Economics Finance

I am not a CPA or an accountant, so I don’t give out tax advice. However, I have compiled some information in regards to homeowner’s tax consequences for a short sale/ foreclosure event. These are some of the most common questions asked by homeowners.

If a homeowner has taken out a “home equity loan” (or aka, HELOC) loan and has received any cash out (even from a past refinance) to pay off unsecured debts, (i.e. credit cards, car loans, motorcycle or boat loan, etc…), the sum of that money maybe considered a “taxable event” aka mortgage debt forgiveness” by the IRS).

The “debt forgiveness” is calculated by deducting the original purchase price (or acquisition cost) FROM THE “NET LOSS” THE BANK INCURS after the home reverts back to the bank and is sold by their real estate division. Renovation Costs can be added to increase the base value…but in the case of an audit the proof is on the home owner and they must have all receipts. Continue reading ‘IRS Clarifies Shortsale Tax Consequences For Homeowners’ »

If you are a US citizen then you have the right to have an accurate credit report. Any misinformation must be corrected by the consumer reporting company or the company that is providing the information to them.

Consequently, if you see inaccurate information in your credit report, contact the consumer reporting company and tell them you found wrong information in your credit report and you want it corrected.

How do you do this?

You need to completely and clearly state your problem and then show them what is wrong and why you think it is wrong.

To do this you should do the following:

* Tell them in writing. Do not phone them or send them an e-mail.

* Give them your complete name and address Continue reading ‘Steps in Correcting Your Credit Report’ »

If you have decided to prepare a will, you have already minimized much of the potential conflict that can arise between potential heirs. As a person who has written a will, known as a testator, you have control over what happens to your assets after you are gone. People who do not leave a will, on the other hand, leave the fate of their assets undecided, and the responsibility to determine who inherits the assets typically falls to the state. This lack of planning can put considerable stress on family members and may lead to contentious conflict over your estate.

Ensuring That Your Will is Probated

When you decide to write a will, be sure to consult the laws of your state. Each state has different requirements for what constitutes a valid will and not meeting these criteria could prevent your will from being probated later on. An experienced probate lawyer can help to ensure that you take all of the necessary steps to create a valid will. Continue reading ‘Avoiding Conflicts Over Inheritance’ »

The Federal Tax Code was written by our friends in Government. Most of whom are business owners or Married to one. It is no surprise that owning a business and more specifically a home-based business entitles one to certain tax advantages. Being able to deduct a portion of your mortgage, rent and other monthly expenses comes with the territory.

This luxury does come with some headaches. Possibly the most frustrating time for independent distributors in a Network Marketing company is the dreaded tax season. All of a sudden an entire year of little or no planning and spotty record keeping by these work at home professionals can catch up to them. The result is a mountain of stress, paperwork and accountant bills.

A possible solution is personal finance software such as Quicken or Microsoft Money. Experience will prove these do little to lesson the blow. Although useful for small to medium sized business, these programs were not designed for a home-based-businesses. Many home business owners find they are too complex, difficult to learn and filled with many features that are not needed. Continue reading ‘Software For Network Marketers Simplifies Tax Time and Record Keeping’ »

It’s tax time, and most of us are concerned about paying what we owe for this year. After all, taxes can be pretty complicated for the self employed. However, what you should also be thinking about right now is next year’s taxes!

A little bit of planning now can make an enormous difference in how things go in the next tax year for your home business. Let’s look at some of the benefits of doing early planning, how to reduce the amount you’re going to owe, and some commonly forgotten exemptions that could make a difference.

Planning in advance for your tax’s next year gives you control. If you’ve been letting your taxes slide until the last minute – something many people do – it’s probably an unpleasant and overwhelming process. Continue reading ‘Planning Next Year’s Home Business Now’ »