Exemptions

Bankruptcy California Exemptions

2009-11-04T15:40:00.002+02:00

California is the most populated state in the United States with an estimated population of over 36 million people. California alone comprises of almost 12 percent of the entire United States population. The bankruptcy law in California does not vary from bankruptcy law in other states because bankruptcy falls under US federal law. What does vary however, are the bankruptcy California exemptions as do the bankruptcy exemptions in all other States.

If you are seeking to file for bankruptcy in California, you should be aware that there are 2 options for bankruptcy California exemptions. It should be noted that the 2 bankruptcy California exemptions options cannot be combined or can you take one allowable exemption from one and another from the other.

If you are filing bankruptcy in California under one option you are allowed a homestead of up to $20,725. You may keep an automobile with a value of up to $3,300, jewelry up to $1,350 and any tools of your trade up to $1,350. Personal property consisting of furniture, clothing, appliances, household goods, books, crops and pets can be retained up to $525 per item.

To file for bankruptcy using the other option of Bankruptcy California exemptions, you would be entitled to a homestead of up to $50,000 if single, $75,000 if you are a family member with no other member claiming and $150,000 if 65 or over or disabled. Also $150,000 if you are single plus 55 or older and you earn less than $15,000 per year. The $150,000 also applies if you are married and 55 or older and earn less than $20,000 per year. Filing for bankruptcy using this option would allow you to retain furniture, clothing, appliances and health aids. Additionally up to $2,700 is exempt for home buildings and up to $6,750 is exempt for jewelry. If you file for bankruptcy, under this option, the exemption for your automobile is up to $2,550.

Filing for bankruptcy in California with all these options and exemptions in general can sound extremely confusing. If you are thinking of how to file bankruptcy to take advantage of the best option, you should consult a Bankruptcy Attorney that practices in California. Only a Bankruptcy California Attorney can clearly and simply answer each and all of your bankruptcy questions and explain the best option for your particular situation of filing bankruptcy.

About the Author
Jay King is a owner of BankruptcyIntro. We've all heard of large companies filing for bankruptcy or "going bankrupt" and most of us would think that particular company must be in trouble.

Planning Permission: Exemptions For House Extensions

2009-11-04T15:36:00.002+02:00

Planning permission exemptions are generally based around various well defined aspects of a property such as its total volume or height. If these thresholds are exceeded, e.g. building an extension on a house that exceeds a certain height, then planning permission must be applied for. The idea behind exemption is that development on a relatively simple scale should not be hindered by excessive or non-essential regulations.

Examples of structures that can built within the immediate area of land connected with the house, e.g. front or back garden include a greenhouse, garage or sheds. No exemption from planning permission can be granted for structures built forward of the front wall of the house.

Developers must also ensure that exempted developments do not exceed 25 square meters in area and that the amount of private open space remaining after the erection of an exempted structure is not less than 25 square meters.

The exempted status does not cover the construction of building with the purpose of permanent occupation by either people or domestic animals.

The height of exempted buildings should not exceed 3 meters, unless the new building has a tiled or slated pitched roof in which case the developer is allowed to build to a height of 4 meters.

The external appearance of the new extension should, as far as practically possible, match that of the existing structure. So for example, the roof of a new garage should blend with the roof of the house.

Obtaining planning permission for proposed non exempt developments is vital if you want to sell your house. Local planning authority have the legal right to force a developer to cease any work on any development that commenced without the appropriate planning permission.

Although many developers may assume that retention planning permission will be granted, especially for smaller developments, this is by no means a foregone conclusion.

The local planning authority may look sympathetically on genuine oversights during the building process and may grant retention planning permission. However, developers should remember that the fee for retention planning permission is usually three times the fee charged for a new development.

In addition, the final grant of retention planning permission may involve conditions imposed by the local planning authority, such as alteration or modification of work already completed on the development. So although the developer may obtain retention planning permission, it may prove costly in terms of the work needed to alter the development to obtain it.

Factors to consider when commencing exempt development.

Contact local gas, electricity and cable companies if you believe that the proposed development will impact on their pipelines, overhead lines or cables. By law, developers must ensure that the electricity supply company be informed if overhead lines are within 25 meters of proposed construction works and also that water pipelines or sewers are not affected by work carried out on developer's property.

Developer's should also consider making their neighbours aware of the work they intend to carry out on their property. Also bear in mind that some alterations to property may reduce the security of the property against burglary and theft. Keeping your neighbours informed will more likely than not be in your own best interests.

Your builder may need access through your neighbours property to work on your house. Keeping on good terms with your neighbours is a vital part of the development process for both exempt and non-exempt development work.

This article is intended as a general, basic guide to planning process of local authorities in Ireland. For more specific details and the latest regulations concerning planning, please consult the website of your local authority.

About the Author
Sean Roberts

LimerickHouses.ie | Free Ads for House Rent and Sales

Limerick Houses For Long Term Rent | Planning Permission & Home Exemptions

Dublin Property | Houses For Long Term Rent

Cork Property | Houses For Long Term Rent

Bankruptcy Florida Exemptions

2009-11-04T15:32:00.002+02:00

The State of Florida falls as the 4th most populated State in the United States. It has an estimated recorded population of over 18 million. Florida lies in the 11th circuit of US Bankruptcy courts. In 2007 Florida had a total of 41,462 bankruptcy filings. In 2008 there were 67,649 bankruptcy filings, an increase of 63.2%. Florida makes up almost 6 percent of the population of the United States. Bankruptcy Law in Florida is not different from bankruptcy law in the other US states because bankruptcy is regulated under US federal law. However what is different are the Bankruptcy Florida exemptions. Bankruptcy exemptions in general differ slightly from State to State.

If you are looking to file for bankruptcy in Florida, Bankruptcy Florida exemptions are relatively simple to understand compared to other states where they can be rather complicated.

If you are filing bankruptcy in Florida you are allowed an unlimited homestead if your property is under a half acre in the city or 160 acres outside the city. To file for bankruptcy using this homestead rule however you must be aware that Bankruptcy Florida exemption for this homestead is limited to $136, 875 if the property was acquired within 1,215 days of filing for bankruptcy.

If you file for bankruptcy in Florida, the Bankruptcy Florida exemption for your automobile is up to $1,000. Under Florida bankruptcy law, the exemption for your personal property is up $1,000 and Health Aids are considered exempt. Filing for bankruptcy in Florida also allows you Tools of Trade as an exemption but they must be included in personal property.

Filing for bankruptcy in Florida, in regards to it's exemptions, may be more straight forward then some other states but can still be somewhat confusing. If you are thinking of how to file bankruptcy to take advantage of the allowable Bankruptcy Florida exemptions, you should connect with a Bankruptcy Attorney that practices in Florida. Only a Bankruptcy Florida Attorney can clearly and simply answer each and all of your bankruptcy questions and explain the best way to take advantage of the allowable exemptions for your particular situation of filing bankruptcy.

More Information about Bankruptcy Florida Exemptions Please visit www.bankruptcyintro.com/

About the Author
Jay King is a owner of BankruptcyIntro.com. We've all heard of large companies filing for bankruptcy or "going bankrupt" and most of us would think that particular company must be in trouble.

Property Charges and Taxes For New Private Homes

2009-11-04T15:30:00.002+02:00

The last budget altered the threshold amount for the calculation of capital acquisitions tax. A person can now receive or inherit up to a maximum of 434,000 euros by a parent and still be exempt from capital acquisitions tax.

If a person receives an inheritance or gift from other family members, the capital acquisitions tax threshold is reduced to 43,400 euros. The threshold for gifts or inheritances from non-family members reduces to 21,700 euros. Gifts or inheritances between married couples are exempt from capital acquisitions tax.

The current capital acquisitions tax rate is 25 percent for inheritance or gifts received after the 8th of April, 2009.

Any income received from property rental is subject to income tax. Property owners are obliged to include any income from rentals on their annual tax returns, which have a deadline for self assessment. Revenue allows property owners some exemption for expenses incurred during the rental period and the latest details regarding these exemptions can be found on the revenue website or by contacting Revenue directly.

Exemptions are on a pro rata basis, so if a property owner partially rents out a houses or apartment, for example one or two rooms, then the property owner can only claim expenses for the part of the property actually rented out.

Any profits or gain that a property owner makes on the sale of a property, other than a main residence, is liable for capital gains tax. The amount of capital gains tax payable on the sale of a second or subsequent property is based on the difference between the original cost of the property plus any expenses incurred on improving it. It is vital that property owners retain receipts relating to any work done on the property in order to minimise liability to capital gains tax. The current rate of tax is 25 percent, although the first 1270 euros of profit is exempt from capital gains tax.

The Local Government (Charges) Act 2009 provides the details of the new 200 euro per property charge, payable by property owners on each property rented as at the 31st of July 2009. The payment is to be made to each local authority within whose boundaries rental properties and holiday homes lie.

Payment must be made by liable house and apartment owners to their local authority before the end of September 2009.

If payment is not received by the local authority by that date, they will impose a levy of 20 euro per month, starting from the first of November.

People living in their main residence are not liable for the property charge, nor are they liable if they receive rental income for one room in their main residence. However if a property owner rents out the entire house, then they will be liable for the entire charge.

Other exemptions from the new act apply to rooms in a main residence, or within two kilometers of a main residence which is occupied free of rent by a relative of the property owner.

The new property charge only covers second properties located in Ireland and overseas properties are exempt.

This article is only intended as a basic general summary and you should always seek professional advice where necessary. The latest details, terms and conditions regarding property charges and taxes will be found on the Revenue Commissioners website.

About the Author
Sean Roberts

LimerickHouses.ie | Free Ads for House Rent and Sales

Limerick City Houses For Rent & Sharing

Dublin Property | Houses For Rent & For Sale

House and Property to Rent & Share in Limerick

The Chapter 7 Exemptions

2009-11-04T15:25:00.002+02:00

When debts are overwhelming, the hardest part could be filing for bankruptcy. Many people prefer Chapter 7 Bankruptcy. This chapter involved selling all your non-exempted assets that can ultimately be an effective way for you to pay off all your existing debts. As this is a supervised procedure, the authority will appoint a a person known as a trustee to get sales from all the non-exempt assets of the defaulter and use the sales proceeds to pay off the various creditors. Chapter 7 Exemptions are assets that the creditors cannot touch when filing for bankruptcy. It is true that chapter 7 tend to help the debtors more and with the law of exemptions, you can effectively reduce your personal damage and still get to keep some stuff.

The debtor keeps the property that he is allowed to keep. This list will be provided in the Federal Bankruptcy Code. The property shall be separated as exempt or non-exempt once the trustee files a property exemption report. State exemption laws can vary from one state to another although some basic laws may be the same.

Debts that are classified as secured debts will be paid first. As for debts that are unsecured, there may be a situation that the creditors of unsecured debts might not get any money at all. The trustee is authorized to decide who gets the payment first, based on the law. Note that to enjoy the benefits of bankruptcy chapter 7 exemptions, the defaulter must file the case in the state where he/she resides for a period of 730 days before he/she can file for this type of bankruptcy. Alternatively, the defaulter may also file the case in a state where he/she has spent most of the 180 period prior to the 2-year period.

There are some Federal exemptions and they can include retirement benefits, death disability benefits, survivor's benefits and miscellaneous. You should find out more about the Federal exemptions because not all the states are the same.

Bankruptcy is probably the worst scenario, your credit score will have a major impact because there is a bankruptcy filing. Not only you will lose most of your possessions and you need to start your business all over again from nothing. It must only be considered when there is no other option.

If, unfortunately, you have no other options, then remember to educate yourself about bankruptcy Chapter 7 Exemptions as it can help you reduce your personal loss of assets and maximize the benefits of this law to pay off your debts fast.

About the Author
To find out more information, visit this website for: Chapter 7 Exemptions

Start A New Chapter In Your Life By Filing For Chapter 7 Bankruptcy

2009-11-04T15:24:00.002+02:00

There are times in many people's lives when debt seems to be completely overwhelming. Some are able to get past these difficult times while others are not. For those that find themselves in the latter category there is no other solution than creating more debt or going for the best course of action which is filing for Bankruptcy Chapter 7. Financial burdens suddenly disappear and those filing for Chapter 7 Bankruptcy are given a new slate, a chance to start everything again. Chapter 7 Bankruptcy is not easy to digest. Although people escape having to pay their debts, they lose everything that is of any financial value.

Most people are able to look past what Bankruptcy Chapter 7 entails, in terms of negative aspects and see it as a great possibility for starting a new life. In the long run Bankruptcy Chapter 7 can only be seen as a last resort in situations that seem to offer no escape. In a Chapter 7 bankruptcy, certain non-exempt assets are sold by the court and the proceeds paid to creditors. Most debtors are able to protect their assets by using certain exemptions allowed under their State's laws. So the end result is that most Chapter 7 bankruptcy do not result in assets being sold by the trustee and the debtors are able to keep most of their assets This means no more calls or letters from collection agencies, banks or other creditors. For the wide majority of people that have filed for Bankruptcy Chapter 7 this means putting an end to years of pressure and tension caused by debts. (Most people are able to rebuild their credit within 2 years of filing bankruptcy by applying and getting small department store credit cards. A person is actually a good credit risk after a bankruptcy because he/she has zero debt and probably has a job and can't file another bankruptcy for another 8 years. Therefore, many credit card companies see them as a very good credit candidate to extend credit to.)

There is another downside to Bankruptcy Chapter 7 and this time, it is not something that many people are able to dismiss immediately. We are talking of course of the matter of public records. Once a person has filed for Chapter 7 Bankruptcy he or she has no hopes of keeping this matter private. Bankruptcy files go on public record and can easily be accessed by anyone. However, these are all facts that can be overlooked when looking at the big picture, and what a picture it is indeed. A fresh new start.

About the Author
For more resources about Chapter 7 bankruptcy or even about Bankruptcy chapter 7, please review this page http://www.legaljiffy.com/

Bankruptcy Laws in California

2009-11-04T15:20:00.002+02:00

The bankruptcy laws are different in California and if in moments of great hardships, bankruptcy is the only solution that you can find, then take heed of the laws that are not the same in California. The laws differ and provides debtors the choice between the state law exemptions found in Code of Civil Procedure §704 and a set of bankruptcy-only exemptions in CCP §703.140. When understanding bankruptcy law california, it is essential to be aware of the law that, any property in California is a community property of the spouse after marriage holds equal rights for both of them. As per bankruptcy law California, the property owned by a couple is not liable to be used to clear debt of the non filed spouse in cases when the other files bankruptcy and the property becomes property of the estate which can used to clear off community debts as per bankruptcy law California. However a separate property, if any, could be used by the spouse who has not filed bankruptcy. That means that the after- acquired community property is not liable to be used to clear off personal debts of the non filing spouse existing, when the bankruptcy was filed.

The bankruptcy law California defines as to who can file bankruptcy. It says that a person of 18 years and above and married couples can file bankruptcy both jointly and individually. This is regardless of the citizenship status. Questions then arises that "Can bankruptcy put a stay on the creditor's insistence to clear off debts?" It is punishable if the creditor continues to harass the borrower to pay off debts once the bankruptcy is filed as per bankruptcy law California. It comes into effect only when all required papers are cleared and filed and bankruptcy has been declared under bankruptcy law California. The creditors can then be directed to the office where bankruptcy has been filed.

The law governing bankruptcy issues can answer queries related to foreclosures as declaring bankruptcy puts an automatic hold on unfortunate foreclosures to stop all legal actions and proceedings that a debtor is facing as per bankruptcy law California. The duration that limits the foreclosure however depends upon chapter chosen for bankruptcy that is filed.

But what if one has already filed bankruptcy earlier and is willing to declare once again, is there a law governing such an action? The answer is an affirmative according to bankruptcy law California. It depends upon the chapter number of the prior bankruptcy case, the chapter number of the current bankruptcy case and the number of years that elapsed between the date that a prior bankruptcy case was filed and the date of the current bankruptcy. In case of filing a chapter 7, one must wait 8 years after date the prior bankruptcy case was filed. In condition when chapter 13 was filed earlier, a 4 years must waiting period is there before the next bankruptcy is filed. In situations when a chapter 13 was filed before and the defaulter wants to file a chapter 7, the Bankruptcy law California states that that the decision will be taken on the basis of the claims settled earlier when bankruptcy was filed. The last resort, that is, if the person is decisive on filing chapter 13 and the current bankruptcy is a Chapter 13, he or she must wait for 2 years. The bankruptcy law California therefore provides relief as it can stop foreclosures to take place at the first place and exemptions that are possible if laws are implemented rightfully.

Mark Haven, the writer for this article explains about the bankruptcy law California and various legal proceedings, timelines and bankruptcy laws Chapter 7 and 13for a property owned after marriage and the solution to hold foreclosure proceedings as per bankruptcy law California. Visit www.stonehavenlaw.com

About the Author
Be the first to know and get aware of the bankruptcy law California to best ascertain the rights that an individual has in order to shed off burden of debts falling over a defaulter. He or she over-burdened with debts can file bankruptcy to stop foreclosures and also the creditors coming to you.

The Whole Concept of Personal Income Tax

2009-10-05T00:52:00.002+02:00

As the name suggests "Personal Income Tax" is all related to tax bracket on income of individual. On the United Kingdom front it is calculated on annual income. It is generally calculated on financial income and other legal entities. There is a particular time frame allotted as the last date to file income tax returns. For the UK it is the month of April to file up Income Tax Returns. But, you are given six months extension period to file in your IT returns by filling in a specific form. There is certain tax bracket under the "Personal Allowance" scheme, under which every working individual is exempted from tax up to a certain limit.

Know your personal income tax from closer venue

Government of the UK provides certain exemptions on investments. Owning any of these will attract tax exemptions up to a certain defined limit- UK Government Bonds (Gilts), National Savings and Investments, Individual Savings Accounts, Pension Funds, Venture Capital Trust, Enterprise Investment Schemes, and Insurance Bonds. There are many clauses added to the tax profile. Unlike the general misconception, the taxable income is not same as that of total income. The simple logic behind it is that all tax payers in the UK are allowed a certain amount of tax deductions in the form of allowances mentioned above and tax reliefs.

How to calculate payable tax?

You can sit and estimate your total funds as tax by sitting at home. To calculate the accurate figure you simply need to work out the taxable income after taking in consideration any allowances or tax relieves. Calculate the tax on your "taxable income" up to the limit of £37,400 at 20 per cent. If you are having income more than £37,400 then calculate over £37,400 at 40 per cent, finally add the two figures together. This rate is for the year 2009/2010 in the UK.

Online support

Are you confused with the math? Or else can't cope with the long list of investments that you have already done and don't specifically know what all are into chargeable bracket and what not? Worry not, as there are many online supports who have expertise knowledge into this field and have backing up of professionals as accountants, tax advisors etc. They calculate and try to save maximum amount of cash from getting channelized to tax brackets.

About the Author
ATC Solution is a fast growing, dynamic firm providing professional and discrete financial services, Corporate Income Tax solutions and VAT services. We provide Personal Tax Planning schemes for all types of businesses with the perspective to reduce tax liabilities.

What is the difference between a Chapter 7 and a Chapter 13 bankruptcy?

2009-10-05T00:50:00.000+02:00

Sometimes you get into severe financial straits and have to rely on bankruptcy. When this unfortunate happenstance occurs, which form of bankruptcy do you choose? The two major forms of bankruptcy for consumers are Chapter 7 and Chapter 13. Each of these bankruptcy forms are designed to ease and remove debts from you, while at the same time paying off the bills as much as possible.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy involves the liquidation of your assets, with the exception of a few necessary exemptions, in order to pay off as many of your creditors as possible. In return, the court wipes away all of your debt, allowing you a fresh start.

When you file for Chapter 7 bankruptcy, the court appoints a trustee to your case. The trustee is in charge of distributing any non-exempt asset you have to creditors in order to pay off some of your debt. The trustee will look over your estate and notify creditors if you have any non-exempt assets. The creditors can then file a claim for some of the proceeds. In a Chapter 7 bankruptcy, those proceeds will be all that the creditors will get, and they will not be able to harass you further regarding your debt. Once the filing is complete, your debt is discharged and you are no longer liable for it.

When entering into Chapter 7 bankruptcy, there are two important things to remember. The first is exemptions. There are a lot of exemptions available in the state and federal laws. Work with your lawyer to determine which set of rules to use, and you should be able to keep a lot of your assets. The second thing to remember is that the debt discharge does not apply to debt accrued through fraud or other illegal methods. If you have debt acquired through fraud, you are still liable for that debt.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy involves working with the court and your attorney to develop a more lenient repayment plan. This repayment plan usually takes five years to complete, and helps pay back part of the debt. Once the five years is up, the rest of the debt is discharged and wiped away.

Like in Chapter 7 bankruptcy, the court appoints a trustee to your case when you file for Chapter 13. Within 30 to 45 days of filing for bankruptcy, you begin making your payments to the trustee, and the trustee then distributes the payments as necessary to your creditors. You will only need to deal with the trustee, and the creditors will not be able to harass you due to a court order.

If you file for Chapter 13, then it is your responsibility to continue paying according to the schedule. If you are unable to do that, the court will dismiss your case, and you will not have your debts discharged. Also, not all debts will be discharged at the end of the repayment plan. For example, you will still have to pay taxes owed.

About the Author
Dustin Bower is the founder and owner of Bower Law Office, PLLC, http://www.bowerlawoffice.com. Dustin has experience in a wide range of legal areas, including bankruptcy, child welfare and advocacy, administrative law, criminal law, unemployment law, corporate law, and business litigation.

Why All Employees Pay the Federal Income Tax

2009-10-05T00:47:00.002+02:00

Federal income tax is withheld from the pay of almost all employees. Employee pay is inclusive of salaries and wages, bonuses, commissions, and vacation allowances. It is the responsibility of the employer to provide the employee with a W-4 at the onset of their employment. The determination of tax withheld is computed from the information provided on the W-4. The employee must inform the employer of their withholding status (married or single), and the number of exemptions they will be claiming. Employees also have the option to have an additional amount withheld from their pay. If, over the course of an employee's employment, they wish to change or adjust their withholding rates, they may simply request to complete a new W-4. Publication 919 "Getting the Right Amount of Tax Withheld" is available from the IRS and can assist employers and employees in making the best choices for withholding correctly. Factors that will affect the amount of federal income tax withheld from an employee's check include marital status, number of exemptions, or an employee has more than one job at a time. These factors will affect federal income tax computations, and should be included in information provided by the employee at the time of employment. Some employees, due to filing status, number of exemptions or allowances, and earned income totals below the national poverty level, will qualify for Advance EIC payments. These are advance payments of a refund of federal income tax. Advance EIC payments are made on the employee's paycheck each pay period, if requested. . Contributions to qualified 401(k)'s or any other program that allows deductions of "pre-tax" contributions will affect the amount of federal income tax withholding for each pay period. Generally, contributions to a 401(k) or other retirement program are a benefit to the employee at the end of the tax year. These contributions provide a tax break and reduce the amount of federal income tax due, while providing retirement benefits to the employee. Other factors affecting federal income tax liability are filing status, number of exemptions claimed on your personal tax return, individuals with more than one job, child tax credits, education credits itemized deductions, and nonwage income. At the end of the tax year, employees are furnished a W-2. This is a summary of the wages paid and all deductions taken from the employees gross pay over the course of the past tax year. All employers are required by law to furnish employees with a W-2 no later than January 31st of the next tax year. To summarize, federal income tax withheld from an employee's pay can be affected by changes to the employees wage base, filing status, or simply the acquiring of a second job. All employees should take the time to review their filing status based on the information provided on their W-4 and make changes to withholding status and exemptions claimed as needed.

About the Author
Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites. http://www.adsence-dollar-factory.com http://www.100earningtips.com

Pay Self-Employment Tax...

2009-10-05T00:44:00.002+02:00

Who must pay self-employment tax? If you are self-employed, you will be responsible for self-employment tax. For the purpose of determining self-employment tax, you are self-employed if you are a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself.

As a self-employed individual you will have a Schedule C to attach to your Form 1040, and self-employment tax is computed on Form 1040, Schedule SE. Individuals must pay self-employment tax is they have net earnings of $400 or more. They are several sources of net earnings that are used when figuring your self-employment tax liability. In most cases, net earnings include net profit from a farm or nonfarm business. If you operate more than one business, your net earnings from self-employment are the combined net earnings from all your businesses. If you have a loss in one business, it reduces the income from another. Self-employment tax is the self-employed individual's contribution to social security and Medicare taxes. The only difference between the employee and the self-employed is the employee's social security and Medicare taxes are paid half by the employee and half by the employer. When an individual is self-employed, he/she is responsible for the entire amount. There are alternative methods that can be used for figuring liability of self-employment tax. The Farm Optional Method and the NonFarm Optional Method may qualify an individual to claim a larger Earned Income Credit or Child Tax Credit. They may also, however, increase your self-employment tax liability. The maximum amount of earnings subject to self-employment tax is currently $87,000.00 and when figuring your adjusted gross income on Form 1040, you may deduct up to one-half of your self-employment tax liability. If you are member of the ministry or clergy you may request an exemption from self-employment tax from the IRS. In summary, if you are self-employed, have net earnings of $400 or more, and file a tax return, you will be subject to self-employment tax. To learn more about individual liabilities, exemptions, and alternative tax methods, please visit the online site for IRS Forms and Publications at www.IRS.gov . Topic 554, Publication 517 and 533 will provide more detailed and situation specific information.

About the Author
Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites. http://www.adsence-dollar-factory.com http://www.100earningtips.com

Is Bankruptcy Right For Me?

2009-10-05T00:40:00.002+02:00

People have tried just about everything to get back on track when they've gotten into deep trouble with their finances. Some people have chosen credit counseling, and some people have resorted to debt consolidation loans. Unfortunately, these remedies don't work for everybody. In some cases, people have concluded that their only option is bankruptcy. Bankruptcy is not an easy option, and most financial advisors won't recommend it unless it is the only method that can save a financially strapped consumer. Before choosing bankruptcy, the consumer must ask the right questions.

The first question asked is, would they be better off to file bankruptcy on their own or should they hire an attorney. Bankruptcy is extremely complicated, and most people would be better off hiring a lawyer. Bankruptcy attorneys know that most people don't have the money to hire an attorney so that will allow you to pay them overtime. Lawyer can save you much time, money and aggravation and filing bankruptcy. There are several forms of bankruptcy, such as Chapter 7 or Chapter 13. A lawyer is your best source of information and choosing which Chapter to choose.

Another important question to ask, should be, what will be the impact on your credit rating if you file bankruptcy. Many think that they will be better off after bankruptcy, but this is not always so. You will be able to get credit after bankruptcy, but you may be better off without it. Post-bankruptcy credit comes with a very high interest rate, and if you continue to use credit improperly. You will quickly find yourself right back where you started from.

You will want to ask if there are any debts that will not be wiped out in a bankruptcy. Student loans are not wiped out in bankruptcy, and there are other debts, which will not be wiped out. He lawyers your best source of information.

You will want to know how much of your property you will be able to keep after bankruptcy.you don't necessarily have to give up all your property when you file for bankruptcy. There are exemptions, which vary from state to state. Again, a lawyer is your best source of information for the exemptions in your particular state.

Bankruptcy is intended to provide the financially strapped with a fresh start. It is a choice that should not be made without discussing your options with an expert in bankruptcy law.

About the Author
Sam has been an article writer and web developer for nearly 20 years.Come visit his latest website at http://www.weddinggownpreservation.net which helps people find all about wedding gown preservation.

Keeping your Cars in Bankruptcy

2009-09-15T10:39:00.002+02:00

One of the most frequent questions that any Washington bankruptcy attorney is asked during an initial consultation is whether or not someone contemplating filing for bankruptcy can keep their car. For the most part, the answer is yes.

In the vast majority of situations, clients who want to keep their car and who have the ability to stay current on their monthly payments are able to retain their automobile after filing for bankruptcy in Pierce County, Washington. Depending on whether you are filing a Chapter 7 or a Chapter 13 bankruptcy, and depending on whether you utilize the federal exemptions or the state exemptions, their is typically a way to safeguard any equity in your vehicle from being seized by the trustee.

There are, however, a couple of exceptions to this general rule. While it is true that most people are indeed able to keep their cars after filing a Washington bankruptcy, if you have a very large amount of equity in one or more automobiles, then you may not be able to protect your vehicle or vehicles in a bankruptcy proceeding. Additionally, as noted above, if there is an outstanding loan on your car, then as with keeping a home or other real property in a bankruptcy, you must be able to make your regular monthly car payments in order to keep your car.

If you have questions about whether or not your vehicle or vehicles can be protected in a bankruptcy proceeding, you need to call and talk to one of an experienced Washington bankruptcy attorneys about the bankruptcy laws and your options.

About the Author
Choosing the right tacoma bankruptcy attorney may be one of the most important decisions that you will ever make. We are your experts in all chapter7, 13 bankruptcy and tacoma home foreclosure matters.

Tax Relief - What It Is

2009-09-15T10:31:00.002+02:00

However you may look at it, taxes paid are monies removed from your disposable income; so, any lessening of taxes is a positive development.

Tax Relief is a reduction, deferment or elimination of taxes granted to a taxpayer by the state or federal government under certain circumstances; or, for expenses made by the taxpayer. For example, the interest charged on educational loans may be deducted from the total tax payable in some instances. A tax deferment because of disasters or calamities, such as those granted the victims of Hurricane Katrina in 2005, can, also, be granted. It may also be exemptions granted to low- or middle-income families, which means some amount is deducted from the total taxable amount, making the tax smaller.

Tax relief definitely helps the beneficiary in many ways, especially those in financial constraints or whose business is in the red. In 1992, the IRS introduced a tax relief program where back taxes of qualified individuals and businesses were reduced. This kind of tax amnesty - reduction of certain portions of back taxes-is called an offer in compromise. The government and the taxpayer agree to a compromise amount that will be paid.

In granting tax relief, tax authorities usually review the taxpayer's capacity to pay his tax, based on his income and properties. If the value of certain taxable assets has been reduced substantially, a tax relief on those assets may be granted, commonly in the form of reduced asset value. The corresponding tax is, therefore, reduced also.

In general, tax relief is granted only if the reason for the request is valid under tax laws.

About the Author

Do you want to learn more about getting rid of your IRS and/or state tax problems? Visit us at our website for money-saving ideas and strategies. http://www.TaxReliefGuru.com Over the years R. L. Daniel and partners have helped thousands of people with their IRS and state tax problems.

What is exempt property and what can you keep with the federal exemptions?

2009-09-15T10:25:00.002+02:00

"The purpose of an exemption is to protect a debtor and his family against absolute want by allowing them, out of his property, some reasonable means of support and education and the maintenance of the decencies and proprieties of life." Poznanovic v. Maki, 296 N.W. 415, (1941)

Exempt property is not touched by the court in a bankruptcy proceeding. State and federal laws provide a list of all property that can be kept through exemption during your bankruptcy proceeding. In a Chapter 7 bankruptcy, all property that is not exempted will be liquidated in order to pay off creditors, so it is in your best interest to know what can be kept through exemption.

In Minnesota, a person must choose whether to use the Federal or State exemptions. This can be a complicated decision and clients should consult closely with their attorney before filing a bankruptcy petition. The list below includes both Federal (marked with an (f) and State exemptions. Obviously, the choice of whether to use State or Federal exemptions will have a large impact on the property you get to keep. The list below is

The following is allowable as a property exemption:

Bible and musical instruments: - The family Bible, library, and musical instruments

Pew and burial lot: - A seat or pew in any house or place of public worship - A lot in any burial ground

Personal goods: - All clothes (up to a value of $2,400(f)), one watch, utensils, and food - Household furniture and appliances, a phonograph, a radio, a TV, provided that their total value does not exceed $4,500 - A VCR, linens, china, crockery, educational materials and equipment for children, personal effects, a personal computer and related equipment(f) - Jewelry up to a value of $1,000(f) - Wedding rings and other symbols of marriage, up to a value of $1,225 - Professionally prescribed health aids for the debtor or their family(f)

Farm machines: - Farm machines for a debtor that is primarily a farmer, livestock, farm produce, and standing crops, provided their value does not exceed $13,000

Tools of trade: - The tools, implements, machines, instruments, office furniture, stock in trade, and library reasonably necessary for the business of the debtor, provided their value does not exceed $5,000($1,500(f)) - If tools of trade and farm equipment are one and the same, then the value cannot exceed $13,000

University apparatus: - The library and any apparatus owned by a school for the purpose of teaching

Exempt property claims: - All money received through a court claim on any damaged exempt property - Any recovery for claims for damages caused by any unlawful taking of exempt property - Any rights of action for injuries to the debtor or their family

Insurance proceeds and beneficiary associations: - Life insurance proceeds up to $20,000 - All money, relief, and benefits received from any police department, fire department, beneficiary, or fraternal benefit association - Interest from any unmatured life insurance contract owned by the debtor, which cannot exceed $4,000

Homestead: - Real property the debtor is using as a residence provided that it does not exceed $15,000(f) in value

Motor vehicles: - Mobile home actually in use by the debtor as a dwelling - One motor vehicle not exceeding $2,400 in value(f), or one motor vehicle not exceeding $20,000 in value that has been modified to accommodate a physical disability

Earnings: - All earnings not set aside for child support or other garnishments - Earnings of any minor child - All earnings paid to debtor within 6 months of being released from prison - All earnings within 20 days of being deposited in a bank - All earnings paid to debtor within 6 months of returning to work if the debtor has received welfare in the past

Public assistance: - All relief received based on need - All earnings of a debtor receiving need-based relief

Employee benefits: - All employee benefits payable due illness, disability, death, age, or length of service up to a value of $30,000 - Retirement plans with a value of not more than $1,000,000(f) - Veterans' benefit(f) - Disability, illness, or unemployment benefit(f) - Support payments from alimony(f)

About the Author
Dustin Bower is the founder and owner of Bower Law Office, PLLC, http://www.bowerlawoffice.com. Dustin has experience in a wide range of legal areas, including bankruptcy, child welfare and advocacy, administrative law, criminal law, unemployment law, corporate law, and business litigation.

The Psychology of Bankruptcy

2009-08-16T20:16:00.001+03:00

We commonly encounter clients that carry debt loads they can never pay back, unless they win the lottery or some other unlikely event occurs. By the way, the odds of winning the California Mega Millions Lotto Jackpot are 1 in 175,711,536 million. We regularly meet clients that lose employment, or simply do not earn enough, and carry over $100,000 or even $300,000 in credit card debt or medical bills. Yet, they make an appointment with us, and sit across the table and say, "I don't want to file bankruptcy." Or, "I am here to discuss all options except for bankruptcy." Discussing all options is certainly recommended. Having an open mind and understanding reality is a requirement. Your San Francisco bankruptcy attorney can help you do both.

First, the client should be congratulated for making an appointment with a bankruptcy attorney because it demonstrates an awareness and acknowledgment that something is wrong or about to go sideways with the finances. It takes courage to tell someone about your struggles. When we dig deeper into the reason for a client's resistance in making the first appointment to discuss bankruptcy, we often find that his or her fear is based on misinformation or myths about bankruptcy which simply are not true. In this article, we address some of the common concerns expressed by our clients.

1. I'll be a failure Who would think you're a failure because you decided to own up to your financial reality and made the brave decision to do something about it? Would your friends think so? Would your family? Many people file bankruptcy due to no fault of their own, including loss of employment, divorce, illness, and a poor economic climate among other reasons. Some clients did make poor decisions, but learned some valuable lessons. Unless you're famous, no one will publish your bankruptcy in the newspaper. The truth of the matter is, in 2008 alone, over one million individuals and businesses filed bankruptcies.

Ask yourself. Would you be a more successful member of society without the burden of your debt? Of course you would be. Many people fail their way to success. Do you think Abraham Lincoln is a failure because he filed for bankruptcy? How about Walt Disney? Larry King? Donald Trump? These famous people used bankruptcy for what it was intended to do - to give you a fresh start. Filing for bankruptcy can be an emotional experience, but it should be a logical decision. The fear of being labeled a "failure" is an emotional reaction and not based on logic.

2. I'll lose everything

Bankruptcy is not meant to punish. The heart of the Bankruptcy Code is to provide the honest debtor a "fresh start." There are exemptions which allow you to keep most, if not all of your personal belongings. For example, in California, the debtor can protect his or her pension, IRA and 401(k). He or she can choose either the homestead exemption to protect equity in a home, or the wildcard exemption that permits the debtor to keep well over $20,000 in any personal belongings, in addition to household goods such as furniture and clothing. Indeed, more than 90% of the cases are "no asset" cases, meaning the debtor keeps everything because the exemptions protect all assets.

3. I feel ashamed If you are avoiding filing for bankruptcy because you feel ashamed, consider what it is you feel ashamed about. It is poor money management? Is it your spending habits? Or is it simply having found yourself in a situation that you could not get out of? Do not punish yourself by living with the debt until you die. Look ahead, learn from your mistakes, and move on. Moreover, letting your debt grow or permitting a lawsuit with a judgment to linger only deepens the sense of shame.

4. I have a moral obligation to pay back my debt Filing for bankruptcy has nothing to do with your moral obligations. It simply frees you from your legal obligation to pay back the debt. It also frees you from creditors chasing after you and calling you non-stop. If you feel strongly enough about it, you may choose to pay back any or all of your creditors after bankruptcy. But you will be able to pay it back on your terms, not the 30% default rate.

The concept of bankruptcy finds its roots deep in our civilization. For example, it is found in the bible: "At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD's release" (Deuteronomy 15:1-2).

It's also found in our constitution. The Constitution provides that Congress shall have the power "to establish . . . uniform laws on the subject of bankruptcies throughout the United States." U.S. Const. art. 1, section 8. Congress acted on this Constitutional provision, and provided all citizens with the right to seek the protection of the Federal Bankruptcy Court when warranted.

We are not suggesting that biblical and Constitutional references to the concepts of bankruptcy justify breaking contracts and not paying creditors. There is, however, a long understood recognition that a person need not suffer in poverty and financial hopelessness until death because of overwhelming debts.

5. But AMEX, Discover, Bank of America, etc. have been so good to me AMEX, Discover, Bank of America, and the like are corporations whose only purpose is to generate profit. They do not care if you drain your 401(k), sell your car, your home, or the clothes off your back to pay them. They do not care if you work until you are 81 years old and can never retire because you gave all of your money to them. Their sole purpose is to generate profit and pay their shareholders. They will guilt you, threaten you, or take whatever measure is necessary to collect your debt. This is the reason why there are consumer protection laws to shield you against certain collections practices.

Banks are well aware of the possibility that every time they extend credit to a customer, s/he may file for bankruptcy. They calculate this into the cost of business. Credit card companies make money by extending credit because they make money by charging the merchants. Each time you swipe your credit card to buy something, that store pays a percentage in fees to the credit card company. This is the reason why you get unsolicited credit card offers in your mail box.

6. I heard I can settle my debt for pennies on the dollar There are many "debt settlement" companies out there that prey on those trying to get out of debt. These companies will promise you and lie to you to get your money. They will promise you that they can settle your credit card debt for pennies on the dollar. The debt settlement companies advise you to stop paying your credit cards and give them money instead. They set aside a small percentage of the money you give them for settlement and the rest go to them as fees.

Their strategy is simple. Wait out the credit card companies. It is true that credit card companies will offer settlement after months of non-payment or they sell the account to a collection company. What these companies don't tell you is that credit card companies can and will sue you. The debt settlement company will not defend your law suit. Unless you defend the lawsuit, the credit card company will most likely get a default judgment against you and start garnishing your wages at 25%.

Another thing these debt settlement companies don't tell you is that any debt that is forgiven will be attributed as income to you. They will issue a 1099-C and you will have to pay taxes on it. Let's assume you're in the 20% tax bracket and the credit card company forgives 50,000 of debt. You will have to come up with $10,000 to pay to the IRS and the Franchise Tax board! 7. I'll never be able to buy a car or a home/ It will ruin my credit! Clients often think they will walk around with a scarlet letter or suffer banishment because they filed bankruptcy. This is another myth perpetuated by the credit industry. It is simply not true that you'll never be able to buy a car or a home or get credit again. Yes, the bankruptcy will be reported on your credit report for ten years. However, the impact of bankruptcy exponentially reduces over the first few years. Will you be able to get a mortgage a month after filing for bankruptcy? Unlikely. The key after bankruptcy is to use your credit wisely and not overextend yourself again. Remember, you can't file Chapter 7 bankruptcy again for 8 years. After your bankruptcy, however, all of your unsecured debts (such as credit cards, personal lines of credit) will be reported as having a zero balance on your credit report. This will drastically improve your debt to income ratio, and improve your credit score.

On a few occasions, I've met with clients that boast about their 700 credit score and they say they do not want to ruin their good credit. I can understand that. However, they are struggling every single month to come up with the minimum payments on their credit card, which can add up to thousands of dollars and they are not making a dent in the principal amount. What good is a 700 credit score if you're so overextended that you could never pay off the debt? Is it really worth the cost to you financially and emotionally to work so hard to maintain that 700 credit score? Your credit score is not a reflection on you as a person. It's a number that TransUnion, Experian and Equifax came up with to supposedly rate your credit worthiness.

Is protecting your FICO score worth maintaining at the cost of your retirement, or saving for your child's education costs? Don't continue to throw money away on paying 30% interest, or sell your assets when you should be setting that money aside for your future, or your children's future. All too often, people come to see us after their wage has been garnished, or they liquidate their retirement fund in an effort to pay off their debt. Put you and your family first.

About the Author
This article was written by San Francisco Bankruptcy Attorney, Jeena Cho with the help of bankruptcy attorney Jeff Curl. They own JC Law Group, a San Francisco bankruptcy law firm. They specialize in helping individuals, families and small businesses. If you have additional questions, you may reach them at (415) 963-4004 or by visiting www.jclawgroup.com.

Chapter 7 Bankruptcy

2009-08-16T20:12:00.001+03:00

Do you have debts that are difficult pay? If that is the case, you may not have any option other than filing for bankruptcy. A lot of people like file Chapter 7 Bankruptcy. Chapter 7 is a 'liquidation' of all the non-exempt assets that will gives you a way to repay all your debts. This chapter is supervised by the authority and the authority will appoint a personnel who has the authority to get sales from all the non-exempt assets owned by the debtor and appropriate the sales money to various creditors. Exemptions are properties that the creditors cannot touch when filing for bankruptcy. Although chapter 7 is the debtor's favorite method of bankruptcy, with with the exemptions in place, you could effectively bring down your personal damage and will be able to keep some of your belongings.

In this exemption the debtor will review the state exemption list given to the debtor and learn which property to keep. This list is found in the Federal Bankruptcy Code. All the property of the debtor will be declared as exempt or non-exempt once the trustee files a property exemption report. In some states, the exemption laws may not be the same but the basic structure of the law should be the same.

Secured debts are first paid off but if the debt is unsecured, it is possible that the creditors of unsecured debts may not get the money in full. The trustee makes sure that the right creditors get the deserved money in the right way. In order to get bankruptcy chapter 7 exemptions, the debtor must file the case in the state where the debtor lived for at least 730 days before he/she can file for this type of bankruptcy. Or the debtor may also file the case in a state where the debtor has spent most of the 180 period prior to the 2-year period.

There are also the Federal exemptions which will cover retirement benefits, death disability benefits, survivor's benefits and miscellaneous. You should find out more about the Federal exemptions because not all the states are the same.

No one like bankruptcy. It takes away a lot of things in your life and, your credit score may take a major hit because of a filing of bankruptcy. Not only you will lose most of your possessions and you need to start your business all over again from nothing. Remember that there should be other alternatives before bankruptcy.

Unfortunately, if you are in the dired situation, then always learn as much as possible about chapter 7 bankruptcy exemptions as your personal loss can be lowered to a minimum, and make use of it in a way to help get back on your feet at the earliest.

About the Author
Do you know why people are filing for Chapter 7 Bankruptcy? Visit our website for the reasons.

California Minimum Wage Law, Exemptions, Claim and Lawsuits: An Attorney's Guide

2009-08-16T20:08:00.001+03:00

California Setting

Each state or jurisdictions have varying minimum wage laws enforced within their area of coverage. They greatly vary in reference to the set amount of money, in its terms of pay period, exemptions as well as in its scope and coverage.

In California, it had constituted its own version of minimum wage laws enforced for the common benefit among all workforces in the area. The said law has its own guidelines, definition, exemptions, scope and coverage. Labor Code Sections 1191 and 1191.5 is the main law that covers this respect. This current law requires a higher minimum wage rate than that of the federal law.

Employers in California have dual coverage, which means, they are subject to both the federal and state minimum wage laws. In case of conflict in the application of the two sets of laws, a stricter standard is followed, that is, the most beneficial to the employee.

The California minimum wage law exemption

There are employees who are exempt from the California minimum wage law, which covers outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.

Along with it, there is also an exemption for learners (regardless of age), who may be paid not less than 85% of the minimum wage rounded to the nearest nickel during their first 160 hours of employment in certain occupations in which they have no previous similar or related experience.

There are also exceptions for employees who are mentally or physically disabled, or both. Further, nonprofit organizations such as rehabilitation facilities that employ disabled workers are also exempt from the coverage of the minimum wage laws. In lieu of the minimum wage coverage, the latter individuals and organizations may be issued a special license by the Division of Labor Standards Enforcement authorizing employment at a wage less than the legal minimum wage.

Prevailing minimum wage rate

Under the most recent wage order, effective January 1, 2008, the minimum wage prevailing within California is $8.00 per hour.

Minimum wage withholding

Minimum wage is considered as an obligation of the employer, in that it cannot be subject to a waiver or agreement.

Whenever a covered employer withholds, or refuse to grant the issued minimum wage, the employee concerned can file a wage claim with the Labor Commissioner's office- Division of Labor Standards Enforcement (DLSE) or file a constitutive lawsuit against the employer to recover any lost wages.

Wage claim or lawsuits

As stated, an employee who has been denied the minimum wage can file a claim against its employer. The wage claim covers unpaid wages, including commissions and bonuses, unauthorized deductions from paychecks, unused vacation hours not paid upon employment termination, violations with the applicable Industrial Welfare Commission Order such as the failure to provide a meal and/or rest period.

When an employee opts to file a claim with the local office of the DLSE, a good way to start is to employ a Minimum Wage Claim Attorney. They offer valued assistance in your claim pursuit all for ending with a successful wage claims.

Aside from having all the needed legal knowledge in these respects, the Attorney will identify all possible option in your claims, and will determine, based upon the circumstances of the claim and information presented, how best to proceed.

To help you with labor law violations and related issues, you can engage the professional services of our experienced Los Angeles lawyers. You can visit our website to avail of our free case evaluation.

About the Author
Before becoming an online writer, Claysphere worked as a legal researcher, data analyst, and lyricist in a local band in his hometown. He has a degree in law, and worked for several law offices as a paralegal, office staff and as a researcher. He has continued to write topics relating to his learning in law.

How to Get an Instant Tax Refund

2009-08-16T20:04:00.001+03:00

A tax refund is a rebate from the government, given to the taxpayer in the event of the income tax paid being higher than the actual tax liability. For getting an instant tax refund, great care needs be taken at the time of filing your tax returns.

The reason for tax refunds vary. You may get a tax refund if you change your filing status, change exemptions, claim tax credits that you did not get earlier or claim additional dependents.

Some people deliberately use the tax refund facility as a simple savings plan. However, it is argued that opting for a large tax refund is undesirable, since that amounts to a loan that is paid back by the government without any interest. A more accurate tax return is therefore more advisable.

Ways to Get Instant Tax Refunds
Filing your tax returns online is a way of ensuring instant tax refunds . It normally takes six weeks for a tax refund to reach the taxpayer in the case of manual filing. However, in the case of electronically filed returns, it is only three weeks.

There are three ways of receiving your tax returns - directly deposited into your bank account; check mailed to you or applied to your income tax of the following year. Among these, the direct deposit option is the best way to get an instant tax refund.

Tips for Getting Instant Tax Refunds
For getting instant tax refunds, the following points should be considered while filing tax refunds:

1.Clearly mention all justifications for the tax refund claim. This becomes crucial in the case of the IRS rejecting the refund claim and the taxpayer filing a court suit. You can defend your case only on the grounds that are mentioned in the refund claim.
2.Give all supporting documents while filing for a tax refund. Failing to do this could result in the IRS rejecting your claim.
3.You can claim your tax refund within two years of paying tax or within three years of filing your income tax returns. Whichever is later would be valid. In case of a joint return, tax refunds can be claimed within six years of receiving the IRS notice.

If you want an instant tax refund, the best way is to contact a specialist on the matter. Visit iwantarefund.com for all your tax refund needs.

About the Author
Income Tax Refunds - Refunds Now: Home of the biggest and fastest tax refunds with tax service locations throughout Rhode Island, Massachusetts, and Connecticut.

Proration of Expenses in an Offer in Compromise

2009-08-16T19:58:00.001+03:00

Before the Internal Revenue Service (IRS) accepts a taxpayer's Offer in Compromise, or places his balances in Currently Not Collectible status, or agrees to an Installment Agreement, they will first request a Collection Information Statement (CIS). The CIS is the taxpayer's financial information statement attesting to his income, expenses, and assets.

The IRS requests a taxpayer's CIS for a variety of reasons. The IRS reviews the CIS to:

1. determine whether the taxpayer can full pay; 2. determine whether the taxpayer can borrow against assets; 3. determine whether the taxpayer can make monthly payments and how much; or 4. determine whether the taxpayer has no ability to make any kind of payments.

Non-Liable Parties

A non-liable party is anyone living in the same household with the liable taxpayer (i.e. the person who owes the back tax liability). As the name indicates, a non-liable party does not owe any part of the liable party's back tax liability. However, by virtue of the fact that both the liable and non-liable parties live in the same household, the Internal Revenue Manual (IRM) sets forth that the IRS must give consideration to other income in the household (other than that of the liable party) as well as expenses shared with a non-liable party.

In theory, analyzing all household income and determining all the shared expenses provides the most accurate financial situation for the taxpayer. However, in practice, prorating expenses is more common in cases being reviewed for an offer in compromise or in cases where a Revenue Officer is assigned and charged with the duty to collect as much money from a taxpayer as possible. In both of these situations, the IRS employee is able to spend more time analyzing a taxpayer's financial statement. If prorating the taxpayer's expenses that are shared with a non-liable party works to the advantage of the IRS, the IRS will take the time to prorate it.

The majority of collection cases are handled by the Automated Collection Services (ACS) branch of the IRS. These are call centers throughout the country where representatives are trained to receive inbound telephone calls from taxpayers under the aggressive collection efforts of the IRS. Due to the number of calls and financial information statements a representative may take per day, a detailed proration analysis into the taxpayer's shared expenses with a non-liable party living in his household may be too cumbersome and somewhat time-consuming. In many cases, a representative may opt to not prorate expenses at all.

How to Prorate

Section 5.15.1.4 of the IRM provides a guideline for IRS employees when prorating expenses. These are the general steps:

1. Determine the total household income 2. Determine the total number of exemptions claimed/members in the household 3. Figure out the percentage of income the liable party contributes to the household 4. Determine which expenses are shared between the liable and non-liable parties (national standard, housing and utilities, car note payments, car operation expenses, or ongoing medical expenses) 5. Apply the liable party's percentage of income toward the shared expense

Why Prorate?

Preparing the proration calculation can be time consuming and confusing, especially if there are multiple non-liable parties involved, such as step-children, adult children, extended family members, friends, or roommates. In addition, the IRS representative may not even broach the notion of prorating expenses due to the cumbersome nature of it all.

About the Author
The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.

457 retirement plan

2009-08-16T19:55:00.001+03:00

Ranking among the well known retirement plans in the US, the 457 retirement plan provides retirement compensation and tax exemptions. Usually, this retirement plan caters to the federal and state government workers. Those who are working in the government and state level agencies can also enroll themselves in the plan. By being covered under the plan, one can enjoy a number of benefits and tax advantages.

The characteristics and advantages

Usually, the 457 Retirement Plan is an employer sponsored plan. By being enrolled in the plan, the employee can defer his or her compensation on a pre tax basis. Although the plan's features are similar to the 403b and 401k accounts, there are no provisions for matching contributions in case of 457 plans. You can defer a portion of the yearly income in this plan. Unless and until you withdraw the money from the account, the contributions are also tax deferred. However, there is a major difference that is applicable for the plan. Unlike other plans, no 10 % deduction or penalty is imposed if you withdraw the money before you attain the age of 59 ½. Normal tax rates are applicable only.

Self employed contractors can also participate in the 457 retirement plan. This is not possible in case of some other retirement plans. There are also other advantages. Those who are covered under the plan can take the distributions through a lump sum amount, annual installments or in the form of annuities. Basic income tax rates are applicable in case of the distributions. You can also pass on the fund into a Traditional IRA .

By being a part of the plan, you can as well reduce your current tax rates while you are dealing with the investments. The savings that you make also enjoy a number of tax exemptions and benefits. Even if you have decided to quit the job before the stipulated time period, you need not pay any type of penalties. Taxes are applicable only if you make early withdrawal of money from the retirement account.

Catch up provisions

Catch up provisions are an important part of a 457 plans. In case of the first provision, the features are somewhat similar to the defined contribution retirement plans. In case of the second provision, the amounts are chosen by the employee if he or she is within 3 years of the usual age of retirement. This second provision is mostly applicable in case of most 457 plans.

About the Author
A Retirement Planning Guide by profession for assisting people in making retirement plans for themselves that makes their retirement enjoyable.

For more Information on Retirement visit : http://www.Futureyears.com

How U.S. Expatriates Can Avoid the 13 Most Common Expat Tax Traps

2009-07-20T14:04:00.001+03:00

Copyright (c) 2009 Nick Hodges

While the expat experience can be an exciting an exhilarating adventure, there is no greater frustration and disappointment than having the IRS ruin your experience by auditing your tax return while away, calculating additional taxes due, penalizing and charging you interest during the process, and even perhaps suggesting jail time for your mistakes.

That's why it is so important to avoid these 13 common expat tax traps.

1. Foreign earned income exclusion. Many expats believe that because their foreign earned income is below the exclusion limit they do not need to file a return. The exclusion can only be taken by filing a return and completing Form 2555. If this is not done timely, the expat will NOT be able to use the exclusion.

2. Foreign bank accounts. An Expat opens a foreign bank account and does not file treasury form TD.90-22.1. Any US citizen with a financial interest in or who can sign on a foreign bank account with a value of more than $10,000 must file this form.

3. Foreign tax credit. Expats may also be entitled to a foreign tax credit by filing Form 1116. However, a foreign tax credit may not be taken on foreign earned income excluded from tax. If not all earnings are excluded from foreign tax, a calculation can be made to take a credit on your US tax return for taxes paid on non excluded foreign income.

4. Inexperienced local tax professional. The expat lets his local tax professional continue to prepare his tax return. Many expats work statewide with their local tax professional for many, many years before going abroad. These relationships usually have a long history of trust and competency. Once you've found someone you trust to understand your unique financial situation, it is difficult to switch. However, properly completing an expat return is simply uncharted territory for most local tax professionals. You do both yourself and them a disservice by forcing them to make this stretch into such a complicated arena. As you operate at a new tax and financial level, you are simply going to need a greater scope of service than is typically provided by a local firm.

5. Dependency on the IRS The expat relies exclusively on the IRS for help. While the IRS provides Publication 54 to explain Form 2555 and Form 2555EZ, it does not provide all the tax situations an expat is likely to experience and neither does it instruct on the proper application of the tax code for unusual situations that the expat typically finds themselves.

6. Do it yourself. The expat prepares his own return. Most expats are extremely intelligent. Because they are so smart, some believe that they can figure out their own tax return. It is important to realize that the tax laws are always changing. Without being constantly connected to the professional aspect of the tax world, it is just too easy to put your trust in outdated information.

7. State tax obligations. There are a few states that do not comply with the U.S. foreign income tax exclusion. The expat should make sure he/she does not owe state income tax on his foreign earned income. Failure to understand your state's perspective of the foreign income tax exclusion can substantially affect your tax picture.

8. Inability to locate tax documents. Expats do not keep important tax documents in a central location organized in a way to be used to fight the IRS if they are audited. What do you do with your critical documents while you are away? Expats need to have a secure, online document storage capacity that can be accessed from anywhere in the world. Your information should be organized by year and contain key source documentation, your completed return and any correspondence with the IRS. In addition, you should have a series of permanent files that document your service abroad and other elements of their financial world.

9. Dependency exemptions. Expats do not always take all the exemptions to which they are entitled. Expats may have dependents that do not have social security numbers and incorrectly believe that without a social security number, they cannot take a dependency exemption.

10. Hidden overseas accounts. Hiding money overseas to escape paying tax on the earnings is not a valid tax option -- it is fraud! Remember, fraud has no statute of limitations. Penalties and interest can build to twice as much as the original tax. If the IRS wants to make a point, there can be jail time.

11. Foreign housing exclusion. Remember, you cannot take both the foreign housing exclusion and the foreign tax credit. So which one should you take? The eligible housing cost amount is the individual's total housing expenses for the year (limited to 30 percent of the maximum foreign earned income exclusion amount), less the base housing amount (16% of the maximum foreign earned income exclusion amount).

The excluded amount cannot exceed either the individual's foreign earned income for the tax year or their actual housing expenses. The deducted amount also cannot exceed the individual's actual housing expenses, nor can it exceed the individual's foreign earned income for the tax year reduced by both the individual's excluded foreign earned income and the excluded housing amount. Whereas, the foreign tax credit generally can be taken dollar for dollar of foreign taxes paid.

12. Form 1040NR. US Citizens do not file Form 1040NR. This form is for nonresident aliens. Nonresident aliens are aliens who do not meet either the IRS's green card test (i.e. a lawful permanent resident) or the substantial presence test. These tests are discussed further in IRS Publication 519.

13. No big financial picture. The expat believes that he needs help only with his tax return. Perhaps the biggest mistake that expats make is going it alone. It's important to have a guide when you are in uncharted territory. There is so more to managing your financial world than just preparing an accurate and correct tax return. You also need to manage your expat experience. Make sure you avoid these common tax mistakes all expats are tempted to make when they try to navigate their expat experience without a professional to properly guide them.

About the Author
Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at http://www.ExpatCFO.com .

What You Should Know About The Bankruptcy Student Loan

2009-07-20T14:01:00.001+03:00

As you may have heard, millions of Americans are filing bankruptcy forms to discharge their outstanding debts once and for all. They're filling out application forms to end harassing creditor calls, stop foreclosure on their homes, halt repossession of their cars and get rid of medical bills or credit card debts they can never possibly pay off given their current economic situation.

However, not all debts are included under the seemingly all-encompassing bankruptcy. For instance, there is little bankruptcy student loan protection, which is the reason why thousands of Americans in their mid-twenties are saddled with debt. But is there nothing you can do?

Typically, college students are expected to repay their student loans as soon as they graduate, unless graduate school, medical school or further studies are scheduled. This monthly payment may be as low as $134 per month at first and may extend for up to 10 years.

Extended repayment plans for larger debts may be made over a period of up to 30 years to reduce monthly payments as well. An "Income Contingent" plan may be made for as low as $5 per month if the student has a very low income and can last for up to 25 years, when a write-off becomes possible for the remaining balance.

The "Income Based" plan will ask that a certain portion of a student's income go toward the student loan and lasts for 10 years. The reason many bankruptcy student loan petitions are sought is that the income contingent and income based plans aren't available to students whose parents filed the initial aid applications forms. Additionally, interest charges apply once the student has graduated, so the total debt amount can seemingly never end. While bankruptcy student loan exemptions do not technically exist, in his book "How To Bankrupt Your Student Loans," author Chuck Stewart asserts that there are ways to get around this. Students can use the power of attorney to prove the "undue hardship" that the loan is causing.

Most courts use something called "The Brunner Test" to prove or disprove financial hardship. Under this test, they will look at the debtor's living condition and the impact that paying the loan would have on maintaining the minimal living standard. They will also look at the debtor's future prospects for repaying the loan and evaluate whether the debtor has demonstrated good faith during the loan repayment period.

The average student loan is $40,000, which will become amortized over 30 years with monthly payments of $1,000 or more. For many recent grads, this debt is worse than a mortgage and leaves them little chance at advancing toward the goals of home ownership and saving for retirement.

As a result, many students hire legal professionals to prove that repaying the loan causes "undue hardship." In rare cases, a bankruptcy student loan discharge will be granted if the student has exhausted all possibilities for increasing his or her income and has whittled down expenses to a point where further bills would leave him or her homeless, medically uninsured, without transportation or without the tools needed to obtain employment.

About the Author
Educate yourself about the bankruptcy student loan from Mike Selvon portal. We appreciate your feedback and welcome your comments at our how to file for bankruptcy blog where a free audio gift awaits you.

The Truth About Bankruptcy And What It Offers!

2009-07-20T13:55:00.001+03:00

Here is a true story about bankruptcy and MANY advantages it offers.

A married couple who were both practicing psychiatrists had a combined income of $128,000 per annum. They managed to accrue personal debts totalling $44,000, and also were committed to a $53,000 mortgage on their comfortable suburban New York home. They weren't in arrears, not even over their heads. But they simply wanted more discretionary spending power.

Their solution to the problem?

They decided to file for bankruptcy, and by doing so immediately lowered their debt load to a mere 10 cent on the dollar, repayable on an extended schedule in smaller more affordable amounts. An officer in one of their finance companies had advised them that they could easily refinance the mortgage or even sell the house.

But you will see in a moment why that was not necessary.

Conventionally, bankruptcy is usually a desperate and last resort for those so deeply in debt (and, harassed by creditors) that there seems to be no other viable solution. The typical profile includes low-income, undereducated clerical workers or laborers, and even transient non-homeowners. Common age groups are those who are in their twenties or those over sixty five years of age.

This is no longer the case.

Today's profile includes people with good jobs, even families with two or more incomes. It's not surprising to find somebody with a six-figure income declaring bankruptcy. The route of bankruptcy NO longer comes out of a dire need. But it's now a way by which people can rid themselves of debts that cramp their lifestyle. Of course, taking this path for these reasons raises moral and ethical issues. However, what we are discussing here is a legal avenue put in place by governmental authority.

Nowadays, the most common contenders for bankruptcy comprise of recent college graduates who file in order to avoid paying back government-guaranteed student loans.

Their justification? They feel society owed them an education.

These days you will also find the older, "keep up with the Joneses" types filing for bankruptcy. Everyone from suburban executives to Wall Street professionals who have over extended themselves in credit or are unwilling to live within their financial means.

The introduction of the Federal Bankruptcy Act of 1978 made the bankruptcy process just a whole lot easier. This significant change in law radically liberalized personal filing procedures in the name of consumer rights.

Chapter 7 makes no reference at all to the debtor's income.

It simply gives debtors the legal right to clear the slate by turning over all their assets except those expressly exempted to creditors.

Among the exemptions are:

Up to $7,500.00 equity in the debtor's house (15,000 if both file); $4,000.00 in accrued dividends; $1,200.00 in automobile equity; $500.00 in jewelry; $200 per category of household items (including clothing, books, etc.) and more!

Chapter 13 requires that debtors show only a regular income to handle a reasonable three-year pay-back plan. The court's definition of reasonable happens to be as little as 1% to 10%, even when a payment of 50% could easily be managed.

About the Author
Frank Sullivan has over 27 years experience in the field of contractual law, personal and business legal protection. He provides a free online database of business and personal legal forms plus advice on How To Prepare Legal Forms at www.giveawaylegalforms.com

5 things you shouldn't forget to ask when you file bankruptcy

2009-06-19T22:49:00.002+03:00

If you have too much of debt and there's no income as such to support your debt payments, bankruptcy filing may be the only option for you.

However, you need to get an idea as to what bankruptcy is all about and how it can affect you once you file it. Given below are the 5 things you should surely ask before you file bankruptcy.

1.Find out if you're eligible to file: If you have more than enough income and asset limit, you may not be allowed to file Chapter 7. In such a case, the court may ask you to file Chapter 13 which is basically a repayment plan developed in order to help you pay off debt within a period of 3-5 years. So, it's important for you to know under what conditions bankruptcy filings are possible.

2.Know what debts won't be wiped out: It's essential to find out those debts which cannot be canceled or wiped out through bankruptcy filing. There are certain debts such as student loans, child support, back taxes, alimony etc which cannot be discharged or wiped out in bankruptcy. So, it's no use including such debts into your filing.

Credit cards and personal loans are debts, which can be discharged through bankruptcy filings. But if they are fraudulent debts (for example: you have lied on your credit application), then you will not be able to include them in your bankruptcy filing.

3.Effect on your spouse or cosigner: Bankruptcy filing won't affect your spouse unless his/her name is on the debt account. If you've filed Chapter 7, your spouse's credit will get tarnished along with yours. But Chapter 13 will protect your spouse or cosigner as it is a sort of repayment plan that allows you to reorganize your debts.

4.You may be able to keep your home/car: Chapter 13 bankruptcy filing will help you to keep your home or car as you're making payments under a court-approved payment plan. But if you file Chapter 7, chances are that you may lose your home or car if your home equity is more than the Federal or State exemptions applicable in your state of residence.

5.Know if your 401k plan and insurance policies are safe: Retirement plans such as 401k, 403b etc and pension are protected under the Federal law. As such, they won't be affected by bankruptcy filings. However, IRAs and Keogh plans may not be entirely protected, but they do have exemptions (for example: creditors cannot take up to the first $1 million of your funds in an IRA) defined under the bankruptcy laws.

Bankruptcy filings can help you get out of debt or restructure payments depending upon whether you qualify for Chapter 7 or Chapter 13. However, just make sure you're quite comfortable with disclosing your financial details to your creditors as well as the bankruptcy court.

About the Author
Jessica Bennet is an experienced financial writer associated with Mortgage Fit Community. She has been guiding the Community through her writings on bankruptcy, filing bankruptcy, bankruptcy filing mortgage, loan modification and related financial topics. Her views and opinions shared in the forums have helped community members and guests get over problems in their mortgage.

Links for 2009-05-28 [del.icio.us]

2009-05-29T00:00:00-07:00

Breast Cancer
Did You See The Latest Study On Curcumin And Breast Cancer?
Colon Rectal Cancer
Hemroid Treatments and symptoms for hemroid relief
Leukemia Lymphoma Cancer
Non-Hodgkin's Lymphoma - What Increases Your Risk?
Lung Mesothelioma Asbestos Cancer
Pleural Mesothelioma Cancer Involves The Lining Of The Lung
Ovarian Cervical Uterine Cancer
Ovarian Cancer Awareness Can Save a Life Through Early Detection - No Longer the Silent Killer
Prostate Cancer
Resveratrol As Prostate Cancer Prevention
Bladder Cancer
What Do You Know About A Bladder Infection And Turmeric?
Skin Cancer
Ways to Avoid Skin Cancer
Goal Setting
Goal Setting: Online Counseling Small Business Advice
Leadership
Tips for Leading a Successful Transformation
Motivation
Health and Fitness Tips for Men
NLP Hypnosis
Headache? Try the Hypnopill! Hypnosis
Positive Attitude
Benefits of Maintaining a Positive Attitude During Tough Times
Affiliate Revenue Information
Affiliates: 3 Things You Should Own Though You Dont Own A Product.

Links for 2009-05-27 [del.icio.us]

2009-05-28T00:00:00-07:00

Hypertension
Blood Pressure And Cholesterol: Healthy Choices