Short of canceling the card, you could just report the card as lost and ask for a new card number on the same account. Another option is to just make a note to look for the charge and keep disputing it. It has been a while since I did credit card processing at my business, but I think the company gets dinged if too man... |
Can a self-employed person have a Health Savings Account? | Whether you can establish an HSA has nothing to do with your employment status or your retirement plan. It has to do with the type of medical insurance you have. The insurance company should be able to tell you if your plan is "HSA compatible". To be HSA compatible, a plan must have a "high deductible" -- in 2014, $12... |
Is paying off your mortage a #1 personal finance priority? | If you can make enough ROI from the capital you retain by not paying off your mortgage, then why not? I do, I could pay off a significant chunk of mortgage if I wanted but whilst interest rates are low there's little incentive. As for another crash... Well, there's no reason to expect a crash would result in high inter... |
If I get a bill (e.g. for internet service), is that a debt I owe? If no, what are the practical difference between a bill and a debt? | From accounting perspective, an unpaid bill for internet services, according to the Accruals Concept, is recorded as a liability under 'Current Liabilities' section of the Balance Sheet. Also as an expense on the Income Statement. So to answer your question it is both: a debt and an expense, however this is only the c... |
Is IRS Form 8938 asking me to double-count foreign assets? | The requirement is to report the highest balance on the account, it has nothing to do with your income. |
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