235

This is a very generous impulse on your part. I'm going to criticize it, but please understand that I believe your intentions are great. What can go wrong You pay off her $40,000 debt. She is now debt free. You know what that means? Better credit. She can now borrow more money. This time she runs up $50k debt and is worse off than she was when you ...


114

I personally have no financial problems Are you in desperate need of a financial problem? Taking a loan to pay someone else's debt is the fast lane to a financial problem. Unless this is your spouse, because their debts would be yours anyway, do not incur debt for them. If the debt is insurmountable, have the person file bankruptcy and be available to ...


79

The answer is YES. The responses saying no are so wrong it isn't even funny. How do I know - I used to do tech work for a repair shop and saw all of the inner-goings. A shop is a preferred shop because they will repair the car basically as cheaply as possible. They have to abide by certain things or they will lose their "certified repair shop" status. ...


63

First, you loaning her money is out of the question. In my sternest Suze Orman voice, You Will Not. Money is more intimate than sex, and there is a very wide gulf between "listening to her commiserate" and putting your own skin in the game. Keep all liability firewalls up at full force There are several types of liability shields which are built into ...


56

What you are missing is "leverage", which is the typical case for real estate purchases. Buyers usually only put a percentage of the cash down, not the whole amount. So instead you have something like this: Year 0: Buy $100,000 house for 10,000 down. $10,000 equity, $90,000 debt. Year 5: Sell house for $300,000. Even if the debt was not payed down and ...


53

Not in the U.S. (and I presume not in California, but I don't know for certain). There's no distinction on tax returns between salary income and bonus income. What you're probably noticing is that income taxes are withheld at different rates for recurring income like salary and non-recurring income like bonuses. Income tax on recurring income is withheld ...


52

Assuming the bulk of your income comes from "earned income," your best bets are moves that lower your taxable income. You say that some of your salary goes into a 401(k). The more you contribute to your 401(k), the less taxable income you have. In 2019 the maximum amount you can contribute is $19,000. In 2020 that number will go up to $19,500. Other tax-...


43

Yes you can get in trouble. Here is the quote from the Bill of Sale form from California: This line is right above where you sign. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Other states are similar. Virginia uses more words: In accordance with all applicable ...


28

Can doing this get me in trouble later ? Or will it be just the buyer because its the buyers decision or idea ? Definitely can, and not just the buyer since you're signing this thing as well. This is what is called "tax fraud".


28

I currently assist a cousin who is struggling. Like your relative, she and her husband are in their early seventies, retired, and living on a fixed retirement income. Her husband is blind, disabled and in a wheelchair. He was the breadwinner so the larger income source is gone. She works two jobs and it just doesn't provide enough to survive. Out of ...


27

Generally speaking, you cannot lower your expenses related to taxes. You can lower your taxes, but not in a way that will make sense. For example, if you qualify for itemized deductions, then a $1 deductible expense will save you up to $0.32 in taxes. While you did cut your taxes, it cost you $0.68 to reduce your taxes. There are exceptions to the above ...


25

Obtain solid evidence that this debt exists. It is not impossible that she has been misled to believe she has a huge debt by scammers preying on the elderly. If you don't 100% know the debt exists and it is legitimate, you may all be scammed out of money.


21

Of course not. The two options are basically: The bank is out $40k and never gets paid back. You're out $40k and never get paid back. Why trade option 1 for 2? If you want to help her, help her get a good attorney and offer to cover the attorney's fees if/when she needs one (but see the other answers as to why she might not). Other users are talking about ...


20

Stock options mean you have the opportunity to purchase the stock at a given price. They don't mean you actually own company stock, even after they vest, unless you exercise your options which involves paying the strike price specified by the option (though it's possible to do a cashless exercise with options that are above water). It's very unlikely that ...


18

1) The insurance company is normally obligated to return your car to the condition it was before the accident. It is between the insurance company and the repair company to decide which is cheapest. They are very good at "welding" plastic nowadays (edit: don't trust me, see other people's comments about welding), my bumper repair looks as good as new. Make ...


17

When I lived in Ohio, when you went to register a car that you'd bought private sale, they looked up the book value, and if you were some percentage below that, you had a choice of paying tax on the book value, or getting sworn notarized forms that this was the price you really paid, and if you were caught lying, you could go to jail. The one exception ...


16

To the best of my knowledge, Los Angeles County does not require a lawyer to be involved in a real-estate transaction. I looked through the County Recorder site and found no evidence that a lawyer is required. I live in a different county in California where a lawyer is also not required for real-estate transactions. Some counties do require a lawyer to be ...


15

California bankruptcy law requires disclosure of any gift made by the person declaring bankruptcy in the past 12 months, and any asset transfers in the past 2 years (with a couple of minor exceptions). This would most certainly include the car, if it is regifted back to you. Such a claim would likely be considered fraudulent, though this would be a matter ...


15

This is a broad response for any country with a progressive tax system (basically all of them), which means that you pay incrementally higher tax for each new dollar of income earned. In short, your average rate of tax on your income is lower than your marginal rate of tax. Your average tax rate = your final tax bill divided by your income. Your marginal ...


13

Options generally have an expiration date. Your original option grant contract document should have outlined when your options would ultimately expire. I have not seen options that last forever. Moreover, employee stock options in particular are also likely to have other conditions that limit exercise after you quit or are terminated; for instance, one ...


13

Rather than take on secured debt to pay off her unsecured debt, I suggest helping her in other ways. Start looking for resources/programs aimed at assisting those who are ill-prepared for retirement, low-income housing, food assistance, whatever. Attempt to negotiate rent down or consider breaking lease if the savings could be significant. Helping her to ...


12

You can point out the following to the buyer when talking him out of trying to cheat on his taxes: As the buyer, the reward from the crime is so small and the penalties so high, it's simply not worth it. If you buy a $10,000 car for $1000, the DMV is going to immediately notice that fair market value wasn't paid and you'll get caught. If you try to wiggle ...


12

When I went to purchase a car, I refused to give them any of this information. I told them I'd bring a certified bank check, but would not agree to give my SSN, or sign off on a credit report. I told them if they didn't agree to that, I'd find a dealer who was happy to take cash (check) to sell a car off the lot. A strange business, where I walk in, spell ...


12

The instruction is There is no multiplication or moving of decimal points involved. Perform the division (result = 0.93342), round to the nearest 0.0001 so you are left with four digits after the decimal (result = 0.9334) and enter 0.9334 into Line 47. "Carry" here has the same meaning as in "carry forward" -- to copy your result to somewhere it is ...


11

SOS is Secretary of State. SOS number is the number the Secretary of State office assigned to your entity. You can find it on the LLC application form that you submitted (assuming you kept the copy of your application returned to you), or by searching for your entity on the SOS site here (the first column, "entity number", is what you're looking for).


11

Is this an employee stock purchase plan (ESPP)? If so, and there is no required holding period, selling right away is essentially a guaranteed bonus with minimal risk. One caveat is that sometimes it takes a while to actually receive the shares at your brokerage, and in the meantime your company may have an earnings report that could cause the share price to ...


11

This doesn't look particularly unreasonable, but a few notes: He might be somewhat over-withheld for his taxes because he's claiming 0 federal and state allowances. In other words, his employer may be taking more out for taxes than he'll actually owe. This doesn't mean the money is lost--he'll get back any difference next year when he files his tax return--,...


11

You probably have a UMTA/UGMA account. While the money in that account belongs to you, as long as you're a minor (which is until the age of 18, in California) - you cannot directly access it. Instead, your parent(s) or guardian(s) or any other trustee manages that account for you, with your best interests in mind. While you may want to spend that money or ...


11

No, there is no mechanism for a refund of withholding, other than filing a tax return, which cannot be done prior to the end of the tax year.


11

If you purchased your home on or after Dec 15, 2017, the limit is $750K. If the home was purchased prior to that, the limit stays at the previous limit of $1M (even if you refinance). In your case, your total mortgage value is $726,300 which is less than the limit regardless of when you purchased your home, meaning you can deduct the entire amount you pay in ...


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