Thursday, March 20, 2014

Six IRS Caution Signs

It’s nearly impossible to pinpoint exactly what will trigger an IRS audit since the agency tries its best to keep industry secrets under wraps. Nevertheless, there are a number of signs which are known to be, across the board, massive red flags for an investigation.

The three basic types of IRS inquiries are matching, examination, and finally audits. Most of us are well aware of what an audit is, but what about the other two?

 Six IRS Caution Signs

The IRS database uses copies of your 1099s and W-2 forms to match the income noted on your return. If an error has surface don your 1099 showing the wrong amount, then it’s your responsibility (and no one else’s) to have the issuer redo the paperwork with the factual information. An examination is just that—the IRS needs additional personal information to authorize a claim/deduction.  

Disproportionate Donations

The IRS keeps a careful eye on the proportion of your income you give away in relation to nationwide averages for your income bracket. To put it simply, you’re not allowed to evade taxes by writing-off large philanthropic contributions. Likewise, you’re bound to raise eyebrows if you fail to submit Form 8283 for non cash donations exceeding $500. For that reason it’s crucial to file the proper paperwork and keep copies of all tax-related documents!

Rental Properties

In lieu of the recent economic downturn, the IRS has enacted a number of protocols to combat losses from passive real estate investors who offset their income using these “failed” investments. Since the early 90s, the number of real estate professional audits has risen significantly. To clarify, a “failed” investment is one that is either causing the investor the lose money in the short run because of high monthly expenses and depreciation or one that nets an overall loss at the time of liquidation. In order to legally write off losses, IRS regulations require you to spend more than fifty percent of your time or at least 750 hours each year in real estate related tasks.

Offshore Accounts

The term ‘offshore account’ may conjure up images from a James Bond or mobster flick in your mind, but to an IRS agent all it signals is tax evasion. Individuals with undisclosed foreign accounts face severe IRS penalties if they’re caught stashing away their bucks. The law states that any offshore account totaling more than 10k must be reported with FinCEN Form 114 and/or Form 8938.

Overinflated Income

The statistics suggest that only 1 in every 100 individuals gets IRS audited, however the odds change as your income bracket goes up. People earning $200,000 or more have an audit rate somewhere around 3.26 percent. That’s equivalent to about 1 in 30 tax returns. This isn’t in any way an attempt to discourage you from earning more, but just be aware that the IRS does take these factors into consideration.

“If your income has risen dramatically in the past year, or fallen dramatically, your return may be likely to trigger an audit, simply based on a computer scoring system called the Discriminate Function System, which rates potential for mistakes or dishonesty based on similar IRS returns,” says Lawrence Levy, CEO of Levy & Associates.

Writing-Off Vehicles

If you think you can sneak your “business vehicle” into your yearly write-offs, think again. Unlawfully declaring 100 percent business related use of your vehicle can be punishable by more than just a slap on the wrist. If you do decide to fully-claim the automobile, be sure to list the depreciation on Form 4562, keep timely records of all mileage, and related expenses. Heads up though—you can’t claim maintenance expenses plus insurance and other costs if you’re going by the IRS’ mileage rate.

Privately Owned or Small Businesses

Owners of small business—especially those that are cash based—are strongly advised to be honest in their declarations. Studies show that these types of business, on average, tend to declare much less than they actually take in. Remember honesty is the best policy when it comes to dealing with Uncle Sam because if he catches on to any misconduct, you’re guaranteed to be the winner at a losing game.
Carry On Reading.....

Wednesday, March 19, 2014

The How to Guide to Bad Credit Car Loans

Having a bad credit rating is not the end of the world. You will see your car loan application approved – provided you meet reputable lenders’ key approval criteria. The following five tips will help.


Always be honest in your application. That means two things: Make true statements and don’t leave anything out. “Lending money is about trust,” says Kyle Rhys from “The lender needs to trust you, and you have to expect your application to be scrutinized. This means the claims you make in that application will be cross-checked against your financial records. It is always much better to paint a true picture in your application, rather than a falsely positive one.”

Bad Credit Car Loans

Credit file

Go to to see how easy it is to access your credit file. Look carefully at the entries in your file, and if you believe any error has been made, contact the company which has made the entry, and discuss the matter.

Bank account

Your bank records will form part of your application. You need to demonstrate sound money management skills. This means: regular income plus not letting your account get overdrawn. In other words, you need to spend less than you earn. Ensure that there are always sufficient funds in your account to meet regular automatic deductions, and try to save each week, if only a small amount. Regular savings are an easy way to demonstrate to a potential lender that you have sufficient income capacity to repay a loan.

Credit cards

Pay your credit card on time – and pay more than the minimum required monthly repayment. This demonstrates two things to the person assessing your application: first, that you take your financial obligations seriously. Second, that your income capacity is sufficient to more than cover your obligations.


Lenders will look for two things here: regular income and stability. If you are a casual employee, you will need to have a significant track record with your current employee. In the case of full-time and part-time employees, you will need to have worked beyond any probationary period in your current employee contract. It will be viewed positively, from a stability point of view, if you have changed jobs only a few times in the past several years.
Carry On Reading.....

Sunday, March 16, 2014

The 5 Biggest Factors That Affect Your Credit

Before we can manage the factors which affect the credit score, we need to know something about the things which relate to the credit scores.

What is the credit score?

 A credit score is a three digit number given to an individual to judge whether he is trustworthy for giving loans for people with bad credit or not. These credit scores are given by the credit reporting agencies that have every financial data of an individual. Whenever someone applies for a loan or any type of finance, then the lender first contacts the credit reporting agencies to check the customer’s credit score and then decide whether they should grant a loan to that person. These scores range between 300 to 700 words, the higher the credit score lower will be the interest rate and lower the credit score higher is the interest rate charged on your loan.

Which are the credit reporting agencies?

Credit reporting agencies are those agencies who maintain all the credit related information of an individual. Each and every person who applies for a credit card or any kind of loans, their information like mode of payments, income, and all other     information’s is there with them. They are in contact with every bank and every financial institution which provides credit and these banks and financial institutions update them with all the information of their consumers each month. There are three large credit reporting agencies in the United States, Transunion, Experian and Equifax whose job is to collect every financial data of consumers, and maintain the information for future in case someone asks for references.

Your Credit score

These three credit reporting agencies never share their information regarding their consumers with each other so while applying for a loan you should go and check your credit history in all the three credit reporting agencies as you may never know which agency your lender will go to.
All business agencies like auto lenders, credit card companies, insurance agencies, banks, use your credit history data provided by these credit reporting agencies in order to know whether you are a credit trustworthy person or not. High credit score would mean less interest rate, but if you have low credit score then, you will be charged with higher interest rates. 

All the lenders also send your reports to these three credit reporting agencies to update their information. Every payday loans no credit check lender is legally bound to regularly update all the information of their current customers to these credit reporting agencies.

Factors which affect the credit score of a person 

Payment History: Your payment history is the most important content to measure your credit score. If your payment records are not good, then you may spoil your credit score to a great extent. Usually credit reporting agencies look at the delays in payment. The greater is the delay; the lower is the credit score. Your payment history is 35% of the whole credit score given to you. 

Using Credit: The Credit utilization is also one of the most important factors used for measuring your credit score. Your total credit balance contributes around 30% in determining your credit score. Credit usage is used for measuring credit score because it portrays the total credit, which you take every month as a revolving credit.  It puts a major negative impact on your credit score if you don’t pay your credit card balance on time. If you pay your credit card balance on time and use less credit then you may boost your credit score positively to a great extent. Some people think that closing a credit card will also improve their credit but it is not so, closing a credit card may spoil your credit score as you will spoil your credit utilization ratio. You should always use less credit and pay  the credit card balance on time to maintain a good credit score.

Period of Credit History: The length of your credit history also affects your credit history. That is why it is said that if you want to close a credit card account then close that account which you bought recently, you should never close that credit account which is the oldest as it may have an old credit history, which shows that you are a good customer and lenders feel safe in lending money to the person with old credit history. Old credit history comprises 15% of your credit rating.

New Accounts: opening a new credit account in spite of having already 1 credit card account spoils your credit score. Opening a new credit account means you are in need of new credit and taking more credit is harmful for your credit score. So it is suggested that you should not open a new credit account unnecessarily. A new credit account contributes 10% of your credit ratings.

Different Types of Credits used: the credit score of an individual is positively affected if you are paying toward all your dues. Paying all your dues timely shows that you are concerned about all your debts and you are managing well from your income to pay toward all your dues on time. If you maintain a regular flow of money toward all your dues then it will put a nice remark on your credit score and you can apply for many loans at one time in the future. Paying toward all dues contribute 10% to the credit score.

If a person manages all the above five mentioned things then he can maintain a really good credit score and  will not have to worry about getting into unmanageable debt.
Carry On Reading.....

Wednesday, March 12, 2014

Are You Investing Or Gambling?

Gambling is often considered as an act of putting something at stake in case of a contingency. When we consider, gambling in the context of investment trading the situation becomes all the more complex and the finances of people come to be at stake. 

Gambling has become a normal practice with the people making investments, however, one requires to be extra cautious of these investments because markets do not function in a set manner and are prone to a lot of changes which are difficult to guess even by the experts.

Hidden Gambling Tendencies

We all react to the market. In fact a lot of news in the markets is based on rumors. No matter how diligent we are when we look at the ways we invest money, there are chances that we get carried away by these sudden news which come with a lot of promises of wondrous results. We may say that we are not into gambling, but if we are engaged in any of these instant decisions we are actually into gambling big time.

Investing Or Gambling

These gambling tendencies do not go with time. In fact, all those who are in the market dealing with trading, they are prone to these gambling tendencies. In fact the companies operating in the space earn a lot using the gambling techniques and hence these are never going to go anywhere rather stay with investments.

Social Proofing

There are a lot of people who are scared to invest in the open market. However, under social pressure a lot of them are seen to invest in the markets. It has been observed that when a lot of people are making investments in the market, the markets are doing well and most of them are earning good, people get influenced by these and are often seen investing into the markets. Thus, these investments are simply because they do not want to be left out of the social circle where they are living.

If you are dealing with stocks and trading in the financial markets, but possess adequate knowledge about the companies you are investing in, you are never into gambling. However, if you get into a financial deal and trading without any understanding of the companies and the trades you have entered into, you are actually into gambling.

Contributing Gambling Factors
Anyone involved in the financial markets can be seen to pass through a learning curve. A lot of times their speculations which may be based on ample research on the payday loans no credit check companies may bear the results but at times these may boomerang too. For those who are not aware of the markets these moves may always look like gambling. However, these are the steps which offer a lot of learning to the investors. Let us look at some of the traits which are evident and indicate towards the gambling tendencies of people.

Gambling (Trading) for Excitement

If one loses in a trade move, there are bound to be emotions which can that of despair or a sense of satisfaction. Again, if the situation is such that the overall market scenario is negative and it is not only you, but a lot of people who are losing, the feeling of losing cannot be that strong. However, if the markets are in an upward trend but your investments fail to offer you the desired results, you will definitely not be in a good mood. There is a lot of excitement when you are trading, especially in the modern times where the globe seems to be the platform where you can trade. There are no defined boundaries for trading and one can make money even by means of Forex trading.

Trading to Win, and Not Trading a System

If you are looking at the traits of a good trader, you will find that they would make all sorts of investments in the market. It's not about winning every trade they get into in fact, it is earning more than the market performance. At times the market suddenly dives down and investors are set to lose a lot of their money if they act on impulse. However, a good trader would analyze and evaluate the whole situation and hold stocks and investments for some time till the markets stabilize and then act to get the gains or minimize the losses. One should be ready for the losses when they are dealing in the markets.

Loans and trading
There are a lot of people who are seen reacting to the market sentiments and social pressures and invest in the markets. A lot of times people do not have sufficient money and they take loans for people with bad credit to invest in the markets. When the markets are positive, these moves can bear positive results much to the delight of the investors, but as soon as the markets take a turn the loans become difficult to pay and at times people are seen losing their investments completely and are left with heavy loans to pay.
If you are not acting in a methodical way, but acting on impulses and emotions in order to earn profits, there are all the chances that you will lose on the money you invest. This means getting into gambling tendencies and the risking your investments.
Carry On Reading.....

Wednesday, February 26, 2014

Don’t Let Debt Stop You from Investing! Start with $100 or Less

Being mired in debt discourages many people from investing. While debt reduction is a critical priority, investing is also crucial to financial security.

Thankfully, there are several options that can be started for under $100.

Here are 3 choices that may deserve a place in your investment portfolio:

Direct Stock Purchase Plans (DSPP)

Numerous companies offer a direct means for investors to buy shares. These are typically brand name businesses with established market positions.

You can often buy just 1 share of stock to get started and use dollar cost averaging to buy through market changes. Investment Manager Elliott Broidy and other professionals may consider DSPPs to take positions in particular companies. Smaller investors can also use DSPPs in this manner. With a limited budget, you can purchase shares of companies in different sectors to easily diversify.

Don’t Let Debt Stop

The advantages of direct stock purchase plans include low cost, control and household names. However, you will need to manage the investments and make buy or sell decisions.

Mutual Funds

Several mutual funds offer professionally managed portfolios of stock or bonds with low minimums. Different mutual funds have unique objectives, which can range from American stocks to overseas investing, among others.
A mutual fund saves you time from having to research individual stocks and closely follow market conditions.  Mutual funds have expense ratios, which vary greatly and affect your returns. Time should be taken to consider fees associated with the mutual funds you are considering.

Additionally, mutual funds offer little control, as you are turning decisions over to the manager.

REITs (Real Estate Investment Trusts)

Investing in real estate requires capital, market savvy and financing.  Property Developer Isaac Toussie and other experienced investors can themselves face time or money challenges. For those with limited budgets and time, a REIT offers real estate exposure without owning property.

REITs are publicly traded securities that can be bought through a discount broker, often for just one share.You can also earn passive income on a monthly or quarterly basis, as REITs pay out money from collecting mortgage interest and rental income.

Since real estate has a negative correlation to stocks and bonds, buying REIT shares can lower risk in your portfolio.

With monthly and quarterly income, REITs offer an additional revenue source. When real estate in the portfolio is sold for a profit, REIT shares can increase in value. Unlike owning real estate, you can sell shares at any time.

Real estateshould be considered after core investments such as stocks or bonds are made.

Getting Started

Compounding helps those who get started have greater success than delaying. With numerous asset classes available, you can invest according to time horizon, risk tolerance and other personal factors.
Carry On Reading.....

Monday, February 10, 2014

Wise spending moves to save you some cash

When it comes to financial planning, most of us tend to be pretty lax – spending as we go, the life of the prolific cash-burner is generally one of fun at the start of the month, before suffering a severe monetary drought at the end of it.

And, while you shouldn’t limit your fun, there are times when you have to plan for the future and save that cash wisely. If you’re looking to reach financial independence, then the life of the big spender has to become the life of the good saver. 

Wise spending moves to save you some cash

But, what wise spending moves can you make to save cash and tighten your belt? Well, try out a few of these helpful hints and you’ll find that saving isn’t so hard.

Bank accounts are your friend

The big mistake a lot of people make when they try to save is that they use a single account to hold all of their cash. All this does is make your money a lot easier to spontaneously spend, especially in the age of one-click online shopping that we live in.

To really put aside cash, set up another account that will debit your main one, thereby placing money out of harm’s way from your daily expenditure. After you’ve set this up, shove your card for this side account in a drawer and try not to use it unless an emergency comes calling.
This way, you’ll have a rainy day fund in place, leaving you with a safety net of pretty green.

Plan for your death

It’s sad to contemplate, but your death is coming, in an inevitability as certain as time itself. And, if you have close family, the last thing you want to do is lumber them with a sea of debt as they pay off funeral, clergy and doctor’s costs.

That’s why you should have a look around for funeral and probate plans that will suit your needs and save you cash in the long run. With the cost of a funeral rising every year, you could save a great sum by taking out a plan as early as possible.

Schedule your spending

The biggest issue most people face in their finances is their failure to make plans. Not just the grand schemes, like savings accounts and funeral plans – just simple start-of-the-month shopping plans that will allow them to set cash aside with ease.

Make shopping lists, don’t impulse buy and write down where all of your dough is going. This way you’ll be more conscious of your spending and the process of what’s known as “money decoupling”, where you feel detached from your cash flow, will be lessened, leading to more responsible use of your money.
Carry On Reading.....

Friday, January 17, 2014

Binary option trading- Brokers rated best

Brokers occupy an important position in the binary option trading market. Selecting the right broker or trading platform has been a challenge faced by many traders. The ones that were able to identify the reliable ones made it big in the financial markets and the ones that could not zero-in on the right one are still struggling to carve out a niche for themselves in the binary market. This might sound a bit strange given the importance that is being bestowed upon the brokers but it has been observed that when your luck is not on your side even if you are a veteran in binary trading, you will not be able to perform well without the assistance of a binary broker. So, the importance of the brokers cannot be undermined. As such every year, the brokers are rated and ranked as per the quality of service they offer, and a wide array of other factors that place them on the top ranking places.

Binary option trading- Brokers rated best

In this article, let us concentrate on a list of binary options brokers that you can sign up with if you still have not found a reliable trading platform. Also, there are many traders that prefer to sign up with more than one broker so that they are able to enjoy the best of all worlds.

Check out the important aspects of the brokers, the names of which have been listed below. Also, find out how each one differs from one another so that it becomes easier for you to select the right one.

1) TopOption - With a payout of 85% and a minimum deposit requirement of USD$100, you can expect bonuses up to USD$2500. This broker is here to stay.

2) - With a payout of 89%, the minimum deposit amount for trading with this broker is USD$250. It does not deal with US traders and you can expect bonuses up to 50%. 

3) Beeoptions - This broker deals with traders of United States. You can expect a payout of 85% and the minimum deposit for trading with the broker is USD$250. Expect bonuses up to 100%. 

4) TradeRush - The payout of the broker is 81%. It deals with US traders. The minimum deposit amount for trading with this broker is USD$200 and you can expect bonuses up to 50%.

5) OptionBit - The payout offered by the trading platform is 81%. It deals with US traders. The minimum deposit amount to trade with the broker is USD$200. You can expect bonuses up to USD$500. 

6) Cedar Finance - The payout offered by the broker is 85%. It deals with traders of US. The minimum deposit amount is USD$200 and you can expect bonus up to 100%. 

7) StockPair - The payout is 85%. Traders from United States can work with this broker. The minimum deposit amount to trade with the broker is USD$200 and you can expect bonuses up to 40%. 

8) GTOptions - The payout is 81%. It deals with US traders. The minimum deposit amount to trade with the broker is USD$250 and you can expect bonuses up to 50%.
Carry On Reading.....

Friday, January 10, 2014

Taking Control Of Your Debt For 2014

Debt is a growing problem for the average American, with household debt levels continually on the rise. With the New Year comes a sense of personal renewal, and many Americans facing up to debt are choosing now as the time to act toward sorting out their finances. Taking control of your debt in 2014 is the first step to living a debt-free life, and with a few simple adjustments to your lifestyle, it can be possible to face up to even the most daunting of personal balance sheets. In order to start seizing the initiative with your debt, there are a few steps you can implement that will help you establish the best course of action for improving your position.

The first step to tackling debt is to come to terms with how much you owe, and this can only be achieved by writing out a comprehensive list of your current debts, and interest and repayment rates respectively. Work out what you owe, so you can start to draw up a plan to tackle each individual debt. Don’t be scared – hiding from problems of this kind only serves to make them much worse in the end. Tackle the problem head on, by writing out the debt you owe and the means you have to pay it off. This will enable you to work out how much you can afford to put toward paying down your debts.

Taking Control Of Your Debt For 2014

Budgeting your day-to-day spending is an important part of debt control, allowing you to identify sources of leakage while pointing toward the most obvious sources of disposable income. If you can combine tighter expenditure with a more structured approach to managing your disposable income, it can become much more viable to tackle your financial problems – whatever their scale. A written budget is an essential step to having complete oversight and control of your finances, and is a must for anyone looking to take control of their money in 2014. 

If your debts reach a certain level, it may be wise to seek professional help in negotiating a settlement with your creditors. An attorney such as Rosicki Rosicki and Associates NY may be useful in this process. Creditors do not have to accept the terms of these proposed rearrangements, but with the help of a professional like an attorney, it can be easier to negotiate better terms for discharging your existing outstanding debts. This isn’t a suitable option for everyone, but for those with more significant financial problems to tackle, it can be a good way to wipe the slate clean. 

Taking Control Of Your Debt For 2014

Debt is usually unpleasant, and there are few people who enjoy the prospect of paying down debts and discharging their obligations. For the short-term pain that comes from paying now, you can experience the benefits later, in the form of a debt-free existence that leaves you with more money in your pocket each and every month. With the right advice, approach and professional help, where required, it can be possible to take control of any amount of debt now, so you can be in a much better financial position moving forward.
Carry On Reading.....

Monday, January 6, 2014

Paying Off Debt Through Selling Off Unused Items

You can find a large volume of unused old materials in your closet or cabinets or storage rooms. Stuff like these will never be used again and will keep on rotting for several years. Now these things can be made to use by selling them and gathering a lump some amount to minimize debt. In this way you can free up huge spaces in your home and make an impact on your existing debt.

Here are some ways through which this process can undergo.

Disperse 1 Year Unused Items

Make a commitment that you would sell off whatever you haven't used in past one year. It can be a suit or Christmas decorations or kitchen utensil. Just get rid of it. Search extensively through out your place to find more of such materials and tag a price for it. try to avoid having an emotional attachment to these things while the sell-off. You can repurchase all of them while you are debt free!

Paying Off Debt Through Selling Off Unused Items

Estimate A Price Tag

When you have gathered all the products try to make out a price of each of them. Compare the prices with the latest edition of the materials online on ebay or amazon and see if the price fits them. Do not try to over price the materials or else it would become quite tough to sell them.

Items That Should Bring Maximum Dollars

The following items must be available at your place and I am sure they are used seldom. But selling them would bring you more money than other miscellaneous items. The items are common in every household and you surely have forgotten them in the course of time : 

i) Old I pod or Similar Music Player that you never use.

ii) Preceding cell phone that you never even look at, which has older versions and never be reused again.

iii) Old Watches that are comparatively old fashioned than the new ones. 

iv) Extra Wood Flooring.

v) Old DVD collections that you will never watch again.

vi) Old clothes that are expensive but you will never wear again.

vii) Old jewelries that are out of fashion.

Consult With Your Family Before Taking Any Step

Whatever you decide to sell make sure you show it to your spouse first or you might face a misunderstanding situation. The items could be sentimentally attached to somebody in your home and if once sold it would be hard to get back. So having an OK from everybody would be best.

In this procedure you would find a lot of stuff that would have too little of a price to sell. Try to donate the stuff for a tax relief. You will get a receipt for the donations and thus save tax through it. Or else try to bundle it together and sell it altogether to save on shipping charges.
Carry On Reading.....