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Day: January 6, 2018

The Importance of a Credit Report

Your credit report in combination with your credit score is as important as the air you breathe. Without it, you won’t stand a chance or survive in the United States. To most of the country, you are just a number in conjunction with a credit history. It does not matter whether you are good person, volunteer, lie or cheat. It only matters how responsible you are with your personal finances.

The simplest way to find out about your credit history is to order a copy online. You want a website that provides you with information from the three major credit bureaus;Experian, TransUnion and Equifax. These bureaus analyze your financial decision making; both past and present, and put that information into a report. A good website to use that provides this information is creditchecktotal.com. It only costs $1 to check and can provide you with invaluable information compiled into a credit report. Your report will not only provide your current credit score, but also your entire credit history.

A credit report acts as your credit references. A positive credit history tells potential lenders that you manage your finances well, i.e. borrow money and pay it back in a timely manner. A negative credit history tells lenders you have a difficult time managing your finances and instead are in debt, often not repaying them as agreed.

Credit reports help you by providing you with your personal financial history. This may include attempts at fraud made by others at your expense or errors made by varying lenders. The report can also provide you with information on good or bad decisions you may have made in the past. By staying up-to-date with your financial history, you can ensure you are making good choices, have the ability to detect if someone is committing identity theft and ensure there are no errors.

In addition, a credit report can explain why you were not approved for a certain loan or line of credit. Even though you had a great or excellent credit score, you still had a negative item or charge back on your credit report, so the financial lender refused to approve you.

You can also see how fast your credit score can be transformed. If you go ahead and start repairing your credit, you can watch how fast negative items can be removed and how fast you will gain points putting your score from bad or below 600 to above 700.

If you are not happy with your current FICO score and/or credit history or find there are errors in the report, you can contact a credit repair company. The credit repair company can boost your credit score, remove negative items and/or dispute errors on your behalf.…

Allocation of Bluesky – Goodwill in an Automobile Dealership Sale

The IRS defines goodwill as “the value of a trade or business based on expected continued customer patronage due to its name, reputation, or any other factor.” IRS Publication 535: Business Expenses, Ch. 9, Cat. No.15065Z.

The American Society of Appraisers defines goodwill as: “that intangible asset arising as a result of name, reputation, customer loyalty, location, products, and similar factors not separately identified.” And as “that intangible asset arising as a result of elements such as name, reputation, customer loyalty, location, products, and related factors not separately identified and quantified.”

Goodwill, however, can be separated into personal and business (enterprise) goodwill. Unlike enterprise goodwill, personal goodwill is the intrinsic value of services of a specific and identifiable person to a business.

The distinction between personal and enterprise goodwill is important insofar as: (a) saving taxes in the sale of businesses; and (b) dividing assets in a marriage.

In divorces, enterprise goodwill is considered marital property and can be divided, while personal goodwill is the sole property of the individual. See: May v. May, 589 S.E.2d 536 (W. Va. 2003) and Ledwith v. Ledwith, 2004 Va. App. LEXIS 488 (October 12, 2004).

When a C Corporation is sold the enterprise goodwill is taxed at the corporate rate (which could be as high as 35{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc}), and then again as a dividend (another 5 – 15{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc}) when it is distributed. Not including any state taxes that may be owed, a $3,000,000 gain could result in only $1,500,000 after-tax dollars to a shareholder.

With some exceptions, sales involving S corporations, partnerships, sole proprietorships or other pass through entities, blue sky gets taxed only once as a capital asset. Note: One can also incur C Corp. tax with an S Corp, if the S Corp. is not at least ten years old and does not have, for example, adequate built in gains. (Visit your accountant for the fine details).

In this article we are interested in car dealership sales and are looking at assigning a portion of the sale proceeds to personal goodwill because, as CPA Carl Woodward notes in the Spring 2006 publication of The AutoCPA Group’s “Headlights”: “For some dealerships, much of the total blue sky value is due to this personal goodwill.”

The concept of separating goodwill with personal and enterprise distinctions first appeared in the 1986 Nebraska case of Taylor v. Taylor 386 N.W.2d 851 and then spread to other states. See: Beasley v. Beasley, 518 A.2d 545 (Pa. Super. Ct. 1986); Hanson v. Hanson, 738 S.W.2d 429, 434 (Mo. 1987); Prahinski v Prahinski, 75 Md App 113, 540 A2d 833 (1988); In Re Marriage of Talty 166 Ill 2d 232, 652 NE2d 330 (1995) and Martin Ice Cream Co v. Commissioner (110 T.C. 189 1998).

In 1998, Norwalk v. Commissioner TC memo 1998-279 held personal goodwill stems from an intangible asset that is the property of the individual, not the corporation, and that personal goodwill could be paid to owners because the employment contracts of the individuals expired when …

Basics of Online Share Trading

Internet has fast dissolved itself into our daily lives. Right from our banking needs to shopping, we can have almost everything we desire through the internet. Nowadays, the latest trend is the online transactions of the stocks, that is, selling and buying the stocks through the internet. There are many who are already making use of this facility, whereas there are many who have a little idea about it and would want to know more about it. The buying and selling of stocks online is a very easy process, and is risky too. However, with the advancement of time and technology, the transactions are becoming more and more secure, thus increasing the number of online transactions day by day.

If you wish to buy stock shares through the internet, follow the same procedures that you would follow if you were physically buying them. Do a complete Google search on the company that you are interested in, and always keep exploring better options. There are a lot of brokers online that offer you cheaper rates when you trade online with them, as compared to the ones where you place your order by calling them on the phone or by going to them.

The first step to buy shares online is to look for a reliable and inexpensive stock broker. Do some research and list out the top 5-6 companies that offer affordable services. Do not completely rely on the customer testimonials. Be sure to read the external reviews as well. Frankly, not all the customers have pleasant experiences. There are a few who are bound to have unpleasurable experiences. Choose the company that you think is best for your needs. Buying and selling stocks online is a convenient option, but you have to be careful about who you are dealing with over the internet.

After you have finalized the broker, check the website for individual deals. If possible, have them call you and then inquire about individual deals. This can be very important because it indicates what the company offers to give you in return to dealing with your money. Also, since they are trained and experienced professionals, their advice could prove to be very beneficial to you. It has also been commonly observed that reputed online share trading companies are fair, and have proved to be very helpful. However, be very alert when reading or listening to the terms and conditions. You do not want to miss on something important and then lose some of your hard earned money.

As time passes by, the internet will become more user interactive and many more options will be added, commonly as well as to the share trading specifically. It does not matter if you have been trading stocks for a long period of time, or if you are a new investor, buying and selling of shares online is going to be equally productive and exciting. The stock market and the traders have been relying on the information provided by the internet for …