What do creditors have to report to credit bureaus?

July 7, 2024 No Comments

A: Creditors are not required by law to report anything to credit bureaus, although many businesses choose to report on-time payments, late payments, purchases, loan terms, credit limits and balances owed. Businesses usually also report major events such as account closures or charge-offs. Governmental organizations

If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

July 7, 2024 No Comments

A: A LEAP (long-term equity anticipation security) is a call or put option that allows the holder to buy or sell shares of stock at a set strike price. Expiration dates on LEAPs can range from nine months to three years, which is longer than the holding

What is the catch-up contribution limit for qualified deferred tax plans?

July 7, 2024 No Comments

A: The U.S. Internal Revenue Service (IRS) established a $6,000 limit on the catch-up contribution to qualified deferred tax plans such as 401(k) plans, 403(b) plans, SARSEP and governmental 457(b) plans. SIMPLE IRAs and SIMPLE 401(k) plans have catch-up contribution limits of $3,000 in 2015

In what types of economies are regressive taxes common?

July 7, 2024 No Comments

A: Regressive taxation systems are more likely to be found in developing countries or emerging market economies than in the economies of developed countries. The predominance of regressive taxation in less-developed countries is mainly due to the fact that regressive tax systems are generally simpler

What is the difference between a single and a married withholding tax?

July 7, 2024 No Comments

A: The difference between the amount of income tax withheld for single versus married persons in the United States depends on the amount of income earned. However, in general, those who take who take the married withholding allowance have less of their income withheld. This

Using QDRO money from a divorce to pay for a new home

July 7, 2024 No Comments

A: There are several issues to consider: The early distribution penalty: Assets distributed from a qualified plan in accordance with a qualified domestic relations order (QDRO) are exempted from the usual 10% early-withdrawal penalty. So if you are under age 59½ and want to use any

What is the difference between a subsidiary and a wholly owned subsidiary?

July 7, 2024 No Comments

A: The difference between a subsidiary and a wholly owned subsidiary is the amount of control held by the parent company. A regular subsidiary company has over 50% of its voting stock (it can be half, plus one share more) controlled by another company, though

What are examples of products and companies that rely on protective tariffs to survive?

July 7, 2024 No Comments

A: Examples of U.S. products that rely on protective tariffs to survive include paper clips, canned tuna, tobacco and sneakers. Paper Clips A single paper clip manufactured and sold in the United States retails for less than a penny. Most paper clips sold in the

What is the difference between AGI (adjusted gross income) and net income?

July 7, 2024 No Comments

A: Adjusted gross income (AGI) is often referred to as “net income,” although the two are not necessarily the same thing. Net income is a catch-all phrase generally meant as “aftertax” income, while AGI is the total taxable income – that is, the taxable amount

What are some common examples of demand shock?

July 7, 2024 No Comments

A: Common examples of demand shocks are interest rate cuts, tax cuts, government stimulus programs, natural disasters, terrorist attacks, wars or stock market crashes. Demand shocks are surprise events that lead to increased or decreased demand for goods or services. They can lead to surging

All Rights Reserved