Families often choose to move in the summertime. Moving in summer avoids the problem of having to work around school schedules. It can be an expensive task, but there are ways a person can reduce their moving-related expenses. They can even deduct some of the expenses if they know how or find some good tax tips for consultants.
1. Time your move to coincide with the start of a new job. Moving-related expenses incurred within one year of the move can be written off on your 2011 taxes. The location of your new workplace must be at least 50 miles away from the location of the old workplace.
2. Pass the time test. If you worked 40 weeks or more for a year after you moved you may be able to claim your moving expenses on your taxes. If you are self-employed, the time that must pass before you can claim your dedications is two years.
3. Keep all of your hotel receipts. You can deduct the money you spent on lodging while moving from one place to another. This rule also applies to any of the travel expenses you may have incurred. Just remember that you can only deduct one trip per person.
4. If you are good at holding on to receipts, you can deduct the cost of moving materials. You can include storage and utility costs as a deduction on your tax return. The cost of setting up utilities at the new home also counts.
You cannot deduct any portion of the cost of your new home, unfortunately. You do not need to if you know other aspects of the tax code.
There are many retirees out there who are in a world of hurt. The economy has all but killed the American dream of retirement. Trying to work until they are forced out, many seniors find that they just cannot survive on the pittance of a pension that they receive and social security is little more than a stipend. For this reason, many of them are telling their heirs that there is no such thing as Santa Clause. It is starve or sell the home. There is another option, however, that many are considering, the reverse mortgage.
Standing Toe To Toe
The reverse mortgages pros and cons, when stood toe to toe, look at first to be quite lopsided. It really appears that the pros far outweigh the reverse mortgage disadvantages… at first glance, that is. When you really get a good look at the reverse mortgage disadvantages, however, you begin to realize that the pros are fluffed up to look bigger by agents and companies that want the business.
A Bunch of Whoppers
The reverse mortgages disadvantages are whoppers, even if there are only a few of them. You have to have reached the age of 62 to receive the loan. The interest is really big and there are huge up front fees involved. The reverse mortgages pros and cons have to be scrutinized with a magnifying glass to see the details, but they are right there in black and white. On the pros side of the coin, however, you do no have to repay the loan as long as you live in the house that you cherish so much.
Better Than the Alternative
The worst of the reverse mortgage disadvantages is that your children will never get to live in the home or benefit from its equity. This is really sad if any of the children wanted to move into the place once you were gone. The reverse mortgages pros and cons are hard to digest, but it is better than the hardships that are its alternative.
If you are under severe debts and do not know what to do, then you should understand that debt reduction should be your primary focus. This is because debt reduction can help you reduce stress and levels and leaves you with more cash that you can save or utilize in investments to make money.
Some of the ways in which you can reduce your debts and also make sure that you save are as follows.
1. Plan a budget to manage finances: It is most essential for you to formulate a budget that you can use by which you can assess your financial condition. The budget that you formulate should list all your expenses and also your monthly income. It should have categories to tell you how much you spend and where you spend it. This helps you in getting a clear picture of your finances and also makes you aware about where you are spending and how much you are spending. You must also make provisions in your budget so that you can save a certain amount every month. You must subtract the total expenses from the total income and the amount that you get is to be used to pay off your debts. If you feel that this amount is not sufficient, then you must try to reduce your expenses or increase your income. The budget keeps you motivated and helps in debt reduction as well as savings.
2. Do not spend on what you do not need: It is important for you to know that when you are paying off your debts you are to try and spend as less as possible. This is to be done so that you can save enough to pay off your debts. Every month make a list of the things that you really need and buy only those things. Things that you desire but do not need must be avoided. The best way to refrain yourself form making such purchases is to wait. If you want to buy something that is very expensive wait for a few days to make the purchase. You will gradually realize that the desire to possess it has left you. This will save you a lot of money and you will be able to pay off your debts with ease. After you have finished paying your debts, if you still practice this, you will have enough left for investing and making money.
3. Do not add up more debt: You should try not to add more debt to your existing debt. This is because when you are already paying off debts then it is best that you do not take on new debts. If you take on new debts, then you will have to pay a certain amount of money towards it. This will lead to a shortfall in the amount that you have to pay off towards your current debts. In order to avoid that and accelerate debt reduction you must not take on further debt. This will also help you save and make more money in future.
These are a few ways in which you can tread the path of debt reduction and opt for a new way life where you have enough to save and enough to invest.
If you are planning to assure a secure retired life you have to start planning sooner. Retirement planning means to save a sum of money and to gain interest on them. For example if you open an account for use only after your retirement, you can rely on the interest of this account to have money for your old age. Generally, these types of accounts are called Individual Retirement Accounts or IRA.
There are many types of IRA. The most important types are traditional IRA and Roth IRA. A main difference between them is the fact that traditional IRA is tax deductible but Roth IRA is not. If you open an ira and make contributions to it, when you decide to withdraw from your account, there are additional charges on account of some penalty. If you open a roth ira, you can withdraw an account of money from it without penalty charges. In traditional IRA, your investment options are few, but there are very many restrictions about it. In Roth IRA you have a lot of investment options.
You can open an IRA at any financial institution, preferably at a bank or a brokerage firm. When you set up an account at a bank, this bank will become the trustee of your account. There are some things that you need to know to recognize a reliable trustee.
A good trustee offers low account fees and very low commission. Also, it offers a plan whose minimum balance is very low. You have to choose a company that has very few restrictions over the type of investments you can take on and where you can make automatic contributions from a linked bank account of yours.
When you find a company that offer a plan with all of the above characters, you can open an account there.