refinance mortgage

While I was at Furry Fiesta, I ran a panel on the business side of art/small business practices. I got a few questions during and after the panel that I couldn’t answer at the time, but I have since found the answer to them! So what the hey, I though I’d go ahead and answer them here.

1.) I thought I read somewhere that if you are an S-corporation, you don’t have to pay the self-employment tax (that is, the other half of your social security tax which your employer normally withholds). Are you sure you have to pay that?

So, the answer is that every person has to pay social security tax. Probably the confusion stems from this: if you are running a sole proprietorship, you and your business are the same entity, and you/your business pays the social security tax. However, if your business is an S-corp, you and your business are not the same entity; your business does not pay social security tax - however, YOU still have to file a 1040 (a personal tax return) and you are responsible for paying your social security tax. 

As for trying to say that the business’s income is the business’s assets and not your income, I don’t know. If that’s a thing that can be done, probably refer to question 3, on the drawbacks of appearing to have no income.

Short answer: yes, you are responsible for your social security tax if you have had any income.

2.) Do you think there would be a way for you to make your cats your business’s mascots, so that the big vet bills you’ve had could be a business expense?

I already knew this was a “no” in our case but I wanted to look into the specifics. An animal can count as a business asset, and thus its expenses as a business expense, but only if you can show that the animal is necessary for the day-to-day functioning of your business. This is the case for things like livestock, working farm animals, performance animals (circuses, etc), and recreational businesses that use animals (horse cart rides, pony rides).

3.) (An extended explanation about some method by which a business hides their profits and pays no taxes, which sounded like money laundering or tax evasion and I didn’t understand it at all)

I think the thing being described to me was a method of “zero-ing out” the business’s net profits. Apparently a lot of businesses do this - basically, find a way to make the business’s income minus the business’s expenses equal 0. There are, apparently, ways to do this that are technically legitimate and won’t get you thrown in jail or filing for bankruptcy, but it would be a question for a clever accountant.

That said - and maybe I’m wrong about this, but I can’t figure how else it would work - if you show that your business made no income and thus YOU made no income, yes you would avoid paying taxes. However, I think you would also not be eligible for any kind of credit. When applying for a credit card or loan or refinance, the financial institution will usually look at your debt-to-income ratio for the last two years. If on paper you have no income, you probably aren’t going to be approved for anything (I don’t know how loans based on collateral work, it’s never been an option anytime I’ve applied for a loan). 

As a real-life example, I’m hoping I can refinance my mortgage sometime. They’ll want to see a debt-to-income ratio of probably no more than 30%. The lower the percentage, the better the interest rate. So for me, zeroing-out isn’t really a good option, and in fact we’ve found ourselves wrestling with the idea of making our income look better vs. ending up with a bigger tax bill. 

OKAY.

So Wells Fargo emailed about the check that was returned the first time and charged me for a “2nd” NSF return. It was only one, it was only the one we already knew about that was already debited.

It’s just Wells Fargo sucks and interest rates have gone back up since I’ve officially owned for two years and earned some equity, so I can’t refinance my mortgage with another bank.

Ok. Phew!

Sorry for scaring you tenants. It’s just that WF sucks.

The Storage Unit - Chapter 1

“The Storage Unit”: Chapter 1

By: @2momsmakearight

Rating: PG13

Summary: Just another secret Mulder has been keeping from Scully.

Spoilers: Takes place post TINH, and pre- DeadAlive

Notes: Written as part of the @txf-fic-chicks birthday challenge, this story has grown exponentially and will become the first part in a LARGER SERIES. No beta was used in the writing of this story, so all mistakes are mine. Be gentle, I’ve had awful writer’s block. But I’m glad to be back. I feel really excited about the prospects of this story and where it will go. Bummed it’s only rated PG-13? Don’t be. Buckle up, baby. This is only the beginning. 

—-

She sits in the rental car, nervously fidgeting in the passenger seat as they exit the highway. A hand absently rubs at the gentle swell of her belly, finally showing almost six months into her pregnancy. Agent Doggett and Skinner had both insisted on being with her for this trip, and while she had initially put up resistance, her stance firm and solid as she rebuked them of their chivalry, a little part of her was glad they were there, relieved even, afraid of what she might find in that storage locker.

It had been a fluke. Finding the bill. She normally threw out the junk mail that littered his mail box, but for whatever reason, she had decided to weed through it, separating the pizza coupons from the credit card offers from the mortgage refinance postcards. Even six weeks since his death, and five since he was taken, she still wasn’t ready to pack up his apartment. His estate paid the rent. She knew it was a waste of money, silly even to hold onto it like she was. But she didn’t care.  There were simply too many memories she wasn’t ready to let go of.

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