Direct loans – How do they actually work?

By Admin on 12-03-2014

Tagged Under : Direct loans

Higher education has become quite costly in the recent times and it has become difficult for the students to carry on with their studies. In such a situation, the Federal Government has come up with different loan options to help the needy students. One such loan option is the Direct Loans. These are low interest loans which are directly funded by the Government of United States and the loans are administered by the Department of Education.

direct loans

Taking out direct loans can be advantageous in certain ways. The interest rates for Direct Loans are set on an annual basis and do not fluctuate like that of the private student loans. One more benefit of Direct Loan is that it cannot be sold off to another lender. Thus, you will be dealing with the same lender throughout the term of the loan.

When you decide to apply for Direct Loans, you should remember that they are offered in different forms.

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Refinancing the student loans is the way to get out of your debts fast!

By Admin on 12-03-2014

Tagged Under : student loans

With the increasing cost of education, the support of loans is inevitable for most of the students to complete their higher education. By the time the students graduate, they almost find themselves with accumulated debts of huge amounts. Though most of the lenders allow a grace period of six months to begin repayments, for most of the students it becomes difficult to make repayments even after the grace period. The grace period is to allow you the time to get into a decent employment. Those who are not able to start their repayments even after the grace period opt for student loan refinancing.

Understand the offers before signing the loan agreement

You need to understand the basics of refinancing your student loans to avoid being trapped by the marketing tactics of the unsecured personal loans lending companies. Basically, there are private student loans and federal student loans. The interest rates for federal loans are lower than that of the private student loans.

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Hard Money Loans to realize profit in Real Estate!

By Admin on 12-03-2014

Tagged Under : Hard Money Loans

Hard money loans are those that are lent against the collateral or the credit score of the applicant. Since the interest rates and upfront fees for these short term loans are very high, it is quite hard to repay and so the term ‘hard money loan’. Though it is considered risky, the real estate investors go after this loan as need of funds is inevitable to realize profit in real estate business. It is easily accessible even by those who are not qualified for traditional loans from banks and other financial organizations. With fast approval, the funds are accessed instantly.

Features of hard money loan

Your home or your other possessions or your retirement savings can be used as collateral for the loan. If you do not manage the risks involved in the offer, you might lose the assets set as collateral. Your income is not verified and your credit score is not an issue in getting approval for the loan. Hard money loans can be used to renovate or repair the house. It is the value of the property and not the income that determines the loan. If possible, you can close the loan as early as possible.

Purchase and rehab can be done with a single loan. Sin

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Charts of Examples in New PFIC Annual Filing Requirement Regulations (Form 8621)

By Devin Reese on 17-01-2014

Tagged Under : 8621, Annual Filing Requirement, Filing Requirement, Form 8621

As discussed in a post last week, the IRS has released Treas. Reg. §1.1298-1T, temporary regulations regarding the annual filing requirement (Form 8621) for Passive Foreign Investment Companies (“PFICs”). 

It is important to note that these regulations only deal with the “annual” filing requirements for Form 8621.  There may be other circumstances where Form 8621 is required for a particular year, but not for all years.  For example, a taxpayer may need to file a Form 8621 in a particular year to make a mark-to-market election.  However, if the de minimis rules apply, then Form 8621 may not be required for each year thereafter.

The regulations include four examples which apply the filing requirement rules and exceptions.  We have created charts for each of the examples. 

Images of the charts are shown below and links to PDFs of the charts are also shown:

  • Treas. Reg. §1.1298-1T(g) Example 1,
  • Treas. Reg. §1.1298-1T(g) Example 2,
  • Treas. Reg. §1.1298-1T(g) Example 3,
  • Treas. Reg. §1.1298-1T(g)

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Financial Checklist to Start the Year (2014)

By Billie Nguyen on 16-01-2014

Tagged Under : 2014

Investors rejoice!  On January 1, TFSA contribution room grows.  For 2014, TFSA accounts get $5,500 in contribution room ($31,000 total).  If you made a withdrawal in 2013, then this year, you can contribute up to $5,500 plus the 2013 withdrawal amount.  Find out how much TFSA contribution room you have here.

2. Maximize your RESP contribution

For those of you with kids, a new year means more government matching for your RESP!  The federal government will match 20% of your RESP contribution which maxes out at $500 per child per year.  To max out the government contribution, youll need to contribute $2,500 per child to the RESP account.

Havent opened an account yet?  We have ours with TD e-series, but if we had a child today, I would likely open it with a brokerage that offers commission free ETFs.  Also, dont worry if you havent started contributing yet, you can still catch up on your RESP contributions!

3. Contribute to your RRSP

Another contribution?! I know, by the end of January, our savings stock pile definitely takes a hit but its worth it!  Even though its no longer 2013, you can still contribute to your RRSP (or not) to your tax advantage.  The RRSP

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