Leasing the building will allow John to write off the payments as rent expense. However, if he has the capital to purchase the building, it would be considered an asset and he would be allowed to depreciate over the life of the building. This decision would have to weigh factors such as: capital investment, loan options if no capital investment, and expected future profits and expenses of the business. 2. Jane Smith tax issues: Issue a) What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes?
Be sure to check with multiple lenders before deciding on one. Find out all the particulars of every loan and lender you look into as well. You want to choose a loan that will not only pay off your existing bad loan, but help improve your financial situation as well. Whether this means a better interest rate, lower payments, or a different loan term, make sure you can manage the refinanced loan before agreeing to it. Sell The Car Another, less desirable way to get rid of a bad car loan is to sell your car at a loss.
If Stella buys a new car she will face an opportunity cost when he has to give up her savings because she could keep her savings in the bank for future investment as the deposit for a house rather than spend it all on a new car. That money could also be invested in shares or in a small business that will generate income or increase their value over time, and otherwise a car as time goes loses its original value. Besides vehicle maintenance could be a constant loss in her investment. Stella has to maximize her utilities in order to make a good decision and probably give up a new car and get a used vehicle and use the rest of the money for other investments or keep it as a back up in her bank account. 2.
Rather, it only reorganizes debts and formats them for you to repay over time. Reorganization bankruptcies are for businesses, not individuals. Chapter 11 limits the debt to that of the business. In the case of your mortgage, filing Chapter 11 will allow you to re-write your mortgage. Real estate investors will work to rewrite your mortgage by reducing the principle balance to the value of the property.
But the amount that a manager can hold stocks should be limited because the ownership would be split in this way as it is not good for Brazos itself to decrease its ownership. The real estate subsidiary is a good idea that Brazos could purchase it as an asset and they can still control the operation and employees. Since Brazos can not only buy tangible assets but also intangibles asset which is Goodwill $34.7 million. Brazos
This causes the preference to save money or not to spend at certain periods of time. The removal of the tax deduction on mortgage interest will reduce the demand for houses. If there is no benefit such as this to buying a home, many consumers will feel that there is no point in getting a house. The government will do whatever they feel is best for the country, but when you look at certain things in our country such as tax deductions. They will have the power to draw a
Now suppose that the government imposes a price ceiling, limiting rents to a price below the equilibrium price—say, no more than $800. Figure 8.2 shows the effect of the price ceiling, represented by the line at $800. At the enforced rental rate of $800, landlords have less incentive to offer apartments, so they won’t be willing to supply as many as they would at the equilibrium rate of $1,000. They will choose point A on the supply curve, offering only 1.8 million apartments for rent, 200,000 fewer than in the unregulated market. At the same time, more people will want to rent apartments at a price of $800 than at the equilibrium price of $1,000; as shown at point B on the demand curve, at a monthly rent of $800 the quantity of
Renting is better than Owning a House Com/156 November 11, 2011 Axia College In society, everyone very much dreams of owning his or her own home, however; renting an apartment or house can be just as rewarding and beneficial to an individual. While some think that renting is just a waste of money, however, there are many advantages when it comes to renting an apartment rather than owning a home. One of the major advantages of renting is that as a renter, you are not responsible for repairs or any other maintenance, aside from things like mowing the lawn or perhaps changing the filters. This doesn’t mean that you’re not responsible for damages such as putting a hole in the wall or even burning something like the carpet by being careless when smoking a cigarette, or even some water damage that you, as the tenant may have caused. Therefore, it means that the renter is not responsible for repairing of some sort and things like the roof and air conditioner.
One creative way to get started investing in real estate is to use a lease option. The biggest advantage of using lease options to invest in real estate is --control. This method of investing, basically gives the investor the right to possess -- be in control of -- and profit from a property without owning it. A real estate lease option contract is a combination of two documents. The lease part of the contract is where the owner agrees to let you lease their property, while you pay them rent for a stated period of time.
In one paragraph, describe the elements of this service that would be best handled using traditional commerce and explain why. Answer: Responses will vary, but may suggest that customers are generally concerned about lifestyle and personality factors, and as a result would want to meet any potential roommate. 3. Choose one major difference between the first wave and the second wave of electronic commerce. Write a paragraph that describes this difference to a person who is not familiar with either business or Internet technologies.