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[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Should I be filling out form W-9 for somebody I sold used equipment to?", "role": "user" }, { "content": "They are a business. You're not a corporation. They paid you more than $600 during the year, so they're supposed to send 1099 to you and the IRS about it. They need your taxpayer certification (W9) for that. They were supposed to ask for it before they paid you, but yes - they're supposed to ask for it.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Where I am I liable for taxes?", "role": "user" }, { "content": "You will have to pay your taxes in the UK not USA. For tax purposes it is the company's tax residency not where the server is located. You are just hiring a server in USA. Take for example a CDN being used for your same service then would you pay taxes in 300 different countries if you use Akamai? Does not work that way.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Can I Accept Gold?", "role": "user" }, { "content": "You can accept almost anything mutually agreeable to you and the other party as payment. That's the definition of \"barter\". If you agree to trade manufactured goods for livestock, as long as both parties agree on the terms, I'm not aware of any law that would prohibit it. I hedged with \"almost\" because of course you can't accept something that is explicitly illegal. Like you can't say you'll accept cocaine as payment. Less obviously, there are laws regulating the sale of guns, nuclear fuel, agricultural products, etc. You'd still have to pay taxes, and it can get complicated to determine the taxable value of the transaction. Sorry, but you can't avoid taxes by getting your income in something other than cash.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Can I Accept Gold?", "role": "user" }, { "content": "Of course you can accept gold as payment. Would anyone pay in gold? Would it have tax consequences on your federal taxes? These additional questions are off-topic on this site about personal finance.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Can I Accept Gold?", "role": "user" }, { "content": "Yes. \"There is, ...no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services.\" Taken from the US Department of the Treasury.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Can I Accept Gold?", "role": "user" }, { "content": "Yes. But the question is do you want to have gold? If you are going to buy gold anyway, and if you can get a good conversion rate between USD:gold, then why not? If you are looking to use your earnings on things that you cannot buy using gold, then I'd recommend you take USD instead. Have fun!", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Can a company have a credit rating better than that of the country where it is located?", "role": "user" }, { "content": "BlackJack's answer is technically correct: government credit ratings are independent of corporate credit ratings. The rating should reflect the borrower's ability to repay its obligations. One reason the book you read may have stated that corporate credit ratings cannot be better than the government's credit rating is that the government, unlike the corporation, can steal (or in government parlance \"tax\") from anywhere or anyone. So if a government finds itself in financial difficulty it could simply take the cash from corporations or people with high credit ratings by a variety of methods: implement windfall profit taxes, take over industries, take peoples gold, tax pension savings, or simply take peoples pensions or retirement savings. This increases the risk of doing business in a country with an over-extended government. Over extended governments do not die gracefully. They only die when there is nothing left to steal.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Can a company have a credit rating better than that of the country where it is located?", "role": "user" }, { "content": "In one personal finance book I read that if a company is located in a country with credit rating X it can't have credit rating better (lower - i.e. further from AAA level) than X. This is simply wrong. Real world evidence proves it wrong. Automatic Data Processing (ADP), Exxon Mobile (XOM), Johnson & Johnson (JNJ), and Microsoft (MSFT) all have a triple-A rating today, even though the United States doesn't. Toyota (TM) remained triple-A for many years even after Japanese debt was downgraded. The explanation was the following: country has rating X because risk of doing business with it is X and so risk of doing business with any company located in that country automatically can't be better than X. When reading financial literature, you should always be critical. Let's evaluate this statement. First off, a credit rating is not the \"risk of doing business.\" That is way too generic. Specifically, a credit rating attempts to define an individual or company's ability to repay it's obligations. Buying treasuries constitutes as doing business with the gov't, but you can argue that buying stamps at USPS is also doing business with the gov't, and a credit rating won't affect the latter too much. So a credit rating reflects the ability of an entity to repay it's obligations. What does the ability of a government to repay have to do with the ability of companies in that country to repay? Not much. Certainly, if a company keeps it's surplus cash all in treasuries, then downgrading the government will affect the company, but in general, the credit rating of a company determines the company's ability to pay.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Do I owe taxes in the US for my LLC formed in the US but owned by an Indian citizen?", "role": "user" }, { "content": "You're doing business in the US and derive income from the US, so I'd say that yes, you should file a non-resident tax return in the US. And in Connecticut, as well, since that's where you're conducting business (via your domestic LLC registered there). Since you paid more than $600 to your contractor, you're probably also supposed to send a 1099 to him on that account on behalf of your LLC (which is you, essentially, if you're the only member).", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Do I owe taxes in the US for my LLC formed in the US but owned by an Indian citizen?", "role": "user" }, { "content": "This is a complicated question that relies on the US-India Tax Treaty to determine whether the income is taxable to the US or to India. The relevant provision is likely Article 15 on Personal Services. http://www.irs.gov/pub/irs-trty/india.pdf It seems plausible that your business is personal services, but that's a fact-driven question based on your business model. If the online training is 'personal services' provided by you from India, then it is likely foreign source income under the treaty. The 'fixed base' and '90 days' provisions in Article 15 would not apply to an India resident working solely outside the US. The question is whether your US LLC was a US taxpayer. If the LLC was a taxpayer, then it has an obligation to pay US tax on any worldwide income and it also arguably disqualifies you from Article 15 (which applies to individuals and firms of individuals, but not companies). If you were the sole owner of the US LLC, and you did not make a Form 8832 election to be treated as subject to entity taxation, then the LLC was a disregarded entity. If you had other owners, and did not make an election, then you are a partnership and I suspect but cannot conclude that the treaty analysis is still valid. So this is fact-dependent, but you may be exempt from US tax under the tax treaty. However, you may have still had an obligation to file Forms 1099 for your worker. You can also late-file Forms 1099 reporting the nonemployee compensation paid to your worker. Note that this may have tax consequences on the worker if the worker failed to report the income in those years.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: How would IRS treat reimbursement in a later year of moving expenses?", "role": "user" }, { "content": "IRS pub 521 has all the information you need. Expenses reimbursed. If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. See Choosing when to deduct, next. If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21 This is not unusual. Anybody who moves near the end of the year can have this problem. The 39 week time test also can be an issue that span over 2 tax years. I would take the deduction for the expenses as soon a I could, and then count the income in the later year if they pay me back. IF they do so before April 15th, then I would put them on the same tax form to make things easier.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: How would IRS treat reimbursement in a later year of moving expenses?", "role": "user" }, { "content": "I believe moving reimbursement has to be counted as income no matter when you get it. I'd just put it under miscellaneous income with an explanation.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Transfer $70k from Wells Fargo (US) to my other account at a Credit Union bank", "role": "user" }, { "content": "The LLC is paying you. It would only be fraudulent if you were trying to move the money out of the LLC to avoid a liability. I'm pretty sure the transaction will be taxable income for you personally. Consider consulting with a CPA to ensure that you're doing the proper record keeping and to get advice on the best way to minimize tax burden while achieving your goals.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Transfer $70k from Wells Fargo (US) to my other account at a Credit Union bank", "role": "user" }, { "content": "Yes, you can do this. I do this for my own single-member LLC, but I usually do it online instead of writing a check. Your only legal obligation is to pay quarterly estimated tax payments to the IRS. I'm assuming you are not otherwise doing anything shady. For example, that you have funds in your business account to pay any expenses that will be due soon or that you are trying to somehow pull a fast one on someone else...", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Transfer $70k from Wells Fargo (US) to my other account at a Credit Union bank", "role": "user" }, { "content": "Making a payment of any amount is usually legal, although of course the specific circumstances matter, and I'm not qualified to give legal advice. Just had to throw in that disclaimer not because I think there's a problem here, but because it is impossible to give a definite answer to a legal question in a specific situation on Stack Exchange. But the government will be involved. There are two parts to that. First, as part of anti-money-laundering laws, banks have to report all transactions above a certain limit; I believe $10k. When you use a check or similar to pay, that happens pretty much automatically. When making a cash payment, you may have to fill out some forms. An secondly, Edward Snowden revealed that the government also tapped into banking networks, so pretty much every transaction is recorded, even if it is not reportable.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: I have $100,000 in play money… what to do?", "role": "user" }, { "content": "nan", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: I have $100,000 in play money… what to do?", "role": "user" }, { "content": "For any sort of investment you need to understand your risks first. If you're going to put money into the stock or bond market I would get a hold of Graham's \"The Intelligent Investor\" first, or any other solid value investing book, and educate yourself on what the risks are. I can't speak about real estate investing but I am sure there are plenty of books describing risks and benefits of that as well. I could see inflation/deflation having an effect there but I think the biggest impact on the landlord front is quality of life in the area you are renting and the quality of the tenant you can get. One crazy tenant and you will be driven mad yourself. As for starting a business, one thing I would like to say is that money does not automatically make money. The business should be driven by a product or service that you can provide first, and the backing seed capital second. In my opinion you will have to put energy and time worth much more than the 100k into a business over time to make it successful so the availability of capital should not be the driving decision here. Hope this helps more than it confuses.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: I have $100,000 in play money… what to do?", "role": "user" }, { "content": "You can start a software company. Than your office will be around the world and you can work whenever you want. If you can appoint some people who can collect work from here and there and the coder around the world can give you the job done(this can be done by posting your work in various freelancing site). It is challenging, because you have to get yourself up-to-date with the technological things.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: I have $100,000 in play money… what to do?", "role": "user" }, { "content": "As you have already good on your retirement kitty. Assuming you have a sufficient cash for difficult situations, explore the options of investing in Shares and Mutual Funds. As you are new to Stock Market, begin slowly by investing into Mutual Funds and ETF for precious metals. This will help you understand and give you confidence on markets and returns. Real estate is a good option, the down side being the hassle of getting rental and the illiquid nature of the investment.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: I have $100,000 in play money… what to do?", "role": "user" }, { "content": "If you want a concrete investment tip, precious metals (e.g. gold, silver) are on a pretty good run these days, personally I still think they have ways to go as there are just too many problems with modern monetary policy of an almost existential nature, and gold and silver are better stores of value than fiat money. Silver is particularly hot right now, but keep in mind that the increased volatility means increased risk. If the Fed keeps its foot on the pedals of the dollar printing press and we get QE3 this summer, that will most likely mean more people piling into the PMs to hedge against inflation. If the Fed starts to tighten it's policy then that's probably bad news for both equities and bonds and so PMs could be seen as a safe haven investment. These are the main reasons why PMs take up a good portion of my portfolio and will continue to do so untill I see how the global economy plays out over the next couple of years.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Is it possible, anywhere in the US for a funding firm to not have a license number showing somewhere? ", "role": "user" }, { "content": "In the United states the US government has the Small Business Administration. They also have Small Business Development Centers SMDC to help. These are also supported by state governments and colleges and universities. SBDCs provide services through professional business advisors such as: development of business plans; manufacturing assistance; financial packaging and lending assistance; exporting and importing support; disaster recovery assistance; procurement and contracting aid; market research services; aid to 8(a) firms in all stages; and healthcare information. SBDCs serve all populations, including: minorities; women; veterans, including reservists, active duty, disabled personnel, and those returning from deployment; personnel with disabilities; youth and encore entrepreneurs; as well as individuals in low and moderate income urban and rural areas. Based on client needs, local business trends and individual business requirements, SBDCs modify their services to meet the evolving needs of the hundreds of small business community in which they are situated. SBDC assistance is available virtually anywhere with 63 Host networks branching out with more than 900 service delivery points throughout the U.S., the District of Columbia, Guam, Puerto Rico, American Samoa and the U.S. Virgin Islands,. Your local SBDC should be able to help you identify local sources of funds, including government backed loans for small businesses.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Is it possible, anywhere in the US for a funding firm to not have a license number showing somewhere? ", "role": "user" }, { "content": "Well, these can range from loan broker to outright scams. It is pretty typical that loan broker just take some fee in the middle for their service of filling your applications for a bunch of real loan provider companies. Because making a web page costs nothing, a single loan broker could easily have many web pages with a bit different marketing so that they can get as many customers as possible. But of course some of the web pages can be actual scams. As soon as you provide enough information for taking out a loan, they can go to a real financial institution, take out the loan and run with the money. In most countries consumer protection laws do not apply to business-to-business transactions, so you have to be even more wary of scams than usual.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: How to deduct operational loss from my personal income tax?", "role": "user" }, { "content": "I'm not an accountant, and you should probably get the advice of one to be sure about what to do. However, if the business is a sole-proprietorship, you'd complete a Schedule C for the business, and you'd end up with a loss at the end. If the investment you made in the business is considered to be entirely or partially \"at risk\" per the IRS definition, you'd get to claim all or part of the loss as a reduction in your income. If the business was an LLC, then you're beyond my already limited knowledge. There may be some other considerations based on whether this was really a business vs a hobby, and whether or not you're going to try to continue with the business, or whether you've shut it down. I'm not sure about those parts, but they'd be worth exploring with an accountant.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Can my company buy my personal debt?", "role": "user" }, { "content": "When your debt is forgiven, you have to consider the amount written off as an ordinary income item (with the exclusion of the debt originated from the purchase of primary home). If you're trying to write the debt off from your taxes - then it won't work. Even if you can expense the debt forgiveness, you will incur tax liability on your personal taxes side, and in addition you'll be out of cash in your business. So basically you'll end up paying it with after tax money, exactly the thing you're trying to avoid. In addition, you're dealing with related persons here, which means that the loss deduction might not be allowed (depends on the actual details of the transaction), so you might actually end up paying more taxes with this scheme that just paying off the loan directly (if your business pays taxes separately from your person). A loss on the sale or exchange of property between related persons is not deductible. This applies to both direct and indirect transactions, but not to distributions of property from a corporation in a complete liquidation. For the list of related persons, see Related persons next.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Need small buisness ideas with 100k $ budjet in a 3rd world country ", "role": "user" }, { "content": "Firstly, I highly doubt anyone on this site will be able to provide you with accurate input on this matter regarding what TO DO. It's the what not to do that may be possible. That said, if you want to offer equipment for rent, which in a developing country is probably a decent idea, I'd start by asking around and doing some research on what people really need and are wanting to rent. I would suggest studying other developing/developed countries histories to see what companies were successful around a similar stage as well. I'd start small: pressure washers, generators, concrete mixers, fork lifts, hydraulic ladders, etc. Getting things that are just a bit too expensive for someone to own and something they don't need all the time. These can be great revenue generators because they're cheap to purchase, but can be rented at a premium.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Tax Write-offs and knowing how much I need to spend before the end of the year", "role": "user" }, { "content": "(I'm assuming USA tax code as this is untagged) As the comments above suggest there is no \"right\" answer or easy formula. The main issue is that you likely got into business to make money and if you make money consistently you will pay taxes. Reinvesting generally should be a business decision where the main concern is revenue growth and taxes are an important but secondary concern. Taxes can be complicated, but for a small LLC shouldn't be that bad. I highly recommend that you take some time closely analyze your business and personal taxes for the previous year. Once you understand the problem better, you can optimize around it. If it is a big concern, some companies buy software so they can estimate their taxes periodically through the year and make better decisions.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Loan holder wants a check from the insurance company that I already cashed and used to repair my car", "role": "user" }, { "content": "What would happen if you was to cash a check, didn’t realize it was to you and your finance company, take it to a local business that has a money center, they cash the check without even having you sign let alone having the finance companies endorsement on it . The money cleared my account like a couple months ago and it was just brought up now .. ? The reason why the check was made out the owner and the lender is to make sure the repairs were done on the car. The lender wants to make sure that their investment is protected. For example: you get a six year loan on a new car. In the second year you get hit by another driver. The damage estimate is $1,000, and you decide it doesn't look that bad, so you decide to skip the repair and spend the money on paying off debts. What you don't know is that if they had done the repair they would have found hidden damage and the repair would have cost $3,000 and would have been covered by the other persons insurance. Jump ahead 2 years, the rust from the skipped repair causes other issues. Now it will cost $5,000 to fix. The insurance won't cover it, and now a car with an outstanding loan balance of $4,000 and a value of $10,000 if the damage didn't exist needs $5,000 to fix. The lender wants the repairs done. They would have not signed the check before seeing the proof the repairs were done to their satisfaction. But because the check was cashed without their involvement they will be looking for a detailed receipt showing that all the work was done. They may require that the repair be done at a certified repair shop with manufacturer parts. If you don't have a detailed bill ask the repair shop for a copy of the original one.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Loan holder wants a check from the insurance company that I already cashed and used to repair my car", "role": "user" }, { "content": "There are at least three financial institutions involved here: your insurance company's bank, the money center, and your bank. Normally, they would keep records, but given that the money center didn't even ask for your signature, \"normal\" probably doesn't apply to them. Still, you can still ask them what records they have, in addition to the other two institutions; the company's bank and your bank likely have copies of the check.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: What is the difference between a bond and a debenture?", "role": "user" }, { "content": "Investopedia has definitions for both: Debenture: A type of debt instrument that is not secured by physical asset or collateral. Bond: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Wikipedia's entry for debenture says: In some countries [debenture] is used interchangeably with bond, loan stock or note. Seems to me that there's not much difference.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: What is the difference between a bond and a debenture?", "role": "user" }, { "content": "Some additional links which explain their differences. But mostly as @bstpierre says, both are very similar and in some cases the terms may be used inter changeably", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Is a 10 year old uncashed paycheck still good?", "role": "user" }, { "content": "You probably can't deposit the check directly, but there are mechanisms in place to get your money through other means. In the US, all states and territories have an unclaimed property registry. Before you contact the company that wrote the check, you should check that registry in your state. You will have to provide proof that you are the intended recipient, having the original check in your possession should make that considerably easier.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: I started some small businesses but need help figuring out taxes. Should I hire a CPA?", "role": "user" }, { "content": "The only professional designations for people allowed to provide tax advice are Attorney, EA or CPA. Attorney and CPA must be licensed in the State they practice in, EA's are licensed by the Federal government. Tax preparers are not allowed to provide any tax advice, unless they hold any of these designations. They are only allowed to prepare your tax forms for you. So no, tax preparer is not a solution. Yes, you need to talk to a tax adviser (EA/CPA licensed in your State, you probably don't need a tax attorney). You should do that before you start earning money - so that you can plan properly and understand what expenses you can incur and how they're handled with regards to your future income tax payments. You might also want to consider a bookkeeping service (many EA/CPA offices offer the bookkeeping as well). But that you can also do yourself, not all that complicated if you don't have tons of transactions and accounts.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: I started some small businesses but need help figuring out taxes. Should I hire a CPA?", "role": "user" }, { "content": "Certainly sounds worthwhile to get a CPA to help you with setting up the books properly and learning to maintain them, even if you do it yourself thereafter. What's your own time worth?", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Is Mint allowed to share user data with other Intuit entities?", "role": "user" }, { "content": "I wound up asking Mint over email so I'll share the answer I received: Thank you for contacting Mint.com. From my understand you want to know if Mint can transfer data to other Intuit products and vice versa. Let me address your concern based from what I can see on my tools. Upon confirming, while Mint and other Intuit products are under the same company, Mint.com is not yet integrated to other Intuit products. We’d like to thank you though for giving the idea to us. With this, we would know which future enhancements will our customers appreciate. We have forwarded your request/suggestion to our Product and Development team for their review. At this time though, we can't make any guarantee that your request/suggestion will get implemented as we must balance customer demand with resources and business objectives. Oops...", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Financially Shielded Entity Separating Individuals Behind It From Risks", "role": "user" }, { "content": "You are describing a corporation. You can set up a corporation to perform business, but if you were using the money for any personal reasons the courts could Pierce the corporate veil and hold you personally liable. Also, setting up a corporation for purely personal reasons is fraud.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Forgot to renew Fictitious Name application within the county. What is the penalty for late filing?", "role": "user" }, { "content": "I checked this myself and there is no monetary penalty for late filing. However, since I am late I have to do all publication over again which costs me extra $50.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Do I need a new EIN since I am hiring employees for my LLC?", "role": "user" }, { "content": "I called the IRS (click here for IRS contact info) and they said I do not need to get a new EIN. I could have just filed the appropriate employer federal tax return (940/941) and then the filing requirements would have been updated. But while I was on the phone, they just updated the filing requirements for my LLC so I am all good now (I still need to file the correct form and make the correct payments, etc. but I can use this same EIN going forward). Disclaimer: Don't trust me (or this answer) for tax advice (your situation may be different). The IRS person on the phone was very helpful so I recommend calling them if you are in a similar situation. FYI, I have found calling the IRS to always be very helpful.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!", "role": "user" }, { "content": "There is a ten year statue of limitations on debt collection, bankruptcy, etc. The problem is, if you start paying, even say, $1, you \"acknowledge\" the debt and the clock starts again. Debt claims fall under the \"he said, she said,\" rubric. In debt restructuring situations, the debtor is taught to write all their creditors DENYING debts. Some percentage of those creditors won't have the paperwork to back up their claims. Others will, and can press their claims. Then a court decides. But in any event, a debt more than tens years old is a \"stale,\" debt. A court is likely to rule in your favor. Unless you \"acknowledge\" the debt.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!", "role": "user" }, { "content": "Investigate the statute of limitations in your area. 15 years sounds like in most places it is past the allowable time a debt collector can legally collect or report it on your credit report. The statute of limitations means you still owe the debt, but they collector can no longer use the court system to collect it from you. They can file a lawsuit, they will just lose. Please read up on how to handle yourself with a debt that is past the SoL, so that you don't accidentally reset the clock. What I don't know for sure is how that applies to a business, and I cannot remember ever hearing a difference between personal vs business debt, but it is best to consult a lawyer regarding it. References:", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!", "role": "user" }, { "content": "This sounds like a shady trick. I would consult with a consumer debt lawyer in your area. Most county bar associations in the US have a referral service, where they recommend a local lawyer and there is a reduced fee for the initial visit. I think the statute of limitations is 10 years in most cases, but it depends on where you live. From these bare details,I think they don;t have much of a case. Go see a lawyer and don't let them harrass you.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Section 179 vs depreciation of laptop", "role": "user" }, { "content": "I'm not a tax expert, but I think you mean Form 4562, right? If you acquire the laptop in the year for which you're filing taxes, then it is just that simple. (At least according to my reading of 4562 instructions, and my history of accepted tax returns where I've done this for my own business.) If, however, you acquired the laptop in a previous year and have already depreciated it previously (with the plan to spread over several years), there is more complexity I believe -- you may limited in how you could accelerate the remaining depreciation.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Section 179 vs depreciation of laptop", "role": "user" }, { "content": "The CPA's mention of $2,500 is probably referring to the recently increased de minimis safe harbor under the final tangible property regulations (used to be $500) without an applicable financial statement. The IRS will not challenge your choice of expense or capitalization on amounts on or below $2500 if you elect the de minimis safe harbor election on your return. However, you must follow whatever you're doing for your books. (So if you are capitalizing your laptops for book purposes, you would also need to capitalize for tax purposes). Section 179 allows you to expense property that you would have otherwise have had to capitalize and depreciate. Section 179 can be annoying, especially if your LLC is treated as a passthrough, because there are recapture provisions when you dispose of the asset too early. For the tax return preparer, it makes the return preparation much more simple if there are no fixed assets to account for in the first place, which is quite possible if you are expensive all items/invoices less than $2,500.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Process for dissolving a recently-opened Colorado LLC?", "role": "user" }, { "content": "Forms for the Colorado LLCs are online. You can find the link to the dissolution form here, and instructions here. IRS instructions are here. That's what they want: To close your business account, send us a letter that includes the complete legal name of the entity, the EIN, the business address and the reason you wish to close your account. If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, include that when you write to us at: Internal Revenue Service Cincinnati, Ohio 45999 Everything is pretty straight forward. Note that you might be required to file a initial/final tax return if you had any transactions.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Ethics and investment", "role": "user" }, { "content": "Are there businesses which professionally invest ethically? Yes. The common term for this is \"socially responsible investing\". Looking at that page and googling that term should provide you with plenty of pointers to funds to investigate. Of course, the definitions of \"ethical\" and \"socially responsible\" vary from person to person and fund to fund. You'll have to take a look at each fund to see which ones match your principles.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Ethics and investment", "role": "user" }, { "content": "Avoiding tobacco, etc is fairly standard for a fund claiming ethical investing, though it varies. The hard one on your list is loans. You might want to check out Islamic mutual funds. Charging interest is against Sharia law. For example: http://www.saturna.com/amana/index.shtml From their about page: Our Funds favor companies with low price-to-earnings multiples, strong balance sheets, and proven businesses. They follow a value-oriented approach consistent with Islamic finance principles. Generally, these principles require that investors avoid interest and investments in businesses such as liquor, pornography, gambling, and banks. The Funds avoid bonds and other conventional fixed-income securities. So, it looks like it's got your list covered. (Not a recommendation, btw. I know nothing about Amana's performance.) Edit: A little more detail of their philosophy from Amana's growth fund page: Generally, Islamic principles require that investors share in profit and loss, that they receive no usury or interest, and that they do not invest in a business that is prohibited by Islamic principles. Some of the businesses not permitted are liquor, wine, casinos, pornography, insurance, gambling, pork processing, and interest-based banks or finance associations. The Growth Fund does not make any investments that pay interest. In accordance with Islamic principles, the Fund shall not purchase conventional bonds, debentures, or other interest-paying obligations of indebtedness. Islamic principles discourage speculation, and the Fund tends to hold investments for several years.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Ethics and investment", "role": "user" }, { "content": "Domini offers such a fund. It might suit you, or it might include things you wish to avoid. I'm not judging your goals, but would suggest that it might be tough to find a fund that has the same values as you. If you choose individual stocks, you might have to do a lot of reading, and decide if it's all or none, i.e. if a company seems to do well, but somehow has an tiny portion in a sector you don't like, do you dismiss them? In the US, Costco, for example, is a warehouse club, and treats employees well. A fair wage, benefits, etc. But they have a liquor store at many locations. Absent the alcohol, would you research every one of their suppliers?", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Ethics and investment", "role": "user" }, { "content": "Markets are amoral. If you don't buy stock in a company that has high growth/earnings, someone else will. By abstaining you will actually make it cheaper for someone else who is interested in making money. Investing in \"socially responsible\" funds will only ensure that you have less money to make a moral difference in the world when you decide to transition from working to philanthropy. Edit to clarify -- You aren't interested in buying individual stocks directly, that leaves you with two general options: You can make a statement with your investment now, or you can take the better returns and make a difference with your money later.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Ethics and investment", "role": "user" }, { "content": "There are a number of mutual funds which claim to be 'ethical'. Note that your definition of 'ethical' may not match theirs. This should be made clear in the prospectus of whichever mutual fund you are looking at. You will likely pay for the privilege of investing this way, in higher expenses on the mutual fund. If I may suggest another option, you may want to consider investing in low-fee mutual funds or ETFs and donating some of the profit to offset the moral issues you see.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Ethics and investment", "role": "user" }, { "content": "There are the Dow Jones Sustainability Indices. I believe the reports used to create them are released to the public. This could be a good place to start.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Ethics and investment", "role": "user" }, { "content": "Peer to peer lending such as Kiva, Lending Club, Funding Circle(small business), SoFi(student loans), Prosper, and various other services provide you with access to the 'basic form' of investing you described in your question. Other funds: You may find the documentary '97% Owned' fascinating as it provides an overview of the monetary system of England, with parallels to US, showing only 3% of money supply is used in exchange of goods and services, 97% is engaged in some form of speculation. If speculative activities are of concern, you may need to denounce many forms of currency. Lastly, be careful of taking the term addiction too lightly and deeming something unethical too quickly. You may be surprised to learn there are many people like yourself working at 'unethical' companies changing them within.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: What type of insurance would protect you against the Amazon 1p bug?", "role": "user" }, { "content": "I believe the appropriate recourse in this scenario is to bring a court case for breach of contract. The 1p repricing issue has been admitted as an error out of scope of the purpose of the software.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: How important is disability insurance, e.g. long-term, LTD? Employer offers none", "role": "user" }, { "content": "The reason to have disability insurance is to replace your income if you become disabled and are no longer able to work. For this purpose, it is kind of similar to life insurance where you want to replace your income to take care of people that depend on your income if you die, but now you are included in the people that depend on your income. If your employer doesn't provide any disability insurance then it would be wise to look for some Long Term disability insurance. Short Term disability is more expensive than long term and it is USUALLY better and cheaper to have a good emergency fund to provide for a short term disability such as being sick for a month and not able to work than to buy short-term. As a web developer - you should be able to get long term disability insurance at a reasonable cost, unless you have some dangerous hobbies like forest fire fighting or shark juggling.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: How important is disability insurance, e.g. long-term, LTD? Employer offers none", "role": "user" }, { "content": "(Oops - I had been meaning to come back to this Q. sooner. Just saw my reminder, so here goes.) Shortly before this question was asked, I actually read a good blog post on the subject of disability insurance at Evolution of Wealth - 7 Ways Your Group Disability Will Fail. I know the OP doesn't have group disability (and hence the question), but the reason I'm highlighting it is: Even somebody with a group disability policy from their employer may want to consider supplementing it with an individual policy that has better coverage. In my case, the reason I opted for an individual policy was due to point #6 from the post: ... ways that group disability coverage will fail you: ... [etc] 6) You can go work somewhere else. With disability insurance there is a feature called own-occupation. This means that you are unable to perform the duties of your specific occupation even if you are able to work in an other occupation. Good group disability coverage will cover your own-occupation for a period of 2 years after that if you can work anywhere (yes, even McDonald’s) then you receive no more benefits. Notice I said ‘good’ coverage, a lot of policies don’t even have the own-occupation benefit. ... I made sure my own individual LTD policy included coverage of own-occupation until age 65. So, do pay attention to the specific features and limitations of LTD policies when shopping for one.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: How important is disability insurance, e.g. long-term, LTD? Employer offers none", "role": "user" }, { "content": "(My wife works for an insurance broker in the US, so take that grain of salt with my answer) Disability insurance covers your income should you be unable to work. Some disability will be paid before social security (so you get both incomes) and some will be paid after (so your insurance will fill whatever gap SS leaves) Everybody in the US gets Social Security, which has a disability provision you can use. The additional disability insurance is a good idea for people with a family who will rely on your income for the future, or even for yourself should you work in a dangerous position. My family has it, and we consider it essential for our well being, but I consider insurance on many things a necessity not a luxury. (except pet insurance, I find that to be a luxury.)", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: What's a Letter of Credit? Are funds held in my bank for the amount in question?", "role": "user" }, { "content": "Wikipedia has a detailed article explaining this. A standard, commercial letter of credit (LC) is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking. So yes, they are primarily for use by businesses. If you will read the article stating the terms and conditions for payment and shipment you will realize that such model won't be of much value to and will create many hurdles for a typical consumer. Yes, you can cash a letter of credit but only once the conditions in the letter have been met (e.g., delivery/shipment of goods/services). An array of documents need to be presented as well. Whether it is easy or not is a very subjective question. A bank will issue a letter of credit only when it is reasonably sure that its risk is covered --either backed by a bank deposit or by conditions in the letter itself. Obviously derivatives on these letters have evolved as well.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: What's a Letter of Credit? Are funds held in my bank for the amount in question?", "role": "user" }, { "content": "A letter of credit is commonly used by importers who want to ensure that their product is shipped before paying the exporter. The exporter has a guarantee that the payment for the goods will be received once the shipment has been made. It is used to resolve a Game Theory type situation. For example, you are buying a car from China for $40,000 USD. The exporter of the car asks for the money before he will ship the car, but if you give him the money, then he has no incentive (aside from legal pressures) to ship the car. Instead you sign a letter of credit for the transaction, which basically sends your payment to the exporters bank, but puts a hold on it until the exporter proves that he has shipped the car and proved that he has insured the shipment against damages.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: What's a Letter of Credit? Are funds held in my bank for the amount in question?", "role": "user" }, { "content": "Ok so this is the best information I could get! It is a guarantee from a financial institution that payment will be made for items or services once certain requirements are met. Let me know if this helps! I'll try to get more info in the meantime.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: What's a Letter of Credit? Are funds held in my bank for the amount in question?", "role": "user" }, { "content": "In a domestic setting, Letters of Credit are often used to build public works needed to support a development. So if you're bulldozing a few 3 story buildings to build a 50 story tower, the municipality will build appropriate water/sewer/gas/road infrastructure, and draw from the developer's letter of credit to fund it. The 'catch' to the developer is that these things usually aren't revokable -- once the city/town/etc starts work, the developer cannot cut-off the funding, even if the project is cancelled. A letter of credit definitely isn't a consumer financing vehicle. The closest equivalent is a \"line of credit\" tied to an asset like a home.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Paying restaurants in cash instead of credit card - how signficant is this?", "role": "user" }, { "content": "Credit cards charge about 2% fee from merchants. This is already priced into the restaurant menu. Generally, dealing with cash will not cost the merchant significantly less since he needs to make more trips to the bank, pay fees for frequent cash deposits (banks charge per operation), and maintain a safe location for storage of that cash. Bottom line - I doubt it makes any significant difference to the restaurant owner.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Paying restaurants in cash instead of credit card - how signficant is this?", "role": "user" }, { "content": "The biggest advantage to small business owners paid in cash is not that it might save the 2 or 3 percent that would go to the credit card company. The biggest advantage is that they have the opportunity to keep the transaction entirely off the books and pocket the cash without paying income tax or sales tax, especially when no receipt is given, or when it's a service instead of a product being sold, or when it's an approximately-tracked inventory unit going out the door. Although it's illegal, it's widely done, and it's also often a temptation for employees to try and get away with doing it too.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Paying restaurants in cash instead of credit card - how signficant is this?", "role": "user" }, { "content": "You know those perks/benefits that you don't want to give up? Those are funded by the fees you are trying to eliminate by paying cash. The credit card company makes money by interest, merchant fees, and other fees such a annual fees. They give you perks to generate more transactions, thus bringing in more merchant fees. For a small business they need to balance the fee of the credit card transaction with the knowledge that it is convenient for many customers. Some small businesses will set a minimum card transaction level. They do this because the small transaction on a credit card will be more expensive because the credit card company will charge 2% or 50 cents whichever is larger. Yes a business does figure the cost of the cards into their prices, but they can get ahead a little bit if some customers voluntarily forgo using the credit card.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: How to acquire assets without buying them? ", "role": "user" }, { "content": "Assets can be acquired in different ways and for different purposes. I will only address common legal ways of acquiring assets. You can trade one asset for another asset. This usually takes place in the form of trading cash or a cash equivalent for an asset. The asset received should be of equal or greater value than the asset given in the eyes of the purchaser in order for the trade to be rational. Take this example: I am selling a bike that has been sitting on my porch for a few months. It's worth about $25 to me. My friend, Andy, comes by and offers $90 for it. I happily accept. Andy valued the bike at $110. This transaction produced value for both parties. I had a value benefit of $65 (90 - 25) and Andy had a value benefit of $20 (110 - 90). You can receive an asset as a gift or an inheritance. Less common, but still frequent. Someone gives you a gift or a family member dies and you receive an asset you did not own previously. You can receive an asset in exchange for a liability. When you take out a loan, you receive an asset (cash) which is financed by a liability (loan payable). In your case: Why would I buy a mall if having assets worth the same amount as the mall? I must value the mall more than the assets I currently have. This may stem from the possibility of greater future returns than I am currently making on my asset, or, if I financed the purchase with a liability, greater future returns than the cost associated with payment on the principal and interest of the liability.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: How to acquire assets without buying them? ", "role": "user" }, { "content": "Your question seems to be premised on your personal understanding of economics, and asking that people present to you an explanation of business transactions that is consistent with your own personal worldview. But your premises are flawed, so an accurate answer should not accept them. The basics of trade is that something is worth more to one person than another; a wheat farmer has more wheat that they could possibly eat, and so it has no value other than what they can get by selling it, while an accountant will starve if they do not have any food and thus is willing to pay what the market demands. The two parties can both be better off by having a transaction. The other motivation for transactions is that parties may disagree as to what something is worth; even if one party will lose from the transaction, they may both believe they will profit.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: How to acquire assets without buying them? ", "role": "user" }, { "content": "You don't start out buying a shopping mall, you have to work up to it. You can start with any amount and work up to a larger amount. For me, I saved 30% of my salary(net), investing in stocks for 8 years. It was tough to live on less, but I had a goal to buy passive income. I put down this money to buy 3 houses, putting 35% down and maintaining enough cash to make 5 years of payments. I rented out the houses making a cap of 15%. The cap is the net payment per year / cost of the property, where the net accounts for taxes and repairs. I did not spend any of the profits, but I did start saving less salary. After 5 years of appreciation, mortgage payments and rental profit, I sold one house to get a loan for a convenience store. Buildings go on the market all the time, it takes 14 years to directly recoup an investment at a 7% cap, which is the average for a commercial property sale. Many people cash out for this reason, it's slow, but steady growth, though the earnings on property appreciation is a nice bonus. Owning real estate is a long term game, after a long time of earning, you can reinvest, but it comes with the risk of bad or no tenants. You can start both slower and smaller, just make sure you're picking up assets, not liabilities. Like investing in cars is generally bad unless you are sure it will appreciate.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: How to acquire assets without buying them? ", "role": "user" }, { "content": "There are a number of ways someone acquires assets without buying it. People could have inherited assets. They could have been gifted assets. They might have won assets in a lawsuit (unlikely to be a mall, but not impossible). They could have married into the assets. So there's other ways of acquiring assets without purchasing them.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Is it taxable if someone return me money?", "role": "user" }, { "content": "The $10,000 is not taxable to either of you, but the $500 is taxable income to you - and a deductible business expense for your friend.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Capitalize on a falling INR", "role": "user" }, { "content": "By no means is this a comprehensive list, but a few items to consider:", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Capitalize on a falling INR", "role": "user" }, { "content": "One simplest way is to to do Forex trading. You can do this by buying Foreign Currency Futures when you feel Rupee is going down or by selling those Futures when you feel Rupee will go up.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: How to have a small capital investment in US if I am out of the country?", "role": "user" }, { "content": "For $100 you better just hold it in Mexico. The cost of opening an account could eat 10% or more of your capital easily, and that won't be able to buy enough shares of an ETF or similar investment to make it worthwhile.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Professional tax for employees - startup in India", "role": "user" }, { "content": "The tax is depended upon state where you are registered and the salary paid. More here If you employ contract you need not pay tax.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Do I owe taxes if my deductions are higher than my income?", "role": "user" }, { "content": "There's one factor the previous posters apparently missed here: You say \"self-employment tax\"--in other words, at least some of that $16k is from self employment. In a normal employment situation the FICA tax is taken out of your paycheck, it's normally spot on and generally doesn't show up on your tax return. However, for the self-employed it's another matter. You pay the whole 15.3% from the first dollar and this does show up on your tax return. If it's all self employment money you would have about $2.5k in tax from this.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Do I owe taxes if my deductions are higher than my income?", "role": "user" }, { "content": "No, it's not possible. Even if you had no deduction or credits, your federal tax on $16,604 would be: $9075 @ 10% = $907.50 + $7529 @ 15% = $1129.35 = $2036.85 That assumes you are filing as single. There must be more to the story. Typo in your income numbers? Also, what do you mean by a self-employment tax deduction? Maybe update your question to include a breakdown of everything you entered? Edit: As noted in Loren's answer, it seems that it is indeed possible in at least one case (self-employment taxes).", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Do I owe taxes if my deductions are higher than my income?", "role": "user" }, { "content": "I'm going to echo Phil and say that you should add more information. That being said, I think it is possible for you to owe the government that much. If you received a federal health insurance subsidy and live in a state that didn't expand medicaid, you could have received a subsidy through out the year that you did not end up qualifying for. It appears you are outside the medicaid limit of 133% of the poverty level($11,670) or $15,521. If you received a subsidy of $275 a month from the marketplace, you would have received $3300 worth of aid from the government that you don't qualify for. Now they are expecting you to pay it back.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Do I owe taxes if my deductions are higher than my income?", "role": "user" }, { "content": "As a CPA I can say, without a doubt, you do not owe any federal income tax. However, assuming all of you income was from your business and therefore subject to self-employment tax and you had no healthcare coverage, you would owe: $2,523 in Self-Employment Tax 645 in Healthcare Penalty $3,168 Total Amount You Should Owe. Assuming you have given us the right numbers, $3,300 sounds too high.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Do I owe taxes if my deductions are higher than my income?", "role": "user" }, { "content": "In your case, I believe the answer is that you don't owe any taxes, if your deductions exceed your income. There is something called the Alternate Minimum Tax to catch \"rich\" people, who claim \"too many\" deductions. Basically, it taxes their \"gross\" income at a lower rate, but allows them no deductions if they make $175,000 or more. You are not in that tax \"bracket.\"", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: What increases your chance of being audited?", "role": "user" }, { "content": "Here is an article that claims to know something about it. Here are a selection of quotes: The IRS says there are several ways a return can be selected for audit and the first is via the agency's computer-scoring system known as Discriminant Information Function, or DIF. The IRS evaluates tax returns based on IRS formulas, and DIF is based on deductions, credits and exemptions with norms for taxpayers in each of the income brackets. The actual scoring formula to determine which tax returns are most likely to be in error is a closely guarded secret. But Nath, a tax attorney in the Washington, D.C., area, says it's no mystery the system is designed to screen for returns that could put more money in the government Treasury. So what is likely to trigger a discriminant information function red flag?", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: What increases your chance of being audited?", "role": "user" }, { "content": "Here's a few things:", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Why are U.S. credit unions not open to everyone?", "role": "user" }, { "content": "Credit unions are mutually-owned (i.e. customer owned) financial institutions that provide banking services. They take deposits from their members (customers) and loan them to other members. Members vote on a board of directors who manage operations. They are considered not-for-profit, but they pay interest on deposits. They get some preferential tax treatment and regulation and their deposits are insured by a separate organization if federally accredited. State-chartered credit unions don't have to maintain deposit insurance at all. Their charters specify who can join. They can be regionally based, employer based, or based on some other group with common interests. Regulators restrict them so that they don't interfere too much with banks. Otherwise their preferential tax and regulatory treatment would leave banks uncompetitive. Other organizations with similar limits have gone on to be competitive when the limits were released. For example, there used to be an insurance company just for government employees, the Government Employees Insurance Company. You may know it better as GEICO (yes, the one with the gecko advertisements). Now they offer life and auto insurance all over. Credit unions would like looser limitations (or no limitations at all), but not enough to give up their preferential tax treatment. Banks oppose looser limitations and have as much political clout as credit unions.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Why are U.S. credit unions not open to everyone?", "role": "user" }, { "content": "It's required by law. 12 USC 1759 (b) requires that membership in a credit union be limited to one or more groups with a \"common bond\", or to people within a particular geographic area. For lots more gory details on how this is interpreted and enforced, you can read the manual given to credit unions by the National Credit Union Administration, which is their regulatory agency.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Car expense deductions with multiple work locations", "role": "user" }, { "content": "Suppose that I work from home, but do not qualify for a business use of home deduction. As I understand it, this means I cannot deduct trips from home to another work location (e.g., going to a client's home or office to do work there). I do not think this is true. You cannot deduct trips to your main business location, i.e.: you cannot deduct trips to your office or client's location if this is your main client and you routinely work on-site. However, if you only visit your clients on occasion for specific events while doing your routine work at home - you can definitely deduct those trips. The deduction of the home usage itself has nothing to do with it. However, there's a different reason they refer to pub 587. Your home must qualify as principal place of business (even if it doesn't qualify for deduction). The qualifications of \"principal place of business\" are described in pub 587. \"if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second.\" What is not clear to me is what exactly is deductible if there are significant time gaps (within a single day) between trips to different clients. You got it right. What this quote means is that if you have client A and client B, and you drive from A to B - you can only deduct the travel between A and B, nothing else. I.e.: if you have 2 hours to kill and you take a trip to the mall - you cannot deduct the mileage attributable to that trip. You only deduct the actual distance between A and B as it would be had you driven from A to B directly. The example you cite re first client being considered as the place of business is for the case where your home doesn't qualify as principal place of business. In this case you start counting miles from your first client, and only for direct trips from client to client. If you only have 1 client in that day, tough luck, nothing to deduct. Also, it's not clear whether stopoffs between clients would really be \"personal reasons\", since the appointment times are often set by the client, so it's not as if the delay between A and B was just because I felt like it; there was never the option of going directly from A to B. That's what is called \"facts and circumstances\". You can argue that you had enough time between meetings to go back to your home office to continue working. The IRS agent auditing you (and you're likely to get audited) will consider that. Maybe will accept it. Maybe not. If I had a gap like that described above, I could save on my taxes by going to the park or a hamburger stand instead of going home between A and B But then you wouldn't be at home, so why would it be \"principal place of business\" if you're not there? Boom, lost deduction for the trip to the first client. I suggest you talk to a licensed tax adviser (EA/CPA licensed in your State). You're dealing with deductions that are considered \"red flags\" for the IRS. I.e.: many people believe that these deductions (business use of your home/car) trigger audits. To substantiate business use of your car you need to keep very good track of your travels (literally travel log, they sell them at Staples), and make sure to distinguish between personal travel and business travel, keep proofs that the meetings took place (although keeping a log is a requirement, it can be backdated/faked, so if audited - the IRS will want to see more than your own documentation). A good tax adviser will educate you on all these rules, and also clarify the complexities you were asking about here. I'm not a tax adviser, so don't rely on this answer when you're preparing your tax return or responding to the IRS audit. In your edit you ask this: Specifically, what I'm wondering is whether it is possible for a home to qualify as a \"principal place of business\" for purposes of deducting car expenses but not for the home office deduction. The answer is yes. Deductibility is determined by exclusivity of use, among other things. But the fact that you manage your business from your kitchen doesn't make your kitchen any less of a principal place of business. It is non-deductible because you also cook your dinners there, but it is still, nonetheless, your principal place of business. The Pub 587 which I linked to has these qualifications: Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. As you see, exclusivity of the usage of your home area is not a requirement here. The \"exclusively and regularly\" in the quote refers to your business not using any other location, and managing it from home regularly. I.e.: if you manage your business a day in a year - that's not enough for it to be considered principal. If you manage your business from your office and your home - you cannot consider home as principal.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Formation of S-Corp for Gambling Trade", "role": "user" }, { "content": "In a sole proprietorship AND an LLC, the expenses can still be deducted against the profits or losses from the operations. The IRS does not even require that a profit seeking activity be incorporated under its own entity, hence why this is also applicable in a sole proprietorship. From what you've said, there is no reason to use a more complicated and costly corporate structure at all. In comparison, a sole proprietorship and single-member LLC will be completely pass through entities to the IRS and all of their earnings go to you. With the LLC you have the option of letting the LLC's earnings remain with the entity itself, or you can just treat it as your own and pay individual income taxes on it. This has nothing to do specifically with a gambling business and is largely a red herring to your profit seeking motives. Gambling in casino games and lotteries already enjoy favorable tax treatment in some regards. Gambling in capital markets also enjoy a myriad of favorable tax laws. A business entity related to this purpose should be able to deduct costs related to this trade (and pass an audit more convincingly than not having formed an LLC and business bank account)", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Formation of S-Corp for Gambling Trade", "role": "user" }, { "content": "You probably don't need S-Corp. There's no difference between what you can deduct on your Schedule C and what you can deduct on 1120S, it will just cost you more money. Since you're gambling yourself, you don't need to worry about liability - but if you do, you should probably go LLC route, much cheaper and simpler. The \"reasonable salary\" trick to avoid FICA won't work. Don't even try. Schedule C for professional gamblers is a very accepted thing, nothing extraordinary about it.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Should I file taxes or Incorperate a personal project?", "role": "user" }, { "content": "Normally, incorporation is for liability reasons. Just file your taxes as a business. This just means adding a T2125 to your personal return. There's no registering, that's for GST if over a certain threshold. There's even a section in the instructions for internet businesses. http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-e.html#internet_business_activities This is the form you have to fill out. Take note that there is a place to include costs from using your own home as well. Those specific expenses can't be used to create or increase a loss from your business, but a regular business loss can be deducted from your employment income. http://www.cra-arc.gc.ca/E/pbg/tf/t2125/t2125-15e.pdf", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Should I file taxes or Incorperate a personal project?", "role": "user" }, { "content": "I don't know what you mean by \"claim for taxes,\" I think you mean pay taxes. I'm not sure how corps function in Canada but in the US single owner limited liability entities typically pass the net income through to the owner to be included in their personal tax return. So it seems all of this is more or less moot, because really you should probably already be including your income sourced from this project on your personal taxes and that's not really likely to change if you formed something more formal. The formal business arrangements really exist to limit the liability of the business spilling over in to the owner's assets. Or trouble in the owner's life spilling over to interrupt the business operation. I don't know what kind of business this is, but it may make sense to set up one of the limited liability arrangements to ensure that business liability doesn't automatically mean personal liability. A sole proprietorship or in the US we have DBA (doing business as) paperwork will get you a separate tax id number, which may be beneficial if you ever have to provide a tax ID and don't want to use your individual ID; but this won't limit your liability the way incorporating does.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Should I file taxes or Incorperate a personal project?", "role": "user" }, { "content": "There are two reasons for incorporating a business in Canada - limiting liability and providing some freedom in structuring your taxes. Since you are asking about taxes, I will restrict myself to that topic. First of all, remember that if you don't make much money, there isn't much tax to save by clever structuring of your affairs. And if you do incorporate, you will pay taxes as a corporation, and pay taxes again on your salary paid from that corporation. It can still be advantageous, because the small business tax rate is less that the higher tax brackets of personal taxes, and you don't have to pay out all of the profit as salary. If you don't incorporate, you still must pay taxes on your net income from the business. (See brian's answer.) Definitely keep track of your income and expenses, even if you don't plan on making money, in case you get audited. If the CRA wants to call your hobby a business, you will need to show that you haven't made any profit. I am just giving you a few bits of advice because this subject is complicated. Too complicated for an answer on this site. If you are still interested, go to your local library and get some books on the subject.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Do Square credit card readers allow for personal use?", "role": "user" }, { "content": "What I should have done in the first place was just ask them. From their customer support team: Thanks for writing in and for your interest in Square. It is perfectly acceptable to use Square for personal business, such as a yard sale. You do not need to have a registered business to take advantage of Square and the ability to accept credit cards. Just please note that it is against our Terms of Service to process prepaid cards, gift cards or your own credit card using your own Square account. Additionally, you may not use Square as a money transfer system. For every payment processed through Square, you must provide a legitimate good or service. Please let me know if you have any additional concerns.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Do Square credit card readers allow for personal use?", "role": "user" }, { "content": "Yes. From their TOS: \"By creating a Square Account, you confirm that you are either a legal resident of the United States, a United States citizen, or a business entity...\".", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Do Square credit card readers allow for personal use?", "role": "user" }, { "content": "My husband used this device at work in an organization/club that collects dues for fundraisers. The fundraisers are only for the club. So I think that is not business at all. They have no business tax id#, etc? and they use it for personal reasons when collecting money via Cc#'s if this helps you.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Do Square credit card readers allow for personal use?", "role": "user" }, { "content": "I used square in the past for personal yard sale and they did not transfer balance to my bank acct because they told me it was against their policy and I had to have a business license that they could either refund the credit cards i process or keep the money. So they kept it I never got it back. I don't recommend anybody to use square.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Differences in taxes paid for W2 employee vs. 1099 contractor working on sites like ODesk.com?", "role": "user" }, { "content": "Yes, you've summarized it well. You may be able to depreciate your computer, expense some software licenses and may be home office if you qualify, but at this scale of earning - it will probably not cover for the loss of the money you need to pay for the additional SE tax (the employer part of the FICA taxes for W2 employees) and benefits (subsidized health insurance, bonuses you get from your employer, insurances, etc). Don't forget the additional expense of business licenses, liability insurances etc. While relatively small amounts and deductible - still money out of your pocket. That said... Good luck earning $96K on ODesk.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: If I invest in a company that goes bankrupt, is that a gain or a loss?", "role": "user" }, { "content": "I'll give the credit to @Quid in the comments section of the question. You put out $10k, you got back $20k, that's a cash gain of $10k, how the asset was valued between your purchase and sale isn't relevant. From an accounting perspective, the company is the only party that is realizing the loss (as they have sold the asset for 40K less than par). You the buyer, only get to see the initial buy and sale of such capital asset. Example: A company purchases a car for $20,000 and after depreciation it is worth (book valued at) $2,000. It is then sold to a customer for $3,000. Does the customer realize a loss of $1,000? No. Does the company realize a gain of $1,000? Yes. Your bank analogy is flawed in two ways:", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught?", "role": "user" }, { "content": "Do I need an Investment Adviser? No, but you may want to explore the idea of having one. Is he going to tell me anything that my accountant can't? Probably. How much expertise are you expecting from your accountant here? Do you think your accountant knows everything within the realms of money from taxes, insurance products, investments and all your choices and what would work or wouldn't? Seems like it could be a tall order to my mind. My accountant did say to come to him for advice on investment/business issues. So, he is willing, but is he able? Not asking about his competence, but rather \"is there something that only an Investment Adviser can provide, by law, that an accountant can't\"? Not that I know though don't forget how much expertise are you expecting here from one person. Is this person intended to answer all your money questions? But isn't that something that my accountant could/should do? Perhaps though how well are you expecting one person to be aware of so much stuff? I want you to know all the tax law so I can minimize taxes, maximize my investment returns, cover me with adequate insurance, and protect my savings seems like a bit much to put on one entity. Do I need either of them? Won't the Internet and sites like this one suffice? Need no. However, how much time are you prepared to spend learning the basics of strategies that work for you? How much money are you prepared to put into things to learn what works and doesn't? While it is your decision, consider how to what extent do you diagnose your medical issues through the internet versus going to see a doctor? Be careful of how much of a do it yourself approach you want to go here and recognize that there are multiple approaches that may work. The question is which trade-offs are OK for you.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught?", "role": "user" }, { "content": "An accountant should be able to advise on the tax consequences of different classes of investments/assets/debts (e.g. RRSP, TFSA, mortgage). But I would not ask an accountant which specific securities to hold in these vehicles, or what asset allocation (in terms of geography, capitalization, or class (equity vs fixed income vs derivatives vs structured notes etc). An investment advisor would be better suited to matching your investments to your risk tolerance.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught?", "role": "user" }, { "content": "I think the OP is getting lost in designations. Sounds to me that what he wants is a 'financial advisor' not an 'investment advisor'. Does he even have investments? Does he want to be told which securities to buy? Or is he wanting advice on overall savings, insurance, tax-shelters, retirement planning, mortgages, etc. Which is a different set of skills - the financial advisor skill set. Accountants don't have that skill set. They know operating business reporting, taxes and generally how to keep it healthy and growing. They can do personal tax returns (as a favour to only the owners of the business they keep track of usually). IMO they can deal with the reporting but not the planning or optimization. But IMO the OP should just read up and learn this stuff for himself. Accreditation mean nothing. Eg. the major 'planner' brand teaches factually wrong stuff about RRSPs - which are the backbone of Canadian's finances.", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: Privacy preferences on creditworthiness data", "role": "user" }, { "content": "See the first item in the list: For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus Note that there's no option for you to limit this sharing. Credit reporting is the business need of the bank, not of the bureaus. They rely on them and others reporting it in their main business: lending. While you can limit the sharing with other banks/insurance companies/service providers so that you won't get offers from them based on the data shared by the bank, you cannot limit the credit reports themselves.", "role": "assistant" } ]

[ { "content": "Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.\nText: Have plenty of cash flow but bad credit", "role": "user" }, { "content": "Set up a meeting with the bank that handles your business checking account. Go there in person and bring your business statements: profit and loss, balance sheet, and a spreadsheet showing your historical cash flow. The goal is to get your banker to understand your business and your needs and also for you to be on a first-name basis with your banker for an ongoing business relationship. Tell them you want to establish credit and you want a credit card account with $x as the limit. Your banker might be able to help push your application through even with your credit history. Even if you can't get the limit you want, you'll be on your way and can meet again with your banker in 6 or 12 months. Once your credit is re-established you'll be able to shop around and apply for other rewards cards. One day you might want a line of credit or a business loan. Establishing a relationship with your banker ahead of time will make that process easier if and when the time comes. Continue to meet with him or her at least annually, and bring updated financial statements each time. If nothing else, this process will help you analyze your business, so the process itself is useful even if nothing comes of it immediately.", "role": "assistant" } ]

[ { "content": "Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering\nText: Have plenty of cash flow but bad credit", "role": "user" }, { "content": "A) The Credit Rating Agencies only look at the month-end totals that are on your credit card, as this is all they ever get from the issuing bank. So a higher usage frequency as described would not make any direct difference to your credit rating. B) The issuing bank will know if you use the credit with the higher frequency, but it probably has little effect on your limit. Typically, after two to three month, they reevaluate your credit limit, and it could go up considerably if you never overdrew (and at this time, it could indirectly positively affect your credit rating). You could consider calling the issuing bank after two month and try to explain the history a bit and get them to increase the limit, but that only makes sense if your credit score has recovered. Your business paperwork could go a long way to convince someone, if you do so well now. C) If your credit rating is still bad, you need to find out why. It should have normalized to a medium range with the bad historic issues dropped.", "role": "assistant" } ]

[ { "content": "Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.\nText: Have plenty of cash flow but bad credit", "role": "user" }, { "content": "Sign up with credit karma. It will give you two scores for free and will show you credit cards you have a good chance in being approved for. Plus it will evaluate your score showing you the 6 items that effect your score and give you steps to improve them or tell you how long you have to wait until they roll off. Plus I would look at a credit union and see if they have any \"fresh start\" programs. You should be well on your way. the thing that is probably hurting your credit is your utilization. If you can just use 10% of your available credit.", "role": "assistant" } ]

[ { "content": "Share your insights or perspective on the financial matter presented in the input.\nText: static data for mutual funds/hedge funds", "role": "user" }, { "content": "It's not really my field, but I believe it's all the information that doesn't change (i.e. isn't \"real-time\") about the business of hedge funds. For example, this site quotes: The product maintains comprehensive static data records including assets, depositories, accounts, settlement instructions and a wide range of supporting data...", "role": "assistant" } ]

[ { "content": "Offer your thoughts or opinion on the input financial query or topic using your financial background.\nText: How does Robinhood stock broker make money?", "role": "user" }, { "content": "Robinhood seems interesting. Some say it's a gimmicky site with a nice UI not an investing or trading platform. From investopedia: 1. For now, the app stays afloat for mainly two reasons. First, the business itself is extremely lean: no physical locations, a small staff, no massive public relations campaigns and only one operating system platform to maintain. Robinhood also generates interest off of unused cash deposits from user accounts according to the Federal Funds rate. 2. Second, venture capitalists such as Index Ventures, Ribbit Capital, Google Ventures, Andreessen Horowitz, Social Leverage,and “many others” have invested more than $16 million in the app. 3. According to Barron’s, Robinhood plans to implement margin trading in 2015, eventually charging 3.5% interest for the service. E*Trade charges 8.44% for accounts under $25,000. Phone assisted trading will also be available at $10 per trade in the future. 4. Originally, Robinhood planned to make money off of order flows – a common tactic used by discount brokerages in the 1990s to generate revenue. According to the company's FAQ, Robinhood backpedaled on the idea because it executes orders through a clearing partner and, as a result, receives little to no payment for order flow. The company is willing to return to its original plan in the future if it receives order flows directly or begins to generate a lot of revenue from them.", "role": "assistant" } ]