The federal government imposes a gift tax of up to 40% on transfers of property from one person to another, whether it’s cash or a physical item. If your gift exceeds a certain value, you may have to file a gift tax return and pay the gift tax. What Is the Gift Tax? The gift tax is a tax that individuals must pay when they transfer a gift to another individual....
Ramped Up Help During COVID-19 The COVID-19 pandemic has had far-reaching financial implications for many Americans, including a spike in unemployment to a record rate of 14.7% in April 2020. The federal government temporarily ramped up resources to help those in need obtain food and other financial assistance. These were especially targeted to people who have experienced a financial setback associated with a job loss or a reduction in household income....
The federal government offers several loans specifically for graduate students. You should consider starting with these sources before exploring your private loan options. Government-sponsored student loans often have advantages, like lower interest rates and more flexible repayment plans. Keep in mind that graduate students haven’t been able to enjoy the benefits of a subsidized loan since July 1, 2012. Unlike undergraduate loans, interest will begin to accrue as soon as you get the money, so you’ll want to be especially careful about how much you borrow....
“Wallet 2” is an accounting entry referred to as your “income base.” It is not real money. It is an accounting method used to figure out the amount of guaranteed income you can withdraw if you trigger the rider. There is often a withdrawal percentage that is tied to your age. For instance, the rider might say you can withdraw 4% of the greater of the actual contract value (Wallet 1) or the income base (Wallet 2) if you begin taking withdrawals between ages 60 and 64, 4....
Reducing your taxes in this way is an excellent tax strategy. In fact, many tax professionals encourage people with high incomes to convert their hobbies into “businesses” so they have a loss. Not surprisingly, the Internal Revenue Service has caught on to this strategy, and the passage of the Tax Cuts and Jobs Act (TCJA) in 2018 eliminated the possibility of claiming hobby expenses as a deduction as well....
That’s according to the S&P Case-Shiller National Home Price Index, which showed a 0.2% decrease in single-family home prices in July after seasonal adjustment. While home prices were still up 15.8% over the year, it was a steep deceleration from the 18.1% seen in June. The chart below shows just how quickly the housing market is slamming on the brakes. The culprit for this summer’s slump in the housing market is the skyrocketing rate for a 30-year mortgage, which shot up past 6% since the Federal Reserve began its campaign to raise interest rates to fight inflation....
Mortgage rates, which had been hovering near record lows this winter, turned a corner in February and have gone up for the last six weeks, making home loans steadily less affordable, according to data from the Mortgage Bankers Association. The latest 2-basis-point jump brought the average rate for a 30-year fixed-rate mortgage to 3.28%, a full 43 basis points over its December low, when it was just 2.85%. During the same time span, refinancing applications have declined, but the trend in applications for purchases—a leading indicator of home sales—hasn’t been as steady....
The number of homes listed for sale in June ticked up 8.8% to 549,000, the second straight month of increases, according to Realtor.com’s monthly report on Thursday. Not only that, but the number of new listings jumped 10.9% to 447,000, the first time new listings didn’t drop from May to June since Realtor.com started keeping track in 2016. Low inventories have been holding back sales lately, but that might be about to change....
Before the internet came along, sellers might not have heard of a DU. This brief yet detailed profile of a buyer’s financial qualifications provides a fairly accurate picture of whether that buyer can get financing to purchase the home. What Is a Desktop Underwriting? A DU presents a fairly complete financial picture of the borrower. More often known as “automated underwriting,” a DU is a system that many lenders use to quickly review a borrower’s financial qualifications and decide their loan terms....
When to Fire Your Realtor The most commonly heard complaint that clients voice about their agents is dissatisfaction with communication. Some say it is the client’s fault for not establishing preferred methods of communication upfront. Others say it is the agent’s responsibility to ask the client what they expect. It can be irritating to work with an agent who does not promptly respond to voicemails, text messages, or emails. If that happens to you, it might be time to fire the agent and hire someone else....
Historic Economic Change The National Bureau of Economic Research (NBER) declared that a recession had started in early 2020, as U.S. gross domestic product (GDP)—the measure of goods and services output—declined by 5.1% in the first quarter of 2020. Most businesses shut down as stay-at-home orders were put in place and it became clear that the coronavirus was a national emergency. The economy contracted a record 31.2% in the second quarter of 2020 as a result....
Average 401(k) Balance According to Fidelity’s 2020 fourth quarter retirement analysis, the average 401(k) balance was over six figures at $121,500—31.35% higher than at the end of 2016 ($92,500). And if you’re somebody who has saved for over 10 years, the market has rewarded you handsomely, with average balances exceeding $250,000. If you had any doubt that long-term saving pays off, Fidelity has proof that it does. If those numbers weren’t exciting enough, the analysis found that individuals continued to increase their contributions to retirement accounts in 2020, despite the COVID-19 pandemic....
The most common way a vehicle becomes salvage is by being involved in a major accident or natural disaster. But in some states, a car can also get a salvage title if it was stolen and never recovered by the police. All of these reasons should raise red flags, and you should proceed with caution. Here are some common reasons a vehicle becomes salvage-titled. Major Accidents If you’re involved in an accident, and your car is declared a total loss by the insurance company, you can keep it and have it repaired—but your provider will declare it a salvage vehicle....
To get these savings on sales taxes, you must apply to your state for a sales tax certificate. A sales tax certificate may also be called a resale certificate, reseller’s permit, reseller’s license, or a tax-exempt certificate, depending on your state. It allows your business to buy or rent property or services tax-free when the property or service is resold or re-rented. How a Sales Tax Certificate Works Let’s say you buy products at wholesale prices and resell them at retail prices....
Economists absorbing the new data out Friday kicked a few theories around for the surprisingly small increase, including that it could just be a statistical fluke, more noise than a signal of a shift in the leverage workers have had recently over employers. One popular explanation, though, was that a sharp uptick in lower-paid leisure and hospitality workers dragged the average down, just like massive layoffs among low-paid workers at the start of the pandemic caused average wages to spike....
As you consider your options for paying for medical school, here’s what you need to know. How Much Can You Borrow for Medical School? According to the Association of American Medical Colleges (AAMC), 73% of medical school graduates had educational debt in 2020. The average amount of medical school loans when finishing was $207,003. Depending on where you attend school, you might need to consider the source of the loans....
Even if you don’t fully understand these concepts, you still stand to get a good rate on your home loan. In challenging markets with changing interest rates, however, it helps to know the basics so you can look out for your own financial welfare. How Bonds Affect Mortgage Rates Contrary to popular belief, mortgage rates are not based on the 10-year Treasury note. They’re based on the bond market, meaning mortgage bonds or mortgage-backed securities....
Identifying Underbanking The Federal Deposit Insurance Corporation (FDIC) identifies a lack of banking access in two ways: Unbanked households do not have a checking or savings account with a bank or credit union. Underbanked households have bank accounts, but they also use AFS because their banking relationships do not fully meet their needs. Non-bank services are not necessarily bad, but they may be less consumer-friendly, as we’ll explore below. Per the FDIC, the following services are AFS that the underbanked use:...
Companies can announce promotions of employees in many different ways. In a small company, the announcement might come during a company meeting where all the staff is present. Larger companies, however, typically use email to make promotion announcements to employees. Here’s information on options for announcing a promotion or transfer, what to include in an announcement email, and examples. How Companies Announce Promotions Those most closely affected by the change—team members, supervisors, direct reports—may be informed in advance of a formal company-wide announcement so that they will be able to support a smooth transition within the organizational structure....
Interviewers are interested in any apparent changes in direction that you have made in your work and educational history. Expect to be asked interview questions like, “Why did you go back to school?” Prepare answers that show how your education has made you the best person to solve their company’s problems. What the Interviewer Really Wants to Know Returning to school may be the best decision you could have made, but the reasons why you made that choice might not be immediately obvious to others....
