Large IRA and IRD: Income In Respect of a Decedent
by: Rocco Beatrice
Jumbo IRAs, large 401Ks, and other qualified pension money are subject to
a double tax up to 80% if the owner of the large IRA dies with an estate
tax problem.
IRD: "Income in Respect of a Decedent" Internal Revenue Code Sec. 691(c)
refers to those amounts to which a decedent was entitled to receive as
gross income, but which were not properly includable in computing the
decedent's taxable income for the taxable year ending with the date of
the decedent's death or for a previous taxable year under the method of
accounting employed by the decedent.
Rev. Rul. 92-47 holds that a distribution to the beneficiary of a
decedent's IRA is IRD ("Income in Respect of a Decedent") under Sec. 691.
The amount of the IRA distribution is included in the gross income of the
beneficiary for the tax year when it is received. However, Sec. 642(c)(2)
provides that an estate or a trust shall be allowed a deduction for any
amount that is permanently set aside for charitable purposes.
Reg. 1.691(a)-1(b). IRD assets are those in which there is either untaxed
ordinary income or a deferral of capital gain. When the beneficiary
receives the asset, the beneficiary is subject to taxation on the asset,
just as the original owner would have been subject to such taxation if he
or she had recognized the income or gain.
A decedent's gross estate includes the value at the time of decedent's
death of "all property, real or personal, tangible or intangible,
wherever situated." See IRS Code Sec. 2031(a). A decedent's estate may
include stocks and securities, real estate, business interests, personal
effects, annuities, trusts, 401Ks, IRAs, and other qualified plans. Each
of these items is subject to a valuation determination as set forth in
IRS Reg.20.2031-1.
When IRA is Subject to Double Taxation
If you are over the age of 60+ and you have assets subject to an estate
tax, your IRA is guaranteed to be subject to a double taxation (75% or
more) under IRS Code Sec. 961(c).
Example: If you have a $5million estate and a $1million IRA (Jumbo IRA /
Large IRA), because of IRD "Income in Respect of a Decedent" your heirs
will only get $250,000. The government has written itself in for a
guaranteed $750,000 because you voluntarily did not mitigate this
double-tax penalty.
Large IRA (Jumbo IRA) $1,000,000
Estate Tax*: ($500,000)
Income Taxes (state** and federal*): ($250,000)
Total Taxes on Large IRA*: ($750,000) (i.e. 75% or total)
Total IRA distributed to your loved ones, the beneficiaries: $250,000
(i.e. 25% of total)
* For illustration purposes only. Japan has a higher rate of 70%, Germany
takes a maximum of 40%, while Australia and Canada, take nothing.
** Taxes on inherited wealth are a traditional and common revenue source
for states. Some 16 states collect approximately $4.5 billion per year
from these taxes. Illinois, Maine, Maryland, Massachusetts, Minnesota,
New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, the
District of Columbia, Connecticut, Kansas, Oklahoma, and Washington. The
estate tax in Wisconsin expired effective July 2007 and in Kansas and
Oklahoma will expire effective 2010.
Simply stated, IRD is income a decedent earned and was entitled to
receive but never actually received before his or her death. An example
would be a paycheck for wages not paid until after death. The paycheck
would be included in his estate for estate tax purposes and is taxed to
whoever received the check.
IRAs, 401Ks, and other qualified retirement plans are considered to be
IRD property when received by a beneficiary. Other IRD assets are: Unpaid
bonuses, unpaid interest, dividends, fees, commissions, installment
notes, rents, sale proceeds on sales before death.
Tax Planning IRA
Tax planning for large IRAs, Jumbo IRAs, 401Ks, and other qualified large
pension assets can pose a number of complex problems, resulting mostly
from the interplay of several distinct set of tax rules. On the death of
the IRA owner, the IRA and other qualified plans, face a potential double
tax hit. First, the fair cash value of the asset is includable in the
taxable estate for estate tax purposes up to 55% plus applicable state
taxes on the same amount (State estate taxes and federal estate taxes are
two separate taxes). Second, payments from the IRA to other beneficiaries
are subject to the income tax, based on the theory that no income taxes
were paid during the life of the original IRA owner.
Further complicating large IRA planning is made more difficult by the
some time complex rules on mandatory "Required Minimum Distributions"
(RMDs) applicable to IRAs imposing a 50% penalty tax on amounts that
should have been distributed.
Required Minimum Distributions (RMDs) generally are minimum amounts that
the IRA owner must withdraw annually, starting with the year that he or
she reaches 70 1/2 years of age or, if later, the year in which he or she
retires.
IRA Rescue Planning
IRA rescue planning is a term used to take positive action to eliminate
the estate tax and to mitigate the income tax consequences of a double
tax on large IRAs, 401Ks, and other qualified pension plans. Because of
the devastating tax consequences, the first objective is to create a
scenario to pass more wealth to heirs.
Stretch IRA Beneficiary – Avoiding Income Taxes on IRA
One solution that works, if you do NOT have an estate tax problem, is the
Stretch IRA. As the name implies "stretch" the designated beneficiary is
someone other than the owner, such as your child or grandchild.
Distributions are "stretched" over the life expectancy of the child
(instead of the IRA owner). Essentially this is to avoid the "lump-sum"
payment of income taxes on the IRA, by stretching distributions over the
life of the child or grandchild.
As stated, IRA rescue is much more important if you have an estate tax
problem. Stretch IRAs do NOT work for those that have an estate tax
problem. If you pass an IRA to a child/beneficiary through a Stretch IRA,
your estate will have to deal with the 55% estate tax, which is due when
passing that asset to their heirs. Where is the child going to get funds
to pay the 55% tax? Why the IRA of course. The problem is that the
beneficiary will have to pay income taxes upon taking the money out of
the IRA to pay the estate taxes; and if the beneficiary is under the age
of 59 1/2, a 10% penalty will be levied upon the withdrawal from the IRA.
It's a vicious cycle.
This statement is required by IRS regulations (31 CFR Part 10, §10.35):
Circular 230 disclaimer: To ensure compliance with requirements imposed
by the IRS, we inform you that any U.S. federal tax advice contained in
this communication (including any attachments) is not intended or written
to be used, and cannot be used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting, marketing or
recommending to another party any transaction or matter addressed herein.
About The Author
Best IRA Rescue provides services on your IRA investments and traditional
IRA and will help you reduce your inherited and beneficiary independent
retirement account taxes in your estate assets. Roth on ROIDS is your
advanced Roth IRA retirement planning strategy and one of the best IRA
tax-savings strategies with benefits of a guaranteed death benefit,
guaranteed principal, tax-free growth, and tax-free distributions from
policy loans.
Contact us if you have any questions on your IRA retirement planning.
http://roth-ira.bestirarescue.com/roth-ira-contribution-limits.html
Original article:
http://bestirarescue.com/large-ira-income-respect-decedent.html
Boston, MA: 71 Commercial Street #150 Boston, MA 02109
California: 543 Victoria Ste. J, Costa Mesa, CA 92627
toll-free: 888-93ULTRA (888-938-5872)
tel: (508) 429-0011
fax: (508) 429-3034
Visit the author's web site at:
http://bestirarescue.com
Sunday, June 7, 2009
Saturday, June 6, 2009
Knowing How Mortgages Work Will Make House Hunting Easier
Knowing How Mortgages Work Will Make House Hunting Easier
by: Stefan Hyross
Most individuals do not have the money to pay for a home in cash so they
need to deal with a lender to finalize the deal. While most lenders do
try to get you the loan amount you need you should bear in mind that to
them it is just business. And while they may be friendly but at the end
of the day they are watching out for what is best for them from a profit
stand point.
Determining whether or not you will be able to repay the loan is critical
in the bank's decision since they make their profits by charging interest
on the mortgage amount. By examining your past credit history a bank can
make a decision on how likely it is that you can repay the mortgage
amount. The lending institution is attempting to make a prediction on the
future by researching the past just like a historian would but your
present situation with be taken into account.
In an attempt to learn about your past lenders examine your credit
history. Part of your credit history are items such as how many loans you
have taken out in the past and the size of those loans. They will also be
researching your repayment history on those loans. Were you behind on
payments and how many times, was the loan repaid in full and do you have
any money owing on any loans?. All of these will be added together to
arrive at your credit score. The chances of you qualifying for the loan
are mostly based on this score.
The existence of credit scores are something that most people know about
but there are other things that lenders can decide to look at it that are
not so common. As an example they can look at other financial products
you have to see how much profit a bank made from them. They can also
discover if you have had any legal judgements against you which could
adversely affect your ability to repay the loan amount.
The property you are looking to purchase is also a big part of the
equation. The appraised value of a home will be compared to other factors
and evaluated. First a lender will want to know how much you will be
putting as a down-payment since most lenders will not loan you more than
75% of its value. Buyers may be able to acquire mortgage insurance that
shields the bank in the case of default and allows them to loan at higher
percentage of a property's value. A case in point is if you live in
Ontario and want to purchase a piece of Burlington real estate but you
did not have 25% of the purchase price as a down-payment you may still
qualify for a Burlington mortgage as long as you can get mortgage
insurance through institutions such as the Canadian Mortgage and Housing
Corporation. As well the purchase price of the property will be reviewed.
If it is substantially higher than the appraised value they may decide
that the risk is too high and deny the loan.
In order to increase the success of your house hunting it is important to
understand just how lending applications work. Mortgage lenders are in it
to make money but that does not mean that they are not willing to work
with you. Everything can be negotiated and at the end of the day if you
get the mortgage you need and they can make some money it is win win for
everyone.
About The Author
Stefan Hyross writes on behalf of Diane Salman who specializes in the
Burlington real estate market. Feel free to visit the site to search for
property or for information on how to qualify for a Burlington mortgage.
Visit the author's web site at:
http://www.homesbydianesalman.com
by: Stefan Hyross
Most individuals do not have the money to pay for a home in cash so they
need to deal with a lender to finalize the deal. While most lenders do
try to get you the loan amount you need you should bear in mind that to
them it is just business. And while they may be friendly but at the end
of the day they are watching out for what is best for them from a profit
stand point.
Determining whether or not you will be able to repay the loan is critical
in the bank's decision since they make their profits by charging interest
on the mortgage amount. By examining your past credit history a bank can
make a decision on how likely it is that you can repay the mortgage
amount. The lending institution is attempting to make a prediction on the
future by researching the past just like a historian would but your
present situation with be taken into account.
In an attempt to learn about your past lenders examine your credit
history. Part of your credit history are items such as how many loans you
have taken out in the past and the size of those loans. They will also be
researching your repayment history on those loans. Were you behind on
payments and how many times, was the loan repaid in full and do you have
any money owing on any loans?. All of these will be added together to
arrive at your credit score. The chances of you qualifying for the loan
are mostly based on this score.
The existence of credit scores are something that most people know about
but there are other things that lenders can decide to look at it that are
not so common. As an example they can look at other financial products
you have to see how much profit a bank made from them. They can also
discover if you have had any legal judgements against you which could
adversely affect your ability to repay the loan amount.
The property you are looking to purchase is also a big part of the
equation. The appraised value of a home will be compared to other factors
and evaluated. First a lender will want to know how much you will be
putting as a down-payment since most lenders will not loan you more than
75% of its value. Buyers may be able to acquire mortgage insurance that
shields the bank in the case of default and allows them to loan at higher
percentage of a property's value. A case in point is if you live in
Ontario and want to purchase a piece of Burlington real estate but you
did not have 25% of the purchase price as a down-payment you may still
qualify for a Burlington mortgage as long as you can get mortgage
insurance through institutions such as the Canadian Mortgage and Housing
Corporation. As well the purchase price of the property will be reviewed.
If it is substantially higher than the appraised value they may decide
that the risk is too high and deny the loan.
In order to increase the success of your house hunting it is important to
understand just how lending applications work. Mortgage lenders are in it
to make money but that does not mean that they are not willing to work
with you. Everything can be negotiated and at the end of the day if you
get the mortgage you need and they can make some money it is win win for
everyone.
About The Author
Stefan Hyross writes on behalf of Diane Salman who specializes in the
Burlington real estate market. Feel free to visit the site to search for
property or for information on how to qualify for a Burlington mortgage.
Visit the author's web site at:
http://www.homesbydianesalman.com
Friday, June 5, 2009
How To Make Successful Applications Online For Credit
How To Make Successful Applications Online For Credit
by: Terry Glass
Applying for credt is overwhelming and frustrating nowadays by having to
get all your paper work in order such as credit broker statements,
debtors statements and lots of other paperwork you never knew you had.
Then you make your appointment to see the customer service officer at
your local bank.
You sit down and complete your application for credit and after some time
you will either be told your successful, your application has been
declined or you need more information. This can be frustrating especially
when you need to go home and bring back even more documentation that you
forgot to bring with you.
There is a faster way, a much easier and less stressful way. Apply online
for your next application for credit. By using the internet you can
search for banks and view their website where you can source a lot of
information.
Credit brokers now use the internet to promote their lines. All the
information that you will need will be on the website where you can
compare each financial institution requirements, terms and conditions.
There is a wealth of information including the interest rate, repayment
schedules, fees and often have a loan calculator.
Using the online loan calculator is where you submit your earnings, your
cost of living and other repayments you might have and the calculator
will return a value as to the amount of credit you are eligible to
borrow. By writing down this information from each bank you can then
decide the best deal and one that meets your requirements.
By having this information in front of you, then you will be in a
position to make an informed decision as to which credit broker you will
make application to.
If you are in the situation where you have a poor credit history and your
looking for online credt you will find that most financial institutions
will meet your needs but there might be extra requirements, such as
annual fees.
Completing a online credit application enables you to easily type in the
information needed right from the comfort of your own work station. If
there is a question that needs some research on your part, then you
simply go and get it.
As you complete the financial credit application you will be able to
gather the documents you referred to and keep them in the one pile. By
reading through your documentation as you complete the credit online
application you will know all of the documents you have.
Generally you will find when completing the credit online application
there will be a checklist that the lender will require to assess whether
your loan will be accepted or rejected.
Submit your financial credit application and you can scan or facsimile
all of your documents directly to the lender or the following day put it
all in an envelope to them.
When your looking for a money lender, credt card or just simply credit
then your first stop should always be the internet where you can source
lenders websites for all the information you will need to make an
informed decision.
For more information see online credt applications for all of your
personal finance and credit card needs.
For more information see
http://secretwitter.com/credt/how-to-get-a-loan-with-bad-credit/
credt applications online for all of your personal finance and credit
card needs or visit our site http://secretwitter.com/credt/ To make an application for credit online
to a bank or financial institution you only need to know the requirements
of the lender and compare each lenders products to make an informed
decision.
About The Author
Terry Glass has been a financial counsellor for many years and has seen
the need to reach a wider audience. The website http://secretwitter.com/credt/ was born to help those to make successful online credt applications and to take away the hassle.
by: Terry Glass
Applying for credt is overwhelming and frustrating nowadays by having to
get all your paper work in order such as credit broker statements,
debtors statements and lots of other paperwork you never knew you had.
Then you make your appointment to see the customer service officer at
your local bank.
You sit down and complete your application for credit and after some time
you will either be told your successful, your application has been
declined or you need more information. This can be frustrating especially
when you need to go home and bring back even more documentation that you
forgot to bring with you.
There is a faster way, a much easier and less stressful way. Apply online
for your next application for credit. By using the internet you can
search for banks and view their website where you can source a lot of
information.
Credit brokers now use the internet to promote their lines. All the
information that you will need will be on the website where you can
compare each financial institution requirements, terms and conditions.
There is a wealth of information including the interest rate, repayment
schedules, fees and often have a loan calculator.
Using the online loan calculator is where you submit your earnings, your
cost of living and other repayments you might have and the calculator
will return a value as to the amount of credit you are eligible to
borrow. By writing down this information from each bank you can then
decide the best deal and one that meets your requirements.
By having this information in front of you, then you will be in a
position to make an informed decision as to which credit broker you will
make application to.
If you are in the situation where you have a poor credit history and your
looking for online credt you will find that most financial institutions
will meet your needs but there might be extra requirements, such as
annual fees.
Completing a online credit application enables you to easily type in the
information needed right from the comfort of your own work station. If
there is a question that needs some research on your part, then you
simply go and get it.
As you complete the financial credit application you will be able to
gather the documents you referred to and keep them in the one pile. By
reading through your documentation as you complete the credit online
application you will know all of the documents you have.
Generally you will find when completing the credit online application
there will be a checklist that the lender will require to assess whether
your loan will be accepted or rejected.
Submit your financial credit application and you can scan or facsimile
all of your documents directly to the lender or the following day put it
all in an envelope to them.
When your looking for a money lender, credt card or just simply credit
then your first stop should always be the internet where you can source
lenders websites for all the information you will need to make an
informed decision.
For more information see online credt applications for all of your
personal finance and credit card needs.
For more information see
http://secretwitter.com/credt/how-to-get-a-loan-with-bad-credit/
credt applications online for all of your personal finance and credit
card needs or visit our site http://secretwitter.com/credt/ To make an application for credit online
to a bank or financial institution you only need to know the requirements
of the lender and compare each lenders products to make an informed
decision.
About The Author
Terry Glass has been a financial counsellor for many years and has seen
the need to reach a wider audience. The website http://secretwitter.com/credt/ was born to help those to make successful online credt applications and to take away the hassle.
Thursday, June 4, 2009
Installment Loans: For Your Ease Of Mind
Installment Loans: For Your Ease Of Mind
by: Tristan Todd
Installment loans are designed to assist people when unexpected financial
emergencies occur. They are a fast, easy and hassle free way to get money
to cover all your unexpected financial expenses. They are the excellent
way out of all you financial problems. Installment loans are a means of
borrowing short term short which is to be paid in installments. Once you
receive your paycheck, the loan amounts are deducted in installments
until the whole amount is paid off. The payments are the same through out
the repayment duration. This means your budgeting won’t be affected by
the loan repayments. This is because the predictable payments and a
definite date of repayment will always put your mind at ease. Most
lenders who offers this loan deal will definitely work with your monthly
pay schedule, making the loan’s due date the same as your payday. They
will offer automatic withdraws and notify your of your upcoming due dates
and online account on which you can access your loan account.
The main advantages of taking these loans is their ease of access. All a
borrower does is to log on to the lenders website and apply for the
required amounts online and if you meet their basic condition the loan
amounts are instantly transferred into your checking account. The whole
process, which is the application, verifying, approval of the loan, is
done online. Most lenders are courteous and will assist you if encounter
a problem on the application procedure. This type of loans do not involve
any paper work or the physical visitation of the lenders office. The
lenders also provides a convenient and affordable repayment options by
which the borrower is fully satisfied with. In fact the repayment options
can be extended to suit your schedule. There is no fee for early pay offs
which makes these loans very popular especially with the employed people.
When you are in need of some fast money to fulfill your financial
obligations, the best place to search is the net. Online lenders offers a
convenient, fast and hassle free loan application procedure by which you
fill in a simple loan application form. Once the information you filled
in is verified and deemed as true, the loan amounts are automatically
transferred into your account. Before you filled in the loan application
form, it good to read the terms and conditions form the loan approval
very careful and make sure you understand them. Before the loan can be
availed to you, you must be over 18 years of age, have a valid and active
checking account and have a permanent residential address on which you
have reside in for the last one year. The checking account must be over 3
months old and your monthly salary must not be less than $1000. The
checking account is necessary for the loan amounts depositing. If you
fulfill all the lenders requirements, the loan amount is directly
deposited on your checking account the same day you applied or even
within a few hours time. The repayment duration is usually 5 to 15 days
after you have been availed with your loan amount. The only demerit about
the installment loans is their higher rate of interest and other charges.
Otherwise, the money is availed to within one banking day or hours after
your application have been approved.
About The Author
Tristan Todd is author of installment loans. If you have any query
regarding Installment no check loans visit http://www.installmentloans.org.uk
by: Tristan Todd
Installment loans are designed to assist people when unexpected financial
emergencies occur. They are a fast, easy and hassle free way to get money
to cover all your unexpected financial expenses. They are the excellent
way out of all you financial problems. Installment loans are a means of
borrowing short term short which is to be paid in installments. Once you
receive your paycheck, the loan amounts are deducted in installments
until the whole amount is paid off. The payments are the same through out
the repayment duration. This means your budgeting won’t be affected by
the loan repayments. This is because the predictable payments and a
definite date of repayment will always put your mind at ease. Most
lenders who offers this loan deal will definitely work with your monthly
pay schedule, making the loan’s due date the same as your payday. They
will offer automatic withdraws and notify your of your upcoming due dates
and online account on which you can access your loan account.
The main advantages of taking these loans is their ease of access. All a
borrower does is to log on to the lenders website and apply for the
required amounts online and if you meet their basic condition the loan
amounts are instantly transferred into your checking account. The whole
process, which is the application, verifying, approval of the loan, is
done online. Most lenders are courteous and will assist you if encounter
a problem on the application procedure. This type of loans do not involve
any paper work or the physical visitation of the lenders office. The
lenders also provides a convenient and affordable repayment options by
which the borrower is fully satisfied with. In fact the repayment options
can be extended to suit your schedule. There is no fee for early pay offs
which makes these loans very popular especially with the employed people.
When you are in need of some fast money to fulfill your financial
obligations, the best place to search is the net. Online lenders offers a
convenient, fast and hassle free loan application procedure by which you
fill in a simple loan application form. Once the information you filled
in is verified and deemed as true, the loan amounts are automatically
transferred into your account. Before you filled in the loan application
form, it good to read the terms and conditions form the loan approval
very careful and make sure you understand them. Before the loan can be
availed to you, you must be over 18 years of age, have a valid and active
checking account and have a permanent residential address on which you
have reside in for the last one year. The checking account must be over 3
months old and your monthly salary must not be less than $1000. The
checking account is necessary for the loan amounts depositing. If you
fulfill all the lenders requirements, the loan amount is directly
deposited on your checking account the same day you applied or even
within a few hours time. The repayment duration is usually 5 to 15 days
after you have been availed with your loan amount. The only demerit about
the installment loans is their higher rate of interest and other charges.
Otherwise, the money is availed to within one banking day or hours after
your application have been approved.
About The Author
Tristan Todd is author of installment loans. If you have any query
regarding Installment no check loans visit http://www.installmentloans.org.uk
Wednesday, June 3, 2009
How to Keep Your Financial Records Organized
How to Keep Your Financial Records Organized
by: Linda Siniscal
People just have too much paper to deal with – even though computers were
to help us in that area – it just has not happened for most of us. I am
going to offer you some quick tips to help you in keeping your financial
records and receipts organized throughout the year.
1. Monthly Transactions. I have found that this system works well for
many small business owners. Create a file folder January through
December. Keep two months on your desk (January – February; April – May)
in an area that is easy to get to – colored file folders really help too.
When you make an online purchase, print out the receipt and place it in
the file folder marked for that particular month. The same holds true for
those toll receipts or the lunch you purchased when you met a potential
client. When your credit card statement comes in, and after you have paid
the bill, place the statement along with your month-end bank statement in
the file folder. Now you can either send the file to your bookkeeper or
if you are the designated bookkeeper, once you have reconciled your
accounts file the completed month away in your file cabinet.
2. Client Invoices. When a client invoice is prepared, print out an extra
copy and file it in an invoice file marked for that particular year. At
the end of the year you will have a record of all the income you have
billed. In case of a computer hard drive crash, at least you will have a
record for tax purposes.
3. Mileage Log. You can easily create a mileage log in Excel to track
your trips to client meetings, running to your local office supply store
to purchase the ink cartridge that just ran out or perhaps the run to the
post office for postage or mailing of the proposal to a new client. We
also can’t forget about the networking events that you are attending as
part of your stepped up marketing plan. The spreadsheet should have a
column for date, odometer start/end, total miles, and description.
4. Out of Pocket Expenses. For those cash outlays we do throughout the
year – the coffee at the airport, the tolls paid to a meeting, or the
quick lunch at a seminar, keep these receipts in a colored envelope
marked with the year and keep track of the expense in an Excel
spreadsheet. You can then total either monthly or quarterly and reimburse
yourself for those expenses. Please be sure to hand off the receipts and
the spreadsheet to your accountant at year-end.
5. Tax File. Create a tax file folder at the beginning of each new year.
Throughout the year, place any tax related expense in that file such as
medical receipts, prescriptions, monthly or quarterly investment
statements, property tax bills, and year-end bank interest statements. At
the end of the year when you are gathering paperwork for your accountant,
most of the information will already be there for your accountant and you
won’t be wondering where you placed the tax refund notice you received in
April.
6. Bank Statements. For those that do not receive monthly bank statements
in the mail, I suggest you create a file folder for bank statements on
your computer. Each month, download the file from your banks website and
save in this folder. You can set up the folder as a password protected
file if you have other people using your computer. At the end of the
year, burn all the monthly statements onto a CD and store with your
income taxes for that year. Most banks only hold 18 months of statements,
some only 12 months on their server. The IRS requires you to hold 7 years
of bank statements in case of audit. Once the CD is created, you can then
delete the files from your computer and create a new folder for the new
year.
I hope you find these tips helpful and soon will not feel so overwhelmed
at the beginning of the new year trying to get all your files in order
for tax preparation. If you are interested in receiving a Record
Retention Schedule that the IRS recommends for businesses, please email
me at linda@yourextrahand.com (Link: mailto:linda@yourextrahand.com) and
I will be happy to forward it along to you.
Happy organizing!
About The Author
Linda Siniscal is the owner of Third Hand Secretarial Service LLC which
she started in 1994. THSS is a virtual assistance company that assists
small business owners with their administrative and bookkeeping tasks
allowing her clients more time to focus and grow their business. THSS is
an “extra hand when you need one.” She served on the International
Virtual Assistants Association (ivvaa.org) Board of Directors for the
term 2005-2008. You can email Linda at yourextrahand@gmail.com or call 732-899-0810 – http://www.yourextrahand.com
by: Linda Siniscal
People just have too much paper to deal with – even though computers were
to help us in that area – it just has not happened for most of us. I am
going to offer you some quick tips to help you in keeping your financial
records and receipts organized throughout the year.
1. Monthly Transactions. I have found that this system works well for
many small business owners. Create a file folder January through
December. Keep two months on your desk (January – February; April – May)
in an area that is easy to get to – colored file folders really help too.
When you make an online purchase, print out the receipt and place it in
the file folder marked for that particular month. The same holds true for
those toll receipts or the lunch you purchased when you met a potential
client. When your credit card statement comes in, and after you have paid
the bill, place the statement along with your month-end bank statement in
the file folder. Now you can either send the file to your bookkeeper or
if you are the designated bookkeeper, once you have reconciled your
accounts file the completed month away in your file cabinet.
2. Client Invoices. When a client invoice is prepared, print out an extra
copy and file it in an invoice file marked for that particular year. At
the end of the year you will have a record of all the income you have
billed. In case of a computer hard drive crash, at least you will have a
record for tax purposes.
3. Mileage Log. You can easily create a mileage log in Excel to track
your trips to client meetings, running to your local office supply store
to purchase the ink cartridge that just ran out or perhaps the run to the
post office for postage or mailing of the proposal to a new client. We
also can’t forget about the networking events that you are attending as
part of your stepped up marketing plan. The spreadsheet should have a
column for date, odometer start/end, total miles, and description.
4. Out of Pocket Expenses. For those cash outlays we do throughout the
year – the coffee at the airport, the tolls paid to a meeting, or the
quick lunch at a seminar, keep these receipts in a colored envelope
marked with the year and keep track of the expense in an Excel
spreadsheet. You can then total either monthly or quarterly and reimburse
yourself for those expenses. Please be sure to hand off the receipts and
the spreadsheet to your accountant at year-end.
5. Tax File. Create a tax file folder at the beginning of each new year.
Throughout the year, place any tax related expense in that file such as
medical receipts, prescriptions, monthly or quarterly investment
statements, property tax bills, and year-end bank interest statements. At
the end of the year when you are gathering paperwork for your accountant,
most of the information will already be there for your accountant and you
won’t be wondering where you placed the tax refund notice you received in
April.
6. Bank Statements. For those that do not receive monthly bank statements
in the mail, I suggest you create a file folder for bank statements on
your computer. Each month, download the file from your banks website and
save in this folder. You can set up the folder as a password protected
file if you have other people using your computer. At the end of the
year, burn all the monthly statements onto a CD and store with your
income taxes for that year. Most banks only hold 18 months of statements,
some only 12 months on their server. The IRS requires you to hold 7 years
of bank statements in case of audit. Once the CD is created, you can then
delete the files from your computer and create a new folder for the new
year.
I hope you find these tips helpful and soon will not feel so overwhelmed
at the beginning of the new year trying to get all your files in order
for tax preparation. If you are interested in receiving a Record
Retention Schedule that the IRS recommends for businesses, please email
me at linda@yourextrahand.com (Link: mailto:linda@yourextrahand.com) and
I will be happy to forward it along to you.
Happy organizing!
About The Author
Linda Siniscal is the owner of Third Hand Secretarial Service LLC which
she started in 1994. THSS is a virtual assistance company that assists
small business owners with their administrative and bookkeeping tasks
allowing her clients more time to focus and grow their business. THSS is
an “extra hand when you need one.” She served on the International
Virtual Assistants Association (ivvaa.org) Board of Directors for the
term 2005-2008. You can email Linda at yourextrahand@gmail.com or call 732-899-0810 – http://www.yourextrahand.com
Tuesday, June 2, 2009
How Bartering Can Get You Everything You Want in Life
How Bartering Can Get You Everything You Want in Life
by: Bernz Jayma P.
What if you desperately needed something done in your life, maybe you
needed to fix your car or your home, but you have absolutely no money to
do it? What would you do? Well, simply take a tip from the millions of
people all over the world who've been in the same boat as you and simply
barter for what you need.
The concept of bartering can trace its history back to the earliest
records of man. If you had something that somebody else wanted and in
turn they had something you wanted you would simply trade. The system of
bartering is extremely efficient and that requires no paperwork or wages
to be earned but instead, is simply a gentleman's agreement that will
satisfy two parties at the same time.
If you posses a particular skill or trade, then chances are you can find
somebody to barter with. Hundreds of barter clubs have been formed all
over the world and are popping up all the time. These clubs feature its
members and the skills they possess and allow them the ability to
communicate with each other to create specific barter relationships. Some
people will do your taxes for free if you let them stay in your vacation
home. Others will give you an old family car if you will paint their
house. The types of barter arrangements are basically endless.
Now, thanks to the Internet, the system of bartering has brought people
even closer together. Because there are some products and services that
folks can provide electronically, someone in the United States can barter
with somebody in Russia; this is something that was generally never
possible before the advent of the Internet. One way to get involved in
these online barter clubs is to simply begin making a list of all the
skills and services that you can provide to someone. In addition, try to
put a specific value on those services to help better gauge what your
barter will be worth. Once you enter your information online you can
search for all the types of barter arrangements being advertised. If you
find someone looking for your particular skill and they're offering
something that you could use, then make the barter and reap the rewards.
So remember, the next time your cash is low but your needs are high,
bartering may just be your solution to getting exactly what you need.
About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com
by: Bernz Jayma P.
What if you desperately needed something done in your life, maybe you
needed to fix your car or your home, but you have absolutely no money to
do it? What would you do? Well, simply take a tip from the millions of
people all over the world who've been in the same boat as you and simply
barter for what you need.
The concept of bartering can trace its history back to the earliest
records of man. If you had something that somebody else wanted and in
turn they had something you wanted you would simply trade. The system of
bartering is extremely efficient and that requires no paperwork or wages
to be earned but instead, is simply a gentleman's agreement that will
satisfy two parties at the same time.
If you posses a particular skill or trade, then chances are you can find
somebody to barter with. Hundreds of barter clubs have been formed all
over the world and are popping up all the time. These clubs feature its
members and the skills they possess and allow them the ability to
communicate with each other to create specific barter relationships. Some
people will do your taxes for free if you let them stay in your vacation
home. Others will give you an old family car if you will paint their
house. The types of barter arrangements are basically endless.
Now, thanks to the Internet, the system of bartering has brought people
even closer together. Because there are some products and services that
folks can provide electronically, someone in the United States can barter
with somebody in Russia; this is something that was generally never
possible before the advent of the Internet. One way to get involved in
these online barter clubs is to simply begin making a list of all the
skills and services that you can provide to someone. In addition, try to
put a specific value on those services to help better gauge what your
barter will be worth. Once you enter your information online you can
search for all the types of barter arrangements being advertised. If you
find someone looking for your particular skill and they're offering
something that you could use, then make the barter and reap the rewards.
So remember, the next time your cash is low but your needs are high,
bartering may just be your solution to getting exactly what you need.
About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com
Monday, June 1, 2009
Bad Credit Cards - Offering More than One Way Out
Bad Credit Cards - Offering More than One Way Out
by: Margaret Winfrey
Bad credit cards are those specifically aimed at helping those with poor
credit ratings, or even no credit ratings. Although at the moment the
credit industry is feeling the pinch, there are still credit cards
available for those with poor or bad credit. However, if you consider
that you fall into this category, or have been experiencing difficulty
obtaining a credit card because of your credit file, there are a few
aspects of adverse credit cards that you need to be aware of.
The first is that credit companies offering cards to those people who
have an adverse credit history are taking a greater risk than they might
be with those who have good credit ratings. You might consider this
unfair - perhaps there are mitigating circumstances in your past that
mean that you are being declined for reasons that don't seem entirely
clearer to you.
If this is the case, then you have a certain amount of control, and
whilst the figures in black and white seem to suggest that the offer on
the table is fixed, in many cases you might find that the underwriters
have some control, and if you do have mitigating circumstances and can
prove the case, then although there is no guarantee, you might find that
the rate is reduced slightly. In some cases what might happen is that the
account is monitored and after a period of a few months, as long as the
account has been kept in good order, the rates may be reduced, the limit
raised or some other benefit provided to you.
In some cases this happens automatically, and you might find that if you
open a bad credit card account you will receive notification a few months
later advising you that your credit limit has been raised or the interest
rate lowered. This will provide you with an incentive to keep your
account in good order.
Another major benefit of this relates to your credit file. If this
contains adverse credit information, whether a few missed or late bills
or even court judgements or bankruptcy, then it will be important to
repair this and improve your credit score. If you have successfully
secured a bad credit card you will have the opportunity to take the first
step to achieve this. By making payments regularly, and in full if
possible, with no late or missed payments registered, you can help to
improve your overall score.
By improving your credit score using this credit card you provide the
option in the future for opening a standard card that will almost
certainly have a much lower rate of interest and fewer charges. For many
people, a credit card for those with bad credit is the first rung on the
ladder to recovering or rebuilding a good credit file.
Credit cards for those with bad credit are not guaranteed, and if your
credit file is very poor you might find it difficult or impossible to be
accepted. For most, however, options are available, although they could
take a bit of finding. You should be aware of the fact that if you make
too many applications to firms specializing in bad credit cards this will
reflect on your credit record. Each company to which make an application
will carry out a credit search, and this search will be recorded on your
record, leaving a bad credit search footprint. The more such footprints,
the lower your credit score.
It is often worth getting hold of a copy of your credit file so that you
can see specifically what is on it that could be preventing you from
being able to open a standard credit card. If the information is
inaccurate, this needs reporting and you should be able to have it
removed.
You may also be able to include your own notes on your file which explain
certain entries, giving additional information. If notes exist on an
account then a credit company cannot automate a credit check, and it will
need to be flagged for an underwriter to have a look. This can help you
open a bad credit card that might have a lower rate.
Bad credit cards are of great benefit to those people who have poor
credit, perhaps through circumstances in the past that were beyond their
control. The convenience of being able to pay using a credit card,
particularly over the phone or online, is undisputed, and not having
access to a card can present real problems. However, it is important to
be very aware of not only the increased charges associated with bad
credit cards but also the consequences of not maintaining such a card in
good order.
About The Author
For more information on http://www.mycreditcard.com/credit-cards/credit-cards-for-bad-credit.php, bad credit cards, credit cards for bad credit, and more, go to MyCreditCard.com where you can compare bad credit cards and other credit card offers and applications from major banks and issuers.
by: Margaret Winfrey
Bad credit cards are those specifically aimed at helping those with poor
credit ratings, or even no credit ratings. Although at the moment the
credit industry is feeling the pinch, there are still credit cards
available for those with poor or bad credit. However, if you consider
that you fall into this category, or have been experiencing difficulty
obtaining a credit card because of your credit file, there are a few
aspects of adverse credit cards that you need to be aware of.
The first is that credit companies offering cards to those people who
have an adverse credit history are taking a greater risk than they might
be with those who have good credit ratings. You might consider this
unfair - perhaps there are mitigating circumstances in your past that
mean that you are being declined for reasons that don't seem entirely
clearer to you.
If this is the case, then you have a certain amount of control, and
whilst the figures in black and white seem to suggest that the offer on
the table is fixed, in many cases you might find that the underwriters
have some control, and if you do have mitigating circumstances and can
prove the case, then although there is no guarantee, you might find that
the rate is reduced slightly. In some cases what might happen is that the
account is monitored and after a period of a few months, as long as the
account has been kept in good order, the rates may be reduced, the limit
raised or some other benefit provided to you.
In some cases this happens automatically, and you might find that if you
open a bad credit card account you will receive notification a few months
later advising you that your credit limit has been raised or the interest
rate lowered. This will provide you with an incentive to keep your
account in good order.
Another major benefit of this relates to your credit file. If this
contains adverse credit information, whether a few missed or late bills
or even court judgements or bankruptcy, then it will be important to
repair this and improve your credit score. If you have successfully
secured a bad credit card you will have the opportunity to take the first
step to achieve this. By making payments regularly, and in full if
possible, with no late or missed payments registered, you can help to
improve your overall score.
By improving your credit score using this credit card you provide the
option in the future for opening a standard card that will almost
certainly have a much lower rate of interest and fewer charges. For many
people, a credit card for those with bad credit is the first rung on the
ladder to recovering or rebuilding a good credit file.
Credit cards for those with bad credit are not guaranteed, and if your
credit file is very poor you might find it difficult or impossible to be
accepted. For most, however, options are available, although they could
take a bit of finding. You should be aware of the fact that if you make
too many applications to firms specializing in bad credit cards this will
reflect on your credit record. Each company to which make an application
will carry out a credit search, and this search will be recorded on your
record, leaving a bad credit search footprint. The more such footprints,
the lower your credit score.
It is often worth getting hold of a copy of your credit file so that you
can see specifically what is on it that could be preventing you from
being able to open a standard credit card. If the information is
inaccurate, this needs reporting and you should be able to have it
removed.
You may also be able to include your own notes on your file which explain
certain entries, giving additional information. If notes exist on an
account then a credit company cannot automate a credit check, and it will
need to be flagged for an underwriter to have a look. This can help you
open a bad credit card that might have a lower rate.
Bad credit cards are of great benefit to those people who have poor
credit, perhaps through circumstances in the past that were beyond their
control. The convenience of being able to pay using a credit card,
particularly over the phone or online, is undisputed, and not having
access to a card can present real problems. However, it is important to
be very aware of not only the increased charges associated with bad
credit cards but also the consequences of not maintaining such a card in
good order.
About The Author
For more information on http://www.mycreditcard.com/credit-cards/credit-cards-for-bad-credit.php, bad credit cards, credit cards for bad credit, and more, go to MyCreditCard.com where you can compare bad credit cards and other credit card offers and applications from major banks and issuers.
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