tax financing

2

Not to mention the number of private merit -based scholarships also available to non-citizens without student visas (or any legal residency status) is very very limited and often barely covers anything.

Things that should be taught in public schools
  • Basic cooking
  • Personal finance (taxes, balancing a budget, retirement, etc.)
  • Better sex ed
  • Human sexuality
  • CPR and basic first aid
  • Mental health management
  • Resume writing
  • Interviewing skills

And so many more practical skills that you can’t just acquire by googling for a few minutes or going to a gym.

anonymous asked:

I want to live by myself when I move out of my parent's place but I'm really afraid of money problems? I'm afraid that the only place I can afford will be in the ghetto and it'll all be torn apart and I'll only be allowed to eat one granola bar a week. I'm really stressing out about this. I don't know anything about after school life. I don't know anything about paying bills or how to buy an apartment and it's really scaring me. is there anything you know that can help me?

HI darling,

I’ve actually got a super wonderful masterpost for you to check out:

Home

Money

Health

Emergency

Job

Travel

Better You

Apartments/Houses/Moving

Education

Finances

Job Hunting

Life Skills

Miscellaneous

Relationships

Travel & Vehicles


Other Blog Features

Asks I’ll Probably Need to Refer People to Later

Adult Cheat Sheet:

Once you’ve looked over all those cool links, I have some general advice for you on how you can have some sort of support system going for you:

Reasons to move out of home

You may decide to leave home for many different reasons, including:

  • wishing to live independently
  • location difficulties – for example, the need to move closer to university
  • conflict with your parents
  • being asked to leave by your parents.

Issues to consider when moving out of home

It’s common to be a little unsure when you make a decision like leaving home. You may choose to move, but find that you face problems you didn’t anticipate, such as:

  • Unreadiness – you may find you are not quite ready to handle all the responsibilities.
  • Money worries – bills including rent, utilities like gas and electricity and the cost of groceries may catch you by surprise, especially if you are used to your parents providing for everything. Debt may become an issue.
  • Flatmate problems – issues such as paying bills on time, sharing housework equally, friends who never pay board, but stay anyway, and lifestyle incompatibilities (such as a non-drug-user flatting with a drug user) may result in hostilities and arguments.

Your parents may be worried

Think about how your parents may be feeling and talk with them if they are worried about you. Most parents want their children to be happy and independent, but they might be concerned about a lot of different things. For example:

  • They may worry that you are not ready.
  • They may be sad because they will miss you.
  • They may think you shouldn’t leave home until you are married or have bought a house.
  • They may be concerned about the people you have chosen to live with.

Reassure your parents that you will keep in touch and visit regularly. Try to leave on a positive note. Hopefully, they are happy about your plans and support your decision.

Tips for a successful move

Tips include:

  • Don’t make a rash decision – consider the situation carefully. Are you ready to live independently? Do you make enough money to support yourself? Are you moving out for the right reasons?
  • Draw up a realistic budget – don’t forget to include ‘hidden’ expenses such as the property’s security deposit or bond (usually four weeks’ rent), connection fees for utilities, and home and contents insurance.
  • Communicate – avoid misunderstandings, hostilities and arguments by talking openly and respectfully about your concerns with flatmates and parents. Make sure you’re open to their point of view too – getting along is a two-way street.
  • Keep in touch – talk to your parents about regular home visits: for example, having Sunday night dinner together every week.
  • Work out acceptable behaviour – if your parents don’t like your flatmate(s), find out why. It is usually the behaviour rather than the person that causes offence (for example, swearing or smoking). Out of respect for your parents, ask your flatmate(s) to be on their best behaviour when your parents visit and do the same for them.
  • Ask for help – if things are becoming difficult, don’t be too proud to ask your parents for help. They have a lot of life experience.

If your family home does not provide support

Not everyone who leaves home can return home or ask their parents for help in times of trouble. If you have been thrown out of home or left home to escape abuse or conflict, you may be too young or unprepared to cope.

If you are a fostered child, you will have to leave the state-care system when you turn 18, but you may not be ready to make the sudden transition to independence.

If you need support, help is available from a range of community and government organisations. Assistance includes emergency accommodation and food vouchers. If you can’t call your parents or foster parents, call one of the associations below for information, advice and assistance.

Where to get help

  • Your doctor
  • Kids Helpline Tel. 1800 55 1800
  • Lifeline Tel. 13 11 44
  • Home Ground Services Tel. 1800 048 325
  • Relationships Australia Tel. 1300 364 277
  • Centrelink Crisis or Special Help Tel. 13 28 50
  • Tenants Union of Victoria Tel. (03) 9416 2577

Things to remember

  • Try to solve any problems before you leave home. Don’t leave because of a fight or other family difficulty if you can possibly avoid it.
  • Draw up a realistic budget that includes ‘hidden’ expenses, such as bond, connection fees for utilities, and home and contents insurance.
  • Remember that you can get help from a range of community and government organizations. 

(source)

Keep me updated? xx

10 Reasons Why I Think I Made My Worst Investments Ever

I’ve been thinking about my investment style and how it’s changed over the years.

My first few years were pretty rough. I dove right in. I put some money in a brokerage account and just started. I was buying and selling with really no real idea. It was pretty reckless. But everyone starts somewhere.

The other day I started my taxes. That had me looking back at some old trades. Some of them are just awful. But hilarious. I had to include two examples in this post (see them below). I hope by writing this all down I’ll avoid making these mistakes in the future:

1. The P/E ratio is the absolute worst metric ever. It needs to be burned off the front page of every finance website. It is a backward looking metric. The stock market is forward looking. WTF. Avoid this. If a company has a really low P/E ratio, it generally has one for a reason.

2. Stay away from any and all foreign exchange risk. If you buy stock in an ADR or a company based in a country outside the US, and that country’s currency takes a hit, your portfolio is going to feel it. Managing investments is hard enough, you should not have to also worry about currency fluctuations.

3. Picking bottoms and calling tops is Russian roulette. A stock that’s down 50% from its highs can still drop another 50% from there. A stock that’s up 100% over a year can still climb another 100% in the next year.

Here’s one trade where I tried to be the man and short NVIDIA after a massive run

And here’s another. Yes, I actually said this. I thought the tech trade was over

4. Know where you’re going to get out before you make the investment. This makes life much easier. Before you buy a stock, know why and when you’re going to cut it out of your life if it goes against you. Don’t get trapped. Don’t waste time.

5. You need to be a master at avoiding FOMO (fear of missing out). There’s nothing worse than watching a stock spike, and so you buy it. You don’t want to miss out. You just need to join in. F that. Don’t do it. Chasing a stock rarely ever works.

6. Never buy a stock because of buyout rumors or because you think it will get acquired. You want to own strong companies not rumors or theories.

7. Always know your shareholder yield. Does the company pay dividends or have a history of buying back stock? That’s money being returned to you. If there’s no shareholder yield (dividends or buybacks), you’re basically left with a bet on growth. Know the difference. It will change your timeframe and expectations for any single investment.

8. You can’t ignore the overall market. In bear markets, they say all correlations go to 1. It’s hard to find quality stocks in bear markets. Everyone makes money in bull markets so don’t let it get to your head.

9. Study the tax code. It will immediately change the way you invest or trade. Trading can be a lot of fun. But at tax time it sucks. It’s a lot of work and even more taxes. You can save up to 20% on capital gains taxes when you hold a stock for more than a year.

10. The Internet is your best friend in the world of financial markets. But you have to double check everything. There’s so much free research available. There are also so many smart people writing and sharing ideas each day. But you still need to double check it all. If you like a trading or investing idea from someone online, make sure you corroborate the data yourself.

Android Companion AU

Lucis is an advanced civilization, the crown city of Insomnia is self sustaining and generally safe, but the limited land with which to build on can barely fit the growing population. You are an independent adult who had landed a dream job in the heart of the city, your parents bid you farewell from their farmhouse just east of Lestallum, and now you are living alone in a very crowded, claustrophobic, and constantly noisy business district.

One day, you find an offer of comfort in your solitary life:

Model: NOCT-1.5 (limited number of units produced):

  • This model is the cutting-edge technology of all companions available in the market, the be-all end-all royalty of the trade. it is never advertised because very few people can afford it, but you’re a tech nerd and you’ve heard of the legends
  • It’s usually ridiculously expensive and waaaay out of your range, for some reason, this one is on sharp discount in your local computer shop
  • the clerk tells you it’s on a discount because it has been taken out of the box by a previous owner and returned, but is in top shape otherwise
  • it’s a small investment even after the price cut and you’re seriously trying to talk yourself out of it, but the more you look at the android behind the sheer plastic, the more you are entranced by the sharp features and slim design.
  • a part of you hungers to see what the eyes look like once turned on, and what kinds of apps and functions you can install on such a rare product
  • you take it home, and the moment you plug it- him in, bright piercing eyes glow red for three seconds, and then mellow out to a soft crystal blue

Keep reading

Reblog if you would buy a “How to adult book”

It would include detailed info about: 

  • taxes
  • anything relating to medicine (Insurance, making appointments, who to call, emergency situations etc)
  • Legal/police situations
  • credit scores 
  • renting/buying a home 
  • banking 101
  • how to keep your finances straight 
  • cleaning/cooking
  • professional attire/etiquette 
youtube

WHY WE SHOULD ABOLISH THE DEBT CEILING 

Congressional Democrats have pulled a fast one on Republicans by striking a deal with Trump to raise the federal debt ceiling only until the end of the year. This will give them bargaining leverage in December to strike a bigger bargain with Republicans: Democrats will agree to raise the debt ceiling then in return for Republican cooperation on legalizing Dreamers (unauthorized immigrants brought into the U.S. as children), making small but necessary fixes in the Affordable Care act, and other things Democrats seek.  

Raising the debt ceiling is always a political football, used by whichever party is in the minority to extract concessions from the majority party or from the majority party’s president.

The debt ceiling is how much the government is allowed to borrow. It shouldn’t be a political football. It should be abolished. It serves absolutely no purpose.

When the debt ceiling was first adopted in 1917, it might have been a useful way to prevent a president from spending however much he wanted. But since 1974, Congress has had a formal budget process to control spending and the taxes needed to finance it.

There’s no reason for Congress to authorize borrowing for spending that Congress has already approved, especially when a failure to lift the debt ceiling would be so horrific.

Having a debt ceiling doesn’t discipline government, anyway. The national debt is obligations government has already made to those who lent it money. Discipline has to do with setting spending limits and legislating tax increases, not penalizing the lenders.

Which is why most modern democracies don’t have debt ceilings. Britain, France, Germany, Canada, Australia – they do just fine without explicit borrowing limits.

Even more basically, the nation’s debt is a meaningless figure without reference to the size of the overall economy and the pace of economic growth.

After World War II, America’s debt was larger than our entire Gross Domestic Product, but we grew so much so fast in the 1950s and 1960s that the debt kept shrinking in proportion. 

Today’s debt is about 77 percent of our total national product. The reason it’s a problem is it’s growing faster than the economy is growing, so it’s on the way to becoming larger and larger in proportion.

This is what we ought to be focusing on. Fighting over whether or not to raise the debt ceiling is a meaningless and dangerous distraction. So abolish it.

The Conservative Party Vote

If you signed up to vote in the Conservative Party for leadership, here is a run down I’ve done of what each Candidate on the Ballot stands for. Also, remember when Voting, to only VOTE FOR THE TOP TEN PEOPLE not anyone you wouldn’t choose! Since there is 14 candidates, you only have 10 top spots for voting.

Chris ALEXANDER: Former MP who lost his seat last election, voted against Stephen Woodworth’s Motion 312 (to study the definition of human life), so NOT pro-life (hopefully pro-choice!). Has spoken out against M-103 (on Islamophobia). Didn’t have the opportunity to vote on the issue of assisted suicide, but didn’t oppose or promise to re-visit it. Did pledge as immigration minister to favour refugee claims from LGBT Russians after the country introduced its “gay propaganda” law. Wants to find resources for Indigenous Peoples   because “If you can find resources for Syrian refugees, you can find resources for indigenous people.“

Maxime BERNIER:  Does not have a pro-life voting record, and is pro-choice. He would welcome debate on other ideas, including abortion, supply management and privatizing Canada Post. Voted against C-14 which legalized assisted suicide. Bernier supported Motion 12, which would have re-opened debate on the definition of marriage in 2006, he spoke out in favour of dropping the old definition at the 2016 convention. He marched in Toronto’s pride last summer. Unfortunately he has tweeted:  “Our immigration policy should not aim to change the cultural character and social fabric of Canada, as radical proponents of multiculturalism want.” AKA: He’s xenophobic. Wants to cap immigration to 250,000 per year. Wants to support 35 million Canadians not Agriculture producers, believes in a mixed health care system, with private and public, elimination of federal health taxes and make each province in charge of their own services. Wants the military to get 2% - not sure if that’s 2% of NATO target or Budget.  Bernier says indigenous people should be responsible for their own prosperity rather than the government giving millions of dollars. There should be property rights on reserves and it’s unacceptable to still have boil water advisories in First Nations communities, says Quebecers are highest taxed and he would lower the tax so they can come out of poverty, he has been accused of being too much like Trudeau, apparently.

Steven BLANEY:  “While I support the position of our party not to reopen the debate, I respect the freedom of members on matter(s) of conscience.” Seems Pro-Choice. While he voted FOR Motion 12, he later retracted and said he was open for discussion on the meaning of marriage. Voted against C-14, and would rather see people die by their own will instead of through legally assisted suicide. Seems against Immigration, as well. Also wants women to uncover their face during ceremonies, and wants to “take back power” of Canada.

Michael CHONG: Best candidate so far, Pro-Immigration, Pro-choice, Pro-Same-sex Marraige, Pro-Transgendered rights, Pro Assisted Suicide. Really good french, apparently. Supports Indigenous peoples and wants them to have more rights, education and funding. 

Kellie LEITCH: Pro-life, Anti-Immigration, Anti-Assisted Suicide, hateful rhetoric typical xenophobic trying to promote “Canadian Values” for screening of immigrants. PRO TRUMP. Approves dismantling of health care and thinks Climate change is a hoax.

Pierre LEMIEUX: Does not support any access to abortion under any circumstances! Anti-same sex marrage, and assisted suicide. Wants to repeal Transgendered rights bill, thinks Canadians are worried about terrorists and wants to improve security, plus reduce immigration and wants immigrants to speak french or english to be let in.

Deepak OBHRAI:  Pro-Immigration, Pro-choice, Pro-Same-sex Marraige - believes in equal human rights for all, Pro-Transgendered rights, Pro Assisted Suicide. Apparently his french is bad, though. Supports Indigenous peoples and wants them to see more rights and funding. 

Kevin O’LEARY: Our of the race, thank god. 

Erin O’TOOLE: Pro-life but says he will not bring his beliefs into legislation, meaning he wouldn’t stop abortions, Supports Same-sex marriage, against assisted suicide, wants immigration levels to be “stable,” and needs to maintain public security, doesn’t like that Canadian’s pay too many taxes and has a health care plan he wants to introduce, and supports supply management. 

Rick PETERSON: Vancouverite, fluent in french, business man, not pro-life, “knows how to balance a budget,” supports same sex marriage, supports assisted suicide, says he wants to show Trump that they want American investments, wants to give agriculture tax breaks, wants to finance security to stop “bad people” from coming to Canada, and let the “good ones” in, wants to eliminate corporate business tax and believes this will help Indigenous peoples, believes that we will grow poor under Trudeau, just like Trudeau’s father let down Canada before.

Lise RAITT: Not generally concidered Pro-life, is for same sex marriage, against assisted suicide, she says Canadian’s are more upset about economic issues not immigration, French is okay but shaky, agreed with Bernier’s statement that  ‘Indigenous Peoples should be responsible for their own prosperity, and not be given money, but that there shouldn’t be water-boiling alerts on reserves,’ but also is more concerned about general economic issues than specific  Indigenous issues. Believes Trudeau will leave debt for her children to pay for and doesn’t want that. 

Andrew SAXTON: Pro-life, spoken against Islamophobia - saying that we need to stop criminals and terrorists from coming in, capping the immigration numbers at 250,000, says he’s a business man and can handle Trump. Seems really shady about putting anything down solid. Says that MP’s should be able to vote with their conscience, but doesn’t want to re-open anything the government has put through already.

Andrew SCHEER: Pro-life, voted in favour of re-opening the debate of what marriage should be considered (wants it to be between a man and a woman), against assisted suicide, wants to focus on security and to integrate immigrants into our communities.

Brad TROST: Pro-life, against same sex marriage, against assisted suicide, wants to work with Trump and says he will not be hard, believes Radical Islam is a clear and present danger to Canadians, thinks the entire system relating to  Indigenous Peoples needs to be redesigned, has very bad French. 

@allthecanadianpolitics

anonymous asked:

How do I adult? When it comes to things like taxes, handling finances and paying bills I'm completely clueless and it makes me feel like a child. I feel scared shitless for the future if I'm this unprepared to deal with the adult world and I'm only 20 years old.

Do you live in the US? I don’t know if I’m the best person to ask, but can give you some general advice I guess.

  • Getting your tax refund feels fucking good!!
  • Taxes only get complicated if you have a lot of assets or sources of income. I assume at 20 you qualify for the 1040ez which is a lot simpler. 
  • My family uses TurboTax which they borrow from the local library. The wait list is always long during tax season, so if you want to use it get on it as soon as you have your W-2 forms. 
  • Track your spending. Sign up for online banking. Sign up for online bill pay. It’s super convenient.
  • Start building credit early by getting a credit card. Use it like a debit card by buying stuff you already have the funds for (ie groceries, gas, bills). Pay it all off each month. I don’t recommend leaving a balance due to interest. Plus there are usually some cash back deals you can take advantage of.
  • Check your credit score once a year. There are free ones.
  • If you are able, build up an emergency funds stash. I would recommend at least enough for a few months of rent and expenses in case you lose your job, have to go to the ER, etc. 
  • If you’re new to this or don’t have stable income I recommend paying really close attention to your spending, bills, etc. After a while you get a feel for how much you generally spend each month. At this point I have automatic payments and I only pay closer attention when I make big ticket purchases I don’t usually make.

Adulthood is just an extension of childhood. It’s just gaining experience. There is a lot I don’t know shit about. No one has a fucking clue my man. You’ll be okay.

HOW TO GROW THE FUCK UP: GUIDES TO LIFE

I know it can be a nightmare to dig through our tags and see all those asks and not the guides. So here is a handy-dandy list of all our “official” posts (plus a list of relevant asks at the end).

Apartments/Houses/Moving

Education

Finances

Job Hunting

Life Skills

Miscellaneous

Relationships

Travel & Vehicles


Other Blog Features

Asks I’ll Probably Need to Refer People to Later

[Note: This post will be updated as new guides are written, please click here to see the full, updated post.]

My headcanons/au masterlist:

-Packmom!Stiles is my number one.

-Stiles is a great chef and baker.

-Puppy piles exist, and Derek hates that they get called that even though he loves all the tactile affection and it makes everyone feel safe.

-Derek is a dark chocolate covered marshmallow: Bitter in the outside and a complete gooey mess on the inside.

-Derek is pack dad, alpha or not.

-Isaac is literally the golden pup. He likes it when people play with his hair.

-Lydia is a badass motherfucker on every occasion and I can’t be convinced otherwise.

#EricaReyesAndVernonBoydDeservedBetter2016

-Isaac is just the cuddliest piece of fluff.

-Jackson being way overprotective of the pack if anyone is mean to them, because he’s the only one who can bully them.

-When Erica is sad she and Stile’s watch Batman movies. She likes to mix popcorn with peanut M&Ms.

-Bisexual!Scott because then Isaac/Scott/Allison ot3

-Lydia has a problem with buying too many different teas.

-Isaac is addicted to extreme couponing.

-Erica is a catty bitch but also super kind to those she loves. Total badass.

-Boyd is a pillar of calm for everyone.

-Scott is megaprotective of Liam because he’s like precious okay.

-Alive!Allison, Alive!Erica, Alive!Boyd

-Please don’t ship Peter times anyone he’s an asshole and gross and just evil.

-Liam and Jackson are really close and they just click as best buds.

-Kira and Malia are into eachother because they both deserve better.

-Kira, Allison, Malia, Lydia, Erica and Mason have girl’s night out a lot. Mason is there as an honorary member.

#Kiradeservedbetter2016

-When Scott, Derek, and Lydia go out of town to get Intel from another pack, Stiles has to soothe Liam, Isaac, and Jackson because they’re damn puppies.

-Scott tries to give Derek and Stile’s alone time every now and then by taking everyone to the park.

-Derek brings Stiles curly fries when he has a bad day.

-Isaac likes to watch marvel movies with Stiles and Scott since Derek and Erica won’t.

-Jackson secretly likes the notebook and is a complete SAP but hides it well.

-Kira is a total klutz but literally makes everyone smile just by existing.

-Erica makes the best koolaid and it drives everyone insane because she’ll never share her secrets.

-Derek buys everyone a leather jacket except Stiles. He’s too turned on by Stiles wearing a red hoodie.

-Lydia does the pack finances and taxes with Mason’s help. Derek and Allison teach everyone hand-to-hand and gun combat. Erica and Malia make sure everyone gets to lacrosse on time and have their stuff since they have the least extracurriculars. Stiles and Isaac are in charge of the groceries because Scott, Erica, and Derek could eat them out of house and home. Everyone helps with chores around the pack house after Derek rebuilds the Hale house and gives everyone a room.

-Jordan is a sassmaster and he Derek like to grill together.

-Stiles loves when Derek leaves hickeys on him. Derek loves doing that.

-Everyone gets a part time job, just a couple hours a week to help pay for food and to have some extra spending money, Derek takes care of everything else.

-Derek rents an art studio to sell his work in town.

-Scott needs tummy rubs on occasion because he eats too many of the things. Isaac and Allison are happy to oblige.

-Liam, Isaac, and Erica are the hardest to wake up in the morning. Stiles and Malia are the easiest.

-Lydia is addicted to buying shoes. Total shoe fetish. But Jackson..is even worse about it.

-Even though the wolves and Kira and Parrish heal fast, Stiles always kisses their cuts and scrapes to make them feel better.

-Kira is a total cosplay geek and she gets Mason and Liam into it too.

-Derek complains his jeans are getting tight because of Stile’s baking. Stiles has no comment except that Derek has a nice ass.

-When it’s your turn in the cookie rotation you don’t get in trouble for fear of losing it.

Money Moves That Build A Retirement

Taking a few small steps toward your retirement may not feel like doing much. But, over time, making the right moves early will help you grow your savings into plenty enough money to retire well and on time. We still have one more money move you should follow.

Sparrows and Lollards: The Historical Parallel

A few weeks back I promised @poorquentyn that I’d write up that comparison between the English heretics known as Lollards, their connection with the Peasants’ Revolt of 1381, and the Sparrows of ASoIaF. It took a bit longer than I’d hoped, but as promised, and for your reading pleasure, the case for why the Lollards and the Peasants’ Revolt is the strongest parallel we’ve got here, and their similarities - theological and political.

I’d also like to thank @meddlingwithdragons for her assistance with this essay.

Keep reading

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. 

Taxes & Canadian Sugar Babies

I get asked this question daily, pertaining to my banking & finances. I’ve mentioned that HK transfers money directly from his account into mine.

Well I have great news! I spoke to my Tax Guy, since tax season is upon us. Well..

“ ALL BANK TRANSFERS IN CANADA ARE NON-TAXABLE! ” ie. The Canadian Gov has to act like it’s not even there! This can literally save you thousands of dollars!

Although….. he said with having all that money in the account, you do have to worry about interest rates, but he said in Canada right now they are so low, it’s not even worth mentioning.

I transfered $15,000 into my Tax Free Savings account (which is the max, for my age), which I now realize I never needed.. but if YOU actually deposit cash, into YOUR account you NEED one, it’s a bank account that isn’t taxed! Though you have a limit, so be wary.

Since transfers are non-taxable there’s no limit to the amount you can be transferred in the year.There’s no “Gift Tax” bullshit, that our American sugar friends deal with.

So if you’re at the level where you’re comfortable enough with giving your SD your full name, and some bank info (Branch, Transfer Code, Bank’s #) Transfers are an amazing option.