How a Promissory Note Works A promissory note can be either secured or unsecured. An unsecured promissory note pertains to a loan that’s made based solely on the maker’s ability to repay. A secured promissory note means the loan is secured by an item of value, such as a house. Types of Promissory Notes There are several types of promissory notes. The differences hinge on the type of loan involved and the information the note contains:...
For example, say you are married. Your spouse is 62 and gets a reverse mortgage on your shared home. However, you are 55 and you don’t qualify to get a reverse mortgage yet, as the minimum age is 62. As a result, you become a non-borrowing spouse. If your spouse passes away, you would become a surviving non-borrowing spouse. How a Surviving Non-Borrowing Spouse Works When a spouse with a reverse mortgage passes away, leaving behind a surviving non-borrowing spouse, what happens to the home and the outstanding loan depends on the terms of the loan....
Learn about TANs, how they are issued, and how the notes function to fund government projects. Definition and Examples of Tax Anticipation Notes Tax anticipation notes (TANs) are municipal securities issued by state, county, or local governments to raise money for capital infrastructure projects. TANs are short-term notes, typically with a maturity rate of a year or less. They are used to finance immediate or near-term local capital project needs....
Tax sales can also occur when individuals or other entities fail to pay taxes owed to the Internal Revenue Service (IRS). The IRS can seize a taxpayer’s property in a process known as a levy and conduct a tax sale auction. Let’s say you own a home in New Jersey. You owe $6,000 in property taxes per year on that home, payable in four quarterly installments. Due to financial hardship, you’re unable to make those payments....
For example, if a taxpayer itemizes their deductions on their individual tax return, they are required to submit Schedule A as part of their tax return. Examples of Tax Schedules While some taxpayers have relatively simple tax returns that can be completed by just using the two-page Form 1040, taxpayers with more complicated tax situations will need to complete tax schedules as part of their tax return. The IRS considers these tax schedules to be an essential part of the tax return....
Alternate name: double indemnity benefit How an Accidental Death Benefit Works If you die because of an accident that occurs when you’re performing work-related duties, your designated beneficiary will receive an accidental death benefit payout in addition to your life insurance benefit. The on-the-job accident must not be a result of the insured’s willful negligence. Because the accidental benefit payout is made to your last designated beneficiary, it’s important that you constantly review your retirement information to ascertain whether your beneficiary designations reflect your current desires....
A named perils policy covers only the risks listed on the policy. A combination policy, meanwhile, provides all-risk coverage on your home but covers only the named perils on your belongings. Here’s When an All-Risk Policy Makes a Difference Say a friend comes over to help you install a TV in your den. They drop the TV, damaging both the TV and the floor. An all-risk policy would cover the damage to both, because it was sudden and accidental, and not excluded....
Escrow agents don’t work for the buyer or the seller; they must remain impartial during a transaction. They typically work for title companies, mortgage lenders, or credit unions. As a neutral party, the duties of an escrow agent are to both the seller and the buyer. These include the duty to make a full disclosure and to exercise a high degree of care to the property in the escrow account....
To see how an exchange ratio works in practice, look to the 2018 acquisition of Time Warner by AT&T, which was announced nearly two years prior. The companies used the volume-weighted averages of each company’s stock price for the 15 consecutive trading days before the close of the transaction. Per the agreement, each Time Warner shareholder received 1.437 shares of AT&T common stock for each share of Time Warner stock they owned....
The card typically expires on the last day of the month, and can no longer be used for payment after that date. For example, if your card expires in January 2022, it won’t work beginning Feb. 1, 2022. How Expired Cards Work Most credit or debit cards have an expiration month and year printed somewhere on the card, typically in MM/YY format. The exact location depends on the card issuer....
Employees paid on an hourly basis are paid for actual hours worked. Unlike many salaried employees, hours per week may fluctuate based on a worker’s weekly schedule or rotated shifts, and therefore wages can vary for that employee from week to week. Workers who are paid on an hourly basis are required to be paid minimum wage at the least. These rates vary from state to state, and employers are required to pay either the state or federal minimum wage—whichever is higher....
You would likely file an individual tax return if you are one of the following: A single filerMarried filing jointlyMarried filing separatelyA head of householdA qualifying widow or widower The core of a federal individual tax return is generally IRS Form 1040 and, in some cases, Form 1040-SR. This form is used to report information such as wages to determine your taxable income and the total amount of tax owed....
Individuals do not necessarily categorize themselves as oligarchs. Instead, the media and people from outside the oligarchy may label some businesspeople and other powerful members of society this. It is typically seen as a criticism of people who have a large influence on the government. When people reference oligarchs, they often are referring to Russians who have large influences over their national government. They play active roles in advising the Russian government and parliament on legislative changes....
Bid size in investing is often an important number for traders selling a significant amount of shares. Here’s a more in-depth look at what bid size is, how it works, and where you can find it. Definition and Examples of Bid Size in Investing Bid size in investing is the amount of shares an investor is willing to buy at the best current bid price. Bid sizes are presented in lots, which are typically 100 shares....
For example, if you are applying for a credit card with an “exceptional” credit score of above 800, you will likely qualify for the lowest interest rates. However, if your credit score is “poor,” or below 579, your rates will most likely be much higher, assuming you’re approved for the credit card at all. One of the best ways to improve your credit score is by making your payments for loans and credit cards on time....
You can’t use the 1099-MISC form for payments you make to nonemployees (independent contractors and others who provide services to your business). You must file Form 1099-NEC (for nonemployee compensation) to report these payments. Who Uses Form 1099-MISC? If you are in a trade or business, you must use 1099-MISC forms to report the amount you have paid to others during the year. The IRS considers “trade or business” to include: Operating for gain or profit A non-profit organization, including 501(c)3 and (d) organizations A trust of a qualified employer pension or profit-sharing plan A non-exempt farmers’ cooperative A widely held fixed investment trust...
The IRS requires taxpayers to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return for gifts made in excess of the annual gift-tax exclusion limit. For 2022, that limit is $16,000 per person for single filers. So, for example, a single parent may give their child $16,000 in 2022 to buy a car without triggering the gift tax. The gift-splitting rule allows a married couple who files a joint return to double their annual gift-tax exclusion limit....
For example, if you have graduated from a bachelor’s degree program but are taking classes half-time for a master’s degree, you can get an in-school deferment. How In-School Deferment Works It’s tough to cover your expenses, much less pay down debt, when you’re a student. Studying, attending class, and completing your coursework leave little time for earning an income. If you have existing student debt and attend school, in-school deferment can give you the breathing room you need to continue your education without having to make your monthly loan payments....
A leader inspires others to act while simultaneously directing the way that they act. They must be personable enough for others to follow their lead, and they must have the critical thinking skills to know the best way to use the resources at an organization’s disposal. In business, leadership is linked to performance, and any leadership definition has to take that into account. Therefore, while leadership isn’t intrinsically linked to profit, those who are viewed as effective leaders in corporate contexts are the ones who increase their company’s bottom line....
To calculate the rate of return, you divide the total net profit by the beginning balance and multiply that by 100 to get the percentage growth (or loss) of your investment. Let’s say you put $5,000 into an exchange-traded fund (ETF). A year later, that money is worth $5,500, making your total profit $500 with a positive annual rate of return of 10%. Conversely, if you put $5,000 into an ETF and a year later that money is worth $4,500 your total loss is $500 and a negative annual rate of return of 10%....
