Economics Finance

There are many tax credits available to Texans for First Time Homebuyers. By definition, a first time homebuyer under federal standards is anyone who has not purchased a home before, or who has not been an owner of record on a home for the past three years. Under the federal stimulus package, a homebuyer may be eligible for up to a $8000 tax credit if they close and fund on a purchase as a first time homebuyer by November 30, 2009. This is not a loan- nor does it have to be repaid. There is a formula that must be applied and income does come into play for some higher income individuals which could lower the tax credit. There are no restrictions on what the homebuyer can do with the money, whatsoever. Use the funds to pay down other debt, put into savings, take a vacation, to buy furniture for your new home, or even to use as a down payment.

The State of Texas has just announced a special program where a portion of the $8000 tax credit can be used for a down payment on a purchase by advancing a portion of the tax credit at time of closing. There are some fees payable to the State of Texas and you have to go through an approved lender in order to access this program. Legacy Financial, Inc. is an approved lender with the State of Texas. The “loan” must be repaid within 90 days of closing or it becomes a second lien on the home and begins to accrue interest at 10%. Continue reading ‘Texas Home Mortgage Loan Tax Credits Explained’ »

Credit counseling is by far the most popular debt relief option approached by millions of households who are facing debt problem. However, not all credit counseling services are legitimate; there are even bad companies who provide little or no actual “counseling”; instead, they are in business just to make money from debtors who have suffered financially by getting them to sign up with a debt management plan that comes with huge hidden costs, make their debt situation worse.

Therefore, if you are deciding to approach a credit counseling service to help you in resolving your debt problem, here are a few tips to help in your selection:

Tip #1: Move on if you are asked to sign up a debt management plan right away

When you approach a credit counseling service, a credit counselor will be assigned to work with you. He needs to get understanding on your debt situation and your budget first before he proposes a solution that fits your financial situation. If it is not the case, instead, the credit counselor wants to sign you up right away into a debt management plan without first understanding your debt & financial situation, then move on. Continue reading ‘5 Tips on Selecting a Good Credit Counseling Service’ »

Farm succession and planning is such a never-ending process that what was said during your first conversation with your spouse or another family member can take place weeks even months before you share what was discussed with your advisers.

If you don’t write down what is said, in an order that makes accurate recall possible, your communications will be like those described by Lewis Carroll, “I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant” in Alice in Wonderland.

Writing down what people say when they say it is important, because in the end what you are trying to achieve and create is a sort of “relationship agreement” that spells out how you and they all see the future together. Maybe what comes out of these farm succession and planning conversations is a collection of relationship agreements on simple issues as well as your mutual ideas for the big ones.

Whenever two or more people are involved in a long term interdependent relationship there is likely to be disagreement. In a family business these disagreements are often more acute because they are never just about business – they are always tinged with something personal, everyone has a history and a future that gets lumped into whatever infraction of the code is observed by the others. Continue reading ‘Farm Succession and Planning Key – Write Everything Down’ »

The art of accountancy or accounting, according to official definition, refers to the measurement, statement, or provision of financial data that is mainly used by lenders, managers, investors, tax authorities and other decision makers in making decisions regarding the allocation of resources between and within companies, organizations, and public agencies. Accounting is also defined by some as the art of “classifying, recording, and summarizing in a significant method and in terms of money, the transactions and events which are financial in nature, character, as well as interpreting the results thereof.”

Taxation is a monetary levy imposed on individuals and businesses, primarily to finance the operations of government, as well as raise funds for special programs or projects. Taxation may also be utilized for other major purposes aside from merely raising funds. It could be used to discourage certain activities such as smoking or alcohol consumption and may be a vehicle for transferring wealth from one group to another, like taxing the very rich to spend for welfare programs for the poor. Continue reading ‘Taxation and Accountancy Specialists – The Benefits of Acquiring Their Services’ »

You must report the cancellation of personal debt on your income tax return. When an owed debt by either a person or business entity is cancelled or forgiven, some amount of taxable debt income may be generated since the benefit of the amount borrowed in the past is no longer associated with the burden of repayment now or in the future. Cancellation of debt (COD) is reported to both taxpayer and the tax authority on IRS Form 1099-C. This information is transferred, for personal debt, to Line 21 on IRS Form 1040. Business debt, depending on the nature of the business, is transferred to IRS Form 1040 Schedules C, E or F. Continue reading ‘Preparing Income Taxes – Reporting the Cancellation of Debt’ »