Additional Expenses

Question: I am purchasing a foreclosure from Fannie Mae, should I expect any additional expenses at closing? I am just wondering if foreclosures bring any additional costs. I am not financing the property.

Answer: Not directly. They are unable to provide any information that you would normally get from the owner of the house about condition- so I would pay a great deal of attention to the inspection- and hope for the best about any hidden conditions. Be sure that you are getting title insurance- you want to be absolutely sure that You will need to pay for part of the closing costs. This would have been the case in any sale. The items should be lined out in the contract and the title company (or escrow office) should be able to estimate that for you if you are not using a real estate agent.

Question: How to I account for the brokers commissions, tax stamps, smoke detectors and additional expenses? I received a 1099-S from the sale of an inherited property. My gross proceeds show $17,500, however I only netted $15,000. Where do I record the $1,500 difference? THANKS! I meant the $2,500 difference.

Answer: You report the sale on Schedule D. Your cost basis is whatever the value of the property was on the date of the bequestor's death. The sales price is the net proceeds from the sale regardless of what is on the 1099-S. Just have proof of the items that reduced the net proceeds (sales commissions, fix-up expenses, etc.) if the IRS asks. Note that inherited property is always treated as long-term (Part II of Schedule D) regardless of how long you held the property. This works in your favor as long term capital gains pull a lower tax rate than short term.

Question: I live in MD and want to buy a used car from VA, what additional expenses do I have to pay, if any at all? Dont I need to have the car tagged in MD?

Answer: You'll pay the tag price in VA. Then you'll pay the tax and registration fees on MD.

Question: How much additional revenue do I need to cover increased expenses? My profit margin is 6%. Therefore for every dollar in sales I make 6 cents. I am raising my expenses by $9000. How many more additional sales dollars do I need? Is there a formula for this? Thanks!

Answer: If you're only getting 6 cents per sales dollar in profit, it will take an additional ($9,000 / 0.06) = $150,000 sales dollars to just break-even and cover those new expenses.

Question: What if I need additional Loans for expenses such as? living, food, books. Can I get additional loans? I am not eligible for grants because I have a 4 year degree.

Answer: Same thing is happening to me right now. I got into a really tough Masters program for Speech Pathology. I applied for Financial Aid and they told that they will inform me how much i will be awarded in June. Thing is it's a Full Time program... I can't work... I am waiting till June to start hunting for some private loans, even getting a credit line on the house to have like a 2 year salary. My folks said they make the loan payments while I am school. Gotta have a support system...

Question: if you are given an opportunity to convert your household expenses into additional income will you do it?

Answer: Depends on who gets my soul in return.

Question: will I qualify for additional Federal financial aid for Online school for my living expenses? I am begining an online associates degree in the next 2 weeks at an accredited University (PHOENIX). I so far am qualified for financial aid to cover my classes and text books. Can I also get aid for living expenses like any other college student living off campus?

Answer: Go to FAFSA website then look for their terms and policy.

Question: Basic living cost or additional expenses? It is understandable that you pay for your basic needs out of your wages, and that additional expenses relating to your job are allowable. Hence MPs expenses for "second" homes relate to the fact that they already pay for their "first" homes out of their wages, and that their "second" homes are additional expenses related to their job. In the case of Tony Blair's claim for a TV license, since he had no "first" home (he had sold it), hence had not had to pay for his "first" TV license out of his own wages, and his "second" home (10 Downing Street) was his only home, why should his "first" TV license be considered an additional job-related expense, to be paid for by the taxpayer? It would be a basic personal need wherever he lived, and was not an additional expense on top of any TV license already paid for out of his wages? It seems MPs can claim for a "second" home even when they have no "first" home. Just as you and I cannot claim for basic personal expenses in our jobs, only additional extra work-related expenses, is it now also necessary to redefine the phrases "work related expense" and "second home", in the context of our Honourable Members expenses claims?

Answer: You know what this is all about don't you ? It's about all these sleazy money grabbing whiter-than-white MP's, who think its OK to call us Brit's idle no-good benefit scrounger's, who don't want work, and who should be evicted from our council house's if we don't get a job. Well they sowed the wind and now they are reaping the whirlwind. To put it bluntly, "PEOPLE WHO LIVE IN GLASS HOUSE'S, SHOULDN'T THROW STONES", and if they could not see this coming, well,,,,, they must be bigger morons than I first thought, because what goes around, goes around. And I also believe that these brain-dead MP's who don't seem to have any idea as to where their bread is buttered, were set up by people, who do know where their bread is buttered, and also have a very good idea as to what they are doing and why. The term "Hook, Line And Sinker" comes to mind.

Question: what are additional expenses incurred while buying a flat.? all latest amenities,documents e.t.c.; plz. rply soon ,Thank you

Answer: Registration expenses, Car Parking cost, Interior decoration works, Service Connection charges, Association deposit etc.,

Question: Why do MP's need additional expenses money? You're paid money (salary) and you use that money to pay rent/mortgage, food, family expenses, job expenses, medical expenses etc. Whether you have 8,000 or 80,000 or more you have to survive off of that and adjust your lifestyle to suit. Usually a job with higher demands gives a better pay so you can afford more anyway, so why are MP's allowed additional money on top of their salary to pay for stuff that the average joe uses their income for? What do they use their earnings for if they have such bonuses? I really don't understand. I personally think that any additional expenses should go through the same routes and centers that decide whether you receive housing benefit, Job seekers allowance and disability living allowance, if they need the money it'll take half a year for them to get it and they have to have a good reason. then why not have an apartment that you could afford in the place you stay in least or where your family is not, i think anyone could find an apartment for 6000 a year, which out of a 150,000 a year salary is nothing.

Answer: Agreed it should be issued to them or just extra pay.

Question: Which of the following is not an additional expense when dining out? Which of the following is not an additional expense when dining out? sales tax tip gratuity utilities

Answer: Utilities. By the way, tip and gratuity mean the same thing.

Question: I plan to buy my 1st home what other expenses will I have? Can someone please list the additional expenses associated w/ buying a house. Please include utilities and insurance. ex. cable, gas, electric, water, waste and sewage....

Answer: Property tax Homeowner's insurance Valuable property insurance (for things like cameras, jewelry, musical instruments) Cable/satellite Internet Phone Water/sewer Gas/electric trash recycling HOA dues HOA special assessments (like for park upgrades or extra road signs) Upkeep on the home, including maintenance like Painting, landscaping, and cleaning of the house Carpet Cleaning Some cities require certain annual inspections (at a fee, of course)

Question: How much could I get in additional federal funding? I'm currently enrolled in an MBA program, and I was told that I could get additional federal funding on top of the loans I already have. I'm thinking about doing this because I could use the additional funding to pay off my credit card debt and even though I would still have to pay back the loan, it would be at a lower interest rate. Do any of you have experience with using additional federal funding for living expenses? How much did you get? Any and all answers are appreciated. Thank you!

Answer: Exactly what kind of "addtional federal funding" was this person talking about? Through the school? Unless he/she can come up with a name of a program or something, there is not much anyone can do besides guess at your question. I'm assuming they are talking about more loans....joy! PS: you can't use federal finanical aid to pay off credit cards. It's NEVER a good idea to use debt to pay off debt.

Question: Any painters out there. Is worth the expense and additional cleanup to by a power roller or airless sprayer? I have a 1700 square foot house and 13 foot ceilings in about half. Need to paint ceilings and walls throughout.

Answer: If you don't think you will use the roller or sprayer again after this job, rent one. Use the sprayer but remember there will be a lot of masking so you don't overspray windows and the floor.

Question: can a business deduct the cost of an employee's daycare expenses? a company wants to pay an employee's daycare expenses. does this need to be added to the employee's payroll so that the company and employee needs to pay additional fica expense? or does this fall under a 1099 category? or can the business just simply consider this a business reimbursement? can you provide me backup or circular information for your answer? thank you.

Answer: IRS pub 15-b. You NEVER issue a 1099 to an employee. Everything goes through the W-2.

Question: Additional earnings, Paying Tax, Claiming Expenses ? My hobby gives me a turn over of about £5000 per year, I want to start to pay tax on it. What can i claim back, expenses, receipts for materials etc. Any advice would be grateful because i have no idea ?

Answer: Would need to know nature of hobby, and what expenses you incur. Maybe you should go to see an accountant.

Question: What is the procedure to use my 401k funds to pay for my college expenses ? I am planning to work in my current position for two years and then go to school for a full time MBA graduate degree. Can I contribute to my company's 401k plan now and then withdraw the amount after 2 years to fund my college expenses without being subjected to the additional 10% penalty ? For this to happen, do I have to roll over the 401k savings to an IRA first, and then make the withdrawal for college expenses ? Are there any expenses involved in this process ?

Answer: The easiest thing to do would be to roll over the 401(k) into an IRA. Not all 401(k)'s offer hardship withdrawals (all IRAs do) and you may still be subject to the 10% penalty under the 401(k) (but not under the IRA). Also, check your company's vesting schedule. If you are not vested within two years, there is no advantage to contributing to the 401(k) as your withdrawal will be taxed at ordinary income levels (though going full time may lower your tax bracket, saving you a little money) and you will not receive the employer match.

Question: my opinion child support is used for food,shelter,school related expenses, medical is an additional courtorder? MEDICAL IS A SEPERATE COURT ORDER BECAUSE SUPPORT ONLEY SPREADS SO THIN ESPECIALLY WHEN THE PARENT PAYING IS NOT CONSISTANT

Answer: Generally there's one court order for child support, although often the non-custodial parent is ordered to carry medical insurance on the child.

Question: Can I get a pell grant and additional student loans for online college? I am trying to decide if I should do the online college thing or if I should attend a traditional college? The main consideration would be the loans. Would I be able to get a pell grant for online college and then take out additional student loans to help with living expenses?

Answer: As long as you are taking classes at an accredited institution (online or offline), you may apply for federal financial aid which includes grants and/or loans. If your school is accredited, they will provide you with a school code in which you will need to put in your financial aid application. Search for your school's school code here: http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet If your school is not accredited, you may not apply for federal financial aid.

Question: Can you write-off any expenses of hosting an exchange student on your taxes? I am paid a monthly amount by a local school for hosting an exchange student in my home. At year-end I am 1099'd and need to report the amount as taxable income. Can I offset this additional income tax with any write-off of expenses incurred, like for providing food, heat, water, etc.?

Answer: Actually, there is a deduction available under some circumstances, if you itemize. See page 152 of IRS Publication 17 under the heading "Expenses Paid for Student Living with You". If you qualify, the deduction would be itemized as a charitable deduction.