My parents want to gift me a home worth $1.3 million but with a mortgage still left on it, would either party pay a gift tax?
I've done a few deals on real estate in the past. Before I did ANYTHING, I talked to my financial planner, my tax specialist, and a lawyer. That added about $1000 to the total costs of doing everything. Worth every penny. My tax guy has saved me $80,000 over the years with different pieces of advice about this and that. My lawyer has saved me thousands in legal fees trying to fix something after the fact. My financial planner helps me keep my finances in balance. Make sure you pay them all hourly, and don't skimp. Never pay by a percentage, if you can avoid it.
Self employment tax question?
I have started this transcription job from home part time. I will probably make around 2000 dollars this year, if that. I am sure I will have to file my own taxes, but it almost seems silly for such a small amount? Last year, i stopped working in Feb. bc I had my daughter and stay at home with her now. So, for Jan-Feb 2010 I only made 1500. This was with my actual job though, that deducted my taxes. Thing is..when i filed, i got every penny back that I put it.. bc it was such a tiny amount of money i made for the year. So...why should I have to pay in making only 2k ? is it different when its self employment? And, how does the IRS ever know you are self employed, especially if you dont have a large business ect? My boyfriend usually claims me as dependent bc he supports me and our daughter. Any knowledge about this stuff?
What is it like to live with a salary of about $100,000 a year?
I’ve lived right around the poverty line for many years and now make $135kThe short answer: while I’m very grateful to finally be making more than $20k, it’s continually surprising how $135k doesn’t spend nearly as far as you’d expect it would - your paystubs will make you very angry and you’ll realize why the wealthy complain about “wealth redistribution”.What’s very crazy, is when we made $60k/yr we had very close to the same cash budget each month. This is because taxes, tax credits, etc even the playing field.My monthly pay is $11,250, taxes takes out $4,000 of that leaving $7,250.Speaking of taxes, say goodbye to tax returns…you only ever pay at the end of the year. You scrap for every deductible you can find, since deductibles are only a small percentage of your income at this point. I quickly realized that I never paid taxes when I made $20-$50k, I actually got $$ for free at the end of the tax year. So I put aside $1,000/mo for taxes as I often won’t get the deductibles I hope to get.I self-fund my own insurance because at my tax bracket, Obamacare would be $1,600+ each month for my family. We can self-fund for around $1,000/moSave for retirement, which has to be a lot, since I don’t plan on making $20k when I retire. (I am very grateful to be able to do this, though)All in all, here’s what my monthly budget looks like at $0 debt:$1,300 modest apt for my family to live in$200 car payment - 1 car$1,000 healthcare$1,000 taxes$1,200 retirement$400 utilities$1,000 food for family of 5 (at best we can get this down to $600 - kids eat like animals) also worth nothing that many friends who live in nicer homes than us get $900 in food stamps every month. Likely why I need to pay $5k+/mo in taxes$100 phones for family$400 fuel and car insurance & maintenance$200 misc expenses$200 spending money for my wife and I$100 babysitting$100 out to eat and moviesAs you can see, at $135k, I get about $100 each month to do whatever I want with.About 50% each month goes to government and government services.So all y’all who think that free college, free healthcare, etc from the govt sounds great…it’s only great until you get ahead, then you’ll be paying for it for everyone else for the rest of your life and find that “ahead” isn’t as ahead as you’d hoped.
Child Support. Explain how a 6 year old "needs" $1,000 per month!?
Hi. This question is for all you mothers and fathers out there. I am having a hard time understanding why the court thinks my 6 year old son needs $1,000 per month to survive adequately. Aside from the following things which are things that his mother or any mother regardless of having a child would need. 1.) Automobile 2.) Auto Insurance 3.) Cell Phone 4.) Rent *** I can understand my obligation to a PORTION of her rent because she needs a 2nd bedroom for him and she could get away with a 1 bedroom if she did not have him. 5.) Child care: She works from home and her mother lives right next door and also works from home Please help me understand what expenses a 6 year old child has. His mother and I do not speak at all so ladies please help me understand. Thanks!!!
Buy an expensive house or a modest one?
I make $4K a month after paying taxes, have no debt and have an excellent credit score (820 FICO). I'm considering buying a house for $330K with 3% downpayment. I was approved for the loan and can handle the closing costs, but am concerned about the housing expenses to income ratio. PITI will be $2.5K and I don’t know if this is a smart thing to do. I did a very conservative budget and it means spending all I am making. And that’s before anything bad happens (if I get sick, car breaks down, roof leaks etc). Another option is buying a house for $270K which is not as high quality, had been asessesed and appraised at a lesser amount than house A and probably won't appreciate as nicely. But it means a smaller monthly payment (about $400 less) and an ability to put a little money into savings every month. In the long run, what's a smarter move - to buy for $330K and really strecth myself fiancially or to buy at $270K and be able to save in addition to making monthly payments. THANK YOU!