The Tax Questions Blog

Archive for July, 2010

Question: How should I invest my money?

My husband and I are considering buying a home in a few years. Maybe 3-5. We would like to save as much money as possible on an already very tight budget. What I am hoping to spare is christmas money and tax return every year, and was wondering what is the best way to get the most out of our money in a few years.

I don't want to invest in the stock market, but I would consider that to be a long term investment, and don't want to sell them in 3-5 years. I thought about CDs but the interest on them isn't all that great, but it is still a possibility.

Any other suggestions? I plan to start putting back in the next 2 or 3 months and want to educate myself as well as I can. Thanks.

Answer: You are probably right not to put it into the market if you think you'll need it in 3-5 years. However that leaves you with limited prospects. A CD or high interest bank account is about the only safe alternative. Since the Fed keeps cutting rates that isn't good for savers. But I think you have few other good alternatives (key word here is good). Your best bet is to keep that budget tight and keep saving.

Go out and get some good books on personal finance - Personal Finance for Dummies is good, Dave Ramsey is good, Suze Orman, Jane Bryant Quinn, David Bach. Also websites like M S N Money, Yahoo Finance, Smartmoney.com, money.cnn.com, kiplingers.com are good. Go to your library and see which authors and books you like. These authors will give you inspiration and ideas. I am almost always reading some sort of financial help book - it helps keep me in the right frame of mind for saving and planning.

Make sure both you and your husband are on the same page with this. It'll do you no good if you are saving and he goes out and gets a loan for a $30k truck or $2k TV. On the same note, if he's saving you don't need to be getting manicures every week either. Good luck!

Another road death in Phuket

PHUKET: A Phang Nga man was killed in a motorbike accident near the entrance to the Phuket Shooting Range early Friday morning.Chalong Police identified the driver as 28-year-old Nopparat Yodying, a r...

Ways To Save On Tax Returns

Question: under section 80 c how can i save tax.?

i mean
the tax deduction under section 80 c due to life insurance amount of premium
is to be deducted from the taxable income or . from the tax which is to be paid.

Answer: Every thing about 80C deductions are clearly written in the web site given below:

http://www.rediff.com/getahead/2005/dec/26tax.htm

Four Simple Ways You Can Boost Your Nest Egg

With the economy still struggling, investors are seeking additional steps to shore up retirement savings. We provide some tips.

Question: How exactly does tax filing work if I employ a babysitter but paying less than $1700 annually?

I currently pay a third party tax firm to prepare my taxes quarterly. I withhold all taxes, medicare, etc. from my nanny's paycheck and then the tax firm prepares and files my paperwork for me. This was great when I was paying my nanny full-time but now she barely works a few hours a week. I think I can keep her earnings under the $ threshold for paying nanny taxes but then how do I file my own taxes and account for what I paid her? I think I'm supposed to give her a 1099-MISC and file it? Also, what would she then have to file... just the 1099 I give her? And does that get filed with her 1040? I want to stay legal but I feel like her earnings aren't going to be anywhere near what I need to worry about. Everybody I know just pays their babysitter in cash and doesn't worry about it but I don't want to get into trouble for not paying something I should have. Thanks for any advice.

Answer: STOP. TRO is guessing again and he's wrong.

Get IRS pub 926 and read it carefully.

If she's your employee and she is paid less than $1700, you don't issue anything (certainly not a 1099-Misc). She enters the income on her 1040EZ on the wage line and enters the code HSH $1700 next to it. (That's if she files.)

Richard Karn: A Bridge Too Far... to the Left?

In the midst of a boots-on-the-ground survey of Australian precious and specialty metal projects, The Emerging Trends Report's Managing Editor, Richard Karn, took time between mine site visits to share his insights about the controversial Resource Super Profits Tax that's pending Down Under with The Gold Report.

House Session 2010-04-15 (18:26:35-19:26:58)

Question: Where do I enter my expenses from these gst/hst lines?

101 Sales and revenue- I got the sales not sure what revenue means.
110 Instalments and other annual filer payments- ?.
111 Rebates-?
205 Gst/hst due on acquistion of taxable real property-?
405- Other GST/HST to be self-assessed.-?
105Total GST/HST and adjustments for period-?
108 Total ITCS and adjustments-?
109- Net Tax?
refund claimed 114-?
payment enclosed 115-?

Answer: Hi again,

There is no expenses to enter. On Line 101 CRA wants your total sales only. On Line 108 you enter your ITC's Input Tax Credits (basically the GST/HST you paid in the period). From there do the math of 105-108 to see if you pay Line 115 or get a refund line 114

Tories blast Liberals on HST

DIANA MARTIN QMI Agency DRESDEN — HST is going to bench a lot of players this summer. That's Sarnia-Lambton MPP Bob Bailey's opinion on the Harmonized Sales Tax (HST) that comes into effect July 1. "All across Ontario children are playing baseball or soccer at this time of year," said Bailey.[...]

Avoiding GST on Family Trust transfers

Self Finance / Family Bank