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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If the housing market is recovering, why would a REIT index ETF (e.g. VNQ) not be performing well? ### Answer: To round out something that @Chris W. Rea pointed out, the business that a REIT is in will be either A) Equity REIT... property management, B) mortgage REIT... lending, or C) hybrid REIT (both). A very key point about why REITs broadly have been struggling lately, (and this would show up in the REIT indices/ETFs you've linked to,) is linked to the REIT business models. For an Equity REIT, they borrow money at the going rate (let's say ~4.5% for commercial-scale loans), and use that to take out mortgages on physical properties. If a property rents for $15K per month, and they can take out a $1.8 million loan at $9,000 per month, then their business is around managing maintenance, operating expenses, and taxes on that $6,000 per month margin. For a mortgage REIT, they borrow funds as a highly qualified borrower, (again let's say ~4.5%), and lend those funds back out at a higher rate. The basic concept is that if you borrow $10 million at 4.5% for 30 years, you need to pay it back at $50,668 per month. If you can lend it out reliably at 5%, you collect $53,682 per month... a handy $3,000 per month. The cheaper you can get money at (below 4.5%) and the higher you can lend it at (above 5%), the better your margin is. The worry is that both REIT business models are very highly dependent on the cost of borrowing money. With the US Fed changing its bond-buying/QE/stimulus activity, the prevailing interest rates are likely to go up. While this has its benefits (inflation), it also will make it more expensive for these types of companies to do business. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can my broker lock my cash account if I try to use the money from a stock sale during the three-day settlement period? ### Answer: Brokerage firms must settle funds promptly, but there's no explicit definition for this in U.S. federal law. See for example, this article on settling trades in three days. Wikipedia also has a good write-up on T+3. It is common practice, however. It takes approximately three days for the funds to be available to me, in my Canadian brokerage account. That said, the software itself prevents me from using funds which are not available, and I'm rather surprised yours does not. You want to be careful not to be labelled a pattern day trader, if that is not your intention. Others can better fill you in on the consequences of this. I believe it will not apply to you unless you are using a margin account. All but certainly, the terms of service that you agreed to with this brokerage will specify the conditions under which they can lock you out of your account, and when they can charge interest. If they are selling your stock at times you have not authorised (via explicit instruction or via a stop-loss order), you should file a complaint with the S.E.C. and with sufficient documentation. You will need to ensure your cancel-stop-loss order actually went through, though, and the stock was sold anyway. It could simply be that it takes a full business day to cancel such an order. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can my broker lock my cash account if I try to use the money from a stock sale during the three-day settlement period? ### Answer: Here's how this works in the United States. There's no law regarding your behavior in this matter and you haven't broken any laws. But your broker-dealer has a law that they must follow. It's documented here: The issue is if you buy stock before your sell has settled (before you've received cash) then you're creating money where before none existed (even though it is just for a day or two). The government fears that this excess will cause undue speculation in the security markets. The SEC calls this practice freeriding, because you're spending money you have not yet received. In summary: your broker is not allowed to loan money to an account than is not set-up for loans; it must be a margin account. People with margin account are able to day-trade because they have the ability to use margin (borrow money). Margin Accounts are subject to Pattern Daytrading Rules. The Rules are set forth by FINRA (The Financial Industry Reporting Authority) and are here: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees? ### Answer: No. The WSJ prime rate is 4.25%, even the Fed prime rate is 1.75%, way above the 1.20% you'll be making from your savings account. If you are high worth individual with great credit history, the bank might give you a personal loan at 4.25%. They won't care what you do with it as long as they get their payments. If you are not that creditworthy, they'll ask for a collateral, you can mortgage your house for example. It ends up being the sames thing, you get your money and do what you want with it. If you can make more than the interest rate the bank gave you, great, you made profit. The bank however won't agree to lend you money at 0.6% (1/2 of the 1.2% APY your savings account will bring). Why would they when they can loan that at prime rate of 4.25%?? The closest you can get to something like this is if you are a hot-shot wall street money manager with track record of making big profits. In that case the bank might put some money in your fund for you to manage, but that's not something a regular person can do. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees? ### Answer: Your plan as proposed will not work, because it goes against how banks make money. Banks make money in two ways: (1) Fees [including account fees, investment advice fees, mortgage application fees, etc.]; and (2) Interest Rate Spread. They borrow money for x%, and they lend it out for x+y%. In a simple form, someone gives the bank a deposit, and earns 1%. The bank turns around to the next person in line and loans the money to them for 4%. You are asking them to turn the interest rate spread into a cost instead of their main source of profit: You are asking the bank to borrow money from another person paying them 1.2% interest, and then loan the money to you, paying you 0.6% interest and keeping 0.6% for themselves. The bank would lose money doing this. Technically yes, you can borrow from a bank and invest it in something earning above the 4% interest they will charge you. You can then pay the bank's interest off of your earnings, and make some profit for yourself. BUT this carries an inherent risk: If your investment loses money, you still owe the bank, effectively increasing the negative impact of your investment. This tactic is called "Leveraging"; you can look it up on this site or on google. It is not something you should do if you do not fully understand the risks you are taking on. Given that you are asking this question, I would suggest tactfully that you are not yet well informed enough to make this sort of investment. You run serious risk of losing everything if you over-leverage (assuming the banks will even lend you money in the first place). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees? ### Answer: There are many flaws with your idea. Say I want to borrow $225,000.00 to accrue interest on a 1.20% APY account. I promise ... that I cannot withdraw nor touch the account by legal contract. If you break the contract and lose the money, the lender is out the money. They can take you to court and will win, but if you don't have the money, then they don't get paid. (You can't squeeze water out of a rock even if a judge orders you to.) By sharing the interest with me on a loan, they keep a percentage that they'd normally get... If you're "investing" the money at 1.2%, and the lender gets some amount less than that, then they are getting much less than they "normally" get. Lenders typically get somewhere from 5-15% on loans. The money can also be used to fund a stock/trading account. Regardless of whether I profit, I pay interest on the loan and split the profit shares 24/7. How can the lender lose with legal enforcing? Again, if you lose the money, no amount of legal enforcing can force you to pay money that you don't have. Even if you go to jail for fraud the lender still doesn't get paid. Simply, no bank would ever agree to this. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees? ### Answer: With (1), it's rather confusing as to where "interest" refers to what you're paying and where it refers to what you're being paid, and it's confusing what you expect the numbers to work out to be. If you have to pay normal interest on top of sharing the interest you receive, then you're losing money. If the lending bank is receiving less interest than the going market rate, then they're losing money. If the bank you've deposited the money with is paying more than the going market rate, they're losing money. I don't see how you imagine a scenario where someone isn't losing money. For (2) and (3), you're buying stocks on margin, which certainly is something that happens, but you'll have to get an account that is specifically for margin trading. It's a specific type of credit with specific rules, and you if you want to engage in this sort of trading, you should go through established channels rather than trying to convert a regular loan into margin trading. If you get a personal loan that isn't specifically for margin trading, and buy stocks with the money, and the stocks tank, you can be in serious trouble. (If you do it through margin trading, it's still very risky, but not nearly as risky as trying to game the system. In some cases, doing this makes you not only civilly but criminally liable.) The lending bank absolutely can lose if your stocks tank, since then there will be nothing backing up the loan. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much tax do I have to pay in Redmond, Washington form my Microsoft Research Internship income? ### Answer: An unmarried person with a total U.S.-sourced earned income under $ 37,000 during the year 2016 is likely to owe: If the original poster is not an "independent contractor", and is not "billing corp-to-corp" then: In summary: References: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does this diagram from Robert Kiyosaki about corporations mean? ### Answer: It looks like RK is encouraging tax fraud. Suggesting that one have their business cover personal expenses sounds like the advice that got Leona Helmsley in hot water. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does this diagram from Robert Kiyosaki about corporations mean? ### Answer: These types of diagrams appear all throughout Kiyosaki's Rich Dad, Poor Dad book. The arrows in the diagrams represent cash flow. For example, the first two diagrams of this type in the book are: The idea being presented here is that an asset generates income, and a liability generates expenses. According to the book, rich people spend their money buying assets, while middle class people buy liabilities. The diagram you posted above does not appear in the edition of the book I have (Warner Books Edition, printed in 2000). However, the following similar diagram appears in the chapter titled "The History of Taxes and the Power of Corporations": The idea behind this diagram is to demonstrate what the author considers the tax advantages of a personal corporation: using a corporation to pay for certain expenses with pre-tax dollars. Here is a quote from this chapter: Employees earn and get taxed and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It's one of the biggest legal tax loopholes that the rich use. They're easy to set up and are not expensive if you own investments that are producing good cash flow. For example; by owning your own corporation - vacations are board meetings in Hawaii. Car payments, insurance, repairs are company expenses. Health club membership is a company expense. Most restaurant meals are partial expenses. And on and on - but do it legally with pre-tax dollars. This piece of advice, like so much of the book, may contain a small amount of truth, but is oversimplified and potentially dangerous if taken a face value. There are many examples, as JoeTaxpayer mentioned, of people who tried to deduct too many expenses and failed to make a business case for them that would satisfy the IRS. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: Vanguard offers an index fund. Their FTSE Social Index Fund. For more information on it, go here. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: Try this site for the funds http://www.socialinvest.org/resources/mfpc/ I'm not aware of any etfs. I'm sure some exist though. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: TIAA-Cref has their Social Choice Equity Fund, which is a Large Blend primarily equity fund that invests given the following consideration: The Fund primarily invests in companies that are screened by MSCI Inc. (“MSCI”) to favor companies that meet or exceed certain environmental, social and governance (“ESG”) criteria. The Fund does this by investing in U.S. companies included in one or more MSCI ESG Indices that meet or exceed the screening criteria described below. Prior to being eligible for inclusion in the MSCI ESG Indices, companies are subject to an ESG performance evaluation conducted by MSCI, consisting of numerous factors. The ESG evaluation process favors companies that are: (i) strong stewards of the environment; (ii) devoted to serving local communities where they operate and to human rights and philanthropy; (iii) committed to higher labor standards for their own employees and those in the supply chain; (iv) dedicated to producing high-quality and safe products; and (v) managed in an exemplary and ethical manner. https://www.tiaa.org/public/offer/products/mutual-funds/responsible-investing ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: There is the iShares Jantzi Social Index Fund. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: Look at the Calvert Funds. They have a variety of "socially responsible" funds with published selection standards. Beware of mixing personal politics with business. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: Index funds: Some of the funds listed by US SIF are index funds. ETFs: ETFdb has a list, though it's pretty short at the moment. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any Social Responsibility Index funds or ETFs? ### Answer: At the other end of the spectrum is the VICEX fund. it invests in industries such as tobacco, gaming, defense/weapons, liquor and other companies whose products or services are widely considered not to be socially responsible ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Peer to peer lending in Canada? ### Answer: Yes and no, P2P Capital Markets is similar concept but is more geared towards business loans. Community Lend used to offer this service but has stopped. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Washington State tax filing extension? ### Answer: Washington State doesn't have a state income tax for individuals, so unless you've got a business there's nothing to file. Find out more on their website. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Freehold and Leasehold for Pub/Bar? ### Answer: In the strictest sense of the words, Freehold and leasehold mean what you think they do. Freehold is that you own it outright and leasehold is a rental situation. That being said, there are scenarios like what Peter K. mentioned in his comment, where you're purchasing the building and business outright, but the land it sits on is actually being leased from a separate land-owner. You may also be seeing the business itself being offered as freehold or leasehold. In this case, you may be purchasing the business of the pub from a pub company, but the building the pub resides in is leased from a property owner. The "pub" would be the business plan, decor, alcohol partnerships, etc. but not the physical structure in which it resides. You should really look into hiring an Estate Agent to help you find what you're looking for. They will be able to assist in narrowing down your list, and may know of opportunities you're not seeing in ads. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Freehold and Leasehold for Pub/Bar? ### Answer: You should be aware that many pubs in the London (indeed, the UK as a whole) are sold as a leasehold with a beer tie. This typically means you pay less rent for the building and premises, but must enter a contract with the Pub Company to buy their beer and day-to-day supplies. You have the legal option to instead pay market rent for some (but not all) Pub Cos, under certain conditions. If you go with leasehold, the landlord can usually close your pub at their will. This is becoming a quite common occurrence in the booming real estate market of London. While your interest will be in running a pub, the Pub Co's interest will be in getting change of use planning permission and selling it to a real estate developer. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Freehold and Leasehold for Pub/Bar? ### Answer: Freehold is simple - it's when you own the building and the land it's on. There's no rent to pay (but you will still have to pay taxes!). Leasehold is when the property is leased - rented out for a fixed period that could be anything from 6 months to 199 years. There will be a rent to pay. The person who owns the property is still the freeholder. There may be some confusion caused by what is being sold. You can buy out a lease from the current leaseholder. It's also possible to buy the freehold of a property that is currently leased to someone else. It is also possible to have a freehold building on leasehold land. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a rule that a merchant must identify themself when making a charge ### Answer: Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF) The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly identifiable to the cardholder. This can minimize copy requests resulting from unrecognizable merchant descriptors. Merchant applications typically list the merchant name as the merchant DBA. This may differ from the legal name (which can represent the corporate owner or parent company), and may differ from the owner’s name which, for sole proprietorships, may reflect the business owner. I think that the key statement above is "Therefore, it is critical that the merchant name [...] be clearly identifiable to the cardholder." Since this merchant was not clearly identifiable to the cardholder, they are in breach of a critical point in these guidelines. This is from VISA, but I would assume that all other major credit cards would have similar guidelines for their merchants. However keep in mind that these are "guidelines", and not (necessarily) rules. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a rule that a merchant must identify themself when making a charge ### Answer: In some case the customer wants the name to be cryptic or misleading. They don't want to advertise the true nature of the business they visited. In other cases the transaction may be reported through another business. A few years ago the local PTA was having a silent auction as a fundraiser. A local business allowed the PTA to use their credit card reader to process transactions over a certain amount. Of course when the credit card statement arrived it looked like you spent $500 at the florist. I have seen PayPal listed when donating to some small charities. I have noted another case where confusion can occur. I used a debit card to buy a soda from a vending machine: the name and location were the name of the vending machine company and the location of their main office. It didn't say soda machine city A. It said Joe's vending company city B. In most cases the business and the credit card company want to make it easy to identify the transactions to keep the cost of research and charge backs to a minimum. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a rule that a merchant must identify themself when making a charge ### Answer: Obviously, the credit card's administators know who this charge was submitted by. Contact them, tell them that you don't recognize the charge, and ask them to tell you who it was from. If they can't or won't, tell them you suspect fraud and want it charged back, then wait to see who contacts you to complain that the payment was cancelled. Note that you should charge back any charge you firmly believe is an error, if attempts to resolve it with the company aren't working. Also note that if you really ghink this is fraud, you should contact your bank and ask them to issue a new card number. Standard procedures exist. Use them when appropriate. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Looking to buy a property that's 12-14x my income. How can it be done? ### Answer: It is your choice to have "insignificant income", and that has consequences. One is that you cannot borrow money to purchase a home independent of your credit score. In order to purchase a home you must also have the ability to repay in addition to a good history. IMHO your question suggest that you have a unrealistic outlook on life. If you cannot come up with 10K, how can you afford a home? What happens when the HVAC system goes out? While I certainly hope you meet and exceed your goals, you can change your whole world by simply getting a job at a fast food restaurant. When you are not working you can then do the entrepreneurship thing. Life is often a choice of priorities. If you choose to "back-burner" the entrepreneur dream, for a time, and choose to focus on earning the best possible wage. Then perhaps you could afford to purchase a place of your own. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Looking to buy a property that's 12-14x my income. How can it be done? ### Answer: What options do I have? Realistically? Get a regular full time job. Work at it for a year or so and then see about buying a house. That said, I recently purchased a decent home. I am self-employed and my income is highly erratic. Due to how my clients pay me, my business might go a couple months with absolutely no deposits. However, I've been at this for quite a few years. So, even though my business income is erratic, I pay myself regularly once a month. In order to close the deal with the mortgage company I had to provide 5 years worth of statements on my business AND my personal bank accounts. Also I had about a 30% down payment. This gave the bank enough info to realize that I could absolutely make the payments and we closed the deal. I'd say that if you have little to no actual financial history, don't have a solid personal income and don't have much of a down payment then you probably have no business buying a house at this point. The first time something goes wrong (water heater, ac, etc) you'll be in a world of trouble. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Looking to buy a property that's 12-14x my income. How can it be done? ### Answer: You need a cosigner. Someone prepared to repay the mortgager if you should fail to. Needless to say this is going to have to be someone who knows you and trusts you very much. One way is to find someone prepared to share a house with you. Buy a bigger house than you would otherwise need. You would own half each, and the sharing agreement would specify that if one of you defaulted on their payments the other would get a larger share according to how much extra they end up paying. The other way is to find a silent partner, who doesn't live there. They put up no money unless you actually default. They would almost certainly have to be part owners, but you can structure the agreement so that you end up with the whole house if you succeed in paying off the mortgage, or miss no payments until you sell. Parents sometimes do this for their kids. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Working on a tax free island to make money? ### Answer: If you're an American, and willing to give up citizenship, good luck to you. Otherwise, Uncle Sam still wants his due -- Americans are responsible for paying taxes on income earned anywhere on earth, regardless of their residence. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Working on a tax free island to make money? ### Answer: According to Wikipedia, import duties on goods range from 5-22% on everything but cars (30-100%) and a handful of other goods (no import duties). Since almost everything must be imported, you will still be paying the taxman, just on the consumption side. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Working on a tax free island to make money? ### Answer: From http://www.taxrates.cc/html/cayman-islands-tax-rates.html: There is no income tax, corporate tax, sales tax, capital gains tax, wealth tax, inheritance tax, property tax, gift tax or any other kind of direct taxation in Cayman Islands. Cayman Islands government receives the majority of its income from indirect taxation. There is no income tax or capital gains tax or corporation tax in Cayman Islands imposed on Cayman individuals and Cayman Islands companies. An import duty of 5% to 20% is levied against goods imported into the islands. Some items are tax exempt like baby formula, books and cameras. Tax on automobiles depends on the class and make of the model. Tax can reach up to 40% for expensive car models. Financial institutions that operate in the islands are charged a flat licensing fee by the government. A 10% government tax is placed on all tourist accommodations in addition to the small fee each tourist pays upon getting on the Caymans. The Cayman Islands government charges licensing fees to financial institutions that operate in the islands as well as work permit fees for expatriate employees ranging from around US$ 500 for a clerk to around US$ 20,000 for a CEO. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Working on a tax free island to make money? ### Answer: The Cayman Islands has an income tax enacted, it is just currently 0%. It raises revenues from its tourism, import duties, and business registration. It is part of the UK commonwealth and therefore enjoys the military protection of that federation, but doesn't have to spend on it. But unlike the US, the UK does not have an umbrella federal income tax on its overseas territories, so the Cayman Islands doesn't have to pass that down to its citizens nor do its citizens/residents have to be encumbered by one. It was not taxed by the King when it was first incorporated (hm, might need to fact check that). They also didn't go to war with the king over some small tax, so they got treated differently than some other North American colonies you might think of. The Cayman Islands is not the only government that raises revenues this way. Delaware also has a 0% income tax and raises the majority of its revenues on business registration (and perpetual franchise taxes on those businesses), allowing it to spare its citizens from passive income taxes. But unlike a US state, a citizen or business in a UK overseas territory does not have federal regulatory overhead, making it more attractive as a worldwide financial center. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What exactly is the interest rate that the Fed is going to adjust? ### Answer: Federal Funds Rate The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other. The federal funds rate is one of the most influential interest rates in the U.S. economy, since it affects monetary and financial conditions, which in turn have a bearing on key aspects of the broad economy including employment, growth and inflation. http://www.investopedia.com/terms/f/federalfundsrate.asp#ixzz3mB5kCtvT ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What exactly is the interest rate that the Fed is going to adjust? ### Answer: While it is true that if the Federal reserve bank makes a change in their rate there is not an immediate change in the other rates that impact consumers; there is some linkage between the federal rate, and the costs of banks and other lenders regarding borrowing money. Of course the cost of borrowing money does impact the costs for businesses looking to expand, which does impact their ability to hire more workers and expand capacity. A change in business expansion does impact employment and unemployment... Then changes in employment can cause a change in raises, which can cause changes in prices which is inflation... Plus the lenders that lend to business see the flow of new loans change as the employment outlook change. If the costs of doing business for the bank changes or the flow of loans change, they do adjust the rates they pay depositors and the rates they charge borrowers... How long it will take to change the cost of an auto loan? No way to tell. Keep in mind that in complex systems, change can be delayed, and won't move in lock step. For example the price of gas\s doesn't always move the same way a price of a barrel of oil does. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What exactly is the interest rate that the Fed is going to adjust? ### Answer: The Fed rate is so important because it sets a cost on lending institutions (banks, credit unions). It is the rate of interest that a bank gets by loaning its cash overnight to the Fed. Presumably, the Fed then loans the cash to other institutions around the world. The banks loan money to individuals at a higher rate. Savers get a rate between what the Fed gives and what the bank gets. When times are tough the Fed will lower their rate to try to increase the lending that banks do. This is called Qualitive Easing. The overnight rate is very low right now. That means that the Fed cannot lower rates to try to stimulate the economy. So to enable the Fed to do its voodoo they have to raise rates so that later they can lower them if needed. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: About to start being an Independent Contractor - Any advice on estimating taxes? ### Answer: I agree with your strategy of using a conservative estimate to overpay taxes and get a refund next year. As a self-employed individual you are responsible for paying self-employment tax (which means paying Social Security and Medicare tax for yourself as both: employee and an employer.) Current Social Security Rate is 6.2% and Medicare is 1.45%, so your Self-employment tax is 15.3% (7.65%X2) Assuming you are single, your effective tax rate will be over 10% (portion of your income under $ 9,075), but less than 15% ($9,075-$36,900), so to adopt a conservative approach, let's use the 15% number. Given Self-employment and Federal Income tax rate estimates, very conservative approach, your estimated tax can be 30% (Self-employment tax plus income tax) Should you expect much higher compensation, you might move to the 25% tax bracket and adjust this amount to 40%. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: About to start being an Independent Contractor - Any advice on estimating taxes? ### Answer: It's likely you don't have to make estimated tax payments if this is your first year of contracting (extra income), and your existing salary is already having taxes withheld. If you look at the 1040-ES: General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. This is easier to understand if you look at the worksheet. Look at line 14b/14c and the associated instructions. 14b is your required annual payment based on last year's tax. 14c is the lesser of that number and 14a, so 14b is your "worst case". 14c is the amount of tax you need to prepay (withholding counts as prepayment). I'm going to apply this to your situation based on my understanding, because it's not easy to parse: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: About to start being an Independent Contractor - Any advice on estimating taxes? ### Answer: One possibility that I use: I set up an LLC and get paid through that entity. Then I set up a payroll service through Bank of America and set up direct deposit so that it is free. I pay myself at 70% of my hourly rate based on the number of hours I work, and the payroll service does all the calculations for me and sets up the payments to the IRS. Typically money is left over in my business account. When tax time rolls around, I have a W2 from my LLC and a 1099 from the company I work for. I put the W2 into my personal income, and for the business I enter the revenue on the 1099 and the payroll expenses from paying myself; the left over in the business account is taxed as ordinary income. Maybe it's overkill, but setting up the LLC makes it possible to (a) set up a solo 401(k) and put up to $51k away tax-free, and (b) I can write off business expenses more easily. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does earning as a non-resident remote worker on an American account make people liable for U.S taxes? ### Answer: The United States taxes nonresident aliens on two types of income: First, a nonresident alien who is engaged in a trade or business in the United States is taxed on income that is effectively connected with that trade or business. Second, certain types of U.S.-source payments are subject to income tax withholding. The determination of when a nonresident alien is engaged in a U.S. trade or business is highly fact-specific and complex. However, keeping assets in a U.S. bank account should not be treated as a U.S. trade or business. A nonresident alien's interest income is generally subject to U.S. federal income tax withholding at a rate of 30 percent under Section 1441 of the tax code. Interest on bank deposits, however, benefit from an exception under Section 1441(c)(10), so long as that interest is not effectively connected with a U.S. trade or business. Even though no tax needs to be withheld on interest on a bank deposit, the bank should still report that interest each year to the IRS on Form 1042-S. The IRS can then send that information to the tax authority in Brazil. Please keep in mind that state and local tax rules are all different, and whether interest on the bank deposits is subject to state or local tax will depend on which state the bank is in. Also, the United States does tax nonresident aliens on wages paid from a U.S. company, if those wages are treated as U.S.-source income. Generally, wages are U.S.-source income if the employee provides services while physically present in the United States. There are a few exceptions to this rule, but they depend on the amount of wages and other factors that are specific to the employee's situation. This is an area where you should really consult with a U.S. tax advisor before the employment starts. Maybe your company will pay for it? ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the stock warrant's expiration date here? ### Answer: These warrants do not have a fixed expiration date, rather their expiration date is dependant upon the company completing an acquisition. Thirty days after the acquisition is complete the warrants enter their exercise period. The warrants can then be exercised at any time over the next five years. After five years they expire. From the "WARRANT AGREEMENT SOCIAL CAPITAL HEDOSOPHIA HOLDINGS CORP.": A Warrant may be exercised only during the period (the “Exercise Period”) (A) commencing on the later of: (i) the date that is thirty (30) days after the first date on which the Company completes a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination, involving the Company and one or more businesses (a “Business Combination”), and (ii) the date that is twelve (12) months from the date of the closing of the Offering, and (B) terminating at the earliest to occur of (x) 5:00 p.m., New York City time on the date that is five (5) years after the date on which the Company completes its initial Business Combination, (y) the liquidation of the Company in accordance with the Company’s amended and restated memorandum and articles of association, as amended from time to time, if the Company fails to complete a Business Combination, and (z) 5:00 p.m., New York City time on, other than with respect to the Private Placement Warrants, the Redemption Date (as defined below) as provided in Section 6.2 hereof (the “Expiration Date”); provided, however, that the exercise of any Warrant shall be subject to the satisfaction of any applicable conditions, as set forth in subsection 3.3.2 below, with respect to an effective registration statement Source : lawinsder.com ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do owners in a partnership earn income? ### Answer: The partnership agrees to pay each of you salaries and/or bonuses, typically based on the net profit brought in. You do have a legal document setting out the rules for this partnership, right? If so, the exact answer should be in there. If you don't or it isn't, you need a lawyer yesterday. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do owners in a partnership earn income? ### Answer: If you business is incorporated, it's up to the two of you how to do it. Typically, you will have the company write cheques (or make transfers, whatever) to each of the humans: If you want to say that each of you gets a salary of 80% of the revenue you bring in, and then tweak things with bonuses, you can. If one of you is contributing more to marketing and awareness and less to revenue, then you may prefer to pay you each the same even though the revenue you bring are different. It's up to you - it's quite literally your business. When you're not incorporated, then for tax purposes you split the income and the expenses according to your ownership share. If that doesn't seem fair to you, then a partnership is probably not as useful to you as being incorporated. In general, it's better to be incorporated once you're past any initial phase in which the business is losing money for tax purposes (acquiring depreciable assets) and the partners have taxable income from elsewhere (day jobs, or at least income from the earlier part of the year before starting the business.) I would recommend that the "partnership" phase of the business be very short. Get incorporated and get a shareholder agreement. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Pay team mates out of revenues on my name ### Answer: Can I deduct the money that I giving to my team mates from the taxes that I pay? If yes, how should I record the transaction? Why? Why are you giving money to your team mates? That's the most important question, and any answer without taking this into account is not full. You would probably have to talk to a professional tax adviser (a CPA/EA licensed in your state) about the details, but in general - you cannot deduct money you give someone just because you feel like it. Moreover, it may be subject to an additional tax - the gift tax. PS: We don't have any partnership or something similar, it is just each of us on his own. Assuming you want to give your team mates money because you developed the project together - then you do in fact have a partnership. In order to split the income properly, you should get a tax ID for the partnership, and issue a 1065 and K-1 for each team mate. In most states, you don't need to "register" a partnership with the state. Mere "lets do things together" creates a partnership. Otherwise, if they work for you (as opposed to with you in the case above), you can treat it as your own business income, and pay your team mates (who are now your contractors/employees) accordingly. Be careful here, because the difference between contractor and employee in tax law is significant, and you may end up being on the hook for a lot of things you're not aware of. Bottom line, in certain situation you cannot deduct, in others you can - you have to discuss it with a professional. Doing these things on your own without fully understanding what each term means - is dangerous, and IRS doesn't forgive for "honest mistakes". ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Pay team mates out of revenues on my name ### Answer: Note: This is not professional tax advice. If you think you need professional tax advice, find a licensed professional in your local area. What are the expected earnings/year? US$100? US$1,000? US$100,000? I would say if this is for US$1,000 or less that registering an EIN, and consulting a CPA to file a Partnership Tax return is not going to be a profitable exercise.... all the earnings, perhaps more, will go to paying someone to do (or help do) the tax filings. The simplest taxes are for a business that you completely own. Corporations and Partnerships involve additional forms and get more and more and complex, and even more so when it involves foreign participation. Partnerships are often not formal partnerships but can be more easily thought of as independent businesses that each participants owns, that are simply doing some business with each other. Schedule C is the IRS form you fill out for any businesses that you own. On schedule C you would list the income from advertising. Also on schedule C there is a place for all of the business expenses, such as ads that you buy, a server that you rent, supplies, employees, and independent contractors. Amounts paid to an independent contractor certainly need not be based on hours, but could be a fixed fee, or based on profit earned. Finally, if you pay anyone in the USA over a certain amount, you have to tell the IRS about that with a Form 1099 at the beginning of the next year, so they can fill out their taxes. BUT.... according to an article in International Tax Blog you might not have to file Form 1099 with the IRS for foreign contractors if they are not US persons (not a US citizen or a resident visa holder). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I determine how much rent I could charge for a property or location? ### Answer: This may not be entirely scientific, but as a landlord my usual approach is just to do a search for rental properties on Craigslist for comparable homes in the neighborhood. There are all kinds of formulas professional property managers use, but in the end these listings are the ones you are going to be competing with for tenants. Also, it isn't super accurate, but online services like Zillow.com can give you some numbers for rental houses that include those that aren't currently advertising. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I determine how much rent I could charge for a property or location? ### Answer: Check out the property websites to get an idea of how much, the property in question, could yield as rent. Most give a range and you can get a good idea of it. Just one example from zoopla. Likewise you can refer mouseprice or rightmove and get yourself an idea. Property websites do a lot of data crunching to do an update, but their figure is only a guide. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I determine how much rent I could charge for a property or location? ### Answer: Zoopla may not always accurately reflect the market price. Your best bet is to get a quote for local registered) letting agents. That way you know you are close to the real market value. Also, these quotes may come into handy if you have a mortgage on the property. Since most banks will require you to provide proof of rent figures you are projecting by sending in official quotes. Hope this helps.. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I determine how much rent I could charge for a property or location? ### Answer: A good way to find the rates of rental prices is to look what other landlords are charging for similar properties in your area. The proper investigation of property rental market should be make by using property listing platforms. The other method is online rent calculator. There are a bunch of them on the Web. Briefly speaking, the rent calculator uses industry data to look at the typical rent you might expect from a property in a post code. Remember that the rent you charge has to be at least equal to the cost of your monthly mortgage bill. When you’re deciding what to charge, don’t forget to factor in an estimate of repair costs, taxes, homeowners association fees and insurance. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I'm 13. Can I buy supplies at a pet store without a parent/adult present? ### Answer: As long as your money is green and you aren't buying something prohibited to youngsters (booze, cigarettes, etc.) I doubt any store is going to refuse your business. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I'm 13. Can I buy supplies at a pet store without a parent/adult present? ### Answer: My 12 year old routinely makes purchases with cash or a gift card (either a store's card or a Visa/Amex card that acts like credit card but is a gift card) and has never had an issue. Clothing, make-up, bath items, etc. I understand in some areas you need to be over 18 to buy certain markers, spraypaint, or other propellant items that can be fatal if inhaled. I see little issue with buying pet supplies, but it wouldn't hurt to have your sibling nearby if you think there will be an issue. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I'm 13. Can I buy supplies at a pet store without a parent/adult present? ### Answer: I had a cat growing up--most of the time I was the one who got her supplies. It was never an issue. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I'm 13. Can I buy supplies at a pet store without a parent/adult present? ### Answer: Perhaps a technicality, but minors do not have the legal capacity to bind a contract. Making a purchase from a store is a contract. I'm not a lawyer and there may be case law to the contrary or that creates exceptions, but my understanding is that purchases made by a minor may be void if later challenged. JohnFx's answer is true from a practical sense. But if you get turned away at a store, understand that they're probably just being careful to avoid headaches later. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I find out the credit rating of a company ### Answer: You can view Standard & Poor's credit ratings here: http://www.standardandpoors.com/ratings/en/us/ You have to register with S&P to access the ratings. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I find out the credit rating of a company ### Answer: Dunn & Bradstreet offers detailed credit reports on businesses. They are not cheap, but they appear to have information on RIOCAN. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Income Tax on per Diem (Non Accountable plan) ### Answer: A per diem payment is a cost of doing business for the company, not for you. They can claim it (probably); you can't (definitely). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can people have such high credit card debts? ### Answer: I'm not sure if the rules in Canada and the US are the same. I'm as amazed as you are by the amounts of debts people have, but I can see how this credit can be extended. Generally, with good credit history and above average pay - it is not unheard of to get about $100K credit limit with a bunch of credit cards. What you do with that after that depends on your own ability to manage your finances and discipline. Good credit history is defined by paying your credit cards on time with at least minimum payment amount (which is way lower than the actual statement amount). Above average pay is $60K+. So you can easily have tons of debt, yet be considered "low risk" with good credit history. And that's the most lucrative market for the credit card issuers - people who do not default, but also have debt and pay interest. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can people have such high credit card debts? ### Answer: I would say you are typical. The way people are able to build their available credit, then subsequently build their average balances is buy building their credit score. According to FICO your credit score is made up as follows: Given that you had no history, and only new credit you are pretty much lacking in all areas. What the typical person does, is get a card, pay on it for 6 months and assuming good history will either get an automatic bump; or, they can request a credit limit increase. Credit score has nothing to do with wealth or income. So even if you had 100K in the bank you would likely still be facing the same issue. The bank that holds the money might make an exception. It is very easy to see how a college student can build to 2000 or more. They start out with a $200 balance to a department store and in about 6 months they get a real CC with a 500 balance and one to a second department store. Given at least a decent payment history, that limit could easily increase above 2500 and there could be more then one card open. Along the lines of what littleadv says, the companies even welcome some late payments. The fees are more lucrative and they can bump the interest rate. All is good as long as the payments are made. Getting students and children involved with credit cards is a goal of the industry. They can obtain an emotional attachment that goes beyond good business reasoning. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can people have such high credit card debts? ### Answer: I had $70K in credit card at one point. Limited income, starting a business - it's the only credit available. (yes, all paid off now). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can people have such high credit card debts? ### Answer: You must understand that not everyone has or can get credit cards. Consider that those who are in the the lowest 20-30% of income tend to have fewer credit cards (or none), and lower credit debt, although some have quite high credit card debt relative to their income. So you really aren't comparing the same demographics (the population of all income earners, used to calculate average income, and the population of all credit card debt holders, are not the same groups of people). Once you remove those folks from consideration, then credit card usage may still average higher, but accept that it is unusual for people making less than $20K-30K/year to have much credit card debt. You must understand that wealth and income are two very different (although related) concepts. One must note that there are millions of people in the U.S. who have wealth; they have net assets of over $1M (excluding their homes). Many of those folks have assets greatly exceeding $1M. And although it might seem foolish to carry a large balance on their credit cards, they may have quite low interest rates, and simply find it simpler and more convenient to use credit cards in lieu of personal loans. Suppose you have $2M in net assets, and want to buy a classic car or a diamond necklace. Charging $30K and carrying the balance until a dividend check arrives may make sense. Understand also that not everyone makes the same choices, or good choices. Carrying a credit card balance may appear like a poor choice, especially when you are not wealthy, or have lower income. But suppose you have a high credit limit across several cards, and you need to handle a short-term financial challenge (car repair, layoff, medical bills, etc). You might use the credit card to pay for that purchase, essentially financing an extraordinary event over a longer period of time. And although having a balance of more than 5-10% of your monthly income may seem foolish to some, it may make sense to others. And some people choose to carry balances of 50% to 100% of their credit limit. Others realize that keeping their credit utilization below 30%, 20%, or 10% of the credit limit is a better plan (both interest rate and risk wise). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can people have such high credit card debts? ### Answer: In the United States, when applying for credit cards, proof of income is on an honor system. You can make $15k a year and write on your application that you make $150k a year. They don't check that value other than to have their computer systems figure out risk and you get a yes or no. It was traditionally easy to attain credit, but that got tightened in 2008/2009 with the housing crisis. This is starting to change again and credit is flowing much more easily. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is This A Scam? Woman added me on LinkedIn first, then e-mailed offering me millions of dollars [duplicate] ### Answer: Yes. If you reply back, they'll confirm that Uncle Alex did indeed leave you $7 million, and you just need to send them a few thousand dollars for taxes and estate fees and then they'll wire you the money. And then there'll be customs fees. And then more taxes. And of course, there will be separate import fees. And so on until you run out of money. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is This A Scam? Woman added me on LinkedIn first, then e-mailed offering me millions of dollars [duplicate] ### Answer: It is absolutely a scam. Anyone who tells you they can give you a large amount of money for free is trying to scam you. Additional warning signs include: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is This A Scam? Woman added me on LinkedIn first, then e-mailed offering me millions of dollars [duplicate] ### Answer: This is totally a scam. I didn't read the whole thing. Didn't need to after I read "abandoned sum of 22.5 million" which implied part of it was yours to take after you do something for them.. Logically speaking.. No stranger would disclose this to you. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is This A Scam? Woman added me on LinkedIn first, then e-mailed offering me millions of dollars [duplicate] ### Answer: In general, if you think something even MIGHT be a scam, the answer is"yes". ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation actually mean? [duplicate] ### Answer: Inflation is good for the economy primarily because it is an incentive to invest. If inflation is occurring, then keeping your holdings in cash is a net loser; 5% inflation means that in a year, your $100 is now worth $95.24 (1/1.05), so unless you're getting really good interest, that's a bad thing. On the other hand, if you invested that $100 in a business, you can outgain inflation more easily since inflation should drive the business's profits. Deflation (negative inflation), on the other hand, is bad for investing because it encourages holding cash. If deflation of 5% occurs, then you can get a 5% ROI by simply holding onto twenty dollar bills; why would you invest in a business that was in a deflationary economy (and thus would likely earn less money)? Mild inflation also increases flexibility in the economy, because businesses make a little more money (in terms of denominated money); that allows them more flexibility in expansion. Salaries for some also go up, meaning that spending goes up, and often with more flexibility in how those salaries are spent; inflation doesn't hit all sectors exactly the same, so often this leaves significant portions of the middle class with more money to spend (and thus driving economic growth). More than salary growth, though, inflation seems to drive job creation. From the New York Times, this article quotes a paper by George Akerloff which shows that job creation tends to be more significant than rising salaries during periods of low inflation (ie, what we're talking about here). Salary increases will come here largely from job seeking rather than raises, because businesses don't tend to cut wages and thus are reticent to significantly raise salaries; they'd rather just hire more people, and then cut jobs when the economy weakens (or inflation drops). This is even more true in low wage jobs, such as minimum wage positions, where wages cannot be cut but salary increases have little real effect on job retention; it's easier to change the number of hours for PT employees, or the number of PT/FT employees. Deflation, on the other hand, leads to decreased flexibility, layoffs, and lower consumer spending. While it sounds good to say 'hey, prices are going down!' to your average consumer, you have to keep in mind that those prices are what keep the businesses going that drive our economy and pay your salary (either directly or indirectly). If your employer started making 5% less per year, do you think they'd keep you employed? Maybe not, and at the bottom (service industries, fast food restaurants, grocers, etc.) there would be significant cutbacks if deflation hit them. I would note that 5% inflation is probably a bit high; most economists like 2% to 3%, and the Federal Reserve has said that 2% is the right target. They're mostly concerned with avoiding deflation, as that's a big risk to the economy; the advantages of mild inflation are relatively minor, compared to the damages of deflation, and tend to be more correlations (you get mild inflation in a good economy, as much or more than you need mild inflation for a good economy). Most important, probably, is consistent inflation. Consumers and businesses can act rationally if the inflation rate is relatively stable and predictable. When inflation jumps or drops, it changes the potential outcomes for choices made by investors, consumers, and businesses, meaning choices they made in the past are now suboptimal; if the inflation rate is jumping around (1% one year, 4% another, -1% the next) investors, businesses, and consumers will be relatively conservative in their choices, which leads to a bad economy. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation actually mean? [duplicate] ### Answer: Inflation also provides incentives for consumers to purchase now rather than later (which helps drive sales) and it provides incentive for money to be invested and put back into businesses, rather than held as cash, because you need to earn at least a little interest on your money just to break even. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I claim GST/HST Input Tax Credits (ITCs) on Uber, taxi, or limousine fares? ### Answer: The Canada Revenue Agency describes in detail here what information businesses must generally include on their invoices so that GST/HST registrants can claim Input Tax Credits (ITCs) for the expenses. Quote: Sales invoices for GST/HST registrants You have to give customers who are GST/HST registrants specific information on the invoices, receipts, contracts, or other business papers that you use when you provide taxable goods and services. This information lets them support their claims for input tax credits (ITCs) or rebates for the GST/HST you charged. [...] The page quoted continues with a table describing what, specifically, needs to be on a sales invoice based on the total amount of the invoice; the requirements differ for: total sale under $30, total sale between $30 to $149.99, and total sale $150 or more. For the total sale under $30 category, the only things a sales invoice must contain to support an ITC claim are (1) the provider's business name, (2) the invoice date, and (3) the total amount paid/payable. i.e. When the total sale is under $30, there is no requirement for any GST/HST amount to be indicated separately, nor for a business number to be present on the invoice. Hence, IMHO (and I am neither an accountant nor a lawyer), if your Uber rides are for $30 or less, then you shouldn't expect a GST/HST number anyway, and a simple invoice as described should be enough for you to claim your ITCs. Whether or not the provider is registered in fact for GST/HST is beside the point. For amounts over $30, you need a bit more. While the page above specifies that the provider's business number should be included beginning with the next level of total sales, there are exceptions to those rules described at another page mentioned, Exceptions to invoice requirements, that specifically apply to the taxi/limousine case. Quote: Exceptions to invoice requirements GST/HST registrants are required to keep the necessary documentation to support their claim for ITCs and rebates. In certain circumstances the documentation requirements have been reduced. [...] For taxi or limousine fares your books and records must show: So at a minimum, for fare in excess of $30 total, you should ask the driver to note either (a) the amount of GST/HST charged, or (b) a statement that the fare includes GST/HST. The driver's business number need not be specified. Consequently, if your receipt for a ride in excess of $30 does not contain any such additional information with respect to GST/HST, then I would expect the receipt does not satisfy the CRA's requirements for supporting your ITC claim. i.e. Keep your individual rides under $30 each, or else get a better receipt from the driver when it is above that amount. p.s. It should go without saying, but your rides, of course, must be considered reasonable business expenses in order to qualify for GST/HST ITCs for your business. Receipts for rides of a personal nature are not eligible, so be sure to maintain proper records as to the business purpose and destination for each ride receipt so claimed. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I claim GST/HST Input Tax Credits (ITCs) on Uber, taxi, or limousine fares? ### Answer: Apparently Canadians have not been paying any tax on Uber rides, and will only begin to do so on July 1, 2017. Source: http://mobilesyrup.com/2017/03/22/uber-canada-gst-hst-budget-2017/ ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Ways to avoid being labeled a pattern day trader ### Answer: FINRA Description of Day Trading rules The rules adopt a new term "pattern day trader," which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period. So, there's several ways to avoid being labeled a pattern day trader: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Ways to avoid being labeled a pattern day trader ### Answer: Sorry but you already provided the answer to your own question. The simple answer is to 'not day trade' but hold things for a longer period and don't trade a large number of different stocks every week. Seriously, have a look at the rules and see what it implies.. an average of 20 buys and sells of longer term positions PER DAY is a pretty fair bit of trading, that's really churning through the positions compared to someone who might establish positions with say 25 well picked stocks and might change even 5 of those a week to a different stock. Or even a larger number of stocks but seeking to hold them for over a year so you get taxed at the long term cap gains rate. If you want to day trade, be prepared to be labeled as such and deal with your broker on that basis. Not like they will hate you given all the fees you are likely to rack up. And the government will love you also, since you'll be paying short term gains taxes. (and trust me, us bogelheads appreciate the liquidity the speculative and short term folks bring to the market.) In terms of how it would impact you, Expect to be required to have a fairly substantial balance ($25K) if you are maintaining a margin account. I'd suggest reading this thread My account's been labeled as "day trader" and I got a big margin call. What should I do? What trades can I place in the blocked period? ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: Until the CARD act, credit card rules required that merchants had no minimum purchase requirement to use a card. New rules permit a minimum but it must be clearly posted. Update - Stores can now refuse small credit card charges is an excellent article which clarifies the rules. It appears that these rules apply to credit, not debit cards. So to be clear - the minimum do not apply to the OP as he referenced using a debit card. "Superiority"? Hm. I'd be a bit embarrassed to charge such small amounts. Although when cash in my wallet is very low, I may have little choice. Note, and disclaimer, I am 48, 30 years ago when I started using cards, there were no POS machines. Credit card transactions had a big device that got a card imprint and the merchant looked up to see if your card was stolen in a big book they got weekly/monthly. Times have changed, and debit cards may be faster, especially if with cash you give the cashier $5.37 for a $2.37 transaction, but the guy entered $5 already. This often takes a manager to clear up. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: Generally, I consider it bad etiquette to inconvenience others. I would recommend cash for small purchases. Try to offer as close to the required amount as possible. Don't pay with several dollars worth of change if you can avoid it. You shouldn't need to carry a lot of cash. When you do don't make it obvious. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: Etiquette or not, it is hurting the seller. The transaction fees have usually minimums, so if the actual transaction is below the minimum - they'll pay larger fee on the transaction (relatively). As an example, assume minimum fee for a debit card swipe is 20 cents, or 2% of the transaction. For a transaction of $10 and above, the fee will be 2% of the transaction. But for $1.67, the fee becomes 12% of the transaction. 6 times more expensive for the seller. Basically, the sale was most likely at a loss for them (they usually have very low margins, especially for a "dollar" store). So take that into account as well. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: A lot of stores, especially smaller ones, won't accept card payments under $10.00. They pay a fee for taking cards and for small transactions it is not worth it. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: I don't carry cash at all unless I know I'm going somewhere which requires it - this includes going to the corner shop for some milk or going to other countries for a week. Cards are easier for me - if a merchant wants my business they will take my money through whatever means they can. I don't think etiquette comes into it. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: It's fine. Some people (including myself) charge any amount, no matter how small. I think charging small amounts is encouraged by no longer having to sign for small amounts (Not sure if this is state-by-state, though). Somewhere, the transfering of digital money is being paid for - either in the merchant fees, an ATM fee, or my time in going to a bank or ATM where I will not be charged a fee. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: Intellectually and logically, it shouldn't bother me for a second to charge something for a buck. It's a losing proposition for the merchant, but their immediate business costs should be of little concern to me. (They're making a choice to sell that item to me at that price and by accepting that means of payment, right?) but the more I charge as opposed to paying cash, the more cash back I get. In my old-ish age, I've gotten a little softer and will pay cash more often for smaller amounts because I understand the business costs, but it's not a matter of caring what other people think. Accepting credit cards, or not, is a business decision. It's usually a good one. But with that decision come the rules, which up until about a year ago, meant that merchants couldn't set a minimum charge amount. Now that's not the case; merchant account providers can no longer demand that their merchant clients accept all charges, though they are allowed to set a minimum amount that is no lower than $10.00. In the end, it's a matter of how much you're willing to pay in order to influence people's thinking of you, because the business/financial benefits of doing one or the other are pretty clear. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: Personally, I think it's a bad practice, because ultimately using cards for such minuscule transactions raises costs for everyone, especially at merchants whose average transaction is small. How does carrying cash improve your personal security? If someone is going to mug you, they do not know in advance whether you have money or not. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: Etiquette doesn't really come into the picture here. The business offers a service and I choose to accept it. Personally, I use my debit card as much as possible. For every transaction, I record it in my checkbook. Then, when I do reconciling, I know exactly how much I paid for various categories of stuff. Good for budgeting. Most often my purchases are over $10 but when they aren't, I have no qualms about using the card. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS ### Answer: I would like to offer a different perspective here. The standard fee for a credit card transaction is typically on the order of 30 cents + 2.5% of the amount (the actual numbers vary, but this is the ballpark). This makes small charges frequently unprofitable for small merchants. Because of this they will often have minimum purchase requirements for credit/debit card payments. The situation changes for large retailers (think Wal-mart, Target, Safeway, Home Depot). I cannot find a citation for this right now, but large retailers are able to negotiate volume discounts from credit card companies (a guy who used to work in finance at Home Depot told me this once). Their transaction fees are MUCH lower than 30 cents + 2.5%. But you get the same reward points on your credit card/debit card regardless of where you swipe it. So my personal philosophy is: large chain - swipe away without guilt for any amount. Small merchant - use cash unless it's hundreds of dollars (and then they may give you a cash discount in that case). And make sure to carry enough cash for such situations. When I was a student, that was about $20 (enough for coffee or lunch at a small place). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How high should I set my KickStarter funding goal in order to have $35,000 left over? ### Answer: You are wildly over-estimating your taxes. First, remember that your business expenses reduce your gross income. Second, remember that taxes are progressive, so your flat 35% only applies if you're already making a high salary that pushed you into the higher brackets of US and CA. I think the deeper problems are: 1) you are expecting a super early start-up (with no finished product) to pay you the same as a steady job, including health insurance, and 2) you are expecting Kickstarter to independently fund the venture. The best source of funding is yourself. If you believe in this venture and in your game design abilities, then pay for most of the costs out of your own savings. Cut your expenses to the extent you can. You may want to wander over to startups.SE to get more perspective and ideas on your business plan. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How high should I set my KickStarter funding goal in order to have $35,000 left over? ### Answer: I think you might be missing something important here. If you are running a business, then any expenses that your business incurs are deductible. Yes, Kickstarter would report the full amount. The IRS requires them to report everything that you raised. However, the Kickstarter and Amazon fees would be a business expense. Your cost on the backer rewards are deductible business expenses as well. Legal fees, accounting fees: deductible. Money that you spend on equipment may not be deductible all in one year; you may have to depreciate it over multiple years. This is where the accountant that you are paying accounting fees to will come in handy. People who do an iOS app Kickstarter campaign for $5000 might have a few things going on that you don't: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How high should I set my KickStarter funding goal in order to have $35,000 left over? ### Answer: There's two big problems here and they are both related to the same thing: The last line says it all: you live in California. CA is a terrible state to do business in. the taxes on this money alone are crushing. Also, while I think you need to re-visit your budget and lifestyle, the cost of living is very, very high in CA and affecting your decisions. Of course, all of this raises the question - if you can afford 12K in expenses each month, and I'm assuming you're the only source of income, then you should be able to afford funding your own game :D ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment strategies for young adults with entrepreneurial leanings? ### Answer: If you are an entrepreneur, and you are looking forward to strike on your own ( the very definition of entrepreneur) then I suggest that you don't invest in anything except your business and yourself. You will need all the money you have when you launch your business. There will be times when your revenue won't be able to cover your living costs, and that's when you need your cash. At that point of time, do you really want to have your cash tie up in stock market/property? Some more, instead of diverting your attention to learn how the stock market/property works, focus on your business. You will find that the reward is much, much greater. The annual stock market return is 7% to 15%. But the return from entrepreneurship can be many times higher than that. So make sure you go for the bigger prize, not the smaller gains. It's only when your business no longer requires your capital then you can try to find other means of investment. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment strategies for young adults with entrepreneurial leanings? ### Answer: Diversity of risk is always a good idea. The cheapest equity-based investment (in terms of management costs) is some form of tracker or indexed fund. They're relatively low risk and worth putting in a fixed amount for long-term investment. I agree with Ngu Soon Hui, you're going to need a lot of cash if you decide to start your own business. You may have to cover a significant amount of time without an income and you don't want all your cash tied up. However, putting all your money into one business is not good risk management. Keep some savings where they can be a lifeline, should you need it. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investment strategies for young adults with entrepreneurial leanings? ### Answer: I talk about this subject on my blog on investing, I share everything that has worked for me personally and that makes sense. I would say the ideal investment would be to continue the entrepreneur route. Just make sure you have a clear plan and exit strategy. For me it's all about passion, I love blogging about personal experiences with life, money, and anything that affects our lives. Find something that you would talk about whether you were paid or not and create a business off of it. You'll never work a day in your life because you love it. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Better ways to invest money held by my small, privately-held Canadian corporation? ### Answer: Since you are talking about a small firm, for the long term, it would be advisable to invest your money into the expansion - growth, diversification, integration - of your business. However, if your intention is to make proper use of your earnings in the short term, a decent bank deposit would help you to increase the credit line for your business with the benefit of having a high enough liquidity. You can also look at bonds and other such low risk instruments to protect your assets. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Better ways to invest money held by my small, privately-held Canadian corporation? ### Answer: The issue only arises when the investments grow in size. A small amount won't trigger the higher tax rates. If the amount is large enough, then consider using either: Insurance products that are 'segregated', or RRSPs in your own name after your business pays you wages, or Gifting to other family members. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Settling before T+3? ### Answer: It is possible but unlikely. Securities firms would prefer never to settle externally; rather, they prefer to wait until the liabilities can be netted. They are forced to make and take payment in three business days. The reason why is because settlement is costly in the same way as any other business would prefer to build trade credit instead of taking or making payment rapidly. The only circumstance where a financial firm would wish to take full delivery is when a counterparty is no longer trusted to be solvent. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Settling before T+3? ### Answer: The T+3 settlement date only affects cash accounts. In a cash account, you need to wait until the T+3 settlement date for your funds to be available to make your next trade. But if you convert your cash account into a margin account, then you do not need to wait until the T+3 settlement date for your next trade - your broker will allow you to make another trade immediately. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What forms of payment am I compelled to accept? ### Answer: The confusion comes from ambiguity in popular belief -- that businesses are required to accept x_y_x as payment. In reality, a business can state the terms of a transaction to their pleasure. On the other hand, debt is different -- no lender can refuse cash or other legal tender for repayment of debt. Sometimes, people try to split hairs and argue "Well, if I eat a steak and I owe the restaurant $100, they should have to accept my $100 as tender for the debt of my meal." Not true. The restaurant isn't giving you a line of credit, they're billing you after services rendered, and your payment is due on their terms. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What forms of payment am I compelled to accept? ### Answer: I think cash, travelers checks (little iffy about this one: they're legal tender cash equivalents), and money orders are the only ones that you'd be a little weird to not accept. You certainly don't have to accept regular checks, credit cards, or barter. In the end though, you don't HAVE to accept anything. Accept only small bills, accept only checks from certain banks, accept only the diners card. Your sale, your rules. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What forms of payment am I compelled to accept? ### Answer: I just listened to a podcast on this topic this week, and Satanicpuppy is pretty much correct. If you are interested, here is a link to the podcast on Legal Lad: Can Businesses Refuse to Accept Cash? ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What forms of payment am I compelled to accept? ### Answer: When you're selling something through a provider, like Craig's List or newspapers, the only thing that may limit your choices is the provider. They may refuse your post if it's against their rules or the law. But luckily they usually don't limit or enforce certain payment choices. These private business providers have the right to do so if they want. You don't need to be their customer. They may state their terms for using the service and even refuse service (before any payment is made). The fun part is that you may do so as well. Just remember to state your terms in your post so the prospective buyers are aware of them. I've found it best to put payment and delivery terms in separate lines so that they are easily noticeable, for example: Nice victorian handbasket with gold embroidery, only used once. Signed by the original author. Comes with a certificate of authenticity. No delivery, only cash payments. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a tax deduction for renting office space in service of employer? ### Answer: I disagree with BrenBran, I don't think this is qualified as unreimbursed employee expense. For it to qualify, it has to be ordinary and necessary, and specifically - necessary for your employer. This is not the case for you, as there's no such necessity. From employer's perspective, you can work from your home just as well. In fact, the expense is your personal, as it is your choice, not "unreimbursed employee expense" since your employer didn't even ask you to do it. You should clarify this with a licensed tax adviser (EA/CPA licensed in New York). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a tax deduction for renting office space in service of employer? ### Answer: According to this post on TurboTax forums, you could deduct it as an "Unreimbursed Employee" expense. This would seem consistent with the IRS Guidelines on such deductions: An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary. Office rent is not listed explicitly among the examples of deductible unreimbursed employee expenses, but this doesn't mean it's not allowed. Of course you should check with a tax professional if you want to be sure. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is there a tax deduction for renting office space in service of employer? ### Answer: If you are a telecommuter and in good terms with your employer, then all you need is contact your employer and explain your situation. Ask them for a short letter that indicates: "1. they require you to work from a privately rented office (or from a home office for those who prefer working from home), 2. this is one of the terms of your employment, and, 3. they will not reimburse you for this expense." With this letter in your hand, you satisify both the "convenience of employer" test AND the deduction of the rent for your private office as a unreimbursed employee expense. The IRS cannot expect your employer to open an office branch in your city just for your sake, nor can they expect you to commute to your employer's city for work, which is an impossiblity considering the distance. Additionally, the IRS cannot "force" telecommuters to work from home. The key is to get a letter from your employer. You'd be surprised how easily they are willing to write such letter for you. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Taxes paid in USA for sending money to parents in India ### Answer: I'm not certain about international transfers, but that amount is large enough that it could be subject to gift tax. https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes Note that the threshold for this tax is "per person, per person". For example, if you gave your father $12,5k, and gave your mother $12.5k, and your wife gave them each the same amounts, each of those gifts is small enough to be within the $14,000 exclusion and you and your wife would owe no gift tax. If you aren't married, you might want to spread this gift over two years to stay under that threshold. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens if a purchase is $0.02 in Canada? ### Answer: As someone who works for a company that deploys POS systems in Canada, I can tell you that your best bet would be to have a configuration option that lets the client decide what to do. If they have a business practice that would allow for a sale total to be $0.01 or $0.02, they should first evaluate their business practice. If you're building a POS system to deploy in Canada, I'm sure you have access to resources (potential clients) who would already know how they would want to handle this. Ask them. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What happens if a purchase is $0.02 in Canada? ### Answer: The rounding should always follow the same rule. If the value ends in .01 or .02 then you round to .00. Doesn't matter if it's 10.01 rounding to 10.00 or 0.01 to 0.00. The decision on what a company wants to do if an invoice total is $0.01 or $0.02 would be up to the company. The POS system should follow the rule and round to $0.00 if the method of payment is cash, but the company has the right to not give things away for free. They can impose a minimum cash invoice amount of $0.05. But you would do this by requiring the customer to add more items to their purchase. You couldn't just round the invoice up to $0.05 and to charge them $0.05 for a $0.01 item It would be similar to companies having a minimum purchase amount when paying by credit card. If their minimum amount is $10.00 and you want to buy something that's $5.00, you either pay cash or add something to your order. They don't just charge you $10.00 for your $5.00 item. I think this would be a extreme edge case where you have an invoice with a total of $0.01 or $0.02, without any discounts, partial payments, etc. If the customer's total was $10.01 and they paid with a $10.00 gift card, the final amount owing of $0.01 would round down to $0.00 and they wouldn't owe any more. If they had paid cash, the total would have rounded to $10.00 anyway. Similarly, if the customer returned an item and bought a new item, or used coupons, and the total owing was $0.01 or $0.02, then you would round down to $0.00 and they wouldn't pay anything. As BobbyScon said, you can implement some options to allow the company to decide how they want to handle this. You could have an option that doesn't allow a sale to be processed if the total amount is less than $0.03 and the sale doesn't include any discounts, returned items, coupons, etc. The option could be to completely block the sale, require a supervisor override, or just display a warning to the cashier. Best bet is to talk to as many of your current or potential clients as you can to see how they would like this edge case handled. For many, it's probably a mute case since they wouldn't have items that have a unit price less than $0.03. Maybe a place like a hardware store that sells individual nuts, bolts, and washers. ###end

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