If I am transferring $25,000 to a friend's bank account, does he have to pay tax on that amount? Will it be treated as a gift?
Let’s make the simplifying assumptions that we are dealing with U.S. persons residing in the U.S. and transacting in U.S. after-tax dollars. We have limited facts here and it is not feasible to address every possible factual permutation.Now, with due respect to fellow CPA Wray Rives 2012 answer, this is not a gift unless there is donative intent. There must be donative intent to characterize this as a gift under the U.S. tax code (Commissioner v. Duberstein, 363 U.S. 278 (1960)).Consider this totally realistic scenario: Suppose I agree to do a favor for a good friend and he wires $25K to my checking account so I can pay his rent and utility bills and take care of his dog while he takes an extended vacation and travels the world. This would not be a gift to me, this would not be a loan to me and it would not be income to me. It is nothing other than a convenience bailment, and I would, of course, keep receipts and refund whatever remains when my friend returns.This entire private arrangement between private parties would be of no concern to the government whatsoever - and therefore absolutely no harm to the federal fisc.The larger point is that you must ask relevant questions to uncover the nonobvious facts and intent of the parties for a complete understanding of the transaction before jumping to conclusions. Otherwise you look like an asshole because things are not always what they appear to be on the surface.
If I make $120,000 how much house can I afford?
Almost everyone who has written an answer has given incorrect or incomplete information. Here are some facts for your consideration.The first thing you should be aware of is that almost all lenders will have essentially the same lending standards and very close to the same rates. The reason for this is that almost all loans are ultimately sold to one of three investors: Fannie Mae, Freddie Mac or Ginnie Mae (the latter buys government insured loans, such as VA and FHA loans).It’s not possible to answer your question conclusively because you don’t provide enough information. I’ll give you an idea of how lenders approve loans, so at least you’ll have some idea.The single most important figure for qualifying a borrower is the Debt To Income ratio (DTI). We calculate this by taking the total monthly payment (including taxes, insurance and mortgage insurance if any) and adding to it any monthly debt payments that will go on for 10 months or more. This number generally cannot exceed 45% for conventional loans.With an income of $120,000 annually ($10,000 per month), your total outgo for house payment and other debt service could not exceed $4,500. If you have total debt service of $500, you’d have $4,000 available for a house payment. If you get a rate of 4.5% and make a down payment of 20%, you’d qualify for a purchase of $770,000. This would involve a total payment of almost exactly $4,000 per month.If you were making a down payment of 10%, you’d have to include mortgage insurance, which would amount to around $325 per month. Everything else being equal, you’d qualify for a purchase of $643,000.Your credit score will determine the interest rate you’ll get. A borrower with a 620 score will pay about .75% more in rate than one with a score of 740 or higher.I hope this is helpful. If you’d like to get more specific information, just comment and I’ll do my best to accommodate.
Found out that my Girlfriend has $30,000 of debt that she has not told me about. Help?
Well since I discovered her large debt. I have taken a look at her spending habits. She does pay our household bills on time every month. I pay the majority of them because I make more money and I own the home we live in. She does spend money on things she really don' need, (clothes, cell phones ect). But she pretty resonable. She does not contribute much to buying household stuff, (groceries, cleaning supples, sheets ect). I agree student loan debt is not bad, but its in collections and I'm sure it gaining a lot of interest without her paying it. I'm sure she embarrassed but she has to know i will find out sooner ot later. What happens when its time for us to borrow money for a wedding. It would show up then. Or when she needs a new car and can't get a loan in her own name. This would fall back on me. Just don't think I'm ready to take on all of that . I'm 31 and ready to start a family. It would take her years(10+) to get out of that hole.
How long will it take to pay off a 500,000 dollar house?
Your question becomes one of paying off a $200,000 mortgage. Your incomes are $121,000. Next 28% of that is $2823 per month which is a comfortable percentage for your income. If you get a 15 year mortgage at 5%, and make the monthly plus extra principle to meet the $2823, you will pay off in 7 years. BUT, if you add to that $500, you will be done in 5 years and 9 months. Or in five years at $3770 a month. Can you change your life a little to be free of the mortgage in five? I hope you do and can. At your income, it is not a stretch, but a goal.
Health Care-How will it affect me?
I am a thirteen year old girl in eighth grade. How will this health care bill affect me? I have been watching all the politicians talk on TV about this bill and it all seems like when I'm old enough to pay taxes I will be the one having to pay for the trillion dollars of debt this puts the country in. Will it be on my generation to pay off this debt that the government has forced upon us or will it just destroy this country further and bring us closer to a great depression? It supposedly will get rid of 5.5 million jobs. My dad has lost his job 3 times and is currently working for over 30,000 dollars a year less than he used to get. Is this how it will be when I'm out of college and working? I would like to hear both sides of any argument you may have.
If I deposit a $40,000 check to my bank account will I be red flagged from IRS?
The agency that deals with this is FinCEN. If the bank thinks that what you are doing is suspicious, then they will report it to FinCEN, and if FinCEN thinks that you are evading taxes, then they will bring in the IRS.The IRS doesn’t red flag accounts. Usually what happens is that if the IRS has suspicion that you are evading taxes, they will contact the bank and the bank will give them all your bank records. In some sense, everyone’s accounts are red flagged by the IRS.A USD 40k check from inside the US shouldn’t cause any issues because it’s likely that the money is recorded by some one else that they can check if there is an issue. For example if you got the money from the sale of a house, the real estate agent will issue that information to the IRS so there is no need for the IRS to track the money coming in.The one situation where a USD 40k would raise flags is if it came from foreign sources. If you suddenly started getting lots of checks from BVI corporations, then the bank would issue a report to FinCEN, FinCEN would contact the IRS, the IRS would check if you’ve reported any association with overseas corporations. If you didn’t, the IRS would assign an case worker to investigate further. If they can’t come up with anything, you’ll never know anything happened.
How do I know if a Filipina girl isn't trying to lie to me so she can get a free entry into America.?
I've been to the Philippines 6 times and absolutely love it there. I've talked with different girls who I've liked in the past but I don't know if they are really telling me the truth or will hurt me eventually. I really love the culture there and think the Filipinas are so maganda but why are they not truthful when wanting to marry a foreigner.
I am a teenager looking to buy his first car, with about $30,000 saved, what should I purchase?
If you have $30k saved as a teen, then you obviously understand the value of money. I strongly recommend the following:Don’t spend it all. Stay ahead of the game.Pick up a car that was just turned in off a 2-year lease. After 2 weeks, you won’t know the difference between new and used, and you will save more than 1/3 of the money. You taxes will be cheaper, as will your registration. 2-year lease cars tend to be babied and under used.Keep if until it gets expensive to keep, or you hit about the 10-year mark. Have cash ready for that next purchase.Many Credit Unions are currently offering loans around 2%. If you can invest your money, it is easy to make more than 2%, so you come out ahead. Consider it, but don’t get too risky with your investments.Your doing better than 99% of teens so far. Keep it up!
Is £40,000 a comfortable salary in London?
London, one the greatest cities in the world (in my humble opinion) and one of the most expensive to live! I currently live in London and earn 40,000 a year. Here is how it breaks down for me...Monthly Income before tax but after pension contribution: 3317.67Monthly Tax Contribution: 1053.61Monthly Income after tax: 2264.06OK so 2264.06 a month to play with.....Housing (1 Bed flat in Balham): 1300Bills (Gas, Elec, Water, Council Tax, Insurance etc): 100-200Food (Groceries etc): 150Travel (Oyster Card for zones 1-2): 120Socialising (Restaurants, drinks etc): 200Other: 100-------------Total 2070Savings 264.06 I think this is pretty common for Londoners, saving 20% post tax income is tough in this town! You could save on this significantly by house sharing, that would cut your rent to around 700-800 a month which means you'd probably hit your 20% savings target and have a comfortable living standard. All this said, money is only one part of the equation if your looking to live here, on a 40k salary you can easily enjoy the city for a year or two and then look to move out somewhere cheaper!Good Luck
How long would $12 million dollars last?
Several things need to be known before that can be answered: 1. In terms of today's dollar, how much will the person withdraw each year? 2. What will be the future rate of inflation. 3. What rate of return will the money earn? Assume an initial annual withdrawal of $240,000 Assume a constant rate of inflation equal to 4.5% per year Assume that each year an additional 4.5% is withdrawn to keep pace with inflation. Assume that the money is invested at a guaranteed 5.0% per year. The money would be gone when the 20 year old person reaches age 77.