Living and working in a foreign country, whether it is temporary or permanent, can be a fulfilling and rewarding experience. Moving to another country, although exciting, does come with some challenges and requires that you learn a bit of new information as it relates to your US taxes. In order to reap the full benefits of living abroad you need to do some research regarding your expatriate tax return obligation before you need to file. No one likes filing their taxes, and certainly no one likes to spend money unnecessarily, so saving money is crucial. This article will provide you with four great ways to save on your US expat taxes.
While you’re living abroad and filing your US taxes, it is important to make sure that you take full advantage of Form 1116 and Forms 2555, otherwise known as the Foreign Tax Credit Form and the Foreign Earned Income Exclusion, respectively. The Foreign Tax Credit gives you a credit on your US expat taxes for the amount of money you have paid in tax to a foreign government. The Foreign Earned Income Exclusion helps you by excluding a big chunk of your foreign earned income from your US taxes. This is important because even as a US expat, all of the income that you make outside the United States is subject to identical tax rates as someone who is working and living inside of the US. That is where Form 2555 comes in. By completing this form, you can exclude up to ,500 USD of income earned abroad from your US expat tax return. While including potential deductions of housing and living expenses, it is possible to counterbalance most if not all of your tax liability in a given calendar year.
The Foreign Tax Credit (or Form 1116) is different than Form 2555 but they work together to help you save money on your expat tax return. It is important to note that many people take a wrong turn when using these two forms by assuming their taxes will be offset by the numbers they have worked out, and they decide not to bother filing their expat taxes at all. Clearly this isn’t going to do you any good! If you earn money abroad you will need to file in order to receive these tax breaks and avoid being hit with penalties.
A second tip for filing your US expatriate tax return is to make sure your Foreign Housing Credit is adjusted for the country you live in. The rates vary from country to country which can drastically affect the end result, so it is extremely important to make sure that this is adjusted. As a US citizen living and working abroad, you may be eligible to deduct some of your housing costs from your income in order to save some money on your taxes. In order to qualify for this deduction, you need to meet the “bona fide residence test” or the “physical presence test.” This test ensures that you are indeed living and working abroad. The IRS allows this deduction because they recognize that you may need to spend more money on housing outside of the US. Generally, the deduction is for a maximum of ,450 or 30% of your Foreign Earned Income Exclusion and you deduct this amount from your gross income for housing costs. As mentioned, this rate is adjustable depending on where you are living. For example, compared to living in the US, places such as London, Paris, Singapore, Hong Kong, Dubai and Perth all qualify for a much higher deduction rate than the standard rate due to the higher costs of living. By being aware of the changing rates associated with your country of residence, you could end up saving a lot of money!
You can also save a lot of money by making sure that the accountant who is filing your expatriate tax return is using the most advantageous foreign exchange conversion dates. When filing your taxes, you can choose different foreign exchange periods such as annually or on a specific day. Making sure you make the right choice as to what period you choose can end up saving you a lot of money in the long run. For example, if you receive a ,000 bonus on June 1st and the foreign exchange rate is lower than the monthly number has been, you may want to use the specific date to translate it into US Dollars (as everything needs to be filed in US dollars).
Finally, it is imperative to hire a qualified expert to prepare your US expat taxes and agree upon and pay one flat fee to the person who is filing your expatriate tax return so that you aren’t surprised by the final bill. It happens all too often that expatriates believe they will be paying one amount only to be hit with extra charges and fees on their final bill. Many companies don’t disclose their prices or they quote you one price only to have add-ons for each additional service. This obviously means that the tax bill can increase over the course of preparing the return, and you do not want to pay more than you can afford or more than you were expecting. You need to find someone you are comfortable dealing with and this likely means a company that has very transparent prices!
As you can see, there are numerous ways to save money on your US expatriate tax return. By understanding the credits and exclusions that are available to you as an expat, you can ensure that you are well informed and knowledgeable about the ways can save you money. For more information about how the various components of an expatriate tax return work please have a look at our new series Your Expat Taxes Explained.
About Greenback Expat Tax Services
Greenback Expat Tax Services specializes in preparation of US Expat Taxes for Americans living abroad. Incorporated in New York, Greenback’s CPAs have 30+ years specialist experience in US expat taxes. We offer a flat fee (9 for a federal return), simple process (we don’t make you do all the work!) and, most importantly CPAs who are experts in the ins-and-outs of expat tax returns. For more information and to download a free guide to US expat taxes, visit www.greenbacktaxservices.com
When you can’t dazzle them with brilliance, baffle them with bullshit. Idiot Harry Reid maintains that paying income tax is voluntary in the US. Harry Reid is the Majority Leader in the US Senate. He’s obviously not very bright. But then again… he is a politician. Interviewer Jan Helfeld does a great job of trying to nail him down but… well, you’ll see. See more bottom Line Interviews by Jan Helfeld at janhelfeld.com Video Rating: 4 / 5
Each April our thoughts turn to the coming of spring and thecoming of the tax man.I hear a lot of people complaining about taxes at this timeof year. Not just that they have to do their taxes andspend hours pouring over old records and trying to figureout indecipherable forms, but also musings and opinionsabout taxes in general.I often hear the opinion expressed that businesses, propertyowners and “rich people” do not pay their fair share oftaxes. And I agree. I agree that they don’t pay their”fair share” as defined in most people’s minds. But I alsothink that in certain circumstances, these businesses andpeople shouldn’t have to pay any taxes.That may sound a bit radical for many people reading this,but allow me to explain my reasoning.First, why are we taxing businesses on their profits?A business exists, whether it is a sole proprietorship or alarge international corporation, to make a profit. Peoplecreate businesses and invest in stocks with the idea thatthey will get a share of the profits. This is the basis ofour system of capitalism. It is the motivation for a freemarketplace and private ownership of property.Why would anyone go to the trouble of starting a businessunless they expected a significant return on theirinvestment of money and time? Why would you bother buyingstock in a company if the company never gave you anydividends (yes, stocks can appreciate, but bear with me)?There comes a point when deciding where to invest your timeand money that you have to figure out how much return youneed to make your effort worthwhile. If you work at a joband earn ,000 a year, how much will your business have tomake to replace your income? How much more do you want itto make for taking the risk of quitting your job andbuilding a business?If you can’t make much more than the ,000, it hardlyseems worth it to spend all the extra time and take theextra risk of starting the business. So let’s say that youfigure you can earn ,000 with your business. And that isenough to take the risk.But now the government comes along and tells you that youhave to pay ,000 in taxes on your ,000 business profit.Now you have a choice. Live with less or increase yourbusiness income. Living with less defeats the whole purposeso let’s look at increasing your business income.You can either increase your business income by getting moreclients, selling more goods or raising your prices. Whenyou are in a less competitive market, raising your prices isthe easiest thing to do. So you raise your prices. Now youare earning the ,000 you wanted in the first place andyou have effectively passed your business taxes on to yourcustomers.But not only are your customers paying a higher cost foryour product or service but they may also be paying more insales taxes. They get a double-whammy. If your customersare businesses, they will pass on their increased costs totheir customers. This cycle continues until the cost ofevery business’ taxes are eventually passed on to theconsumer – me and you.Let’s look at a specific and simpler example of how thisworks. I know a person who owns some rental units. Thecity in which they are located passed a tax on rental units.Some politicians and local activists were anxious to punishthe “gouging landlords” and “rental robber-barons”. Theyfigured that they could play Robin Hood and redistributesome of the rich landlord’s profits to the “needy”.Now my friend’s costs have gone up. So what did he do?Naturally, he raised the rents to cover the cost of theadditional tax. And since it is easier to accept areasonable rent increase than to move, his tenants stayedput and paid more.Ironically, most of his tenants are the same people who thepoliticians and activists consider the “needy”. So now thegovernment takes an extra a month out of their pocketsthrough the “tax on the landlord”.If the tenant is on an assistance program they may get someof this money back. Of course the amount they get back willbe reduced by expenses and administrative costs for thegovernment to collect, control and distribute the money.So who really paid for this tax? The landlord? No, in theend it is always people – you and me.All taxes are paid by the citizens themselves, regardless ofwhether they are paid directly, as in sales and incometaxes, or through increased prices of products and services,or through “fees” imposed by governing agencies. How doesyour car registration “fee” differ from a tax?Not only does each citizen directly or indirectly pay everypenny of tax money that is collected in this country, butmost people’s perception that the “rich” and “corporations”don’t pay their “fair-share” is accurate.These people and businesses can afford to pay an attorney,000 to show them how to save 0,000 in taxes. Mostlikely, you can’t. The tax laws are made with loopholes forthe “rich” and for certain businesses.Part of this is because it is these people who own orcontrol the majority of the property in this country. Andno progress can be made with out a significant investment ofcapital. If these people and businesses are given the rightreasons to invest their capital (such as tax breaks) theeconomy will continue to function and grow.If they are overburdened with taxes they will either move toBermuda or start a cycle of inflation by raising prices.Either way, you, Joe Citizen, will end up paying more eitherdirectly in the form of taxes or indirectly as your cost ofliving increases.It is a double-edged sword. Joe Citizen wants “rich people”and businesses to pay their fair share (though Joe does notrealize that he ends up paying it anyway) but the governmentknows that they can’t kill the golden goose (and the economyneeds a good “goose” every once in a while).So tax laws and regulations are passed which seem to targetthe “rich people” and businesses but with enough loopholesso that no real tax increase occurs. And the politicianscan blame the other party for the loopholes. But both knowthis is business as usual.Make Joe Citizen feel good about paying his taxes by raisingtaxes on the “rich” and “wealthy corporations”, but givethem loopholes so that little more is accomplished thanadding another volume added to the tax code.And Joe Citizen continues to pay his taxes each year.
The fringe benefit tax rules proposed in the Budget by the finance minister are modeled on the Australian system[1]. With the only difference that fringe benefit tax is proposed to be taxed at between 10 per cent and 50 per cent in India, whereas in Australia it is taxed at a flat rate of 60%[2].
Reason For Introducing Fringe Benefit Tax:
Attribution of the personal benefit poses problems, or for some reasons, it is not feasible to tax the benefits in the hands of the employee, thereby , it was proposed to levy a separate tax known as the fringe benefit tax on the employer on the value of such benefits provided or deemed to have been provided to the employees.
For this purpose, a new Chapter XII-H is proposed to be inserted in the Income-tax Act containing sections 115W to 115WL, which provides for the levy of additional income tax on fringe benefits.
The chapter is divided into three parts. Part A contains the meaning of certain expressions used, Part B enumerates the basis of charge, and Part C delineates the procedures for filing of return in respect of fringe benefits, assessment and the payment of tax thereon.
Perquisites which can be directly attributed to the employees will continue to be taxed in their hands in accordance with the existing provisions of section 17(2) of the Income-tax Act and subject to the method of valuation outlined in rule 3 of the Income-tax Rules.
What is Fringe Benefit Tax?
The taxation of perquisites or fringe benefits provided by an employer to his employees, in addition to the cash salary or wages paid, is fringe benefit tax.
Any benefits or perks that employees (current or past) get as a result of their employment are to be taxed, but in this case in the hands of the employer.
This includes employee compensation other than the wages, tips, health insurance, life insurance and pension plans.
Fringe benefits as outlined in section 115WB of the Finance Bill, mean any privilege, service, facility or amenity directly or indirectly provided by an employer to his employees (including former employees) by reason of their employment.
They also include reimbursements, made by the employer either directly or indirectly to the employees for any purpose, contributions by the employer to an approved superannuation fund as well as any free or concessional tickets provided by the employer for private journeys undertaken by the employees or their family members.
FBT will be taxed[3] on-
(a) entertainment;
(b) festival celebrations;
(c) gifts;
(d) use of club facilities;
(e) provision of hospitality of every kind to any person whether by way of food and beverage or in any other manner, excluding food or beverages provided to the employees in the office or factory;
(f) maintenance of guest house;
(g) conference;
(h) employee welfare;
(i) use of health club, sports and similar facilities;
(j) sales promotion, including publicity;
(k) conveyance, tour and travel, including foreign travel expenses;
(l) hotel boarding and lodging;
(m) repair, running and maintenance of motor cars;
(n) repair, running and maintenance of aircraft;
(o) consumption of fuel other than industrial fuel;
(p) use of telephone;
(q) scholarship to the children of the employees.
· In cases where the employer is engaged in the business of carriage of passengers or goods by motor car or by aircraft, a lower percentage of expenses on repair, running and maintenance of motor cars or aircrafts or fuel expenses has been specified.
· Similarly, for hotels, a lower percentage of the expenses incurred on hospitality has been specified for purposes of calculating the liability under the fringe benefit tax.
An employer liable to pay fringe benefit tax is required to furnish a return of fringe benefits before the due date as given in Section 115WD.
Section 115WE outlines the procedure for the assessment of the return of fringe benefits filed by the employer and the determination of tax or interest payable or refund due and in either case the issue of intimation to that effect.
Who pays Fringe Benefit Tax[4]
Under the proposed provisions, fringe benefit tax is payable by an employer who is either an individual or a Hindu undivided family engaged in a business or profession; a company; a firm; an association of persons or a body of individuals; a local authority; a sole trader, or an artificial juridical person.
The tax is payable in respect of the value of fringe benefits provided or deemed to have been provided by an employer to his employees during the previous year.
The value of fringe benefits so calculated, is subject to additional income tax in respect of fringe benefits at the rate of thirty per cent, as provided in section 115WA.
The fringe benefit tax is payable by the employer even where he is not liable to pay income-tax on his total income computed in accordance with the other provisions of this Act.
The benefit does not have to be provided by the employer directly for him to attract fringe benefit tax. fringe benefit tax may still be applied if the benefit is provided by a third party or an associate of the employer or by under an arrangement with the employer.
Explanation Of How FBT Will Operate[5]:
# Fringe benefit tax on use of cars, etc-The tax on perquisites like maintenance of a car, club membership, free meals, credit cards and tours and travel, which were earlier taxed in the hands of the employees, has been withdrawn and the employer will now be liable to pay tax on this. Whereby, it will not give any relief to the employees.
Illustration: In the case of the perquisite value of a car, employees are taxed at a rate ranging between Rs 1,100 (for small cars) and Rs 1,700 a month (for bigger vehicles) in addition to Rs 300 or 500 for a driver provided by the company.
# It will badly hit the Corporates in India-Reports suggest that the fringe benefits tax will result the Indian incorporations to an additional expenditure of about Rs 25,000 crore.
# Advertising agencies will be hit by fringe benefit tax-The 30 per cent fringe benefit tax will hurt advertising agencies badly as in this sector about 10% o 12% of an employee’s salary comes in the form of perks.
In the glamorous world of advertising attending conferences all over the world, wining and dining to network with clients and bag more business, etc is the done thing. Now all these expenses will come under the ambit of fringe benefit tax.
Also, advertising agencies are people-oriented one and staff welfare and salaries account for almost 50 per cent of their expenses. The fringe benefit tax will thus hurt ad agencies badly.
# Reaction of the Indian Incorporations as to the enactment of FBT-India Inc is quite nervous about the proposed fringe benefit tax and feels that the gains from the reduction in corporate tax announced in the last Budget would be nullified by the cut in depreciation rates.
# Reaction of Software firms[6]-Some software firms feel that a wide variety of payments would come under the ambit of fringe benefit tax. A recent survey also said that because of the impact of the fringe benefit tax, companies across sectors are likely to cut down on the increments that employees would get. The proposal has invited criticism even from the Institute of Chartered Accountants of India, which has otherwise praised the finance minister for rationalising the tax administration.
# Small firms might be spared: A Business Standard report said that the finance ministry is considering a threshold staff strength for levying the fringe benefit tax on employers.
Finance ministry officials indicated that organizations with very few employees could be exempted from the tax. This is based on the assumption that small employers do not spend large amounts on fringe benefits. The ministry will also examine combining the tax return for fringe benefits with the income tax return to avoid the need for filing separate forms, the report said.
2. Article 265: No tax can be levied or collected except by authority of law. The Authority of law means the legislative competence of the legislature imposing the tax. In this case, the Finance Ministry as passed this legislation which has the absolute legislative competence to pass the law.
3. Article 14: The principle of classification is applied somewhat liberally in case of a taxing statutes.
“ where the power to tax exist, the extend of the burden is a matter for discretion of the law makers”. The evident indent and general operations the tax legislation is to adjust the burden with the fair and reasonable degree of equality.[7]
4. Article 270: All taxes and duties referred to in the Union List except the duties and taxes referred to in Article 271 and any tax levied for the specific purposes under any law made by Parliament shall be distributed between the Union and the states.
5. Article 271: Centre could levy a surcharge on Income tax on non-agricultural income for its exclusive use without sharing with States.
Hence, Central Government -can levy Tax + Surcharge which is similar to levying Fringe Benefit tax , thereby, it is validated by the constitutional provision (i.e.) through Article 270 and 271
6. FBT is also constitutionally validated by applying the Schedule VII of Indian Constitution.
Entry 82- Taxes on income other than agricultural income can be levied by Central Government . Therefore, FBT is nothing but a tax on income. Entry 97- Any other matter not enumerated in List II or III including any tax not mentioned in either of those lists.
“ If however, no entry in any of these lists covers it, then it must be regarded as a matter not enumerated in any of the three lists. Then , it belongs exclusively to parliament under Entry 97 of the Union List as a topic of legislation”. Wherefore, the Expenditure tax also falls in the Residuary Entry as there is no entry in any list under which it can fall. Hence, it is very clear from above constitutional provisions that FBT is a valid one .
Application of FBT –a dilemma :
# FBT applies to non-resident employees of the Indian company:
Indian company is liable to pay for non-resident. As the non-resident employees are none other than the employees who are deputed by the Indian company to go to foreign country. The deputed employees becomes non-resident but still they continue to be the employees of Indian company, therefore, non-resident employees comes within the ambit of employees for whom Indian company is liable to pay tax.
# This provision is introduced as a presumption tax so as not to avoid incentive accounting practices. There is a possibility of shift of classification of expenditure from one heads of account to another . Therefore, in order to avoid the leakage of tax and evasion of tax this FBT provision has come into play.
Grounds Cited As An Argument Against The Constitutionality Of FBT – An Analysis
It is to be noted that the following grounds are being cited as an argument Fringe Benefit Tax is unconstitutional. Now, let us just analyse the provisions cited below:
1. FBT is termed as both arbitrary and discriminatory and is against Article 14 of our constitution. It should be noted that Article 14[8] strikes at arbitrariness and it should involve negation of equality. But FBT has exempted only the charitable institutions, individuals and Hindu undivided family as it satisfies the test of reasonableness and acts as a “right and just and a fair” provision[9].
2. FBT affects the employees trade and profession as elucidated under Article 19(1)(g)[10] read with Article 301[11] of the Indian Constitution. But this provision of constitution cannot be claimed as a ground as FBT is just a new tax that is enhanced upon the employees and will not have any sort of effect on their profession or employment or trade. This argument is of very weak parlance in nature.
3. The next that is claimed is that FBT is not a tax on income but on expenditure. But under Entry 97[12]- “Any other matter not enumerated in List II or III including any tax not mentioned in either of those lists can be taxed”. Therefore, the Expenditure tax comes under the purview of taxation and is constitutionally valid.
Hence, FBT is a legislation made within the ambit of vested to the parliament under List I and List II of the Schedule VII.
Conclusion:
Therefore, from the above we can clearly understand the reason why the center(Finance Ministry) has enacted this Fringe Benefit Tax. This will surely act as a boon as this tax is nothing but an economic security measure that is enhanced by the Government in order to achieve the equality and also increase the government fund through a rightful mean. Hence, FBT is constitutionally valid. Whereby, its time for the Government to make clarifications as to the doubts that has raised in the application of FBT.
——————————————————————————–
[1] In Australia, when you invite your client to a meal what you spend on your own lunch will attract fringe benefit tax, and not what you spend on your client’s lunch, which is marked as business expense.(an illustration)
[2] Source: Rediff Business Desk dated onMarch 22, 2005
[3]Given under Section 115WB of Income tax Act, 1961.
[4]115W. In this Chapter, unless the context otherwise requires,
(a) employer means,
(i) a company;
(ii) a firm;
24[(iii) an association of persons or a body of individuals, whether incorporated or not;]
(iv) a local authority; and
(v) every artificial juridical person, not falling within any of the preceding sub-clauses:
25[Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;]
(b) fringe benefit tax or tax means the tax chargeable under section 115WA.
[5]Source: Rediff Business Desk dated onMarch 22, 2005
[6] Now, it acts as a major source of share in service sector and makes a highest contribution in providing employment opportunities and profit earning.
[7] Hoechst Pharmaceuticals Ltd. .v. State of Bihar AIR 1983 Sc 1019, State of Kerala .v. Aravind Ramkant Modawakr (1999) 7 SCC 400
[8] Article 14: “No person shall be deprived his life or personal liberty except according to procedure established by law”.
[9] Maneka Gandhi .v. Union of India, AIR 1978 SC 597, R.D.Shetty.v. Airport Authority , AIR 1979 SC 1628
[10] Article 19(1)(g) : all citizens shall have the right to practise any profession , or to carry on any occupations , trade or business.
[11] Article 301: Freedom of trade , commerce and intercourse subject to the provisions of this part , trade , commerce, and intercourse throughout the territory of India shall be free.
[12] Schedule VII – List 1 – Union List of our Indian Constitution.
Written by mohanrsca Professional writer writing on the topics of beauty,fashion,health,friend,love
Dining out brought us to an interesting scene last month. We watched a restaurant patron in the parking lot become very angry that their Mercedes was not going to be parked in the front of the parking lot. We heard the justification as, “It should be parked in those larger spaces because it is very expensive!” Isn’t this an interesting correlation, that expense entitles personal desires and preferences? It is OK to exclude certain people, scenes, items, from your life. Our question would be, “Does entitlement control your actions or treatment of others in your expectations of daily living?”
But, let’s examine what we consider as personal entitlement here. Indeed, when we have spent a great deal of effort in gaining professional credentials, financial wealth, or community status, we have earned certain rights to conduct our lives along the societal guidelines that these parameters include.
However, when we begin to dictate other businesses or individuals’ practices, maybe we should examine if we’re becoming entitled and rigid in our treatment of other policies and procedures.
If you find yourself becoming agitated & angry over entitlement expectations, ask yourself:
Are you irritated over someone else’s response even if they are only following their job’s guidelines? How can you let them do their job with dignity while you take advantage of the restaurant, resort spa, or private club’s amenities?
Do you expect preferential treatment because you hold a higher educational degree such as, a Ph.D., military ranking of Colonel, or are wealthy as compared to the rest of the community?
How can you tailor your impatience with others who do not recognize your material wealth items such as, Prada handbags, Armani suits, or Jaguar vehicles?
How do your actions reflect on your personal core values as opposed to others that come from a different culture? Do the values of the parking lot attendant have a lesser respect level in your evaluation?
How can you shift your perspective that not everyone aspires to the same level of material possessions or professional credentials?
“Don’t be in a hurry to condemn because he doesn’t do what you do or think as you think or as fast.
There was a time when you didn’t know what you know today.”
Malcolm X
Bradley Morgan, MS, PCC
Bradley Morgan is a corporate and ontological coach who served as a hi-tech executive for over 17 years, in companies such as, IBM, Bay Networks, Premysis, and Brocade Communications. Bradley’s credentials include a BS from Georgia Tech, a MS from UCLA, a certificate in gerontology from the University of Maryland; and a Professional Coaching Certification (PCC) through the Newfield Network program. In the telecommunications industry, she developed both domestic and international systems engineering teams for technical expertise and executive level leadership. Bradley is a member of the International Coaching Federation (ICF), American Management Associates (AMA), the American Society on Aging (ASA); and the American Parkinson’s Disease Association (APDA).
Karen Andrews MP speaks on the Veterans’ Entitlements Amendment Bill 2011 on 16 June 2011.
Girls Boarding Schools Canada: A Sense of Entitlement Can Be Harmful in the Journey to Maturity.
In trying to take inventory of the basic common characteristics expressed by students at an all-girls therapeutic boarding school, we narrowed our conclusions to four recurring traits: sensitivity, intuitiveness, creativity and intelligence. In uncovering these qualities we had to look through and sometimes around the more obvious and in-your-face expressions such as screaming, over-reaction, swearing, defiance, rudeness, cruelty, violence, crying, temper tantrums, lying, stealing, cheating, petulance, vandalism and others. One common characteristic, however, provided us with a gateway to a deeper insight into dynamics at play: a sense of entitlement.
Being equipped with a sense of entitlement can be a handicap for some adolescents while they are moving through the personal journey from childhood to adulthood. This sense of entitlement can act as a short circuit to real maturity, as an empty substitute for authentic maturity.
Itââ,¬â,,¢s been our observation that many adolescent girls in need of therapeutic boarding schools arrive with a strong sense of entitlement. We view this sense of entitlement more as a social condition or belief held by the student rather than a personality trait. This belief can overshadow the emotional growth necessary in becoming a mature adult. If strong enough, this belief can rob a young person of self-esteem and invoke the development of manipulation patterns.
Where does this sense of entitlement come from? How does it develop? Is it purposefully cultivated?
Students with a strong sense of entitlement are used to getting their own way. They are not used to hearing the word ââ,¬Å”noââ,¬Â and they tend to be skilled at manipulation. They see rules and structure as something for other people. They see themselves as the exception.
We have consistently noticed that virtually every student at the Rocklyn Girls Boarding Schools in Canada who arrives with a strong sense of entitlement also exhibits sensitivity, intuition, creativity and intelligence. Although we are not aware of any study linking these two conditions, we can speculate that sensitive and intuitive children would likely require more coddling in their upbringing and be prone to hearing ââ,¬Å”yesââ,¬Â more than ââ,¬Å”noââ,¬Â. Because of their sensitivity, hearing ââ,¬Ânoââ,¬Â or not getting their own way might be emotionally more painful than for a child who may not be as sensitive and intuitive. Whatever the cause, a sense of entitlement can provide obstacles for adolescents.
Thankfully, we have witnessed the positive emotional growth of such students when they become part of a nurturing structure that can provide the emotional safety and support to re-visit the challenging road to maturity.
Robert Shaw, Founding Director of Rocklyn Academy, All Girls Therapeutic Boarding Schools Canada.http://www.rocklynacademy.ca
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Only when a VA home loan is compensated off, or when an qualified competent veteran assumes a VA Loan and substitutes his or her eligibility for the seller, can entitlement be restored — if and only if the VA mortgage is paid in full.Restoration of entitlement is not automated. After a VA Loan is compensated in total, the borrower ought to complete VA Type 26-1880 to allow the Department know that he or she intends to have entitlement restored. As prolonged as he or she supplies evidence of payment in complete, and in lots of situations sale of residence, restoration of entitlement is commonly presented.Entitlement can vary per veteran, so verify with your mortgage specialist to obtain out how a great deal entitlement you have and whether your formerly employed entitlement can be restored.For people, the VA program is a person of the ideal methods to apply for a mortgage in purchase to support them in their try to have the property of their dream. In addition, mortgages that are insured by the United States Division of Veteran Affairs, also identified as VA, can genuinely give people today the benefits they will need for their mortgage loan programs.If you are interested in obtaining a VA owned home, you will need to make contact with a nearby Realtor to see the home and make an supply to invest in. When choosing an agent, you will want to consider the following:
Has the agent effectively marketed VA foreclosed properties? If so, how many?Is he or she acquainted with the procedure of getting VA foreclosed properties?Is the agent familiar with all of the paperwork particularly expected for VA foreclosures?Does the agent know how Ocwen works by using the “internet to VA” in the contract?Can the agent structure your provide to get most, if not all, of your closing expenses covered?Is the agent familiar with which closing prices are buyer’s prices and which are VA’s?Does the agent know what the disclosures mean?Is the agent mindful of what, if any, repairs the VA will complete?Is the agent acquainted with Vendee financing such as how and when it advantages the buyer?A lot of people imagine that the VA loan advantage can only be used when, when in reality, a veteran can obtain a VA loan about and more than once more as long as there is enough entitlement. The cause for this is that VA entitlement can be restored. Entitlement is the sum the VA will guaranty for just about every veteran – generally about twenty five percent of the total of the maximum mortgage quantity. Entitlement for every veteran can vary based on past utilization and exactly where you stay. And, entitlement may perhaps need to have to be restored from a previous loan in buy to cover a new mortgage staying sought.There is extra than 1 way to restore entitlement. One way is for a VA borrower to market the dwelling and spend off the VA Mortgage with proceeds from the sale. In this instance VA entitlement will likely be restored.But, what if a property owner doesn’t want to market the house? Can entitlement nonetheless be restored? There is a a single-time entitlement restoration for each and every VA borrower for properties retained and loans compensated in full.
The life of living off of debt is at its end and our previous lifestyles are catching up with us. The keeping up with the Jones’ lifestyles are over and leaving the economy in shambles after a decade of artificial debt backed spending not supported by current income levels. Now as commodities rise and incomes stay the same or decrease the middle class is dissolving quickly into the new poor. The Federal Reserve has bailed out the banks fraudulent activity at the expense of the standard of living of the middle class. Now the federal debt is so large it will never be able to be paid back, aside from a miracle. Printing more money and devaluing the dollar seems to be the only escape, but at what price? Devaluing the dollar simply shifts the fraudulent bail out on society causing the largest wealth transfer in history by depleting the middle class wealth.
Credit card debt has gone from approximately billion dollars to close to a trillion dollars over the last 30 years because of this lifestyle, peaking in 2008, and now down back close to 0 billion. Meanwhile manufacturing jobs are depleting and financial services companies are constantly hiring because the credit card companies need to hire more people to collect the interest and manage the massive debt load. Many Americans are simply declaring bankruptcy which is one of the major reasons the debt load is actually reducing. The scary part is that because of the massive debt and hiring in the financial sector, the current economy is built on credit cards, mortgages, student loans and auto debt. This entire segment of the economy is around to do nothing but suck the wealth from the middle class.
The wealth inequality is staggering where the top 1% have over 42% of the wealth. Much of this is due to the wealthy educating themselves about tax loopholes and finding strategic ways of reducing taxes which is the middle classes largest expense. On top of that we are seeing gas, food, college and many more costs soar yet so are the banks profits, increasing the top 1%’s wealth even more dramatically. The Wall Street banks continue to rob the public blind by devaluing the U.S. dollar and surgically sucking the wealth out of the middle class. Unless things change the middle class will be gone within a decade.
The true key to solving these problems on an individual level comes with financial education. The more people learn about reducing taxes, reducing expenses, learning how to invest correctly and finding additional passive income sources the more financially stable you will be. It’s going to be a challenging road ahead, but will be much easier for those who develop a strategic financial plan and actually pay attention to their financial position, income sources and expenses on a DAILY basis. Hope is not lost if you set up a financial plan NOW.
Owens Consulting Group founder Mathew Owens is a California licensed CPA and a full time real estate investor. He has completed over 100 transactions in the past three years, representing approximately million in real estate, most of which has been sold to cash flow investors. He does mulitple live educational events and online webinars. Find out more info about him and his blogs at www.ocgproperties.com
Strong middle class means strong America, and vice-versa. Today US facing many challenges against her internal & external enemies. US government, private sectors, banks…etc are speaking about The crisis facing the middle class who affect the life style, savings, pensions, retirements, mortgages, educations…and keep going. But they don’t talk about the real reasons that start this chaos.
They are using a lot of negative statistics like Elizabeth warren used: one in five Americans is unemployed, underemployed or just plain out of work. One in nine families can’t make the minimum payment on their credit cards. One in eight mortgages is in default or foreclosure. One in eight Americans is on food stamps. More than 120,000 families are filing for bankruptcy every month. The economic crisis has wiped more than trillion from pensions and savings, has left family balance sheets upside down, and threatens to put ten million homeowners out on the street.
As an expert in Economy & Finance, I will present a real model about the economic crisis on the US:
Problems:
I- US Spend over 9 Trillions of dollars on the war in Iraq + Afghanistan = High Inflation → High interests → High Debts → weak middle class.
II- US transfer the Economic Value Added (EVA) to China + India = Low Value Added inside US → High inflation → High interests → High Debts → weak middle class.
III- US Have 2 major parties, Republican and Democratic. The No existence of a real Middle party between → high lobbyists → high corruptions Ops Donations! → weak middle class.
I will discuss on the second party of my article the short term + long term solutions that can turn this crisis to an opportunity who raise the length of the middle class Americans!
(to be continued)
Written by NAOUFAL HOUJAMI President of ARC Worldwide Transportation Services
Distributed by WMG Label: Bright Antenna Official video for “New Low” the first single off of No Name No Color out 10/5
The website MarketWatch, run by Dow Jones, recently reported on the new wave of millionaires called “Middle Class Millionaires”. This stratum of demographic accounts for almost 10% of the population. Middle Class Millionaires did not inherit their wealth, but earned it. The net worth of this type of demographic is between million and million.
These individuals share some unique work ethics and characteristics. The average middle class millionaire logs in over 70 hours per week at work. They are five times more likely than regular middle class workers to say they are always available to work. 89% of this population believes that anyone can attain wealth with hard work and dedication.
Middle Class Millionaires are typically business-savvy and financially wise. 62% state that they believe networking is the key to financial success. The MarketWatch survey said they are five times more likely to continue in their same line of business regardless of previous failures and 90% have made bad business moves. This unique group is five times more likely than other middle class members to continue in the same line of business regardless of previous failures.
A key tactic to their business success lies in their negotiation skills and their drive to win. Sixty-five percent of middle class millionaires identify their approach to negotiating as “doing whatever you need to do to win”. This type of work ethic is exemplary and a good guide to use for the rest of us to become millionaires.
Almost half of this group believes that a child’s academic success and achievements reflect their success as a parent. Seventy-five percent chose the town they live in based on the rating and reputation of the school district.
There is a stark contrast in education values between regular middle class households and middle class millionaire households. Only 16% of regular middle class households are willing to stake their reputation as parents on their kids’ performance in schools. And a little more than 50% of regular middle class households chose the town where they live based only upon how close this town was to their job. The quality of the school district was not a factor in this major decision.
Middle class millionaires have definite goals as to what they consider as a net worth to define them as “rich” or “wealthy”. According to the survey, they need to attain an average net worth of .4 million to feel rich and a net worth of million to feel wealthy.
With all of the new business, income producing, and investing opportunities available today, we are likely to see the number of middle class millionaire households flourish in the near future.
Before Freddie Mac homes, home ownership is only a dream for low-income individuals. The high cost of down payment and high interest rates offered by regular lending companies and banks is enough to put off anyone who does not have a very high salary. Freddie Mac has eased up the mortgage market and enabled lenders to offer flexible terms for home loans and down payments.
There are some measures however on how a person may be able to acquire Freddie Mac homes or other government housing assistance projects. The more important thing to determine is one’s credit score. Your credit score will indicate whether you are eligible for any form of housing loans including those subsidized by the government. Some documents that may be required can include tax returns, income statements, pay slips, bank deposits, your social security identification and others.
You may approach any lender to inquire about these government assistance programs and grants.
Freddie Mac has a widely operated program called Home Steps which aims to insure installations made by the buyer of the foreclosed property. It also provides a grant to reduce the total price of the property and some more for the closing costs.
There is a big network of banks and other lending institutions providing loans that are guaranteed by the Federal Housing Administration (FHA) an agency operating under the purview of the U.S. Department of Housing and Urban Development. A loan secured by the FHA will only require buyers to give a down payment for as low as 3.5 percent of the property’s total price. FHA guarantees likewise allow home buyers to source funding for their down payment from other resources. Military personnel and veterans can apply for loan eligibility with the Veterans Affairs office.
Freddie Mac homes and other government assistance programs have been successfully availed by many home buyers in the past and there is no reason why you should not apply for them as well.
Joseph B. Smith has been educating buyers on the finer points of Freddie Mac homes at Foreclosure-Support.com for over ten years. Contact Joseph B. Smith through Foreclosure-Support.com if you need help finding information about Freddie Mac homes.
