#1099-DIV Form Generator

[paystubusa]

How An Online W2 Form Generator Can Help You Stay IRS Compliant

A W-2 form is a crucial tax document that every employer must provide to their employees. To make it simpler, you can go with the Online W2 Form Generator. In which you can report an employee’s annual wages and the amount of taxes. These forms must be issued in January for the prior year’s income.

[form1099]

Which 1099 Form Do I Use?

Generally, payers use: Form 1099 MISC- To report miscellaneous income; 1099 NEC – To report non-employee compensation; IRS 1099 K- To report third-party network transactions; 1099 INT – To report interest income; Form 1099 DIV- To report dividends & distributions; 1099 R- Distributions from annuities, pensions, profit-sharing plans, etc. IRS Form 1099 A – Abandonment & acquisition of property; and many more.

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National Tax Experts

National Tax Experts has practical experience in basic free government returns, yet they additionally have other extraordinary alternatives for progressively complex tax circumstances.

National Tax Experts's most prominent advantage is that they have extraordinary value alternatives for both Federal and State taxes. They even offer littler advantages that help a client's procedure. For instance, they offer recommended findings for standard and separated reasonings. To do this, you answer straightforward inquiries with National Tax Experts to naturally discover new reasonings. They likewise give the accompanying protections: TRUSTe, SecurityMetrics, Norton, and SSL.

Government Price

National Tax Experts's Free Edition is totally for nothing out of pocket. With this item, individuals can without much of a stretch record taxes legitimately with the IRS. What's likewise pleasant about this arrangement is that it accompanies the quickest discount when individuals experience free e-document and direct store. The Deluxe Edition is a moderate method to get an item that not just has the majority of the advantages of the Free Edition item, yet additionally incorporates review help, live visit backing, and boundless corrected returns. The cost for this item is $6.99.

State Price

With National Tax Experts's Free Edition item, individuals can without much of a stretch document taxes straightforwardly with the IRS. Like the Federal alternative, it accompanies the quickest discount when individuals experience free e-document and direct store. The Free Edition for state costs $12.95. The Deluxe Edition offers indistinguishable highlights from the Deluxe form in the Federal plans. The state cost for this item is $12.95.

Upheld Forms

The rundown of upheld structures offered by National Tax Experts is far reaching and even the most mind boggling tax issues can be tended to with these alternatives. Despite the fact that the organization does exclude every conceivable structure, this covers a dominant part of the most well known ones. A portion of the structures U.S. occupants can access for nothing include:

1040, 1040EZ, 1040A, 1040Z

Calendar A, B, C, D, E, EIC, F, and that's only the tip of the iceberg

Structure 1099-A, 1099-B, 1099-C, 1099-DIV, and that's only the tip of the iceberg

Structure W2

Joblessness

Independent work Income

The best advantage to National Tax Experts is the organization's attention on free government filings. National Tax Experts has helped a large number of individuals record their government returns totally free. The organization additionally gives a ton of structure choices and gives programmed prompts for derivations all through the documenting procedure. These are incredible highlights that truly help the customer!

National Tax Experts has a lot of alternatives for customers and gives a free basic tax return. Also, their software consequently proposes derivations to customers during the documenting procedure, which is amazingly useful. Be that as it may, the organization doesn't have review security, customers need to physically enter the majority of their information, and their client backing is deficient with regards to telephone administration. National Tax Experts doesn't have a telephone number to contact to pose inquiries while documenting, which is significant. Generally speaking, National Tax Experts has some extraordinary highlights yet in the event that you don't have a profound learning about tax prep, at that point this may not be the best organization for you, as they don't have numerous alternatives to help you through the procedure.

[file1099]

Deadlines for the New Form and Name Changes

The introduction of a new Form called 1099-NEC Non-Employee Compensation is the biggest change from the previous year, and many people are unaware of it. Additionally, Miscellaneous Information has replaced Miscellaneous Income as the title and purpose of Form 1099-MISC. 

1099-NEC. Businesses must now file Form 1099-NEC for every individual they paid at least $600 to during the year in the course of their business. This payment would have been made in exchange for services rendered by a person or business that IS NOT an employee of the payor. 

1099-MISC. Form 1099-MISC is used to report "other income payments" that a payer pays over $600 for in the course of the payer's business, such as rent, prizes, and awards.

According to the "general rule," business owners are required to send a Form 1099-NEC to every individual to whom they have given at least $600 in rent, services (including components and materials), prizes and rewards, or other income distributions. Payment received for personal use is exempt from the 1099 reporting requirement. Only payments you received in the course of your trade or business are subject to the 1099-NEC reporting requirement.

 Additionally, keep in mind any additional 1099 Forms that may be relevant to you as a business owner or investor. I have links to the instructions for these additional Form 1099 types.

 1099-INT. All "payers" of interest income to investors or private lenders at year-end 1099-DIV utilize this tax form to declare their interest revenue. If you own and operate a C-Corporation with shareholders, this would be the Form to make payments to those investors 1099-R. Large banks and other financial institutions often use this Form to report dividends and other distributions to taxpayers and the IRS. The payouts of retirement benefits, such as pensions and annuities, are reported using this form.

[utilitymonstermash]

Foreign tax credits are governed by some of the most complex sections of the tax code. There are some less common situations involving multiple foreign income sources that might require special handling. These less common situations may require special procedures to generate a return that can be e-filed. This guidance is intended to help explain what those special procedures are and when you need to use them. How TT Works Currently First, a little background on how TurboTax handles foreign income. We try to make it as easy as possible by identifying foreign income that is reported on Forms 1099-INT, 1099-DIV, and K-1. Whenever we identify foreign income, we offer to link this income to a Form 1116 when you start the Foreign Tax Credit interview. (Form 1116 is what is used to calculate the amount of your foreign tax credit). When different categories of income are present, or there are more than 3 different sources in the same category, multiple Forms 1116 must be generated. We generate those forms in a specific order. If there is any "General category" income reported on a K-1, we'll offer to generate a Form 1116 by linking that income first. Next you can generate copies of Form 1116 by linking to "Passive category" income that is reported on Form(s) K-1, Form(s) 1099-INT, Form(s) 1099-DIV, in that order. Finally you can generate additional copies of Form 1116 for other income by editing/creating more copies and entering income and taxes paid by category and country. When multiple copies of Form 1116 are required, this method will generate multiple copies of Form 1116 in the correct order required by the IRS for the vast majority of taxpayers. You simply report income from forms in the order they're presented in the interview. However, in a small number of cases, this will result in forms that are not in the order required by the IRS, and special instructions must be followed instead of the standard procedure. When Special Procedures Must Be Followed The IRS requires the copy of Form 1116 reporting the largest Foreign Tax Credit to be listed first in the return, and on this copy is a summary of the foreign tax credits claimed on additional copies. Since TurboTax generates the forms in the order in which they're linked, this sometimes results in the first copy NOT being the copy with the largest foreign tax credit. This can result in a return that can't be e-filed. This will usually happen if the foreign income on which you paid the most foreign tax is not the first copy of Form 1116 that you create in TurboTax. How To Create Copies Of Form 1116 In The Right Order In order to make sure TurboTax generates multiple copies of Form 1116 in the correct order, you should first identify which source of foreign income incurred the most taxes. This item will generally result in the largest credit and should be listed first. Once you know which income item to list first, make sure the first copy of Form 1116 includes this item. In the interview, you do this by NOT "reporting" income from any K-1's or 1099's the first time you visit the Foreign Tax Credit interview, except for the income item that generates the largest credit. ("Reporting" income in the Foreign Tax Credit interview creates a copy of a Form 1116 and links the income to the Form 1116). The first time through the interview, only report income from the item with the largest tax paid. After completing the interview the first time for the largest item, then you can revisit the interview and report any other items you have. (Note: "completing the interview" involves answering Yes to question about being done with "all Foreign Tax Credit Computation Worksheets.") This will generate the additional copies of Form 1116 that you need, and they should be in the correct order. Here are two sample situations to illustrate the process: Situation one-Taxpayer has a 1099-DIV with $1,000 in foreign-source dividends and $200 in foreign tax paid. In addition the W-2 reports $50,000 of wages, and $20,000 of this amount was earned in a foreign country with $4,000 of foreign tax paid on the $20,000. TurboTax will first offer to report the income from the 1099-DIV. But in this case, the largest foreign tax credit will be on the wages (which are general category income), so if the 1099-DIV is reported first then the copies will be out of order and the return can't be e-filed. The taxpayer should NOT report the income from the 1099-DIV the first time through the interview. Instead, the taxpayer will report General category income from the foreign wages and the tax paid on that income. After completing the interview with only General category income reported, the interview should be revisited. The second time through the interview the 1099-DIV income can be reported. This will create a return that can be e-filed. Situation two-Taxpayer is a partner in a partnership reporting general category foreign income on a K-1 of $10,000 and foreign taxes on that income of $2,000. The taxpayer also received $50,000 of foreign source dividend income on a 1099-DIV with $5,000 of taxes paid. When the Foreign Tax Credit interview is first visited, the taxpayer will first be asked to report the income from the K-1. Since the K-1 income is not the largest foreign tax item, the income should NOT be reported (at first). Next TurboTax will prompt you to report the dividend income, which is the largest foreign tax item, so it should be reported. After answering all the questions and completing the interview, the taxpayer can revisit the interview and report the K-1 income. This will create a return that can be e-filed. Due to complexities in how the foreign tax credit is computed it is possible in some situations that the income with the most taxes may not be the income that generates the largest foreign tax credit. If following these instructions still results in an error during Federal Review related to Form 1116, Line 22, then that is what occured. You'll need to revisit the Foreign Tax Credit interview and delete the first copy of the form. Complete the interview, and then start again and re-add the information from the copy you deleted. This will re-order the forms. Visit Federal Review again to see if the correct copy is now first (i.e. the error has gone away). Repeat this process until the form with the largest credit has moved to the beginning.

FUCK THE BUREAUCRACY STRONG MAN NOW

I bet Genghis Khan didn’t make anyone file a 50 page report when he confiscated their assets. 

[paystubusa]

Who Needs A 1099-DIV Form Generator And How To Choose The Right One?

A 1099-DIV form generator is essential for businesses and individuals who need to accurately report dividend income to the IRS. The 1099-DIV form is an essential tax document that is used to report dividends and other distributions. Find out more at PaystubUSA.

[christophergill8]

7 tax record keeping FAQ

Tax season is over for another year. Now all that's left cleaning up after the filing crunch.

I know many of y'all are tempted to simply toss everything in the trash. Don't.

You don't have to the tax version of television's Hoarders, but there are some tax-related documents you need to hang onto, at least for a while.

These 7 frequently asked questions and answers can help you get a better handle on your tax record keeping.

1. Why should I keep records? Well-organized records make it easier to prepare your tax return. Documentation, both the amount and in good order, also can help you provide answers if the Internal Revenue Service has any questions about your return.

2. What kinds of records should I keep? The quick answer is everything, but again, we're trying not to be too obsessive-compulsive. So let's break it down into key material in specific categories.

It is an income tax, so to verify your earnings you need to keep copies of W-2 forms, all types of 1099 forms (MISC, DIV, INT, G and R), gambling and prize winnings not reported on a 1099, bank statements, brokerage statements and K-1 forms.

If you're getting retirement money, hang onto the official statements detailing retirement distributions. This will help you and the IRS know how much, if any, of a cut due the federal government. In addition, Form 5498, Roth and traditional IRA contributions, and Form 8606, nondeductible IRA contributions, can help you differentiate taxable and nontaxable retirement money.

When it comes to expenses and deductions, hang onto receipts, sales slips, invoices, canceled checks, credit card statements, gambling losses and written statements from charities.

Your home is likely your biggest investment, so keep all your residential records, not just those related to your taxes. These include closing statements, purchase and sales invoices, proof of payment, insurance records, property tax assessments and payments, receipts and documents related to disaster losses and receipts for improvement costs. These could affect not only your annual filings, but also any potential tax bill when you sell.

The same is true for investment documentation. Hold your transaction data, including individual purchase or sale receipts as well as annual statements.

In some cases, photos also are helpful, such as when you claim property losses after going through a disaster.

And, of course, you'll want to keep a copy of each year's tax return that you file. This includes not just the 1040 itself, but also any associated schedules that sent to the IRS that year. You'll be glad you have them at your fingertips when you apply for a loan or other financial assistance, such as college money.

3. How long should I keep records? This is the question that flummoxes pack rats and well-adjusted taxpayers alike. As is the case with most tax questions, the answer is "it depends."

Generally, you must keep your tax records as long as they may be needed to prove the income or deductions you entered on a tax return. But the length of time you should keep certain tax documents is based on the action, expense or event the documents record.

The IRS also has a statute of limitations framework it follows.

For basic annual return filing, the tax man has three years to review your return.

When IRS examiners believe you've shorted your income entry on a return by 25 percent or more, they can come asking questions up to six years later.

The period of limitations goes to seven years if you file a claim for a loss from worthless securities.

When it comes to real property, keep relevant records until the period of limitations expires for the year in which you dispose of the property. These records help figure your basis for computing gain or loss when you sell or otherwise dispose of the property.

Then there's fraud.

When Uncle Sam suspects you've intentionally tried to escape your rightful tax liability, his tax collecting agents get a lot of leeway. A whole lot. Like forever.

There is no statute of limitations for folks who commit tax fraud. IRS agents can investigate you at any time it suspects you entered illegal information on your return. So if you tend to be a bit aggressive with your Form 1040 entries, keep your records for those claims in perpetuity. Just in case.

There's also no limitation on the time the IRS can ask you questions if you don't file a tax return. That's why you should keep documentation of why you didn't file a return in a particular year or two or more.

Don't freak out. It's not as difficult as trying to prove a negative. Say, for example, you spent a year taking care of sick relative and didn't earn any or enough income to require that you file. Proof of how you spent your non-income-producing time will short-circuit a detailed IRS examination of your missing tax year.

And about those copies of the 1040s you filed, hang onto those forever, too. You never know when an old tax return might be necessary or at least handy. They also can be a fun time capsule. When I'm feeling nostalgic, I go back and peruse the first joint tax return the hubby and I ever sent the IRS.

4. How do I fill in tax record gaps?  When you start getting your records in order, either in real paper form or electronically, you might discover you're missing some documentation.

The IRS can help you fill in the gaps. You can order transcripts of your filing history.

You have two options.

Complete Form 4506-T or Form 4506T-EZ to order a tax return transcript. This document shows most line items on your return as it was originally filed, plus information on any accompanying forms and schedules. It will cost you $50 for each tax return transcript you need.

Or request a tax account transcript. This shows your return's basic data, including marital status, type of return filed, adjusted gross income, taxable income, payments and adjustments made on your account. An account transcript is free and it arrives in about 10 days.

You can request either a tax return or tax account transcript online from the IRS.

5. What kind of record keeping system should I use?  Except in a few cases, which generally are related to business operation, the law doesn't require you to use any special kind of record keeping system. You may choose any method as long as it clearly shows your income and expenses.

If you're happy still using paper documentation and have the space, fill up as many filing cabinets with tax records as you need.

Or you can maintain your records on a flash drive or in the cloud. The IRS has been accepting digital records for 22 years. Back in 1997, the IRS referenced optical disks as the storage option, but as Uncle Sam has gotten more tech savvy, it recognizes today's wide variety of options.

All the IRS requires is that your electronic record storage meet the same standards as apply to hard copy books and records. That means when you replace the paper versions, you must maintain the electronic storage systems for as long as they might be needed under the tax statutes of limitation.  

You also want the records' format to be one that makes it easy for you to produce the material if the IRS asks.

And be sure you back up your electronic tax records and keep a separate copy in a safe place in case something happens to the original.

6. What is the burden of proof during an audit? Let's be real here. The main reason you hang onto your tax records is in case you're ever audited.

And here's the really disconcerting part of such an encounter. Unlike the U.S. legal system, where you're presumed innocent until proved guilty, it's the opposite when you're facing the federal tax collector.

During an audit, you are considered tax guilty until proven otherwise.

The burden of proving your tax innocence, or at least showing that the information on your Form 1040 is correct, falls squarely on you.

Good thorough and well-organized tax records can help you do that.

7. When I do discard tax records, what's the best way?   OK, you've sorted through all your documents and have decided which ones you need to keep, at least for now, and which you can toss.

Let me repeat what I said at the start of this post. Don't just toss them into the nearest trash can.

Most tax-related documents are full of personally identifying information. That's exactly what identity thieves want. If someone digs through your garbage and finds your Social Security number or bank account of credit card numbers, they've got what they need to take over your life in the most destructive of ways.

True, literal dumpster diving for financial data isn't that common as it once was. But don't take any chances.

Shredding the documents is still the best route here. It is time-consuming, so consider hanging onto to your tax and personal records until a bulk shredding option arrives. Many office supply stores periodically hold these events, often around the end of tax time, allowing you to bring in your documents to be securely scrapped for free.

If you keep your records digitally, make sure they also are properly destroyed. You can find more on various options for erasing electronic records options in this article from the Records Management Assistance unit of the State and Local Records Management division of the Texas State Library and Archives Commission (there's a mouthful for you!).

The bottom line is that you need to keep some records connected to your taxes. Some you need to keep forever.

Knowing which documents, why they are important and how long you need to keep them can, at the very least, help you establish a manageable record keeping system.

You also might find these items of interest:

Save space and trees: Digitize your tax records

The importance of good, and separate, business records

Reconstructing tax & other records after a natural disaster

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from Tax News By Christopher https://www.dontmesswithtaxes.com/2019/04/tax-record-keeping-questions-and-answers.html

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3 Things You Need to Do to Protect Your Side Hustles

Does it seem to you like everyone's talking about side hustles these days?

Side hustles 2020. How to make money in a side hustle. Side hustles you can do from home. These are some of the headlines I've seen.

We've jumped into the fray here at Your Money Geek the writing is about how to start a side hustle, the different types of side hustles, side hustles that generate passive income, and many other versions of the story.

I'm not suggesting that's a bad thing. Creating multiple streams of income from side hustles is the ticket to financial freedom for those willing to jump into the action.

What concerns me about the side hustle discussion is what's left out of it. I've not seen a single post about how to protect the income generated from the side hustle.

How does the IRS tax it?

How should I claim it? Should I set up a separate entity?

Do a sole proprietorship?

What are the liabilities associated with the side hustle?

Can I be sued? If so, how can I limit my liability?

In this post, we're going to dive into some of these questions. We'll offer some thoughts on how to keep more of what you earn through your side business.

What is a Side Hustle?

Let's start with a definition of what a side hustle is. For the record, I dislike the term side hustle. I'm not sure where it started. Perhaps it's been around for decades. I don't know.

To me, the term side hustle sounds a bit shady. When you think of a hustler, what's the first thing that comes to your mind? Is it someone who works hard and hustles to get ahead? Or does it represent someone a bit shady? You know, like, “that dude hustled me out of a hundred bucks.” For me, it's the ladder definition. Getting hustled is not something anyone wants to admit has happened to them. Perhaps I'm showing my age or my cynical side.

In its most basic form, it's any income produced outside of your regular job. It may be a part-time job. It may be owning rental properties. Maybe it means being an Uber driver or a Wall-Mart greeter. Whatever the means to produce additional income the popular (and accepted) term for it is the side hustle.

Even busy people get into side hustles.

Side Hustles 2020

As you might expect, side hustles come in many shapes and sizes. Below is a list of ten ideas that may offer some help if you're considering a side hustle. These are in no particular order, and there are dozens of others we could list.

Blogging – Probably the number one way that Millennials start their side businesses. With over 2,000 blogs on personal finance out there, you'll find course after course on how to make money blogging. Be careful. Blogging is hard. Making money at it is even harder. That doesn't stop bloggers from peddling their courses, eBooks, and such to generate some income.

Selling on eBay – Many people make decent money selling items on eBay. It takes some work, but those who stick with it make good money.

Driving for Uber –  If you own a car, you can make some extra money driving for Uber. Getting started is pretty straightforward. Like any side gig, there are pros and cons.

Airbnb – Do you own a home? If so, it's a potential asset to get some side income by renting it out via Airbnb. You can rent the entire house or a room — your choice.

Mystery shopping – Many companies will pay you to go into the store or shop online and share your experience.

Dog walking –  Pretty self-explanatory.

House-sitting –  Staying at someone's house while they travel. That can be a week's vacation, several months, or even longer.

Get a part-time job – Going old school here. Plain and simple, go find a part-time job doing something you like.

Passive income

Real estate – One of the more popular side hustles and one that's written about the most. Investors buy single-family homes or condos and rent them out to tenants. Another popular option is crowdfunded real estate. DiversyFund and Fundrise are two we've written about.

Dividend investing  – Another topic that's written about a lot is using high dividend-paying stocks to generate passive, tax-favored income. Qualified dividends have favorable tax rates from the IRS. A lot of blogs focus their writing on teaching people how to do invest in dividend-paying stocks.

Whether income is active or passive depends on many factors. My advice is to investigate those things very carefully before starting.

Side hustles 2020 –  Protecting Your Income

Alright. You've selected your side hustle, and you're generating some income. From what does that income need protected? For one thing, taxes. Another oft-overlooked risk is being sued. Making sure you understand how both of these things place risk on your income is essential before starting your side hustle.

We'll look at each one separately.

Taxes

The IRS taxes income. Period. Whether it's passive or active determines the tax rate. Here's how the income works in most cases. The entity from which the income comes issues a 1099 tax form to the recipient of that income. There are numerous types of 1099's issued depending on the source of the income. If the income comes from dividends, you'll receive a 1099-DIV. When the income is from interest income, you receive a 1099-INT. If it doesn't fall into any specific category, the catch-all form is the  1099-MISC. The majority of the income generated from side hustles comes in the form of a 1099-MISC.

In contrast, income from an employer comes in the form of a W2. What's the difference? A big one. In a W2 income, the employer withholds taxes from your paycheck and sends it to the IRS on your behalf. How much they withhold depends on your income.

In addition to Federal taxes, they withhold taxes for your state as well. Finally, there are FICA (Federal Insurance Contribution Act) taxes. That's tax withheld for Social Security and Medicare. In W2 income, employers withhold 6.20% of the first 132,900. The employer pays the other 6.20%. Additionally, there is a tax for Medicare. The Medicare tax has no upper-income limit. You will pay a tax of 1.45% of all income. Incomes over $200,000 ($250,000 if married) pay an additional 0.9% tax.

Self-Employment Tax

Guess who's responsible for these taxes if you get 1099 income? You guessed it, you are. It's critical to understand this when thinking about generating additional income. If you expect your total tax bill for 2019 to be over $1,000, the IRS requires you to pay estimated quarterly taxes.

FICA taxes are killer when self-employed. Remember, on W2 income, The employer withholds 6.20% and pays the other 6.20% of the FICA tax. They also withhold the Medicare tax. Total that up, and that's 15.3%! If you fail to pay your estimated taxes, the penalties and interest are killers.

Suffice it to say neglecting the taxes on side income can cost you a lot of money.

Liability

The second major issue that can derail your side hustles is getting sued. Liability can ruin your day in a hurry. Why would someone want to sue you? It doesn't take much. Here are some examples.

Let's say you own rental properties. You have a sidewalk in need of repair that you haven't gotten around to fixing. Someone comes to the house, trips on the raised concrete, and breaks their arm. Or worse. At the very least, you will be responsible for the medical bills for the individual. Assuming you have a decent homeowners insurance policy, you should be okay. Then an attorney from Dewey Cheatem and How finds the injured party. They convince them they should sue.

Rest assured, they want much more than your medical bills paid. They want damages over and above that. Homeowners policies have a maximum liability for these lawsuits. Being underinsured could be very costly. Almost any of the side hustles listed above come with liability.

Blogging risks

Blogging seems like a low-risk venture at first glance. For the most part, it is. In the personal finance space, it may not be. Why?

Most personal finance bloggers write about investing, saving money, spending, and other of these types of topics. Most of them give investment advice to their readers. The vast majority have no formal training in investment management, financial planning, or many other topics they write about. Most of them have a disclaimer saying they aren't giving investment or professional advice. Fair enough.

Let's say you have an article (one of the hundreds of them) about investing in the three-fund portfolio from Vanguard. You read that this is one of the most straightforward, least expensive portfolios that cover the entire market. For the most part, that's true. So you invest in the three fund cure-all portfolio during this one of the longest-running bull markets and go about your business. Then it happens. A 2008 type of financial crisis rears its ugly head again. This time it's worse. The U.S. and international stock markets drop more than 50%.

Hold on! No one told you about the risk? You thought this portfolio was the be all do all of investing. You feel cheated. Another partner from Dewey Cheatem and How calls you. He gets you fired up about the dereliction of duty of that untrained, opinionated, mouthy blogger who convinced you that portfolio was the best thing ever created. And now you've lost more than 50% of your money. Yes, you actually did lose that money because, in the heat of the crisis, you sold everything. YIKES! That's an attorney's dream scenario.

Far fetched? Maybe. Do you want to risk it? Probably not. There are ways to mitigate these risks.

Lowering Liability Risk

I'll give you three things to consider to help protect your side hustle income.

Pay attention to taxes – If you're a do it yourself tax person, be sure to dive into your software or the IRS website to understand how your side income will be taxed. It's best to do this BEFORE you start. Waiting until the year is over and taxes are due is not a good plan. You can manage taxes. But you have to understand how your income gets taxed to deal with it.

Choose the right business entity – Setting up your side business as a Limited Liability Corporation (LLC) can limit your personal liability. They're relatively inexpensive to start. An LLC shelters your personal assets from lawsuits. Though nothing is foolproof, this layer of protection makes it much harder. You can have a one-person LLC. No need to overcomplicate it.

Have adequate and the right kind of liability insurance  – Back to the rental property example, if someone gets hurt on one of your properties, having an umbrella liability policy provides an extra layer of financial protection. Umbrellas policies add additional insurance over and above the home owner's policy. They are usually relatively inexpensive and well worth the money. If you're a blogger, consider a business insurance policy that includes liability coverage. There is even coverage available specific to bloggers. Though relatively new, it speaks to the proliferation of bloggers and the potential liabilities they face.

Final thoughts

Does all of this talk about lawsuits, taxes, and liability make you want never to start a side hustle? It shouldn't. And I'll grant you that the examples I used would fall into the category of extreme. But isn't that always the case with lawsuits? Attorney's live for situations where they can set a precedent and get the big payout. 

The steps I've outlined here to protect yourself are pretty simple. An LLC is relatively inexpensive to start. Liability insurance is cheap too.

I'd say the biggest and most complicated issue to deal with for side hustles 2019 is taxes. It's essential to understand the type of income you will receive in your side business. Understanding and planning for that in advance will save you potentially big money and hassles in the future.

So, by all means, start your favorite side hustle. Find something you like and have at it. Throw caution to the wind to get it started. That is except when it comes to taxes. Protect yourself and your income from liability. Do the three things suggestion – pay attention to taxes, think about your business entity and get liability protection – and you'll be on your way.

Success is right around the corner.

The post 3 Things You Need to Do to Protect Your Side Hustles appeared first on Your Money Geek.

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[cynthiatherrera]

Discount double check in CEFs

The Dow Jones Industrial Average just closed out its worst first quarter on record, after a dropping 23% since the start of the year1. The selloff has disproportionately affected equities relative to bonds, potentially resulting in an overweight to bonds in investor portfolios – and potential bargains for value investors.

We believe investors should consider rebalancing back to their strategic equity allocations. As you look to re-allocate to equities, today’s post focuses on equity closed-end funds (“CEFs”) and seeks to differentiate between what we believe are “value opportunities” and “value traps”.

Focusing on the long term

CEFs effectively have two values for investors to evaluate. One is fund’s net asset value (“NAV”), or the aggregated value of its underlying holdings. The other the market price of the CEF itself as it’s traded on the exchange. In the recent equity decline, CEF market prices have generally fallen more than their respective NAV’s as investors sought to de-risk their portfolios.  We believe this presents a unique entry point for long-term investors to buy equity securities at a “discount” to their current market value and be well positioned when markets recover with time.

Additionally, our research shows that CEF discounts tend to mean-revert to historical averages (exhibit 1).

Avoiding value traps

Not all discounts are created equal, however. CEFs can trade at premiums or discounts for a number of reasons, including market and investor sentiment and fund-specific characteristics such as performance and distribution rate.  It’s essential to focus on a CEFs historical premium or discount over various periods and factor in specific catalysts that may cause a fund’s valuation to re-rate.

One useful tool to weed out potential “value traps” is the z-stat which looks at how a fund’s discount has traded over a period time and adjusts for volatility.  In simple terms, the more negative the z-stat, the greater the potential value relative to the fund’s historical trading range.  Fortunately, the data are easily accessible. The z-stat for any CEF can be found on cefconnect.com under “Pricing Information” on the individual fund pages. 

Monetizing total return 

Many equity CEFs, including all of BlackRock’s CEF equity products, use a managed distribution plan, in which the fund sponsor aligns the fund’s distribution rate with the long-term expected total return of the portfolio. A large portion of the distribution will be funded through capital appreciation (realized or unrealized capital gains), essentially “monetizing” total return in the form of a monthly distribution to investors.  This allows equity CEFs to potentially pay out more than their ETF or mutual fund counterparts. The median annual distribution rate for equity CEFs is 9.2%, compared to 2.5% for equity ETFs and 2.0% for equity mutual funds, according to Morningstar.

Invest in tomorrow’s potential winners

As you reallocate to equities, consider building an all-weather portfolio by focusing on higher-quality companies that can participate in bull markets and potentially deliver greater resilience when stock prices decline: 

High quality:  High-quality companies tend to have strong balance sheets (e.g., low levels of debt), good earnings trends, and ample cash flow above ongoing business needs. These elements can provide companies with flexibility during periods of economic uncertainty and help them to endure and adapt to changing operating environments.

Dividend growers: Dividend growers possess many of the quality characteristics noted above, as earnings growth and free cash flow are the fuel for increasing dividend payments over time. Importantly, these companies have demonstrated a history of outperformance versus non-dividend payers and the broader U.S. equity market (exhibit 3).

Below are some BlackRock CEFs with these themes:

Ticker Fund Category Premium/

Discount

Distribution Rate BDJ Enhanced Equity Dividend Trust US Dividend -10.3% 9.2% BOE Enhanced Global Dividend Trust Global Dividend -14.4% 9.1% BGY Enhanced International Dividend Trust International Dividend -15.1% 9.0%

Source: BlackRock as of 3/31/20. Distribution rate is calculated by annualizing the latest declared distribution and dividing by market price return as of 3/31/20.

Investors may also with to be opportunistic in the current environment, by establishing positions in market themes underpinned by long-term structural trends, including:

Healthcare: Healthcare is supported by a number of long-term secular growth drivers. Aging demographics and increased life spans should mean increased healthcare spending in the years to come. Innovation is happening across the industry, in areas such as drug development, digital technology and data science. Emerging market countries will increase their health care spending as their economies grow. All these factors should support long term growth in the sector.

Technology: Technology has long been a driver of growth in investors’ portfolios. While technology stands alone as a sector, it permeates companies throughout the equity market. The use of technology is reshaping industries across the globe, creating unique growth opportunities, creating a strong structural backdrop for long-term growth in the sector.

Below are some BlackRock CEFs with these themes: 

Ticker Fund Category Premium/

Discount

Distribution Rate BME Health Sciences Trust Healthcare 0.6% 6.7% BMEZ Health Sciences Trust II Healthcare -3.3% 7.1% BST Science and Technology Trust Technology 0.4% 6.9% BSTZ Science and Technology Trust II Technology -7.1% 7.2%

Source: BlackRock as of 3/31/20. Distribution rate is calculated by annualizing the latest declared distribution and dividing by market price return as of 3/31/20.

as of 3/31/20

This material is for informational purposes only and is not intended to be relied upon as research or investment or tax advice, and is not a recommendation, offer or solicitation to purchase or sell any securities or to adopt any investment strategy, nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Common shares for the BlackRock closed-end funds (the “Funds”) are only available for purchase and sale at current market price on a stock exchange. For more information regarding any of the Funds, please call BlackRock at 800-882-0052 or refer to www.blackrock.com. Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses which may be obtained by visiting the SEC Edgar database. Read the prospectus carefully before investing. There is no assurance that a Fund will achieve its investment objective. Investing in a Fund involves numerous risks, including investment risks and the possible loss of principal amount invested. The Funds are not complete investment programs and you may lose money investing in a Fund. An investment in a Fund may not be appropriate for all investors. Performance results reflect past performance and are no guarantee of future results. Current performance may be lower or higher than the performance data quoted. All returns assume reinvestment of all dividends and/or distributions at the price of the Fund on the ex-dividend date. The dividend yield, market value and net asset value of a Fund’s shares will fluctuate with market conditions. Closed-end funds may trade at a premium to NAV but often trade at a discount. The amounts and sources of Fund distributions reported in any notices to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a Fund’s investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations. A Fund will send a Form 1099-DIV for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes. Some Funds make distributions of ordinary income and capital gains at calendar year end. Those distributions temporarily cause extraordinarily high yields. There is no assurance that a Fund will repeat that yield in the future. Subsequent monthly distributions that do not include ordinary income or capital gains in the form of dividends will likely be lower. Some investors may be subject to the alternative minimum tax (AMT). The Funds are actively managed and their characteristics will vary. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves special risks including, but not limited to political risks, currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Principal of mortgage- or asset-backed securities normally may be prepaid at any time, reducing the yield and market value of those securities. Obligations of U.S. government agencies are supported by varying degrees of credit but generally are not backed by the full faith and credit of the US government. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher rated securities. Investments in emerging markets may be considered speculative and are more likely to experience hyperinflation and currency devaluations, which adversely affect returns. In addition, many emerging securities markets have lower trading volumes and less liquidity. A Fund may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. Refer to a Fund’s prospectus for more information. 55 E 52nd St, New York, NY 10055. Prepared by BlackRock Investments, LLC © 2020 BlackRock, Inc. All Rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. WAH0420U-1147937-6/6 from BlackRock Blog https://www.blackrockblog.com/2020/04/15/discount-double-check-in-cefs/

[vegas-glitz]

Are You Blaming Your Tax Preparer For Your Screwed Up Tax Return?

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How one taxpayer argued and lost at Tax Court. Moral: you really have to take some responsibility for your taxes. Have you ever wondered if you could blame your tax preparer in order to avoid an IRS penalty of 20%? Come up with a new version of "The Dog Ate My Homework", or "The Devil Made Me Do It"? If your tax return gets audited, and you "lose", the IRS is very quick to impose its negligence penalty on top of back taxes, plus interest. The additional tax you owe is called a "deficiency" and the penalty is the "accuracy related penalty", and is imposed at a flat 20% of the deficiency: if you owe $5,000 because you lost the audit, the penalty is $1,000.

"Hold on!" you may cry. "I gave all my stuff to the preparer. Just because he made errors should not be a reason to penalize me. I've got enough problems with coming up with the deficiency. I'm a victim here. Not fair. I'm going to Tax Court." Which is precisely what a California woman did when faced with a penalty of $1,059.20. Not wanting to pay the big bucks for a tax lawyer, she represented herself [Pro Se] before the Tax Court [T.C. Memo 2009-278]. And she lost.

What happened? She asked her long time tax preparer to prepare her 2005 Form 1040. She gave the preparer financial documents, including a 2005 Form SSA-1099 Social Security Benefit Statement, indicating that she and her late husband had received $21,445 of Social Security benefits in 2005. She did not, however, provide the Preparer a 2005 Form 1099-DIV, Dividends and Distributions,indicating that she had received $216 of dividend income, or a Form 1099-INT, Interest Income, indicating that she had also received $24 of interest income.

Now, the Preparer, in the language of the Tax Court, "failed to consider or include" these three taxable items when he prepared the 2005 Form 1040: Social Security income $21,445, Dividends $216 and Interest $24. He forgot to put down the $21,445, and of course couldn't put down the dividend and interest income, because he didn't know about them. The Preparer did, nonetheless, give the Taxpayer a summary of the items which would be included on the tax return, but no copy of the return was provided to the Taxpayer until the return had been electronically filed, and the filing had been acknowledged by the IRS. (This is not considered to be acceptable practice by any tax preparer.)

The Taxpayer was well aware of the receipt of taxable Social Security Benefits in the 2002, 2003 and 2004 tax years. Nonetheless, she did not detect any errors in the summary of income items considered by the Preparer both in preparing the return, nor in the return itself when delivered after receipt of electronic filing.

The IRS, using its document matching programs, noticed the under-reported income and generated a letter calculating the deficiency of $5,296, and imposing the accuracy related penalty of $1,059.20. A straight calculation of 20% multiplied by $5,296. [IRC Sec. 6662(a)].

The legal framework is as follows:

The Penalty The Internal Revenue Code, subsection (a) of section 6662 imposes an accuracy-related penalty of 20 percent of any underpayment that is attributable to causes specified in subsection (b).

Among the causes justifying the imposition of the penalty is

o any substantial understatement of income tax as defined in section 6662(d) o a substantial understatement occurs where the amount of the understatement exceeds the greater of

- [1] 10 percent of the tax required to be shown on the return for the taxable year, or - [2] $5,000. - In this case, the deficiency is $5,296 which is greater than $5,000 and fulfills the second condition.

Exceptions to the Penalty The section 6662(a) penalty is not imposed if a taxpayer can demonstrate

o (1) reasonable cause for the underpayment and o (2) that the taxpayer acted in good faith with respect to the underpayment. Sec. 6664(c)(1).

Subjective Considerations Regulations promulgated under section 6664(c) further provide that

o the determination of reasonable cause and good faith "is made on a case-by-case basis, taking into account all pertinent facts and circumstances." Sec. 1.6664-4(b)(1), Income Tax Regs. o Reliance on the advice of a tax professional may, but does...not necessarily, establish reasonable cause and good faith for the purpose of avoiding a section 6662(a) penalty.

Based upon the this, the Taxpayer, of course, tried to fit her case into the Exceptions noted above by pleading special facts and circumstances, as well as reliance on the advice of her tax professional. A Taxpayer can really not accomplish more than that.

The Tax Court has set forth the following three requirements in order for a taxpayer to use reliance on a tax professional to avoid liability for a section 6662(a) penalty:

o (1) the adviser was a competent professional who had sufficient expertise to justify reliance, o (2) the taxpayer provided necessary and accurate information to the adviser, and o (3) the taxpayer actually relied in good faith on the adviser's judgment." See Neonatology Associates, P.A. v. Commissioner, 115 T.C. 43, 99 (2000), affd. 299 F.3d 221 (3d Cir. 2002).

These requirements are also known as "prongs", a Three Prong Test. Unconditional reliance on a preparer or adviser does not always, by itself, constitute reasonable reliance. The Tax Court has set forth additional guidelines based upon facts and circumstances. [Such guidelines are called dicta]

o The taxpayer must also exercise "Diligence and prudence".Marine v. Commissioner, 92 T.C. 958, 992-993 (1989), affd. without published opinion 921 F.2d 280 (9th Cir. 1991). o "The general rule is that the duty of filing accurate returns cannot be avoided by placing responsibility on an agent." Pritchett v.Commissioner, 63 T.C. 149, 174 (1974). o Taxpayers have a duty to read their returns to ensure that all income items are included.

- Reliance on a preparer with complete information regarding a taxpayer's business activities does not constitute reasonable cause if the taxpayer's cursory review of the return would have revealed errors. Metra Chem Corp. v. Commissioner, 88 T.C. 654, 662-663 (1987).

o "Even if all data is furnished to the preparer, the taxpayer still has a duty to read the return and make sure all income items are included." Magill v.Commissioner, 70 T.C. 465, 479-480 (1978), affd. 651 F.2d 1233 (6th Cir. 1981).

The Court started off with a consideration of the Third Prong, the reliance in good faith on the Preparers judgment. In a display of common sense which is rarely seen in any federal court, the Tax Court delivered its opinion that

o "We conclude that petitioners did not rely in good faith on [the Preparer] to accurately prepare their return. We conclude that petitioners did not rely in good faith on [Preparer's] advice because they did not examine their return before it was submitted to the IRS. [Emphasis added]

- There you have it! If you don't read the return, you are not really relying upon someone, are you? - "Thus, petitioners' unconditional reliance on [The Preparer] does not, on these facts, constitute reasonable reliance and does not excuse their failure to closely examine their return."

What about the Second Prong? That the Taxpayer must provide necessary and accurate information to the Preparer.

o The Tax Court noted that the "reliance defense is also undercut by the fact that [Taxpayer] did not provide [Tax Preparer] with necessary Form 1099 documentation regarding their dividend and interest income in 2005.

- Sure, the amounts are insignificant, $216 in dividend income, and $24 interest income. But the failure to hand these over shows sloppiness, and causes the taxpayer to not meet the Second Prong.

After considering the Second and Third Prongs, the Tax Court did not even bother with the First Prong, whether the tax adviser was a competent professional. It concluded that the Taxpayer had "not demonstrated good faith and reasonable cause for their underpayments for 2005. Accordingly, the Court sustains [the IRS] determination that petitioners are liable for the section 6662(a) accuracy-related penalty for substantial understatements of income tax for the 2005 tax year."

That's it. The 20% penalty is kept. Obviously, the Taxpayer was protesting the principle of the penalty, as $1,059.20 is not a lot of money, and not worth the work of filing a Petition to hear the case in Tax Court. We have discussed this particular case because it illustrates rather clearly the principles involved in protesting the penalty, as well as the burden of proof required by the taxpayer.

Source by Bruce Kowal

[silverbible]

Tax Prep Tips for Investors

Another year of investing has come and gone, and now it’s time to pay the taxman. I know it’s not your favorite time of year, but we all have to deal with it. Even if you hire a tax preparation service to do your taxes, there are still things you’ll need to consider.

The worst thing you can do is avoid thinking about your investment taxes until the last minute. Waiting until mid-April is only asking for trouble. You’ll be panicky, and you won’t have time to find the necessary documentation. And this delay can lead to costly errors. It could also cause you to be late with filing your taxes. Luckily, investors can generally avoid all these problems.

Instead of putting it off until later, you can be more proactive. Whether you choose to file yourself or have a professional do it for you, there are steps you can take today. Plus, there are things you can do to make the whole process easier. For investors, it just requires a little foresight and organization, and you’ll be glad you took action ahead of time.

Before we begin, please note that the following is not tax advice, and you should consult a licensed, certified tax return professional for any questions or before taking any action.

Should you hire a professional for tax prep?

One thing to consider sooner rather than later is whether you should use the services of a tax prep professional. And you’ll want to make this decision by February or March—not halfway through April. By then, a highly qualified tax professional will be booked solid. You’ll be lucky to find a tax-prep professional at any price during that time.

If you did wait until there are just a couple of weeks left before tax day, this factor is a major consideration. In this case, you’ll probably want to go ahead and book the services of a professional tax preparer. They’ll usually be able to fill out the necessary forms faster and more accurately than you could in such a short timeframe.

For investors in particular, hiring a professional can fill in whatever knowledge gaps you might have. For instance, some people assume they can automatically deduct $3,000 worth of capital losses from their unprofitable investments. However, it’s actually only $1,500 if you’re married and filing a separate tax return.

That’s the type of detail that investors can’t afford to miss. A qualified tax prep professional is like a safety net who will catch omissions like this. Do-it-yourself tax software might also catch errors, but ultimately, the IRS will hold you responsible. So, if your knowledge has a lot of gaps when it comes to income tax generally or the takeaways for investors, it’s probably worth the investment to hire a qualified tax professional.

Getting your tax prep documents ready

As an investor, you’ve experienced capital gains as well as capital losses on your investments throughout the year. And it’s a smart idea to keep your own trading journal or diary throughout the year. This journal should document all of your purchases, sales, and gains or losses. You’ll want to record dates, quantities of shares or contracts et cetera, and other pertinent information.

Chances are, you haven’t been doing this process all year long. But I recommend that you start this practice as soon as possible. Otherwise, you’ll depend wholly on your broker to accurately maintain all of this information.

The IRS will expect you to report your investment gains or losses on a Schedule D (Form 1040), Capital Gains and Losses. You’ll also need to report them on Form 8949: Sales and Other Dispositions of Capital Assets. And if you haven’t documented your investment transactions throughout the year, don’t worry. Your broker most likely did this step for you.

Your broker will usually send you a Form 1099-B, Proceeds from Broker and Barter Exchange Transactions. This form won’t document every single investment you made. Instead, it’s just a general report of your total capital gain or loss. If you used more than one investment broker, you should usually expect to receive this form from each broker.

That form is the main documentation you’ll need. If you don’t receive a Form 1099-B from each investment broker you worked with by the end of February, you’ll probably want to contact them. Also, you might wish to contact them if your records don’t match up with theirs. But again, you can only catch that kind of discrepancy if you’ve been documenting your investments throughout the year.

Other ways to get organized for tax season

If the tax year has come and gone, there are some things you can’t do anymore to reduce your investment taxes. For instance, it would be too late to contribute more to a tax-deferred IRA or pension plan. Still, even after December 31, there are things you can do to get ready for tax time.

For example, you’ll want to take note of any dividends you’ve received throughout the year. Hopefully, any dividend payments will be reported to you via a Form 1099-DIV, Dividends and Distributions, or possibly a Schedule K-1. You’ll most likely need to report dividend income on your regular tax form, such as a Form 1040. And in some cases, a Schedule B form may also be required.

You can also contact your employer for any information concerning your investment accounts with them. Many workers aren’t even aware of how much they’ve contributed toward their 401(k), for example. This is the type of information you’ll want to monitor throughout the year and confirm at year’s end.

Finally, if you did choose to invest in computers, software, and other items to help you monitor your investments, look for the receipts. Those receipts might come in handy in case you want to make qualified deductions. But be cautious with tax write-offs, however. Be sure that each deduction is 100% justified and legitimate.

No need to fear tax prep season!

The main theme here is preparing for tax prep season throughout the year. Simply by monitoring your investments and related transactions, you can reduce your tax-time stress. And best of all, you might be able to save money that you can then use in your future investments—whether that means stocks, silver and gold, or simply planning for a comfortable retirement.

from Tax Prep Tips for Investors

[paystubusa]

The Ultimate Guide to Using a 1099-DIV Form Generator for Investors

A 1099-DIV Form Generator works by using accumulating the relevant dividend data, collectively with the amount of earnings, the form of dividend (qualified or normal), and other important info. Once the facts is entered, the generator mechanically creates a completed 1099-DIV form that you may publish to the IRS.

[anna-2807]

Imagine if, sadly, Dad dies or becomes incapacitated. You’re in charge of handling all his financial affairs, from managing his investments to putting income sources in place for Mom.

There’s just one problem: He was an old-school guy who never consolidated his assets or set up online accounts. Also, it appears he worked with different brokers and you don’t even know who they are.

What now?

Go talk to your neighbor next door, or the harried woman at work or even your millennial dog walker. Why? Because this is a common problem, and more people are working through it than you might think.

But more importantly, share your challenge with your own financial advisor. No one has a more vested interest in helping you manage assets to your best advantage. You may also learn various ways to track down and help manage your parents’ assets, and, the best part is, you don’t have to go it alone. Give us a call — we can help.

You know your dad as well as anyone. Hopefully, he kept organized financial records that are easy to find. However, because prior generations didn’t have easy access to today’s financial software and cool apps, he may not have a conveniently centralized record of his accounts, policies and important legal documents.

Naturally, you’ll want to start with his desk or a file cabinet. From there, consider these tips:

Review all the mail for statements and bills.

Look for any record of a safe deposit box — such as a bill for the rental or a key — as many people retain a safe deposit box at their local bank.

Contact your dad’s past employers to find out if they know of any pensions or retirement plans your dad held, or employer-purchased life insurance.

Check unclaimed property lists in every state where your father lived; states collect and hold unclaimed deposits and accounts.

Look for bank accounts, bonds, stocks, mutual funds, certificates of deposit, dividend or payroll checks, life insurance policies, retirement accounts, safe deposit box contents, and securities and utility deposits held by financial institutions or holding companies.

Assets are considered dormant or abandoned if there’s no activity in the account for a year or more. Bear in mind that if you miss out on claiming well-hidden assets, those assets may eventually become property of the state where those accounts are domiciled in a process known as escheat.

For state searches, start at www.unclaimed.org, sponsored by the National Association of Unclaimed Property Administrators. It’s a free website that allows you to search for unclaimed property held by each state.3 You also might want to check out www.MissingMoney.com to conduct a national search.

If you need additional help, you may consider hiring a forensic accountant. Television shows often depict forensic accountants as people who uncover offshore accounts, shell companies and other shady financial accounting practices. They are, but they also can use those clever skills to find, for example, whatever mining oil stock Dad invested in 20 years ago and conveniently forgot to tell Mom.

Forensic accountants have the experience and knowledge necessary for conducting a thorough investigation to find accounts no one in the family knows about — not because Dad intentionally hid assets but because he was a private guy. For instance, a forensic accountant might pull an IRS transcript that shows 1099-DIVs and 1099-INTs issued to your dad at some point. These are forms that banks issue for account activity involving amounts of $10 or more. The point is, forensic accountants know all sorts of methods that you may not have considered.

Standard Disclaimer.

Advisory services offered through Lake Point Wealth Management, LLC, an SEC Registered Investment Adviser. Insurance products and services offered through Lake Point Advisory Group, LLC. It is important that you do not use e-mail to request, authorize or effect the purchase or sale of any security or to effect any other transactions. The information transmitted herein and any attachments or files transmitted herewith may contain proprietary, confidential and/or protected, non-public information, are covered by applicable state and federal laws and are intended solely for the use of the individual or entity named above as the intended recipient. If the reader of this message is not the above-named intended recipient, or his/her/its agent, be advised that any review, disclosure, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify the sender by telephone or e-mail and destroy the material forwarded in error. Nothing in this communication shall constitute an offer to sell or solicit any offer to buy a security or any insurance product. Recipients should be aware that all emails exchanged with the sender may be archived and may be accessed at any time by duly authorized persons and may be produced to other parties, including public authorities, in compliance with applicable laws.

Learn more — https://lakepointadvisorygroup.com/

[stocksnewsfeed]

The Herzfeld Caribbean Basin Fund, Inc. Announces Quarterly Distribution

MIAMI BEACH, Fla., Sept. 12, 2019 (GLOBE NEWSWIRE) — The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the “Fund”) today announced that the Fund has declared the following distribution pursuant to the Fund’s managed distribution plan (the “Plan”): The primary purpose of the Plan is to provide stockholders with a constant, but not guaranteed, fixed minimum rate of distribution each quarter (currently set at the annual rate of 15% of the Fund’s net asset value as determined on June 30, 2019 and payable in quarterly installments). The Fund cannot predict what effect, if any, the Plan will have on the market price of its shares or whether such market price will reflect a greater or lesser discount to net asset value as compared to prior to the adoption of the Plan.Under the Plan, the Fund will distribute all available investment income to its stockholders, consistent with its investment objective and as required by the Internal Revenue Code of 1986, as amended (the “Code”). The amount distributed per share is subject to change at the discretion of the Fund’s Board of Directors (“Board”). If sufficient investment income is not available on a quarterly basis, the Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain its managed distribution level. The Fund is currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund may make additional distributions from time to time, including additional capital gain distributions at the end of the taxable year, if required to meet requirements imposed by the Code and/or the 1940 Act.The Fund has not yet made any distributions under the Plan. The Fund will issue a press release on the payment date that will include the estimated sources of the Fund’s most recent quarterly distribution, together with the cumulative distributions paid this fiscal year to date. The Fund expects that distributions under the Plan will exceed investment income and available capital gains and thus expects that distributions under the Plan will likely include returns of capital for the foreseeable future. A return of capital may occur, for example, when some or all of a stockholder’s investment is paid back to the stockholder. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ Any such returns of capital will decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to maintain the level of distributions called for under its Plan, the Fund may have to sell portfolio securities at a less than opportune time.The following table provides the Fund’s total return performance based on net asset value (NAV) over various time periods compared to the Fund’s annualized and cumulative distribution rates.*There were no distributions in this period.No conclusions should be drawn about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the Plan.The amount distributed per share is subject to change at the discretion of the Board. The Plan is subject to ongoing review by the Board to determine whether it should be continued, modified or terminated. The Board may amend the terms of the Plan, suspend the Plan, or terminate the Plan at any time without prior notice to the Fund’s stockholders if it deems such actions to be in the best interest of the Fund or its stockholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund’s shares.With each distribution that does not consist solely of net investment income, the Fund will issue a notice to stockholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to stockholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. The Fund will send stockholders a Form 1099-DIV for the respective calendar year that will tell them how to report these distributions for federal income tax purposes. Stockholders should consult their tax advisor for proper tax treatment of the Fund’s distributions.About Thomas J. Herzfeld Advisors, Inc.Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds. The Firm also specializes in investment in the Caribbean Basin. The HERZFELD/CUBA division of Thomas J. Herzfeld Advisors, Inc. serves as the investment advisor to The Herzfeld Caribbean Basin Fund, Inc. a publicly traded closed-end fund (NASDAQ: CUBA).More information about the advisor can be found at www.herzfeld.com.Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.Forward-Looking StatementsThis press release, and other statements that TJHA or the Fund may make, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or TJHA’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions. TJHA and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and TJHA and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, particularly with respect to Cuba and other Caribbean Basin countries, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA’s and the Fund’s ability to attract and retain highly talented professionals; (10) the impact of TJHA electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on TJHA’s website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.Contact: Tom Morgan Chief Compliance Officer Thomas J. Herzfeld Advisors, Inc. 1-305-777-1660 

The post The Herzfeld Caribbean Basin Fund, Inc. Announces Quarterly Distribution appeared on Stocks News Feed.

source https://stocksnewsfeed.com/globenewswire/the-herzfeld-caribbean-basin-fund-inc-announces-quarterly-distribution/

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Where is Dad’s Money?

Where is Dad’s Money? is courtesy of: www.goldstonefinancialgroup.com Goldstone Financial Group

Imagine if, sadly, Dad dies or becomes incapacitated. You’re in charge of handling all his financial affairs, from managing his investments to putting income sources in place for Mom.

There’s just one problem: He was an old-school guy who never consolidated his assets or set up online accounts. Also, it appears he worked with different brokers and you don’t even know who they are.

What now?

Go talk to your neighbor next door, or the harried woman at work or even your millennial dog walker. Why? Because this is a common problem, and more people are working through it than you might think.

But more importantly, share your challenge with your own financial advisor. No one has a more vested interest in helping you manage assets to your best advantage. You may also learn various ways to track down and help manage your parents’ assets, and, the best part is, you don’t have to go it alone. Give us a call — we can help.

You know your dad as well as anyone. Hopefully, he kept organized financial records that are easy to find. However, because prior generations didn’t have easy access to today’s financial software and cool apps, he may not have a conveniently centralized record of his accounts, policies and important legal documents.

Naturally, you’ll want to start with his desk or a file cabinet. From there, consider these tips:

Review all the mail for statements and bills.

Look for any record of a safe deposit box — such as a bill for the rental or a key — as many people retain a safe deposit box at their local bank.

Contact your dad’s past employers to find out if they know of any pensions or retirement plans your dad held, or employer-purchased life insurance.

Check unclaimed property lists in every state where your father lived; states collect and hold unclaimed deposits and accounts.

Look for bank accounts, bonds, stocks, mutual funds, certificates of deposit, dividend or payroll checks, life insurance policies, retirement accounts, safe deposit box contents, and securities and utility deposits held by financial institutions or holding companies. 1

Assets are considered dormant or abandoned if there’s no activity in the account for a year or more. Bear in mind that if you miss out on claiming well-hidden assets, those assets may eventually become property of the state where those accounts are domiciled in a process known as escheat.2

For state searches, start at www.unclaimed.org, sponsored by the National Association of Unclaimed Property Administrators. It’s a free website that allows you to search for unclaimed property held by each state.3 You also might want to check out www.MissingMoney.com to conduct a national search.4

If you need additional help, you may consider hiring a forensic accountant. Television shows often depict forensic accountants as people who uncover offshore accounts, shell companies and other shady financial accounting practices. They are, but they also can use those clever skills to find, for example, whatever mining oil stock Dad invested in 20 years ago and conveniently forgot to tell Mom.5

Forensic accountants have the experience and knowledge necessary for conducting a thorough investigation to find accounts no one in the family knows about — not because Dad intentionally hid assets but because he was a private guy. For instance, a forensic accountant might pull an IRS transcript that shows 1099-DIVs and 1099-INTs issued to your dad at some point. These are forms that banks issue for account activity involving amounts of $10 or more. The point is, forensic accountants know all sorts of methods that you may not have considered.6

Content prepared by Kara Stefan Communications.

1 Roberta Codemo. Legal Zoom. “How to Recover Unclaimed Inheritance Money.” https://www.legalzoom.com/articles/how-to-recover-unclaimed-inheritance-money. Accessed June 24, 2019.

2 Ibid.

3 National Association of Unclaimed Property Administrators. “Start your free search for money that might be due you.” https://www.unclaimed.org. Accessed June 24, 2019.

4  MissingMoney.com. “What to expect.” http://www.MissingMoney.com. Accessed June 24, 2019.

5  Investopedia. April 25, 2019. “Forensic Accounting.” https://www.investopedia.com/terms/f/forensicaccounting.asp. Accessed June 24, 2019.

6  The Wealthy Accountant. Aug. 16, 2017. “Forensic Accounting: The High-Paying Part-Time Business.” https://wealthyaccountant.com/2017/08/16/forensic-accounting-the-high-paying-part-time-business/. Accessed June 24, 2019.

Neither our firm nor its agents or representatives may give tax or legal advice. Be sure to speak with qualified professionals about your unique situation.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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