Loaning Money to Your Children is Suddenly a Wise Investment

2011 federal law taxes estates exceeding $1 million for an individual or $2 million for a married couple at as much as 55 percent. Any gift to an individual of more than $13,000 in any given year may also be taxed as much as 45 percent with the exception of a $1 million lifetime exclusion per donor. For any individual concerned about these tax consequences, intra-family loans can be used for estate planning purposes, since any realized gains will be treated as free of all estate and gift taxes.

During our preliminary consultation with all of our estate planning clients, our firm will determine if our client is subject to the estate tax and if they can use intra-family loans to reduce the value of their estates. The appreciation of any investment made with the loan accrues outside of our client’s estate, as long as it is above the IRS rate. Rates for intra-family loans have declined as much as 53 percent since 2008. Since the interest rates are low and most asset values -such as stocks and real estate- are depressed, there is a much greater possibility that any investments purchased with an intra-family loan in 2010 will appreciate more than the loan’s cost.

The rate for a three year intra-family loan made in January 2010 is currently 0.57 percent. The rate is 2.45 percent for a loan of three years to nine years and 4.11 percent for a loan of nine years or more. These rates compare favorably with an average rate of 10.55 percent for a personal bank loan and 12.51 percent for a credit-union loan.

Parents can loan their children money to buy a business and the children can repay the loan using profits from the firm. Any future appreciation or income derived from the business beyond the loan amount are then considered part of the children’s estate and the parents’ estate remains protected. Moreover, any amount above the 1.65 interest rate will pass to the children free of all estate and gift taxes.

Family members should be aware the loans must be repaid in full with interest at the rate specified by the IRS. If the borrower doesn’t repay, it may be considered a gift subject to the gift tax.

Free Business Finance Software

Small and medium enterprises face most of their difficulties when they start to manage their cash flows and financing decisions. The characteristics of SMEs around the globe, is a single operator of the business. And this individual in most cases specializes on the core skills and masters the value programs for the SMEs operating at specialized niche level. But he/she lacks proper financial knowledge. To aid and help these people now-a-days several organizations have started to distribute free business finance software over the internet. This software allows them to structure their cash flows in proper accounting or financial reporting format after analysis. Reports thus generated with the use of this software help the business to flourish.

The need of using free business finance software on a SME context is immense. Financing is among the core functions of any business activity. These software programs provide a structure and govern all the financing activities in light of an equilibrium situation where optimizations of resources are main objective and help to identify the breakeven point. This software helps in the following areas of a business and following are the advantages of using it:

I. managing cash flows
II. analyzing business growth
III. budgeting
IV. investment analysis
V. report generation
VI. record keeping
VII. providing right information
VIII. expediting decision making process
IX. managing inventory
X. cost analysis

To derive the complete advantage of the free software, the user needs to have preliminary idea of several financing terms and analytic skills of financial reports. It is a tool to conduct better business irrespective of the industry. The most amazing aspect is that this software is at present available for specified industry. The embedded information is the stored data and terms used in specific industry.

As nothing comes in free in this world there are also some limitations to this free finance software as below:

I. most of this software is developed in the context of different economies
II. most of the analysis programmed are from various finance school of thought and the analysis are done on various methods rather than widely used ones
III. this finance software are for free distribution over the internet only, you can not get a copy from a software seller
IV. corrupted or mal ware are often downloaded along with these free business software
V. advertisements are programmed with such business finance software that suddenly covers the computer screen and affects smooth functioning of the operations
VI. users are asked to go through the ‘read me’ files for instructions on how to use the software, but these instructions or user manuals rarely include graphical images for clear understanding
VII. requires regular update on some cases
VIII. have limited access in terms of time and mostly the demo version of this software are distributed over the internet as free software.

The software has certain demerits along with risk of information security. It is not wise for a businessman to totally rely on his finance software. In fact it will be no wonder if users of such business package start to see their secret information, credit card details, and important password are used and thus his online incomes starts to vanish in the air or pirated online. Security has to be the main concern before using free business finance package and checking whether it is from a certified developer.

With growing need for a true and perfect helpful business package, we believe soon world reputed developers will bring only such software for free distribution, which will overcome all the disputes and debates.

It’s Hard to Find an Easy Online Business!

It’s hard to find an easy online business when you have been broke and unemployed like I have the last two years. Trying to find an easy online business is even harder when you don’t know where to look. Even harder when you are low on funds.

It’s hard to find an online business when you ‘ve been broke and unemployed like I had been the last two years. This day and age the economy isn’t helping the job market either. So I set out to find and easy online business and the key word there is EASY. Nothing is ever easy when there are millions of people doing the same thing, as you are online.

All these opportunities out there only confused me all the more I tried. Some wanted too much of my personal information before even telling me about the business! No way was I going to give out my family and friends’ email addresses and phone numbers. Who were they kidding?! I was running out of time and I needed to find an easy online business fast!

I was running out of money too. So this business needed to have a turnkey system for low startup. I didn’t want to go yet another month trying to decide whether to pay my electric bill or eat. My savings was dropping fast. It is very hard to find an easy online business that I could understand its concept and products too. And I didn’t want to do another nutrition company and push pills. (After that company I decided to go organic.)

Just when I was about to lose hope I found it. It was easy to find an online business when you know where to look. Well it took me some time to find it but it had everything I was looking for: an easy program to follow, low investment, and a turnkey system for residual income. My search was over.