The Tax Definition of a Gift The IRS defines a “gift” as anything for which you don’t receive full consideration in return. You’ve given a gift of $100,000 if you sell a piece of property to your niece for $100,000, but the property had a fair market value of $200,000. Annual Gift Tax Exclusion: 1997 to 2023 The gift tax exclusion increases every year or so. For tax year 2022, it’s $16,000....
There may also be other signing bonuses offered after someone starts working at the company, such as when a certain performance target is met or a long-term incentive bonus that may sway an employee to stay at the organization for a certain number of years. Signing bonuses are most frequently utilized by financial services firms to lure experienced professionals from competitors. Signing bonuses also are often employed to recruit top investment bankers....
The square footage is calculated by multiplying the length and width of each room then adding them together. It offers a standardized way to determine how much living space a house provides. But how much square footage do you need in your next home? For each person, the ideal square footage will be different because it depends on several factors. Let’s take a closer look at the average square footage in homes today and what to consider when deciding how much space you need....
Some employers give vacation time only to full-time employees. Others grant it to all employees. Still others offer prorated vacation leave based on the employee’s work schedule and employment status. Review information on when employees are eligible for paid vacation, how many days off employers provide, and pay for unused vacation. Who Gets Vacation Pay Employers aren’t required to give employees vacation leave or to pay for it if they do offer it....
Who Gets the Claim Payment in a Home Insurance Claim? An insurance claim check might be made out to different people when you have a home insurance claim, or it might be made out to you as the owner of the house or named insured on the policy. Here’s a list of people who may get the claim payment and how to know who will get the claim check: Why Is the Claim Check Made Out to Different People?...
It’s critical to understand how student loans work and how to use them optimally before you borrow. Borrow Wisely Before getting into the details, it’s worth mentioning that you don’t have to borrow money, and the more you borrow, the harder it can be to repay. It may be hard for you to imagine what life is like with student loan payments. While those loans may be the key to a brighter future, student loan debt can also be a serious burden....
There are two tax environments for investing in stocks: qualified retirement accounts and regular accounts. You will most likely have some investments in both environments. Taxes on Retirement Accounts Retirement accounts, such as a 401(k) or an Individual Retirement Account (IRA), generally allow your money to grow tax-deferred until withdrawal. Money that you contribute to these plans is deducted from your taxable income, which lowers your current tax bill. In a 401(k), you typically invest in mutual funds rather than individual stocks....
The number of estate tax returns that were filed in 2001 is 17 times more than in 2021, according to the Tax Policy Center. That number has decreased so rapidly because the federal government continues to over more generous estate tax exemptions. The exemption allows estates under a certain value to pass property to heirs tax-free. The estate tax law has changed five times since 2001, raising the exemption significantly from its original $675,000 threshold....
How to Answer Interview Questions About Travel When answering this or any other interview question, you need to be honest with your answer. Think about how much you can travel, whether or not you can be flexible, or if you have family ties or other obligations that require you to plan ahead when it comes to making travel plans. Know the travel requirements beforehand. Ideally, you should know if the job requires travel before you apply....
Before you realize it, you owe hundreds of dollars on your credit card that you can’t easily repay. In this regard, a credit card is akin to a trap that is set up before you to lure you into debt. If you want to learn how to avoid the debt trap of credit cards, you must fundamentally change your approach to using credit cards. To start, assess your income and expenses for one month....
There are several considerations for retiring comfortably. At a minimum, you should work to fully fund your retirement account(s), own your home, have no debt, and have emergency funds set aside. This step-by-step guide empowers you to take control of your retirement plans by building a holistic financial portfolio. Don’t keep any debts off the list. The key here is to determine exactly where you stand financially. This creates what is known as a “balance sheet....
But if you plan to borrow money to buy your first car, it’s just as important to look around at financing options and take the proper legal steps to become a car owner. Taking a big-picture view of how to buy a car will allow you to drive off the lot with your dream first car and your finances intact. Determine How Much You Can Afford The first thing you should do is determine whether you can comfortably take on a new loan now or need to save more for a down payment....
The economy can also play a part as well, balancing a need to retain an occupant with the occupant’s ability to pay based on its revenues. Retail business revenues can vary significantly in a given year from seasonal or just demand cycles. Some leases work well for varying incomes, allowing tenants to make reduced lease payments during lower revenue periods. The Benefits of Commercial Tenants Investors with only residential single-family rental properties often hesitate to get into commercial leasing because it’s more complicated, but it can be well worth the extra education....
What Is Cost of Goods Sold? The cost of goods sold is how much it costs the business to produce the items it sells. The calculation of the cost of goods sold is focused on the value of your business’s inventory. If you are selling a physical product, inventory is what you sell. Your business inventory might be items you have purchased from a wholesaler or that you have made yourself....
The Rules for Claiming Office Expenses Taking a deduction for a home office is a significant benefit of being self-employed. You can convert a portion of your personal expenses into a tax-deductible business expense subject to a few rules. You can’t deduct more than your net business profit after claiming other work-related deductions. For example, you’re limited to a $2,000 deduction if your office expenses work out to be $3,000, but you only made $2,000....
Sometimes life happens—a child or other family member may become ill, you may have a suddenly conflicting work obligation at your current job, your Internet may not be working, or your car might have decided to break down the morning of the interview. With other interviews, you may have simply decided that this isn’t the best job for you. The answer depends on whether you have decided you don’t want the job after all and want to cancel completely, or if you want to simply reschedule for a more convenient date and time....
It happens for many reasons—because you just do not make enough money to cover your expenses and handle emergencies, you do not have a workable monthly budget, or you were set back by an unexpected expense. However, it is possible to recover. You just need to focus and cut unnecessary spending until you are caught up. Read on to learn how to catch up on late bills or payments—and how to not let it happen again....
How an LLC Is Usually Taxed A limited liability company (LLC) is not recognized by the IRS as a taxable entity. So an LLC pays income taxes based on how many members (owners) the business has: A single-member LLC pays income tax as a sole proprietorship, through the member’s personal tax return. A multiple-member LLC pays income taxes as a partnership. Electing C Corporation vs S Corporation Status The process of changing the tax status of an LLC to a corporation or S corporation is called an election....
When opening a new savings account, there are many things to consider. Learn about the different types of savings accounts, how to find the best rates, and what to watch out for. Knowing how to choose the best savings account for you can help you make the most of your savings potential. Interest Rates Choosing the best savings account starts with comparing interest rates. You can look up and compare interest rates by visiting the websites of several banks or credit unions....
Organizations Do a Poor Job of Communicating In a study conducted by WorldatWork of its members, these are their findings on pay communication within organizations. “91% of respondents report having a written compensation philosophy, but most say that few managers or professional employees understand it.“Only slightly more than half of the managerial and professional employees know their own salary range.“Less than 25% of the respondents communicate base salary ranges for all pay grades or jobs....
