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Articles Archive for February 2006

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[28 Feb 2006 | No Comment | 340 views]

Is it possible? Can you crawl out from under the credit rock? The answer is a definite maybe. It depends upon your particular situation, of course. Many people have extricated themselves from horrible credit situations. There are several ways to go about getting yourself free from a crushing debt load and a poor credit picture. You must do several things:
1)If it is at all possible, you must change the circumstances that got you into this bad credit situation in the first place. If you are spending too much, you must change your spending patterns, and do it right now. Just because you friends go out to nice restaurants every Friday night doesn’t mean you can too. The same holds true for weekend ski trips, nights at the casino, and just about anything else that is not absolutely necessary. There may be a time in the future you can resume frivolous …

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[28 Feb 2006 | No Comment | 337 views]

The work of notaries public is in demand with all so many people buying or refinancing their homes. A notary must attest to many signatures in the closing of a purchase or refinancing of real estate. A notary public serves as a state official who is a bonded witness of a signature. In Florida and perhaps in other states, a notary public can also perform a marriage.
While the net income of a notary public is subject to federal income tax, it is not subject to self-employment tax. Section 1402(c)(1) of the Internal Revenue Code and Regulations Section 1.1402(c)-2(b) provide that the income of a notary public is not subject to self-employment tax.
If a notary public has another business as a self-employed individual, the notary public must pay self-employment tax on the net income from the other business. The notary public must keep a separate account of the income and expenses …

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[28 Feb 2006 | No Comment | 287 views]

Where should an individual taxpayer deduct tax preparation fees? The obvious answer might be on Schedule A of Form 1040 as a miscellaneous deduction. Are tax preparation fees deductible only on Schedule A for all taxpayers? Thankfully, the answer is no.
Deducting tax preparation fees on Schedule A will provide little or no benefit for most taxpayers because the total miscellaneous deductions must exceed two percent of the taxpayer’s adjusted gross income to provide any benefit. In addition, the taxpayer’s total itemized deductions must usually exceed the standard deduction amount to provide any tax benefit.
The IRS ruled in Rev. Rul. 92-29 that taxpayers may deduct tax preparation fees related to a business, a farm, or rental and royalty income on the schedules where the taxpayer reports such income.
A taxpayer who is self-employed may deduct the portion of the tax preparation fees related to the business, including schedules such as depreciation schedules, …

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[28 Feb 2006 | No Comment | 346 views]

With education costs soaring to all time highs, making tuition payments for grandchildren and others can save lots of money in gift and estate taxes down the road – even if the donor is not alive when the tuition money is actually used.
By way of some background, the tax laws exempt tuition payments by grandparents or others from any gift taxes, provided certain requirements are met. First, the only educational costs that are gift-tax free are tuition costs. The cost of room and board, books, and other educational expenses are not exempt.
Second, the tuition costs must be paid directly to an educational organization that “normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.” Notice that there is no requirement that the tuition costs be paid to a college …

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[28 Feb 2006 | No Comment | 359 views]

Here are some interesting tidbits about the annual gift tax exclusion that you should be aware of:
1. No gift taxes are imposed on the first $12,000 in gifts that you make to any person during 2006. This exclusion from federal gift taxes is known as the “annual gift tax exclusion.” This exclusion is indexed for inflation so that the amount will vary from year to year in $1,000 increments. Originally, the exclusion amount was $10,000. In 2005, the amount was increased to $11,000 and, for 2006, the amount was increased to $12,000.
2. This exclusion applies only to gifts of a present interest. In other words, the gift must have no strings attached. The recipient must be able to use and enjoy the gifted property immediately. There are certain exceptions, however, such as gifts to a 529 plan where the money will be used for future tuition payments.
3. This exclusion amount …

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[28 Feb 2006 | No Comment | 346 views]

In the world we live in today there is no shortage of access to investment information. This in itself however, can be an enormous problem. Asking questions about how to invest, where to invest, and what to look for, can bring you many answers from lots of different sources. The trouble is diving through all the clutter to find relevant information to suit your needs.
So when looking to invest in the stock market, where should you start?
First things first, invest in what you know. If you are trying to evaluate a company, make sure you know how it works. The great Warren Buffett has often been criticized for not investing in technology during the dot-com boom. His answer was simple. If you don’t know the business model, what the company does on a day to day basis, or how it generates revenue now, and in the future, then stay away …

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[28 Feb 2006 | No Comment | 329 views]

When deciding on a trade or investment, be it short, intermediate or long term, multiple time frame analysis can help clear the noise and offer a balanced view.
Multiple time frame analysis!?! It sounds complicated and fancy, but it simply refers to the same chart with more than one time compression (e.g. daily or weekly). When both the weekly and the daily charts are in harmony, the chances of success can be greatly enhanced.
The essence of the strategy is easy: Use the higher time frame price activity to define the tradable trend as well as potential support and resistance levels.
Markets exist in several time frames simultaneously. They exist on a 10 minute chart, an hourly chart, a daily chart, a weekly chart, and any other chart. Traders often feel confused when they look at charts in different time frames and they see the markets going in several directions at once.
The market …

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[28 Feb 2006 | No Comment | 368 views]

Yes, of course, investing in shares is a good option for people who look for long-term investments. There are people who invest in shares for a smaller duration; it may be for 1 week, 1 month or 3 months.
For people who do not know much about share markets and which stocks to buy and sell, then they can invest in mutual funds. In mutual funds, a mutual fund manager who has very good knowledge of the stock markets will manage your funds and you can get good returns on your investment.
The risk as well as reward is high in share market investments. If you invest in shares, which are fundamentally strong, then the risk of losing your principle is less. If you invest in dud shares, then you could lose the money invested with no gain. You should take care of the money you invest in shares and invest in …

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[28 Feb 2006 | No Comment | 375 views]

If you’ve owned real estate for the last two or three years chances are you feel like a financial genius. In many areas real estate values have climbed to dizzying heights.
I hope you have resisted the temptation of easy money home equity loans. If so, you’re now sitting on a big, fat profit. It may have entered your mind that the big run up in real estate prices could be nearing a peak and those values could come barreling down. Oh no! That would mean your big, fat profit could become thin as a rail in a New York minute. That kind of financial weight loss you just don’t need.
This article is not meant to promote the idea that we’ve all experienced the effects of a real estate bubble and that inevitably that bubble must burst. That could be the case, but honestly, who really knows? But if a reversal …

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[28 Feb 2006 | No Comment | 310 views]

Real estate consumers are the winners in the latest round of real estate bubble headlines. The media’s focus offers information and opinion on markets and practices to the individual property owner and investor. Mark Nash residential real estate author of 1001 Tips for Buying and Selling a Home offers strategies for consumers on how to read signs of a softening market.
Warning signs for consumers are:
-Incentives offered by builders on completed new construction buildings or homes; this indicates an over-supply of new units. Research the length of time of property has been on market in a specific location. If the majority of sold properties have sold in thirty days or less in the past ninety days, but the current market times for the majority of sold properties are 60 or more days, the market is softening.
-Diminishing multiple-offer bidding wars. Inquire of several full-time mid to high producing real estate agents in …