Monday, August 2, 2021

Savings Through Taxable Income: Proven Recipe of Millionaires

save from tax
The tax system is complex and keeps on raising questions for many entrepreneurs. Starting with the question of which types of taxes are relevant for you and your company, through various tax obligations and deadlines that must be observed, to the question of how you, as a self-employed person, can save taxes.

More money through depreciation and lump sums

In order to properly save or reduce business expenses, it is first important to understand what it is all about. Depreciation is a decrease in value that ultimately helps you lower your tax burden. Business people show the depreciation of larger purchases; this loss lowers the company's profit and can thus lower the tax liability. The extent to which objects can be written off depends on the respective asset.

In addition to depreciation, lump sums offer you another option to reduce your taxable income regardless of the actual amount of the costs. Some of these so-called allowances or deductions are paid directly by the tax office. You have to have others in your own tax declaration specifications. In order to claim a flat rate, no evidence is usually required. Supporting documents are only used if the actual costs are higher than the flat rate. In this case you can claim these costs additionally.

Reduction of business expenses from tax

Business expenses play an important role as far as tax deductions are concerned. You are not referring to advertising in the sense of marketing but at the expense of working people in the course of their work and their profit diminish. This also includes contributions to professional associations and profession-specific insurance companies.

You can claim advertising expenses with the help of the flat rate. This is currently $ 1,000 per year. Married couples who are jointly assessed can use this even though one of the partners does not even reach the flat rate. For example, if one partner has advertising expenses of $ 800 and the other advertising expenses of $ 1,500, they can claim a total of $ 2,500, as in this case both partners are entitled to the full flat-rate advertising expenses.

The advertising costs include, among other things:

● Customer service,
● Application costs,
● Telephone costs,
● Account management fees,
● Training costs.

Deduct company cars from tax

Please note: The company car can also be tax-deductible. With a commercial use of 90 percent or more, you can save as much as possible, since all relevant expenses such as fuel and insurance for the vehicle can be deducted as advertising costs. In order to deduct travel expenses, it is mandatory to keep a logbook.

Deduct work equipment from the tax

The self-employed can also state work equipment as business expenses. It is important that at least 90 percent of these are also used commercially to be able to deduct them for tax services.

Work equipment includes:

● Office furniture,
● Mobile,
● Computers and laptops,
● Software,
● Professional support,
● Specialist literature.

Regulations for study and rent

Usually home expenses are not deductible. Under certain circumstances, however, the legislature still allows the removal of a private study. There are two prerequisites for this:

● If there is no other workplace available to you, you can deduct up to $ 1,250 per year as operating costs. This category includes, for example, people who work from home because their employer does not provide them with an individual workplace.
● If your study is the focus of your activity, the entire costs can be deducted. This is especially true for freelancers such as writers or freelance journalists.

So, you can save not only on rent, but also on energy, cleaning or renovation costs as well as the property tax with your home insurance.

Deduct company outings from the tax

On a joint excursion with the company, some costs come together: admission tickets, bills, trainers, or tickets make for extraordinary expenses. Here, you have to know that there are also tax exemptions: With up to two excursions per year, expenses of less than 110 euros per participant are tax-free. Further excursions must be taxed in full. If employees bring relatives to the company outing, the costs incurred will be charged to the respective employee.

As a result, the allowance is quickly exceeded. If the expenses exceed the amount of the exemption, they are considered a pecuniary benefit and must be taxed. Alternatively, the difference between the tax exemption and the costs actually incurred can be in the form of flat-rate wage taxis paid by the employer to the tax office. This is currently 25 percent.

Handicrafts and household services

Expenses for craftsmen, household help or gardeners do not reduce the taxable income, but can be deducted directly from the tax liability. Handicraft services related to the household, such as renovation or maintenance work, can almost always be deducted. The prerequisite is that the work is done in your own household.

In order for you to benefit from tax breaks for household-related services, it must be a marginal part of the job. It is also important that you participate in the so-called household check procedure and register your domestic help. You can only take advantage of this tax reduction if you receive an invoice or the contribution to be paid has been transferred. Cash payments are not accepted.

Special expenses: Tax deductible donations and health insurance

Special expenses include all expenses that do not fall into the category of business expenses or advertising expenses. From pension expenses to church tax, there are a number of expenses that can be deducted as special expenses. Here is an overview of possible special editions:

Deduct health insurance from tax

With the introduction of the Citizens Relief Act in 2010, the self-employed have the opportunity to deduct health and long-term care insurance contributions from tax. The contributions to statutory health insurance and long-term care insurance can be almost completely deducted. Note that there is also a maximum limit for pension expenses. If this is exceeded, only the contributions that exist within the framework of the basic benefits can be taken into account. Optional tariffs and additional services are not deductible.

For privately insured persons, somewhat different regulations apply, which are usually somewhat more complicated, as various, non-deductible additional benefits are often involved.

Donations in the tax return

Those who donate are doing good and can save taxes at the same time. As a self-employed person, you can state donations as special expenses in your income tax return. Companies consider this category under business expenses. In order for donations to be actually recognized as such, the following requirements must be met:

● They support charitable, charitable or church purposes.
● The donations do not constitute payment for something in return.
● They take place for voluntary and unselfish reasons.
● The recipient is from a tax office recognized as non-profit.

In order for the tax office to accept donations in your tax return, you must also provide evidence. For donations of up to $ 200, the deposit slip or a bank statement is sufficient. If the sum exceeds this amount, an officially recognized donation receipt must be presented.

Save on church tax

Anyone who lives in the USA and is a member of a religious community who is entitled to the collection of church tax must pay church tax. The amount depends on the respective place of residence and is divided into two percentages. For example, in some states, you pay 8 percent and 9 percent in other states. The church tax can also be indicated in the special expenses. Those who leave the church are accordingly exempt from church tax liability.

Tax deduction from private schools

The young have a right to education – and in private schools this right is expensive compared to state schools. If you send your child to a private school, you can also deduct part of the school fees for tax purposes. A maximum of 30 percent of the costs may be claimed, but may not exceed $ 5,000 per child. If the child attends a foreign school, this must be recognized by the State authorities in order to claim the costs.

Deduct maintenance from tax

Anyone who is obliged to pay maintenance can regularly deduct this from tax. The maximum amount here is $ 9,000 per calendar year. If the payments are specified as special expenses, one speaks of real splitting. This is where the tax performance principle comes into play. This means that the maintenance payments reduce the performance of the payer and increase that of the recipient. Ultimately, this leads to a reduction in your tax burden when you have to make maintenance payments. For this principle to take effect, the maintenance recipient must be on the income tax return sign.

Extraordinary burdens in the event of unexpected events

In order to avoid cases of hardship due to extraordinary burdens, these can also be claimed as special expenses. The limit up to which you can claim these expenses is determined individually by the tax office and is based on factors such as marital status and number of children.

Some examples of such extraordinary burdens are:

● Allergies: Medicines and therapies can be deducted as medical expenses. If you make permanent use of a drug, it is best to submit a permanent prescription to the tax office.
● Alternative medicine: These are costs that arise for homeopathy or herbal medicine. If a doctor has prescribed the treatments, an official medical certificate is not necessary.
● Funeral costs: If the estate is insufficient to cover the costs of a funeral, relatives can claim them for tax purposes. This includes costs for the coffin, flowers and wreaths as well as obituaries.
● Treatment costs: The health insurance does not always cover all costs incurred for a spa treatment or therapeutic treatment. Costs borne by yourself for accommodation or travel can be deducted from tax.
● Care costs: Age-related accommodation in a retirement home is not tax-deductible. However, if this occurs for reasons of illness, this is also one of the extraordinary burdens.

Punctuality and order pay off

It is helpful to deal with the unavoidable tax return not only when it is due, but for the entire financial year. Keeping your documents tidy and keeping your invoices and receipts carefully and orderly saves you a lot of work and time.

In addition, a separate business account of personal and professional income and expenses as well as the corresponding evidence to the tax office. In addition, you can easily keep an eye on your professional expenses.

Monday, March 15, 2021

Payment gateway vs payment aggregator

payment gateway
What is the most important thing for a company that sells its goods online? We can talk about favorable conditions on the market, the loyalty of the company's customers, as well as other factors that are certainly important. However, the most important thing for any firm is the level of profit it is counting on.

Any company knows that to increase sales, it is necessary to provide access to many payment options and to actively attract customers. This knowledge is enough for the firm's management, they don't want to get into all the details and technical aspects of the payment acceptance process. They may not even know the difference between a payment gateway and a payment aggregator. Right now, we are going to look at the main differences between these undoubtedly most important factors for successful online payment acceptance for any company and understand how they are different.

The main difference between aggregator and gateway

The difference between a payment gateway and an aggregator is hard to notice, even for companies that have been working in the market for months but have simply decided not to delve too much into these issues.

However, the problem is that if you do not know the difference between these concepts, you won't be able to make the right choice of a payment gateway provider, i.e. a payment aggregator.

You have probably already guessed from the last sentence that an aggregator is a payment gateway provider. A gateway provides a company with only one specific way to accept payments, such as WebMoney or credit card acceptance. A payment aggregator provides a myriad of different ways to accept payments, from cash to checks, cards, e-money, etc.

Working with an aggregator, there is no need for a company to open several bank accounts and accounts with payment service providers at once. The payment gateway makes it much easier for companies to accept and process payments. The aggregator handles all the tasks related to the integration with payment providers, offering the company a single ready-made solution for accepting payments.

Another crucial difference is that a payment gateway sends a payment, but it is only a payment intermediary, i.e., it does not directly interact with the funds that the customer has paid to the company for goods.

An aggregator, on the other hand, as the name implies, accumulates the money in its own hands and then transfers it to the beneficiary's bank. The fees of the gateway and the aggregator will also be different, but it is not quite correct to compare them. In the case of the gateway, the company pays only the fee to the gateway itself, and the services of the acquiring bank are paid for separately. In the case of an aggregator, the firm will charge one rate, which will already contain both the commission of the gateway itself and the fee of the acquiring bank.

If you are interested in getting access to more features and ready-made settings at once, choose a payment aggregator. Connection in this case will be quite simple. If you choose a payment gateway, your company will have an opportunity to customize the payment service. Moreover, you will receive additional services; however, it is important to understand that the speed of the connection will be considerably lower and will require time as well as the preparation of documents.

Thus, if we summarize all the differences between a payment gateway and a payment aggregator, we may say that the main differences are the work process, connection speed, and additional conditions. If the flexibility of settings is a plus for the gateway, for the aggregator you get ready solutions with a fast connection. As for the level of risk, a gateway will have a lower risk level than an aggregator.

Choosing a payment aggregator will be absolutely the right decision because, in this case, you will get the functions of the aggregator itself as well as several payment gateways. Due to the high level of competition, you will negotiate more favorable terms of cooperation with the company.

Saturday, November 21, 2020

Is it legal to pay off debt with a credit card?

credit debt
Have you ever found yourself wondering ''How did I get myself into this debt?'', wishing you had that car insurance before the accident?

Unfortunately, we cannot turn back time, but we can offer you solutions for paying off your debt.

Even though it would be great if we could pay off one credit card with another credit card, that is not exactly the case.

Paying off a credit card with another credit card

This is, unfortunately, not possible. Bouncing the debt between two credit cards may be the simplest solution that crosses your mind, but in reality, credit card companies don't allow you to pay off your balance with another credit card.

Luckily, there is another kind of similar option you might be interested in. We are talking about balance transfer and cash advances – two ways of making that debt go away forever!

Balance transfers

This is a very quick way of transferring your debt from one credit card to another with a lower interest rate. Before you do this, calculate!

Debt transfer to a card that offers you more financial benefit can often hide additional fees and expenses, so you might end up with the same paying amount.

Through this process of paying some benefits, be careful – a lot of people don’t know what exactly they are paying for. Exercise your rights and monitor the Packaged Bank Account situation.

Pros for balance transfers

If you are looking for saving your money in the long run, balance transfers are a great tool! Some credit cards have better reward programs and perks, so don't miss it.

Starting with an interest-free period, credit card companies give you 12 to 18 months to convince you to transfer your balance.

Cash advance

If you are looking for the fastest way out, this is the solution that can help you in your intention.

Considering your line of credit, you can take a cash advance out with the help of credit issuers. Be aware of the fact that borrowing amount will add up to your owing amount at the end of every billing cycle!

This is a solution with a higher risk than balance transfers. However, taking that risk may pay off in the end!

Keep in mind expenses and fees – even though this is the fastest way out, it comes with its price.

Pros for cash advance

As said before, the biggest advantage of cash advances is saving time. This can be done very quickly and you could pay off your debt as soon as possible.

Getting the cash advance immediately can decrease your stress and reduce your worries!

So which one is a better solution?

Considering all the pros and cons of these two solutions, there is no right universal answer. Weigh the relevant factors and consider your abilities.

If you want to pay your debt as soon as possible, a cash advance may be your route. On the other hand, a safer and cheaper option is balance transfers, but they take time.

Monday, August 10, 2020

Disease-Free But In Debt? Ways to Pay Off Medical Debt After COVID-19 and Other Conditions

covid-19 medical expenses
The COVID-19 crisis has affected every area of our lives--not only our health, but also our finances. If you’re someone who has gone through getting sick with COVID-19 or other illness that required hospitalization, your burden may even be heavier. NBC news reported that many patients received unexpected medical bills after recovering from the novel virus, as their documents state several out-of-pocket expenses not covered by their policies.

The case isn’t isolated with COVID-19 patients. With hundreds of thousands of insurance claims during this challenging time, a lot of companies are trying to keep up fulfilling these policies. Even after COVID-19 recovery, many families and individuals are faced with out-of-pocket medical debt, on top of unemployment, and other personal struggles related to the effects of the pandemic.

Thankfully, there are ways to be strategic in your finances when trying to pay off medical expenses. Below are some tips that could help.

Ensure mistake-free medical bill

Have you received a medical bill that made you fall off your chair, literally? Perhaps it is time to reassess the balance and confirm if the bill is accurate. Since there is a surge of patients for COVID-19 along with others being treated for non-related conditions, there may be cases where some of the input in people’s bills was a mistake.

Read through your balances and check the procedures and medications provided, and see if there is anything unclear. You can call the billing department of your hospital to ask for a re-calculation or clarification if there’s a particular matter to be settled.

Reconfirm your insurance coverage

If you have a health plan, it is ideal to read through your policy again and look for information about the coverage you have for the condition. Some insurance companies may need extra clarification about the treatments or medications you took, which turns out to be covered by your policy. The federal government is even asking insurance companies to be more transparent about the policies they offer to avoid confusion with clients.

To settle matters, you may call your insurance provider and ask about the non-covered items in your medical bill. Given the right information, they may consider to cover some of the expenses which are actually stated in your policy, but were missed when preparing your out-of-pocket bill.

Don’t use credit cards

Tempted to pay off your medical debt using credit cards? It may not be the best option. Many cases happen where people get into a never-ending cycle of credit card debt with high interest, and you don’t want to be in that situation.

What are some of the disadvantages of paying through credit card?

  • High-interest payments: A lot of credit card companies have staggeringly high interest annually. If you cannot realistically pay the rates, do not give in settling for a credit card debt.
  • Affects your credit score: Having unpaid credit card debt lowers your credit score, even making it more difficult to secure a low-interest payment plan.
  • Other options for medical debt: Unlike other types of debt, medical bills are more negotiable and flexible by nature. You can use no interest or low-interest payment options, so it is ideal to explore more routes.

Choose no interest or low-interest payment plans

Having access to healthcare is a basic human right. Thus, it is justified that medical debt should be paid with no interest or low-interest rates as much as possible. There are several options you can choose from when looking for an affordable medical debt payment plan:

Hospital or healthcare facility offer

Your own hospital or healthcare facility may have payment options that are interest-free or longer terms that make monthly payments more realistic. An article published in Modern Healthcare revealed that some major hospital networks offer a wider level of financial assistance for patients that fit eligibility requirements.

If your medical bills overwhelm you, it is best to get in touch with your hospital or healthcare facility if they have any affordable payment plans.

Interest-free financing companies

There are also other financing companies that specialize in medical bills. They have payment plans which are interest-free for a period of time, making it possible for you to pay medical debt as affordably as possible.

In fact, you can use these financing options not just for COVID-19 hospitalizations, but for other healthcare facilities such as rehabs for alcoholics and urgent care centers.

Personal loans

Taking out a personal loan can be done for a variety of reasons, such as covering out-of-pocket medical expenses. The great thing about this type of financing is the flexibility and the amount of companies offering this option. If you have a good credit score, there is a higher chance that you’ll secure a low-interest personal loan plan.

However, if you have a less-than-stellar credit score, there are still ways to secure affordable personal loan options. You can compare rates and see which one fits your budget depending on your credit score.

Paying Off Medical Debt? You Can Do It!

Paying off out-of-pocket medical expenses may be challenging, but using these strategies can make this undertaking so much easier. Make sure to clarify your bill, negotiate with your insurance provider and explore affordable options to get the best payment plan.

Tuesday, September 17, 2019

Should You Invest in a Single or Multi-Family Rental Property?

property management
Are you ready to start building or expanding your real estate investment portfolio? If so, you are probably weighing your property options carefully, especially when it comes to choosing between a single-family or multi-family purchase.

Both types of properties offer their own benefits and challenges. It is important that you look at each type carefully before making your decision and taking the leap. Once you take a closer look at the details of a single-family and multi-family home, you are likely to see that one better fits your portfolio more clearly. Some of those details include performing regular daily tasks like rent collection and property management.

Take a few moments to explore some key facts about single-family and multi-family real estate properties to see which one offers you the best short-term and long-term success with your next investment.

Single-Family Rental Properties

The idea of buying a single-family structure is often extremely appealing to future landlords that are interested in factors like long-term capital appreciation, substantial tax write-offs, and passive rental income.But there is much more to learn about this type of real estate investment.

Initial Lower Cost

Single-family rentals come with one huge advantage, which is a lower investment cost to get started. New real estate investors find that these properties cost less and require less upfront capital. Depending on the market where you plan to launch your real estate management business, you can find homes for far below $100,000—often under $50,000—particularly in the South and Midwest regions. Multi-family rental units in the same areas may cost well over $1 million.

Steady Growth and Strong Portfolio-Building Potential

If you have your sights set on building your portfolio steadily and profitably, a single-family property is an excellent choice—especially if you are considering buying one or more additional properties per year. With this strategy, you will have an amazing portfolio and serious cash flow over the next decade or two.

Quick Piece-By-Piece Liquidity

There may be times when you need additional cash flow for personal and business emergencies. You will find that funds are available through your rental investments, and it is far easier to sell a single-family unit than a multi-family property. More importantly, by doing so, you do not risk losing your entire portfolio, particularly if you have already invested in a few more single-family properties.

Multi-Family Rental Properties

Many first-time and more experienced real estate investors have their reasons for choosing multi-family properties that you might appreciate, too.

Cost-Per-Unit is Less with More Potential for Rental Income

Each multi-family unit is likely to cost far less than a fully single-family home while still allowing you to charge a similar rental fee. For instance, if you invest in a duplex, you may be able to charge the same monthly rental fee for each portion of the duplex that you would charge for asingle-family domicile.

Easier to Finance

Buildings that feature five or more units are eligible for commercial loans, which are actually easier to obtain than residential loans. Such loans are based more on the investment factor associated with the building than an assessment of your assets and liabilities.

Give Each Type of Property a Closer Examination Before Making Your Decision

Both types of properties offer several solid ways to build your portfolio whether you’re looking to purchase now or in the future.Just be sure to weigh out the pro’s and con’s and evaluate which property type is best for your financial goals.

Author Bio

Patrick Freeze is the President of Bay Management Group, which manages about 4,000 units in the Mid-Atlantic Region. The company is overseeing more than $700 million worth of real estate as of October 1st, 2018.

Tuesday, August 20, 2019

Understanding Forex Trading and Techniques to Earn More

business trading
It is such as a journey to obtain success in Forex currency trading since, as a trader, you're for the lane of progress and learning. To say this evidently it's like touring from stage A to B, where in fact the point B indicates to create constant earnings in Forex currency trading.

To be able to make money Forex currency trading over a continual time frame you must have confidence in and start using a simple trading approach like raw value action research, and effectively cope with your emotions, so you usually do not over trade and don't risk an excessive amount of. They are three necessary factors to learning steps to make money investing Forex. It is strongly recommended when starting out in Forex trading to view this currency set closely and move on to know its routines before buying and selling it. Once learned, you would discover it very money-making.The market is among the most dynamic on the planet, and this can be good since it means that you may make a huge benefit from it in the event that you only perform your cards most suitable.

If you are looking for a method to become a profitable FX investor in the market, then you must use the best Forex trading system which can give you a good start. When coming to currency markets, there is no other market in the globe that generates critical data in large amounts as this market does. The data that is generated should be processed and analyzed to get good profits in the market, and with the help of these software products, this process is done efficiently and in an effective manner.

Forex Trading Tips

The first step in this process is to collect all the data that is generated and given input to the system software, and all the Forex trading systems do this automatically. Secondly, this data should be screened based on their significance.

At this point, various software products differ from each other. The significance of a particular data, whether it is important or not is decided by the professional investor who is the source of power behind the development of the product. The nature of the end product depends on the better job they do to make money in the market. So, the better the job done to make money delivers a good end product.

The third step is we have to select the particular product on which we can invest our money positively. The ability of the programmers, experts and software engineers to understand that and develop it into mathematical algorithms reflects their experience and talent to decide the systems which can make money in large amounts and which gives you moderate profits.

This makes us talk about the top two Forex trading systems that are used by hundreds of investors all over the world. Their popularity all over the world is just awesome. It all comes to one conclusion they can give you maximum profits than other products in the market today.