238

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 ...


115

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-...


52

Because you're self-employed and make more than $400, you'll need to file a federal return. If you make less than the standard deduction ($12,400 for a single person in 2020), you won't owe any income tax, but you will still owe self-employment tax. On $8,000 of net profit you would owe $1,130 (use an online calculator like this one). Make sure you deduct ...


49

Property tax in California is administered at the county level. You can contact your county tax assessor and request a reassessment if you think the property’s value has decreased.


44

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 ...


29

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 ...


28

The answer is simple in my opinion: Don't form a General Partnership with someone you barely know on the internet. The General Partnership is something that makes it easier to start a small business with multiple people who completely trust each other, like maybe a farm run by the whole family unit, or a store run by two close friends. A counter example ...


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.


22

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 ...


19

First, if this change occurred before you bought the property, then this is a critical failure in your due diligence, and the fault is at your feet. Most of us use a variety of advisors in land purchases, such as a title insurer*, Realtor, or attorney. If the change occurred after you bought the property, then it may be worth talking to an attorney -- this ...


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 ...


18

Both of us want to remain anonymous and don't want to even tell each other each other's names. Is there any way to do this anonymously? Yeah. Fire up those Wyoming LLCs. An LLC can be a general partner. It's perfectly legitimate to have a general partnership between "New Start Flying Wings LLC" and "Not Slightly From Wyoming LLC". Note ...


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 ...


14

Every jurisdiction in the US (city/county/state) has a process for appealing the assessed value of a property. Some only do it during a specific window of time each year, others are more flexible. You will have to contact them to see the procedure. If this is a new change to your ability to build on the property, then you might see some tax relief. If it ...


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 ...


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