Asean Bankers Conference

Summer is a common time of year for people to move. Children are out of school and the weather is more conducive to trekking across any significant distance.

Summertime is also ideal for starting a tax preparation business. Beginning this process at mid-year permits an individual to complete all arrangements for a successful opening next tax season. A tax practitioner usually begins income tax preparation courses in late summer and studies throughout the fall. By year-end, the Registered Tax Return Preparer examination should be ready to pass.

Whenever a move occurs related to a job, the moving expenses are usually a tax deduction. All individuals who move because of work qualify, not just anyone starting a tax preparation career. Taxpayers who are eligible to deduct moving costs are not even required to itemize deductions in order to benefit.

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Finding taxpayers who have moved is a sound strategy for building clientele of a federal tax preparation service. Both new and experienced tax practitioners can use the end of summer as an opportunity for reaching out to those who moved this year. Now is the time to remind them about retaining records of moving expenses that they will need when their tax returns are prepared.

Costs for travel to the new location are among the deductible expenditures. This includes transportation expenses for all family members. A standard mileage rate is applicable for each vehicle used as transport. Only one trip per person is allowed. The cost of lodging during travel is counted as moving expense, but not the cost of meals while traveling.

Deductible moving expenses also include costs for packing, transporting, and in-transit storage of household goods. Individuals who move can also deduct the cost of disconnecting utilities at former homes and connecting at new homes.

Other costs related to moving in at a new location are not deductible. Also, anyone who is partially reimbursed by an employer for moving expenses should retain records of the reimbursements, which reduce the tax deduction.

In addition to a move having a connection to work, the IRS has two requirements for taxpayers to meet in order to deduct moving expenses. First, the new job location must be at least 50 miles farther from the former home than was the previous job location.

Secondly, full-time work in the new area must last for at least 39 weeks of the first 12 months after moving. This requirement is 78 weeks during the first 24 months for the self-employed. Sometimes moving expenses are deducted on a tax return that’s due before this requirement is met. In that case, tax preparer ethics require mentioning to taxpayers that the requirement must be eventually satisfied.

Tax preparer duties when moving expenses are deductible involve gathering the records of eligible expenses as well as calculating the distance and time tests. Then, Form 3903 is completed. A tax preparer should also assist taxpayers by completing Form 8822, which notifies the IRS of the address change.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

When going about their daily business, the employees at Release Money Group often remark on the number of people that are puzzled at the difference between debt collection and debt management.

As a quick explanation to help to educate our customers, here are the definitions of debt collection and debt management.

Debt Collection – Debt Collection is defined as a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.

Debt management – Debt Management or a debt management plan (DMP) is a repayment scheme which helps make unsecured debt repayments more affordable. Normally a third party debt management company negotiates with your unsecured creditors to reduce your monthly payments to an affordable level. The outstanding debt is paid back over a longer term but is not reduced.

A Debt Management Plan allows you to make a single, affordable, monthly payment to help you regain control of your finances. Our advisors deal with your creditors on your behalf, often freezing or reducing interest and charges and negotiating a simple and predictable monthly payment.

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Debt Release Direct will handle the letters and phone calls, arranging an affordable and timely payment plan for your unsecured debts which will save you time, pressure and money.

Is a Debt Management Plan right for me?

A debt management plan can be suitable for individuals who want to consolidate debts so that they will be able to pay their debts in full within a reasonable amount of time.

If you cannot afford to repay all of your debts, then ask for advice on IVAs (Individual Voluntary Arrangements), Full & Final Settlements or Bankruptcy. If you would like to speak to a Debt Release Direct advisor to discuss your debt consolidation options, you can call for FREE on 0800 019 7465.

What are the advantages of a Debt Management Plan?
You can manage your debt with a single, affordable monthly payment
Our experienced advisors will negotiate directly with your creditors on your behalf
Interest and charges can often be reduced or frozen
A Debt Management Plan is an informal agreement which you can cancel at any time
How does a Debt Management Plan work?

If you decide a Debt Management Plan is right for you, we will speak to your creditors and negotiate a debt repayment plan. Once this agreement has been reached, you will make a single payment to Debt Release Direct every month and we will handle the rest.

You receive a dedicated emergency telephone number and ongoing support and advice whenever you need it, and every month we provide you with a breakdown of receipts, costs, and exactly what each of your creditors have been paid.

If your financial hassles stem from too much debts or your inability to repay back what you owes, then a good credit counseling agency may propose that you enlist a debt management plan. However, before considering signing up for one of these plans ensures a certified credit counselor has spent time reviewing your financial situation and has offered you with customized advice on how to manage your finances. Even if your debt management plan has proved to be effective, a reputable credit counseling organization will assist you with the creation of a workable financial budget and money management skills.

For a debt management plan to work, you must deposit money with the credit counseling organization each month. The organization uses your money deposits to pay up for your debts, for example student loans, credit card bills, medical bills, etc according to a payment plan the counselor expounds with you and your creditors. The creditors might agree to lower your rates of interest and may waive some of the chargeable fees but will normally check with other creditors to be sure they are also offering you with concessions that the credit counseling organization described to you. To be successful the debt management plan requires the debtor to make regular and timely payments over a specified duration of time, for instance 48 months. But, it is essential to confer with the counselor to come up with appropriate time limit on the duration to take to repay your debts. The debtors may also agree to adhere to not taking up any other loans when they are participating in the debt management schedule.

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Before enrolling for a debt management plan there are certain questions a debtor may ask themselves, for example, is the debt management plan the only option available to manage my debts? Will the debt management counselor provides you with an on going budget advice regardless of whether I enroll in a debt management plan? It will be advisable to seek services of two debt management counseling organizations, for instance, if one organization offers only debt management plans, search for another that is offering credit counseling advice and that will assist in the creation of workable budgets and teaches you money management skills.

The following steps will be beneficial to your debt management plans and ensures that you avoid falling into further debts.

1. Continue paying up your bills when they fall due until the debt management plan has been given a nod by your creditors.

2. Before sending money the selected credit counseling organization, get in touch with your creditors and verify to them that you have acknowledged the projected debt management plan as laid out by your credit counselor.

3. Make sure the credit counseling organization’s payment schedule allows your debts to be paid in advance to avoid paying late payment fees and other penalties. A call to each of your creditors to confirm payment of your debts is essential.

4. Review each month repayment statements from your creditors to ensure they received your debt payments.

5. Lastly, if your debt management plan depends on your creditors agreeing to lower the rate of interest, waiver late fees, and other chargeable fees; ensure that the concessions are truly reflected on your monthly statements.

Most people are good at handling their finances – they ensure that their bills are paid on time, they manage their grocery shopping, they leave aside some money for entertainment, etc. But when the term ‘financial planning’ is mentioned, they either feign indifference or pretend that they have it all figured out. But the million-dollar question is – are they doing the right thing?

Financial planning involves looking at the big picture with regard to one’s short term and long term financial goals. One identifies certain life goals such as saving up for their children’s education / marriage, saving for one’s retirement, buying a house or a car, etc. Having done so, one needs to follow it up with a systematic financial plan to reach these goals.

According to a well-known phrase -If you don’t know where you are going, any road will take you there. The reverse of this is also true, if you have certain life goals, you must ensure that you start planning or else you might not be able to retire with a nest egg or be unable to afford your children’s educational expenses.

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Financial planning is not one of the most exciting of activities; however, by doing so and sticking to your plan, you will be rewarded with less hassles and tensions, especially during your old age.

It’s never too late to start financial planning. However, the earlier you start doing it, the more beneficial it will be for you. If you are a student or a professional in the early stage of your career, make sure you do not delay financial planning until later.

You do not have to be a financial wizard to start financial planning. Here are a few steps through which you can begin financial planning:

Maintain a notebook, wherein you must write down your long and short term goals. Another way of doing so is by maintaining an online journal.
Take an inventory of your current financial position. Calculate how much saving you have and also how much is your monthly income and expenditure. Also note down all the assets that you own and the debts that you owe.
Ensure that you have sufficient insurance cover as well as medical insurance for yourself and your family. See to it that loved ones will be taken care of, in the event that something were to happen to you.
Lastly, you can pick a goal and create an action plan for achieving it. For eg: If your goal is to buy a house, find out how much you will need for the down payment and what is your current financial position. Then, you can work out the difference and accordingly create an action plan to make up for the shortfall.
Do revisit your diary and track your progress regularly.

Having understood the importance of financial planning, it is essential that one starts doing so at the earliest. However, if one finds their financial situation complex or is unable to make decisions, then they should consult a professional financial planner.

Basic home insurance provides coverage for disasters such as fire, hurricane damage, lightning and any others covered by your policy, but basic coverage might not protect from every potential loss. Most home insurance plans do offer a wide variety of optional coverage to help meet your home insurance needs.

Here are eight types of optional coverage you could purchase with your basic home insurance.

1) The first place to look for extra coverage is for any natural disaster left uncovered in your home insurance policy that is likely to befall your home. This includes flood insurance, earthquake insurance and wind insurance if you live in areas where this is not part of standard home insurance.
2) Guaranteed replacement cost is the most comprehensive home insurance you can purchase. To buy this level of home insurance you need to meet specific rules and conditions, and you will most likely pay premiums that increase with the cost of inflation.

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3) To increase your level of theft protection, you can buy theft coverage protection endorsement. With this home insurance option possessions in your motor vehicle, trailer or watercraft have coverage even without proof of forcible entry.
4) You can add optional coverage to your home insurance to protect your money, securities, banking and credit cards. Increasing your limits on money and securities does just that – it increases the coverage on money, bank notes, deeds and other securities. Credit card forgery and depositors forgery coverage endorsement gives you protection against loss, theft and unauthorized use of your credit cards, as well as coverage for a banking forgery.
5) Inflation guard endorsement allows your home insurance provider to automatically increase your coverage to meet a rising cost of inflation. You will eventually pay a higher premium, but not until your policy is renewed.
6) If you have high dollar items such as furs, stamp or coin collections, guns, antiques or other items that might exceed your regular home insurance policy, you will want to take a scheduled personal property endorse – also known as a personal article floater – on these items.
7) If you own a vacation home or other secondary residence you will likely want to add a secondary residence premises endorsement to your basic home insurance.
Similar to the secondary residence endorsement, if you own a small sailboat or outboard motor boat you will want a watercraft endorsement added to your basic home insurance for the personal liability coverage this option provides.