Author: Steve

Do I Really Need to Hire a Tax Consultant?

If you ever start your own part time business, keeping track of your finances is one of the needed keys to a successful business. In addition, learning how to read the tax laws is important as it allows you to keep your hard earned money. However, since the tax laws change frequently, it’s a good idea to hire your own professional tax consultant. It saves you on hassle and if you find a good one, they will do their job better than you ever could. So if you want your business to run smoothly, learn how to find a tax consultant.

First, ask your friends and family if they know someone suited for the job. A tax adviser that someone else knows is more likely to be trustworthy. If not, then it’s time to pick up the phone book and start interviewing everyone. Keep in mind that some people only want your money and aren’t necessary good for your business. Avoid these scammers. If you are interviewing a potential adviser and they demand to be paid for being interviewed, they are a bad fit, drop them fast. Be sure to interview several people before deciding on who to go with. Also, even if you hire someone that sounds good, there is a small chance that it may not work out. If it doesn’t, simply fire them and try again.

You may not need to hire a tax consultant if you are determined to do your own taxes. However, unless you plan to study up on all of the laws, you may make a mistake somewhere. Some people don’t want to get a tax consultant because it costs money, but the resources they save you are worth more than you are paying them. A good tax consultant will be able to save your business money in places that you may not have figured out yourself. Of course, a bad consultant can do the same thing, but they won’t follow the tax laws correctly, leading to trouble down the line. Before you choose a tax specialist, weigh the pros and cons first.

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When High Tech Companies Are Good Stocks to Invest In

When there is a recession, the economy dwindles, there are thousands of job losses and real estate sales fall.  An investor trading stock during a recession will soon become distrustful of improvement, doubting what good stocks to invest in are and will begin to sell their stock shares.  During these times stocks in companies specializing in non-essential or technical items is a scary investment for many traders.

Shares in Technology

Instead of the high tech shares, they often switch to stocks in companies who endorse food products and/or health services.  Are these good stocks to invest in right now?  Many investors will answer with a definite yes because these are public services that will always be in demand.  Dividend paying stocks during this time need to completely researched, to avoid overpaying for shares.  Good stocks to invest in 2010 were health services and these stocks continue to be in demand, but can be found at decent prices.

Rock Bottom Prices

Researching what are good stocks to invest in requires looking for companies that do not have negative news regarding their business.  When the shares hit rock bottom prices and the negative data from the company subsides, then buy shares in the company.  In the majority of scenarios, if a company has negative reports and a drop in stock prices, they will most likely have a reverse in trends.

Spread the Wealth

Finding good stocks to invest in, means to diversify your portfolio.  If you focus on primarily one niche of investments, you are taking a risk for lose.  Whereas if you have stocks in various arenas, you are no longer dependent on one particular area for increased profits.  For example, during a recession the tech stock you have may decrease, but increase following the recession.  Instead of having to sell all shares you own, spread the investments among technology that will gradually increase as well as food and health that will continually increase.

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The Cheapest Place to Live in the U.S.

The United States of America is large in size and rich in diversity, so finding the cheapest place to live in the US may be easier said than done.

Perhaps you are a person who has always dreamed of living in the beautiful country side far away from loud and teeming cities: think Montana.

Maybe your dream is to buy a large, beautiful house on the cheap: think Detroit. A recent count of houses for sale found quality properties as low as $37,000.

How do you find that locality in which you wish to reside? The Internet is your best friend when determining what is important to you. There is most likely an answer online to speak to nearly every question.

Quality of life issues, such as unemployment, violent crime, median income and even more fundamentally important data are reported online. The price of a pint glass of beer: Texarkana, Arkansas, for example, charges $1.50. Allentown, Pennsylvania beats it at $1.25.

How do you make a living in your rural dream locality? Health professionals, for example, have an easy time relocating; other folks may have to use some imaginative and daring planning to find their niche.

Here again, the Internet is invaluable. Online work such as editing or blogging requires excellent grammar and imagination. Retail over the Internet can be highly successful should you recognize trends and present the right product.

If you have a green thumb, you could join a growing trend and raise organic herbs, micro sprouts, mushrooms and specialty greens for restaurants and the public.

The best places to live are a highly subjective matter depending on each person. It can be a scary proposition, leaving a familiar place you’ve grown weary of, and stepping into the vast unknown. It takes imagination and nerve, but should you succeed, you will have accomplished something wonderful and courageous indeed.

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Does Bankruptcy Erase Tax Debt?

The personal bankruptcy process is a way for those experiencing severe financial difficulties to wipe their debts and start again.  But does bankruptcy erase tax debt?

Some may be surprised by the fact that while filing for bankruptcy does not wipe out federal housing or education loans, it does erase tax debt, providing that certain conditions are met.  As well as having filed an honest, non-fraudulent tax return and not intentionally attempting to evade paying your taxes, there are three other criteria that must be met in order for taxes to be considered eligible for discharge.

•    3 years must have passed from the date the taxes were due to the date of petition filing.
•    2 years must have passed from the date the taxes were filed to the date of petition filing.
•    240 days must have passed from the date the taxes were assessed to the date of petition filing.

If these conditions are met, your IRS, state, and local taxes may be discharged under Chapter 7 of the U.S. Bankruptcy Code.  However, it is important to note that if the federal government has placed a lien against your property due to unpaid taxes, those taxes cannot be discharged.

Chapter 13 operates slightly differently as taxes are considered a priority and are listed at the top of the list of creditors to be repaid as part of your 3-5 year plan.  However, if your situation meets the 3 year and 240 day criteria, the judge may reduce the amount of tax you owe.  In addition, if the value of your assets or property has dropped below that of the lien against them, then the lien will be reduced to reflect that reduction in value.

Does going bankrupt erase tax debts?

Yes.  As long as you meet the criteria and file for personal bankruptcy protection under Chapter 7.

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