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what is a 10 k wrap | a 10 k wrap is a summary report of a company s annual performance that bundles the 10 k report required by the securities and exchange commission sec with additional commentary from the company covering such things as the corporate vision letter to shareholders and business overview among other topics the 10 k wrap is often released instead of a traditional annual report and generally contains fewer images and comments from management understanding a 10 k wrapform 10 k is a detailed annual report that is required to be submitted to the u s securities and exchange commission sec the filing provides a comprehensive summary of a company s performance for the year it is more detailed than the annual report that is sent to shareholders during the annual meeting to elect directors sec filing 10 k outlines the company s history equity subsidiaries organizational structure audited financial statements and other relevant information the most significant difference between the traditional annual report and the 10 k wrap is how the information is presented and how much additional information is included above the required 10 k information the traditional annual report has a greater focus on comments from the company and the document includes more images and graphs to communicate performance as well as a list of corporate objectives of the company by contrast the 10 k wrap is essentially the 10 k filed with the sec and some additional editorial from the company but not nearly as much as the annual report it usually has a lower production cost because it is often printed on lower quality paper the 10 k wrap is typically made available in print and digital formats to maximize access for shareholders investors and analysts elements of a 10 k wrapthe basic elements of a 10 k wrap typically include a summary of the company s financial results for the previous year and an overview of its plans for upcoming quarters including spending and debt level forecasts a 10 k plan can also include an elaborate cover design with perhaps a theme that focuses on investors and analysts involved in the company s projects for the upcoming year graphics in the 10 k wrap will usually provide a brief overview of the company s financials including revenue net profit costs income and any highlights from the previous year the graphics may also outline the company s geographical reach or other elements of growth 10 k due monday april 18 2022 for the fiscal year ended on jan 31 2022 10 q due tuesday may 10 2022 for the quarterly period ended on march 31 2022 special considerationsas the 10 k wrap has evolved it has come to include more images and content such as a shareholder letter and high quality photographs however pictures will often be kept to a minimum the 10 k wrap document is usually no more than four pages long and could be even shorter depending on what company executives want to see from the 10 k wrap report | |
what is sec form 10 q | sec form 10 q is a comprehensive unaudited report of financial performance that must be submitted quarterly by all public companies to the securities and exchange commission sec it stands in contrast to sec form 10 k which is required to be filed annually and is audited in the 10 q firms are required to disclose relevant information regarding their finances related to their business operations a 10 q must be filed for each of the first three quarters of the company s fiscal year understanding sec form 10 qfederal securities laws mandate that publicly traded companies provide certain information to shareholders and the general public these disclosures may occur periodically or as specific events occur a company utilizes form 10 q one of many required by the sec upon the completion of each quarter to release unaudited financial statements and give an overview of the company s financial situation the exact filing dates depend on the organization s fiscal year but it is necessary to file three 10 q reports each year a 10 q for the final quarter of the year is not required a company files form 10 k an annual report instead this report unlike the 10 q is audited and tends to contain more details 1a company s form 10 q is public information anyone who wishes to examine a company s quarterly report can go to the sec s edgar database you can search by company name ticker symbol or sec central index key cik many companies also post their 10 qs on their websites in an investor relations section sec form 10 q filing deadlinesthe deadline for filing a 10 q varies and depends on the number of outstanding shares a company has 1a company filing a 10 q is classified in one of three categories its category is determined by its public float that is the portion of outstanding stock that is in the hands of the public and not held by officers owners or the government essentially the float is comprised of all of a company s freely traded common stock shares the largest companies are classified as large accelerated filers to fit this classification an organization must have at least 700 million in public float large accelerated filers have 40 days after the close of the quarter to file a 10 q 1accelerated filers are companies with at least 75 million in public float but less than 700 million they also have 40 days to file the 10 q they have a little more time to file the 10 k 1finally non accelerated filers are companies with less than 75 million of public float these companies have 45 days from the end of the quarter to file a 10 q 1source investor govfailure to meet the form 10 q filing deadline | |
when a company fails to file a 10 q by the filing deadline it must make a non timely nt filing of sec form nt 10 q | an nt filing must explain why the deadline has not been met it includes a request for an additional five days to file as long as a company has a reasonable explanation the sec allows late filings within a specified time period common reasons why companies are not able to file on time include mergers and acquisitions m a corporate litigation an ongoing review by corporate auditors or lingering effects from bankruptcy a 10 q filing is considered timely if it is filed within this extension period failure to comply with this extended deadline results in consequences including the potential loss of the sec registration removal from stock exchanges and legal ramifications components of sec form 10 qthere are two parts to a 10 q filing the first part contains relevant financial information covering the period this includes condensed financial statements management discussion analysis of the financial condition of the entity disclosures regarding market risk and internal controls 2the second part contains all other pertinent information this includes legal proceedings unregistered sales of equity securities the use of proceeds from the sale of unregistered sales of equity and defaults upon senior securities the company discloses any other information and includes exhibits in this section form 10 q and the requirement for filing it was established by the securities and exchange act of 1934 the aim was to promote transparency in public companies operations by providing investors with the financial position of companies on an ongoing basis importance of sec form 10 qthe 10 q provides a window into the financial health of a company investors can use the form to get a sense of its quarterly earnings and other elements of its operations and to compare them to previous quarters thus it is a dependable performance tracking tool some areas of interest to investors that are commonly visible in the 10 q include changes to working capital and or accounts receivables factors affecting a company s inventory share buybacks and even any legal risks that a company faces you can compare a close competitor s 10 q to that of a company in which you are invested or considering whether to invest to see how its performance stacks up this will give you an idea of whether it s a strong choice where its weaknesses are and how it could improve other important sec filingsthe 10 q is one of many reports that public companies are required to file with the sec other important and mandated filings include form 10 k the 10 k must be filed once per year and includes the final quarter of the company s performance replacing a fourth quarter 10 q the 10 k summarizes the year often contains more detailed information than an annual report and must be filed within 90 days of the end of a company s fiscal year it generally includes a summary of the company s operations management s financial outlook financial statements and any legal or administrative issues involving the company form 8 k this report is filed if there are any changes or developments to a business that didn t make the 10 q or 10 k reports the 8 k is considered an unscheduled document and may contain information such as press releases if a company disposes of or acquires assets has announcements of executive hiring or departures or goes into receivership this information is filed with an 8 k annual report a company s annual report is filed every year and contains a wealth of company news including but not limited to general information about the company a letter to shareholders from the ceo financial statements and an auditors report this report is submitted a few months after the end of a company s fiscal year the report is available through a company s website or investor relations team and can also be obtained from the sec | |
are public companies required to file form 10 q | yes all u s public companies issuing common shares of stock that trade on exchanges are required to file form 10 q the date by which they have to file varies according to the number of shares expressed in terms of dollar worth that they have outstanding who signs form 10 q according to the sec at least one complete copy of the report filed with the commission and one such copy filed with each exchange must be manually signed on the registrant s behalf by a duly authorized officer of the registrant and by the principal financial or chief accounting officer of the registrant more information is available in the instructions for form 10 q 3must review reports accompany financial statements in a 10 q 10 qs generally are not audited or accompanied by accountants reports sec regulations prohibit companies from making materially false or misleading statements or omitting material information to make disclosures not misleading the sec staff reviews 10 qs and may provide comments to a company where disclosures appear to be inconsistent with the disclosure requirements or deficient in explanation or clarity 4the bottom linesec form 10 q is a report filed by public companies and sent to the sec after the close of each of the first three quarters of every year the final quarter is covered by sec form 10 k an annual report form 10 q can be a valuable research tool for investors because it contains a substantial amount of financial data about a company s quarterly performance as well as information regarding business operations management discussions pertinent market risks and disclosures | |
what is a 10 year treasury note | the 10 year treasury note is a debt obligation issued by the u s government with a maturity of 10 years upon initial issuance a 10 year treasury note pays interest at a fixed rate every six months and pays the face value to the holder at maturity the u s government partially funds itself by issuing these notes understanding 10 year treasury notesthe u s government issues three types of debt securities to fund its obligations treasury bills treasury notes and treasury bonds bills bonds and notes are distinguished by their length of maturity treasury bills t bills have the shortest lengths of time to maturity one year or less the treasury offers t bills with maturities of four eight 13 26 and 52 weeks 1 treasury notes have maturities ranging from one to 10 years 2 bonds are treasury securities with maturities longer than 10 years 3the u s government partially funds itself by issuing 10 year treasury notes treasury notes and bonds pay interest at a fixed rate every six months to maturity they re then redeemed at par value the treasury repays the principal it borrowed t bills are issued at discounts to par and they don t have coupon payments the interest on t bills is the difference between the face value repaid at maturity and the purchase price 1the 10 year note yield as a benchmarkthe 10 year t note is the most widely tracked government debt instrument its yield is frequently used as a benchmark for other interest rates like mortgage and corporate debt commercial interest rates don t follow the 10 year yield however this chart shows a historical example of the 10 year treasury yield from march 2019 to march 2020 the yield steadily declined over this span with expectations that the federal reserve would maintain low interest rates or cut them further the decline in yield accelerated amid growing concerns about the economic effects of the covid 19 pandemic in late february 2020 the decline of the 10 year yield accelerated even further as the federal reserve ordered an emergency rate cut of 50 basis points in early march the yield dropped to a record low of 0 32 before rebounding 4image by sabrina jiang investopedia 2021the 10 year note is undoubtedly a highly significant benchmark for global financial markets a rising yield indicates investor confidence in the economy but also suggests higher borrowing costs potentially slowing economic growth conversely a falling yield may signal economic uncertainty since march 2020 the 10 year treasury yield has had significant fluctuations it hit an all time low of 0 318 amid pandemic induced market uncertainty however the low interest environment ended over the next 18 24 months with several annual peaks in 2023 the federal reserve mainly increased interest rates to curb inflation and control the soaring prices of consumer goods in early 2024 the 10 year treasury yield stood at 4 01 5 | |
what impacts the 10 year treasury yield | several factors influence the 10 year treasury yield it s directly affected by investor confidence in the markets when investors are optimistic about the economy s health they tend to invest in riskier assets reducing demand for treasury notes causing a need to increase their yield conversely in times of economic uncertainty investors often flock to the safety of treasury notes driving up their prices and lowering them inflation is another major influence as we have seen more recently higher inflation can decrease the real return on treasury notes causing yields to rise as investors demand higher returns to offset the erosion of buying power conversely low inflation can lead to lower yields lastly the yield is also affected by monetary policy decisions by the federal reserve for instance when the federal reserve chooses to raise interest rates yields on treasury notes also tend to increase reflecting the higher cost of borrowing the advantages of investing in treasury notesfixed income securities offer important portfolio diversification benefits because their returns aren t correlated with the performance of stocks government debt and the 10 year treasury note in particular are considered among the safest investments its price often but not always moves inversely to the trend of the major stock market indexes central banks tend to lower interest rates in a recession which reduces the coupon rate on new treasurys this then makes older treasury securities with higher coupon rates more desirable another advantage of investing in 10 year treasury notes and other federal government securities is that the coupon payments are exempt from state and local income taxes they re still taxable at the federal level however 6investors can choose to hold treasury notes until maturity or sell them early in the secondary market there s no minimum holding term the disadvantages of investing in treasury notesinvesting in treasury notes while considered safe comes with drawbacks treasury notes can yield less than riskier assets like equity investments or higher yielding corporate bonds this makes them potentially less profitable for investors than alternatives during periods of high inflation fixed interest payments from treasury notes can lose purchasing power if inflation outpaces the yield the real return can turn negative if you are holding longer running notes you need to ensure you understand how inflation will affect your investment an uptick in interest rates could lower the value of existing treasury notes this could result in capital losses should you liquidate your holdings before their maturity date low risk because of government backingeasy to buy and sellpartially free from state and local taxeslower yield compared with other investmentsvulnerability to inflationpotential capital loss if sold before maturity | |
how to buy 10 year treasury bonds | the u s treasury sells its notes bonds and bills through the treasurydirect website sales are done through competitive or noncompetitive bidding with a minimum purchase of 100 with bidding increasing in 100 increments treasury securities can also be bought through a bank or broker 2 | |
how are t notes issued | all t notes are issued electronically so investors cannot obtain paper certificates 2 series i savings bonds are the only treasury securities still issued on paper and they can only be bought on paper with tax refund proceeds 7 | |
when are t notes issued | the treasury issues new t notes of shorter maturities every month however new 10 year notes are only issued in february may august and november the treasury sells additional 10 year notes from the most recent issue in what is known as reopenings in other months reopened notes have the same maturity date and coupon interest rate as the original issue but they have a different issue date and a purchase price that reflects subsequent changes in the market s interest rates 2can i buy treasury bills from my bank yes you can purchase treasury bills from many banks but you may end up paying additional expenses such as sales commissions and other transaction charges over time these fees and expenses can eat into your returns the bottom linea 10 year treasury note pays interest at a fixed rate twice a year and will pay its face value at maturity they are issued by the u s government and provide low risk investments and they re generally tax exempt at the state and local levels t notes can be a good choice for those who prefer not to roll the dice with more iffy investments | |
what is a 100 equities strategy | a 100 equities strategy is a strategy commonly adopted by pooled funds such as a mutual fund that allocates all investable cash solely to stocks only equity securities are considered for investment whether they be listed stocks over the counter stocks or private equity shares understanding a 100 equities strategy100 equities strategies represent portfolios that only select investments from the equities i e stocks universe 100 equity strategies are predominant in the market and encompass a large majority of offerings generally very few funds would be able to deploy all available capital to equity market investments without holding some cash and cash equivalents for transactions and operating activities in practice many 100 equity strategies will have an investment objective or mandate to invest at least 80 in equities the 80 threshold is a formality used in regulatory or registration documentation for the majority of equity funds in the marketplace with many funds deploying anywhere from 90 to 100 to equities 100 equity means that there will be no bonds or other asset classes furthermore it implies that the portfolio would not make use of related products like equity derivatives or employ riskier strategies such as short selling or buying on margin instead 100 equities implies a more focused traditional approach to equity investment special considerationsequities are generally considered a riskier asset class over alternatives such as bonds money market funds and cash a well diversified portfolio of all stocks can protect against individual company risk or even sector risk but market risks will still persist that can affect the equities asset class thus both systemic and idiosyncratic risks are important considerations for aggressive equity investors as a result most financial advice recommends a portfolio that includes both equity and fixed income bond components 100 equities strategy typesin the 100 equity strategy category an investor will find a wide range of sub classes to choose from including those that focus on one or a combination of labels like capital appreciation aggressive growth growth value and income outlined below are some of the characteristics investors can expect from some of the most prominent 100 equity strategies growth investing is a style used by many aggressive equity investors who are comfortable with higher risk investments and seek to take advantage of growing companies the russell 3000 growth index is a broad market index that helps to represent the growth category growth companies offer emerging technologies new innovations or a significant sector advantage that gives them above average expectations for revenue and earnings growth value stocks are often known as long term core holdings for an investor s portfolio these equity funds will rely on fundamental analysis to identify stocks that are undervalued in comparison to their fundamental value investment metrics for value investing often include price to earnings price to book and free cash flow income investing is also a top category for core long term holdings in a portfolio income funds will invest in equities with a focus on current income income from equity investments is primarily focused on mature companies paying steady dividend rates in the income category real estate investment trusts and master limited partnerships are two publicly traded stock categories with unique incorporation structures that require them to pay high levels of income to equity investors 12capitalization is a popular investing strategy for all equity portfolios generally capitalization is broken down by large cap mid cap and small cap large cap companies can offer the lowest volatility as they have established businesses and steady earnings that pay dividends small cap companies on the other hand are usually considered to have the highest risk since they are typically in the early stages of their development | |
what is form 1040 u s individual tax return | form 1040 is the standard internal revenue service irs form that individual taxpayers use to file their annual income tax returns the form contains sections that require taxpayers to disclose their taxable income for the year to determine whether additional taxes are owed or whether the filer will receive a tax refund who can file form 1040 u s individual tax return form 1040 needs to be filed with the irs by april 15 in most years everyone who earns income over a certain threshold must file an income tax return with the irs keep in mind that businesses have different forms to report their profits 12if a united states citizen wants to or needs to file a federal income tax return they need to file form 1040 or a variation of form 1040 mentioned above there are three general conditions to consider regarding whether an individual needs to file first the irs requires individuals with certain levels of gross income to file taxes this threshold varies based on the individual s filing status and age the table below lists the income limits for individuals under 65 years old keep in mind that older taxpayers tend to have higher thresholds and the threshold changes if neither one or both individuals in a marriage are 65 or older 345children and dependents may not be required to file if they can be claimed as a dependent in 2023 if the dependent s unearned income is greater than 1 250 1 300 in 2024 but under 12 500 13 000 in 2024 earned income is greater than 13 850 14 600 in 2024 or gross income meets certain thresholds the dependent must file their own form 1040 67 these rules are slightly different for single dependents as opposed to dependents who are married 8finally some specific situations require an individual to file form 1040 regardless of their income or dependency status some of those situations include but are not limited to 9 | |
how to file form 1040 u s individual tax return | form 1040 is available on the irs website and has two pages that must be filled out form 1040 can be mailed in or e filed tax filers are asked for their filing status along with their personal information such as their name address social security number some information on one s spouse may also be needed and the number of dependents 10the form also asks whether the taxpayer wishes to contribute 3 to presidential campaign funds 10the 1040 income section asks the filer to report wages salary taxable interest capital gains pensions social security benefits and other types of income the new tax legislation eliminated many deductions including unreimbursed employee expenses tax preparation fees and the cost of moving for a job except for military on active duty 1112the form uses what the irs terms a building block approach and allows taxpayers to add only the schedules they need to their tax returns some individuals may need to file one or more of six supplemental schedules with their 1040 in addition to long standing schedules for items like business income or loss 13this depends on whether they re claiming tax credits or owe additional taxes many individual taxpayers however only need to file a 1040 and no schedules types of form 1040taxpayers in certain situations may need to file a different variant of the 1040 form instead of the standard version below are the options certain nonresident aliens or their representatives need to file this form including 14the irs also produces the 1040 ss and 1040 pr the 1040 ss is for residents of american samoa the cnmi guam puerto rico or the u s virgin islands who have net self employment income and do not have to file form 1040 with the u s form 1040 pr is the spanish language equivalent of form 1040 ss 1516this form is used to determine and pay estimated quarterly taxes the estimated tax applies to income that isn t subject to withholding which includes earnings from self employment interest dividends and rents this may also include unemployment compensation pension income and the taxable portion of social security benefits 17this is a statement accompanying a taxpayer s payment for any balance on the amount you owe line of the 1040 or 1040 nr 18if a filer makes a mistake or forgets to include information on any 1040 form form 1040 x is used for making changes to previously filed 1040s 19the irs introduced a new 1040 form in 2019 form 1040 sr which is designed for taxpayers over the age of 65 changes include a larger font no shading shaded sections can be hard to read and a standard deduction chart that includes the extra standard deduction for taxpayers over 65 taxpayers in this age bracket who fill out their taxes online won t see a difference but those who do it on paper will 20standard deductions on form 1040the 1040 income section asks taxpayers for their filing status this filing determines the taxpayer s standard deduction the table below highlights the deductions for the 2023 and 2024 tax years keep in mind that you file 2023 taxes in 2024 and 2024 taxes in 2025 45an additional deduction may be taken by those who are age 65 or older or blind just like the standard deduction these figures are adjusted annually for inflation the standard deduction cannot be taken by an estate or trust an individual who is filing a short return due to a change in accounting periods an individual who was a nonresident alien part of the tax year or a married individual whose spouse is filing separately and itemizing 23additional schedulesas noted above form 1040 uses a variety of additional schedules to help taxpayers report their tax obligations the following schedules are used to compile financial information away from form 1040 to later use form 1040 as the primary source of reporting schedule 1 is used to report additional income or adjustments to income this may include alimony disposition proceeds from the sale of a business educator expenses health savings account hsa contributions or unemployment compensation 24it s important to note that 10schedule 2 is used to report additional taxes one part of schedule 2 reports alternative minimum tax and repayment of excess premium tax credits for insurance bought through health insurance marketplaces 25another part of schedule 2 is used to report self employment taxes medicare taxes taxes on individual retirement accounts iras household employment taxes and other taxes these two parts from schedule 2 are reported on line 17 and line 23 on form 1040 1025schedule 3 is used to report additional tax credits and payments these credits include dependent care expense credits residential energy credits excess social security taxes previously remitted and excess federal income taxes previously remitted 26nonrefundable credits from schedule 3 are reported on line 20 of form 1040 while refundable credits from schedule 3 are reported on line 31 of form 1040 1026schedule a is used to figure out a taxpayer s itemized deduction a taxpayer s federal income liability is most often minimized when choosing the larger of their standard deduction or itemized deduction 27the itemized deduction calculation includes medical expenses dental expenses certain taxes certain interest assessments theft losses and other expenses any input from schedule a is entered into line 12a on form 1040 1027schedule b is used for taxpayers who received greater than 1 500 of taxable interest or ordinary dividends it is also used to report interest from a seller financed mortgage accrued interest from a bond interest or ordinary dividends as a nominee and other similar types of interest input from schedule b is entered into line 2b and line 3b on form 1040 1028schedule c is used to report business income or loss an activity qualifies as a business if the taxpayer is engaged in the activity for the primary purpose of producing income or profit the activity is also considered a business as long as the taxpayer is involved in the activity with regularity and continuity profit from schedule c is entered on schedule 1 line 3 it is also used on schedule se 2924if your business was a sole proprietorship or qualified joint venture and you meet other criteria you can report your business operations using schedule c 30schedule d is used to report taxable income from the sale or exchange of a capital asset this gain may have arisen from an exchange or an involuntary conversion schedule d is also used to report capital gain distributions not otherwise reported on form 1040 as well as nonbusiness bad debts input from schedule d is entered on form 1040 line 7 1031schedule e is used to report various types of additional income or losses this supplemental financial activity ranges from real estate rental income royalties partnerships estates trusts and residual interests in real estate mortgage investment conduits supplemental income figures from schedule e are reported on form 1040 in the income section 1032schedule eic is quite different from other tax schedules the earned income credit is calculated separately from this schedule however schedule eic is used to substantiate the qualification of your qualifying children by remitting to the irs your child s name social security number birth year relationship to you and residency status information from schedule eic is not directly input into form 1040 3334the earned income credit is maximized if a taxpayer has at least three children therefore schedule eic only asks for information on three children additional forms for additional children beyond three are not required 35other notable supplementary schedules to form 1040 include | |
what is form 1040 used for | form 1040 is the primary tax form used by u s taxpayers to file their annual income tax returns taxpayers input their personal information and tax information onto the form then submit the form to the irs for review | |
is form 1040 the same as a w 2 | form 1040 is different from a w 2 a w 2 is a wage and tax statement an employee receives from a company they worked for during the tax year the information listed on the w 2 is used to fill out form 1040 | |
where can i find form 1040 | form 1040 is not a tax statement or form that gets distributed to taxpayers unlike a w 2 or 1099 statement that is mailed by an employer or party you ve contracted with form 1040 is available for download on the irs website in addition free irs filing platforms such as free file fillable forms will provide digital copies last some public courthouses or federal buildings in your community may offer paper copies available for pickup | |
what is the difference between a 1040 and a 1099 | form 1040 and form 1099 are different components of an individual s tax return there are many different types of form 1099 but form 1099 is most commonly given to independent contractors to remit tax information relating to payments they received during the tax year this information is used to complete form 1040 as the financial records listed on form 1099 are input into form 1040 the bottom lineform 1040 is the central part of tax filing for united states citizens it is the tax form that all taxpayer financial statements eventually feed into and support tax schedules branch out of regardless of an individual s filing status or income taxpayers who file taxes will complete some version of form 1040 | |
what was form 1040 a u s individual tax return | form 1040 a of the internal revenue service irs was a simplified version of form 1040 used by u s taxpayers to file an annual income tax return to have been eligible to use form 1040 a an individual needed to meet certain requirements such as not itemizing deductions not owning a business and having a taxable income of less than 100 000 unofficially known as the short form form 1040 a was eliminated for the 2018 tax year in favor of the redesigned form 1040 that debuted that year 1who had to file form 1040 a u s individual tax return most u s taxpayers use irs form 1040 to file their income tax returns form 1040 is a detailed form that offers taxpayers with complex investments itemized deductions multiple tax credits and more than 100 000 in annual income more opportunities to lower their tax liability because additional paperwork is usually required with form 1040 individuals with simpler tax situations previously had the option to use form 1040 a instead 2 form 1040 a was a simplified version of form 1040 the two page form allowed taxpayers to report ordinary income some deductions and credits individuals who fell under any of the five status options single head of household married filing separately married filing jointly or widowed could file their tax returns using the 1040 a though form 1040 a was available to taxpayers of any age and filing status not everyone qualified to use this form 3 tax filers who used 1040 a must have earned less than 100 000 taxable income and not have exercised any incentive stock options iso during the tax year the income reported must have been earned as a wage salary tip capital gain dividend interest income unemployment compensation pension annuity taxable social security and railroad retirement benefit taxable scholarship or grant and alaska permanent fund dividend any other form of income such as business income needed to be reported on the more complex form 1040 1 | |
how did form 1040 a work | form 1040 a also gave taxpayers the opportunity to claim several tax deductions to reduce their taxable income however the only deductions they could claim included student loan interest post secondary tuition and fees classroom expenses and individual retirement account ira contributions taxpayers using form 1040 a could not claim itemized deductions this limitation meant that if an individual qualified for other deductions from sources such as charitable donations or mortgage interest and the total itemized deductible amount was more than the standard deductions it would not have been advantageous for them to use 1040 a 1form 1040 a also could be used to claim tax credits tax credits reduce the bottom line or total tax bill of a taxpayer the credits that could be claimed using this form were the american opportunity tax credit aotc earned income credit eitc child tax and additional child tax credit child and dependent care credit credits for the elderly or disabled and retirement savings contribution credit 3form 1040 a vs form 1040 ezanother variant of form 1040 was form 1040 ez which was even simpler and easier to fill out than form 1040 a and was also eliminated starting with the 2018 tax filing but with form 1040 ez the individual had to file as either a single taxpayer or as married filing jointly they could not claim deductions and could only claim the eic 4 although form 1040 a was slightly more complex than form 1040 ez it was still relatively simple compared to 1040 once their financial situation became complicated with dependents special deductions and credits such as those associated with post secondary education tuition most taxpayers needed to switch from filing with the 1040 ez to the 1040 a the redesigned form 1040 that debuted with the 2018 tax year is designed to be much simpler to use than its predecessor for this reason the irs eliminated both form 1040 a and form 1040 ez 5 | |
what was form 1040ez income tax return for single and joint filers with no dependents | irs form 1040ez income tax return for single and joint filers with no dependents was the shortened version of the internal revenue service irs form 1040 this form was for taxpayers with basic tax situations and offered a fast and easy way to file income taxes the form was discontinued as of the 2018 tax year in favor of the redesigned form 1040 1eligibility for form 1040ezto use the form a taxpayer had to have taxable income of less than 100 000 less than 1 500 of interest income and claim no dependents 2 other requirements for filing the form 1040ez included for most individuals the 1040ez was the first tax form they ever completed consider a typical high school student employed part time provided they met the income qualifications the 1040ez was likely to be the most straightforward and appropriate form to file anyone who hasn t filed a tax return using form 1040ez for tax years 2017 and earlier can still do so by going to the irs website limitations of form 1040ezform 1040ez was ultimately scrapped due to the limitations of the form the irs opted for the building block approach of allowing taxpayers to more easily add allowances or credits as applicable to their return in addition form 1040ez had several other drawbacks first the form could only be used by those below a certain amount of income and types of income anyone who had income from sources other than wages salaries tips taxable scholarships or fellowship grants could not use form 1040ez this precluded any taxpayer who received foreign income or filed using a foreign address from using the form in addition any taxpayer hoping to claim a dependent could also not use form 1040ez because of the simplistic nature of form 1040ez taxpayers were not allowed to itemize their deductions nor were they able to take other types of deductions such as the student loan interest deduction or deductions for ira contributions the form also failed to allow taxpayers to report their health coverage those who use form 1040ez were required to separately report their health coverage status form 1040ez vs form 1040form 1040ez had only a few credits or deductions available to taxpayers filers were able to include an earned income credit eic and elect nontaxable combat pay 2for most tax years form 1040 had 80 more lines than form 1040ez one significant difference was that form 1040 had fields to include information about dependents while 1040ez did not allow individuals to claim dependents similar to the standard form the ez version had sections to record wages salaries and tips and taxable interest under 1 500 the filer was also able to include unemployment compensation payments 34the first year that form 1040ez was introduced 5form 1040ez allowed filers to claim income from wages tips salaries taxable grants or scholarships the alaska permanent fund and unemployment compensation 4 form 1040 though had at least 16 income categories 3categories available on the standard form included dividend payments retirement account distributions and farm and rental income form 1040 also allowed the entry of social security benefits alimony and other forms of income this form also had a long list of deductions ranging from education costs to healthcare savings plan contributions 3transition away from form 1040ezin 2018 the irs replaced forms 1040a and 1040ez with a redesigned form 1040 this new form 1040 included six new numbered schedules in addition to the existing ones like schedule a many people now may only need to file the simplified form 1040 others can file form 1040 with additional forms for their specific needs 6the forms were changed in collaboration with several stakeholders according to the irs the irs worked closely with its partners in the tax return preparation and tax software industries to prepare for tax reform and tax form changes affecting tax year 2018 including the form 1040 this ongoing collaboration ensures taxpayers can continue to rely on the irs tax professionals and tax software programs when it s time to file their tax returns 6 | |
is the 1040ez tax form still in use | the 1040ez tax form was eliminated in 2018 and replaced with the redesigned form 1040 1 | |
is there a form 1040ez for 2022 or 2023 | no the irs no longer publishes form 1040ez although it can still be used for tax years 2017 and earlier | |
what was the 1040ez tax form used for | form 1040ez was used for taxpayers who fell into very basic income categories for most years that 1040ez was published it could only be used by taxpayers below age 65 with no dependents and very little interest income this form also had fewer tax credits and deductions than the full length 1040 form meaning that it was generally less appropriate for taxpayers with a higher income | |
what is the difference between irs forms 1040 1040a and 1040ez | form 1040a was a simplified tax form for taxpayers with an income below 100 000 who did not exercise any incentive stock options throughout the year 7 all three were eliminated in the 2018 tax year and replaced with a redesigned form 1040 the bottom linethe irs previously allowed for taxpayers to select a specific form 1040 to use based on the complexity of their tax return the simplest form for the most straight forward returns could use form 1040ez however the form was discontinued in 2018 and all taxpayers must use form 1040 as part of their annual filing | |
what is sec release ia 1092 | sec release ia 1092 is a release from the securities exchange commission sec that provides uniform interpretations of how state and federal adviser laws apply to those that provide financial services 1sec release ia 1092 builds on the investment advisers act of 1940 or the advisers act that congress enacted to protect persons who rely on investment advisers for advice on purchasing and selling securities understanding sec release ia 1092sec release ia 1092 is the result of a 1987 collaboration between the securities exchange commission sec on the federal side and the north american securities administrators association nasaa on the state side these organizations issued ia 1092 in 1987 as a memo in response to the proliferation of financial planning and investment advice professionals in the 1980s the act reaffirmed the definition of an investment adviser ia as described in sec release ia 770 and added some refinements 1with regard to sports or entertainment agents those individuals that negotiated contracts but did not render investment advice were excluded from the definition of an investment adviser sec release ia 1092 and the investment advisers act of 1940the investment advisers act of 1940 defines an investment adviser as any person who either directly or indirectly through writings engages in the business of advising others on the value or profitability of securities and receives compensation for this guidelines for the investment advisers act of 1940 can be found in title 15 section 80b 1 of the united states code which notes that investment advisers are of national concern due to 2 | |
what is the 11th district cost of funds index | the 11th district cost of funds index cofi is a monthly weighted average of the interest rates paid on checking and savings accounts offered by financial institutions operating in arizona california and nevada it is one of many indices used by mortgage lenders to adjust the interest rate on adjustable rate mortgages arm and was launched in 1981 with an arm mortgage the interest rate on a mortgage moves up and down along with some standard interest rate chosen by the lender and cofi is one of the most popular indices in the western states published on the last day of each month the cofi represents the cost of funds for western savings institutions that are members of federal home loan bank of san francisco a self regulatory agency and satisfy the bank s criteria for inclusion in the index understanding the 11th district cofithe 11th district cost of funds index cofi is computed using several different factors with interest paid on savings accounts comprising the largest weighting in the average as a result the index tends to have low volatility and follow market interest rate changes somewhat slowly it is generally regarded as a two month lagging indicator of market interest rates the interest rate on a mortgage will not match the cofi rather the arm rate is typically 2 to 3 higher than cofi depending on the borrower s credit history the size and terms of the loan the ability of the borrower to negotiate with the bank and many other factors because it is computed using data from three western states the cofi is primarily used in the western u s while the 1 year treasury index is the measure of choice in the eastern region on april 30 the federal home loan bank of san francisco announced the cofi for march 2018 of 0 814 slightly lower than february | |
what is a 125 loan | a 125 loan is a type of leveraged loan typically a mortgage used to refinance a home which allows a homeowner to borrow an amount equal to 125 of their property s appraised value for example if a home is worth 300 000 then a 125 loan would give the borrower access to 375 000 in funds | |
how a 125 loan works | in financing terminology a 125 loan has a loan to value ltv ratio of 125 the ltv ratio which compares the size of a loan relative to the appraised value of the property that serves as security is used by lenders to judge a loan s default risk a 125 loan is considered riskier than one with an ltv ratio of less than 100 in fact with conventional mortgages the loan size does not typically exceed 80 of a property s value therefore according to the risk based pricing method used by lenders a loan with an ltv ratio of 125 will carry a higher interest rate than one with a lower ltv ratio as much as double in some instances using a 125 loan for refinancinghomeowners who take out a 125 loan usually do so when refinancing their homes to gain access to more cash than they would have available from their home equity their motive might be to use the loan to pay off other debts that carry even higher interest rates such as credit cards but because 125 loans have high interest rates and may also have additional fees anyone who is considering one should plan to shop around for the best terms they can get if your goal is to obtain cash to pay off other debt and you are unable to qualify for a 125 loan or you decide that you simply don t want one then you might still consider a home equity loan you won t get as much cash out of it but the interest rate is likely to be considerably lower and you can use it to pay off at least a portion of your high interest debt another option would be to do a cash out refinance advantages and disadvantages of 125 loansthe advantage of a 125 loan is that it can allow a homeowner especially one who has not accumulated too much home equity or whose property has actually declined in value to obtain more cash than they otherwise could the disadvantage to borrower and lender alike is the added risk compared with a smaller loan the borrower will be on the hook for more debt and the lender will face added risk in case of a default if the borrower does default the lender can foreclose on the property and sell it but the lender is very unlikely to get all of its money back history of 125 loansthe 125 loans first became popular during the 1990s in some cases geared toward low risk borrowers with high credit scores who wanted to borrow more than their available home equity along with other factors 125 loans played a role in the 2007 08 housing crisis the crash of real estate markets around the country kicked off by the subprime mortgage meltdown left many people underwater that is they owed more money on their mortgage than their home was actually worth 3as home values dropped some homeowners who wanted to refinance found that they no longer had enough equity in their homes to qualify for a new loan moreover they could not recoup their losses even if they managed to sell the home the now expired federal home affordable refinance program harp was introduced in march 2009 as a way to offer relief it allowed homeowners whose homes were underwater but who were otherwise in good standing and current with their mortgages to apply for refinancing through harp homeowners who owed up to 125 of the value of their homes could refinance at lower rates to help them pay off their debts and get on sounder financial footing 45originally homeowners who owed more than that percentage could not apply but eventually even the 125 ltv ceiling was removed allowing still more homeowners to apply for harp loans after being extended several times harp ended in december 2018 6 | |
what does 125 financing mean | typically when refinancing a home a homeowner can take out a 125 loan meaning that they can borrow an amount equal to 125 of the home s appraised value this type of financing comes into play when the house is worth less than what is owed on it can you get a 90 ltv a 90 ltv means a 90 loan to value ratio this is a comparison between your mortgage and the value of your home so for example a 300 000 home and a 270 000 mortgage would have a 90 loan to value ratio to achieve this you would need a downpayment of 10 of the home s value 30 000 in the u s most homes require a 20 downpayment in this example that would result in an ltv of 80 can i take equity out of my house without refinancing yes you can take equity out of your house without refinancing ways to do this include home equity loans home equity lines of credit and home equity investments | |
what is a 12b 1 fee | a 12b 1 fee is an annual marketing or distribution fee on a mutual fund the 12b 1 fee is considered to be an operational expense and as such is included in a fund s expense ratio it is generally between 0 25 and 0 75 the maximum allowed of a fund s net assets the fee gets its name from a section of the investment company act of 1940 understanding 12b 1 feesback in the early days of the mutual fund business the 12b 1 fee was thought to help investors it was believed that by marketing a mutual fund its assets would increase and management could lower expenses because of economies of scale this has yet to be proven with mutual fund assets passing the 10 trillion mark and growing steadily critics of this fee are seriously questioning the justification for using it today the 12b 1 fee is mainly used to reward intermediaries for selling a fund s shares as a commission paid to salespersons it is currently believed to do nothing to enhance the performance of a fund in 2015 the securities and exchange commission sec began examining the use of 12b 1 fees to determine if the rules for charging these fees are being adhered to and the presence of such fees is being properly disclosed 12b 1 fee broken downthe 12b 1 fee can be broken down into two distinct charges the distribution and marketing fee and the service fee total 12b 1 fees charged by a fund are limited to 1 annually the distribution and marketing piece of the fee is capped at 0 75 annually while the service fee portion of the fee can be up to 0 25 use of 12b 1 in broker sold sharesclass b and class c shares of broker sold funds typically have 12b 1 fees but they may also be charged on no load mutual fund shares and class a broker sold shares class a shares which usually charge a front end load but no back end load may come with a reduced 12b 1 expense but normally don t come with the maximum 1 fee class b shares which typically carry no front end but charge a back end load that decreases as time passes often come with a 12b 1 fee class c shares usually have the greatest likelihood of carrying the maximum 1 12b 1 fee the presence of a 12b 1 fee frequently pushes the overall expense ratio on a fund to above 2 the calamos growth fund is an example of a fund that carries a smaller 0 25 12b 1 fee on its class a shares and charges the maximum 1 12b 1 fee on its class c shares | |
what 12b 1 fees are used for | the distribution fee covers marketing and paying brokers who sell shares they also go toward advertising the fund and mailing fund literature and prospectuses to clients shareholder service fees another form specifically pay for the fund to hire people to answer investor inquiries and distribute information when necessary though these fees may be required without the adoption of a 12b 1 plan another category of fees that can be charged is known as other expenses other expenses can include costs associated with legal accounting and administrative services they may also pay for transfer agent and custodial fees | |
what is a 12b 1 fund | a 12b 1 fund is a mutual fund that charges its holders a 12b 1 fee a 12b 1 fee pays for a mutual fund s distribution and marketing costs it is often used as a commission to brokers for selling the fund 12b 1 funds take a portion of investment assets held and use them to pay expensive fees and distribution costs these costs are included in the fund s expense ratio and are described in the prospectus 12b 1 fees are sometimes called a level load understanding 12b 1 fundsthe name 12b 1 comes from the investment company act of 1940 s rule 12b 1 which allows fund companies to act as distributors of their own shares rule 12b 1 further states that a mutual fund s own assets can be used to pay distribution charges distribution fees include fees paid for marketing and selling fund shares such as compensating brokers and others who sell fund shares and paying for advertising the printing and mailing of prospectuses to new investors and the printing and mailing of sales literature the sec does not limit the size of 12b 1 fees that funds may pay but under finra rules 12b 1 fees that are used to pay marketing and distribution expenses as opposed to shareholder service expenses cannot exceed 0 75 of a fund s average net assets per year 12b 1 feessome 12b 1 plans also authorize and include shareholder service fees which are fees paid to persons to respond to investor inquiries and provide investors with information about their investments a fund may pay shareholder service fees without adopting a 12b 1 plan if shareholder service fees are part of a fund s 12b 1 plan these fees will be included in this category of the fee table if shareholder service fees are paid outside a 12b 1 plan then they will be included in the other expenses category discussed below finra imposes an annual 0 25 cap on shareholder service fees regardless of whether these fees are authorized as part of a 12b 1 plan originally the rule was intended to pay advertising and marketing expenses today however a very small percentage of the fee tends to go toward these costs 0 75 is the current maximum amount of a fund s net assets that an investor can be charged as a 12b 1 fee special considerations12b 1 funds have fallen out of favor in recent years the growth in exchange traded fund etf options and the subsequent growth of low fee mutual fund options has given consumers a wide range of option notably 12b 1 fees are considered a dead weight and experts believe consumers who shop around can find comparable funds to ones charging 12b 1 fees | |
what is a 12b 1 plan | a 12b 1 plan is a plan structured by mutual fund companies for the distribution of funds through intermediaries 12b 1 plans provide mapping for the partnerships between distributors and intermediaries who help to ensure the sale of a fund sales commission schedules and 12b 1 distribution expenses are the primary components driving a 12b 1 plan understanding the 12b 1 plan12b 1 plans facilitate the partnerships between distributors and intermediaries offering mutual fund shares 12b 1 plans are primarily focused on open end mutual funds which have multiple class structures for sales charges and distribution expenses mutual fund companies consider two types of 12b 1 charges in their 12b 1 plans sales commissions and 12b 1 expenses sales commissionssales commission schedules are structured to provide compensation to intermediaries for transacting mutual funds these partnerships can help to increase demand for funds by being marketed from a full service broker dealer who facilitates the transaction for a sales load fee these fees are paid to the broker and are not associated with annual fund operating expenses sales loads are structured to vary across share classes share classes can include front end back end and level load sales charges these sales charges are associated with individual retail share classes which typically include class a b and c shares 1 12b 1 expenses12b 1 expenses paid from the mutual fund to distributors and intermediaries are also a key part of a 12b 1 plan to market and distribute open end mutual fund shares mutual fund companies work with distributors to get their funds listed with discount brokerages and financial advisor platforms distributors help fund companies partner with the full service brokers that transact their funds at the agreed upon sales load schedule mutual fund companies will pay 12b 1 fees from a mutual fund to compensate distributors 2 in some cases funds may also be structured with a low level load that is paid to financial advisors annually during the course of an investor s holding period financial industry legislation typically restricts 12b 1 fees to 1 of the current value of the investment on an annual basis but fees generally fall somewhere between 0 25 and 1 in most cases fund companies will have higher 12b 1 fees on share classes paying a lower sales charge and lower 12b 1 fees on share classes with higher sales charges this helps to balance out the compensation paid to intermediary brokers while also providing for payment to distribution partners 3 disclosuremutual fund companies are required to provide full disclosure on their sales load schedules and 12b 1 annual fund expenses in the fund s prospectus the prospectus is one aspect of documentation required for the mutual fund s registration and is also the key offering document providing information on the fund for investors 4 12b 1 plans and any changes to their expense structuring must be approved by the fund s board of directors and amended in its prospectus filed with the securities and exchange commission | |
what is the 130 30 strategy | the 130 30 strategy often called a long short equity strategy refers to an investing methodology used by institutional investors a 130 30 designation implies using a ratio of 130 of starting capital allocated to long positions and accomplishing this by taking in 30 of the starting capital from shorting stocks the strategy is employed in a fund for capital efficiency it uses financial leverage by shorting poor performing stocks and with the cash received by shorting those stocks purchasing shares that are expected to have high returns often investors will mimic an index such as the s p 500 when choosing stocks for this strategy understanding the 130 30 strategyto engage in a 130 30 strategy an investment manager might rank the stocks used in the s p 500 from best to worse on expected return as signaled by past performance a manager will use a number of data sources and rules for ranking individual stocks typically stocks are ranked according to some set selection criteria for example total returns risk adjusted performance or relative strength over a designated look back period of six months or one year the stocks are then ranked best to worst from the best ranking stocks the manager would invest 100 of the portfolio s value and short sell the bottom ranking stocks up to 30 of the portfolio s value the cash earned from the short sales would be reinvested into top ranking stocks allowing for greater exposure to the higher ranking stocks 130 30 strategy and shorting stocksthe 130 30 strategy incorporates short sales as a significant part of its activity shorting a stock entails borrowing securities from another party most often a broker and agreeing to pay an interest rate as a fee a negative position is subsequently recorded in the investor s account the investor then sells the newly acquired securities on the open market at the current price and receives the cash for the trade the investor waits for the securities to depreciate and then re purchases them at a lower price at this point the investor returns the purchased securities to the broker in a reverse activity from first buying and then selling securities shorting still allows the investor to profit short selling is much riskier than investing in long positions in securities thus in a 130 30 investment strategy a manager will put more emphasis on long positions than short positions short selling puts an investor in a position of unlimited risk and a capped reward for example if an investor shorts a stock trading at 30 the most they can gain is 30 minus fees while the most they can lose is infinite since the stock can technically increase in price forever hedge funds and mutual fund firms have begun offering investment vehicles in the way of private equity funds mutual funds or even exchange traded funds that follow variations of the 130 30 strategy in general these instruments have lower volatility than benchmark indexes but often fail to achieve greater total returns 1 | |
what is an 18 hour city | economists and real estate investors use the term 18 hour city to describe a mid size city with attractive amenities higher than average population growth and a lower cost of living and cost of doing business than the biggest urban areas the 18 hour city generally has a population of under one million making it a second tier city eighteen hour cities in the u s are increasingly seen as viable alternatives for investment and living to the big six markets of boston chicago los angeles new york san francisco and washington d c that make up america s first tier or 24 hour cities understanding the 18 hour citywhile loosely defined the term 18 hour city most often refers to a city that has public services amenities and job opportunities that are comparable in quality to those in the big six markets unlike the biggest cities most of their services and amenities don t operate on a 24 hour basis however they boast comparable advantages including solid public transportation systems modern infrastructure and strong economies housing prices are moderate in comparison eighteen hour cities have emerged as an attractive alternative to big cities for starting a new business relocating an existing one or investing in real estate they typically feature lower capitalization rate compression meaning property values tend to remain stable rather than spiking up or down significantly like first tier cities 18 hour cities often boast low real estate vacancy rates along with favorable supply concentrations rental growth and absorption trends all indicators of long term real estate investment potential aside from the numbers forbes com cites a distinctive and lovable culture as a key factor in creating and maintaining a vibrant 18 hour city austin is the live music capital of the world denver and the research triangle are outdoor meccas portland is just plain weird and residents would like to keep it that way one perceived downside is the increased risk inherent in cities that do not have the established track record of primary market cities examples of 18 hour cities in the u s crowdstreet a site for crowd sourced real estate investments cites austin denver and nashville as recent stars among 18 hour cities in 2020 it identified charleston south carolina as the next big success story in the category the stars among 18 hour cities are a draw for millennials turned off by big city obstacles realtor com identified its top metropolitan areas for 2020 and beyond with all of its top five picks squarely in the 18 hour city category they include boise idaho mc allen edinburg mission texas tucson arizona chattanooga tennessee and columbia south carolina the national real estate investor website chose charleston kansas city and columbus ohio based on their stellar growth in jobs these and other frequently cited 18 hour city stars have become targets for millennials whose goal is launching or advancing their careers they are characterized by the availability of recreation and entertainment opportunities that extend well beyond what the typical second tier affords employers are drawn to 18 hour cities because doing business is less expensive in these markets and this in turn attracts large numbers of job seekers and entrepreneurs | |
what is the 183 day rule | the 183 day rule refers to a threshold used by most countries to determine whether an individual should be considered a resident for tax purposes this number is often used in a tax context because it marks the point at which someone has spent more than half the calendar year in a particular jurisdiction in the u s the internal revenue service irs uses a formula to determine whether people who are neither u s citizens nor permanent residents should be considered residents for taxation this is called the substantial presence test one of its criteria includes the question of whether an individual has spent 183 days in the u s based on a calculation that considers their combined physical presence in a given tax year and the two years prior 1understanding the 183 day rulemany countries around the world use the 183 day threshold to broadly determine whether to tax someone as a resident because it marks the majority of a year these include canada australia and the united kingdom for example generally this means that if you spent 183 days or more in the country during a given year you are considered a tax resident for that year each nation maintaining a 183 day rule has its own criteria for applying it in practice for example some use the calendar year for the accounting period whereas others use a fiscal year some include the day the person arrives in the country others do not some countries have even lower thresholds that trigger tax residency for example switzerland considers you a tax resident if you have spent more than 90 days there 3the irs and the 183 day rulethe irs uses a more complicated formula to determine whether someone passes its substantial presence test and is subject to u s taxes as a result the person in question must the 183 day presence threshold is not based off a total sum of days present rather it is calculated by adding the following other irs terms and conditionsthe irs generally considers someone to have been present in the u s on a given day if they spent any part of a day there but there are some exceptions days that do not count as days of presence include u s citizens and resident aliensstrictly speaking the 183 day rule does not apply to u s citizens and permanent residents who are required to file tax returns regardless of their country of residence or the source of their income however such individuals may exclude at least part of their overseas earned income up to 126 500 in 2024 from taxation provided they meet a physical presence test in a foreign country and paid taxes there 2 to meet this physical presence test the person needs to be present in the country for 330 complete days in 12 consecutive months 4individuals residing in another country in violation of u s law will not be allowed to have their incomes qualify as foreign earned 5u s tax treaties and double taxationthe u s has tax treaties with other countries that help determine jurisdiction for income tax purposes and to avoid double taxation these agreements contain provisions for the resolution of conflicting claims of residence | |
how many days can you be in the u s without paying taxes | the irs considers you a u s resident if you were physically present in the u s on at least 31 days of the current year and 183 days during a three year period the three year period consists of the current year and the prior two years the 183 day rule includes all the days present in the current year year 3 1 3 of the days you were present in year 2 and 1 6 of the days you were present in year 1 | |
how long do you have to live in a state before you re considered a resident | many states use the 183 day rule to determine residency for state tax purposes and what constitutes a day varies among states for instance any time spent in new york except for travel to destinations outside of new york e g airport travel is considered a day 6 so if you work in manhattan but live in new jersey you may still be considered a new york resident for tax purposes even if you never spend one night there in addition some states have special agreements whereby a resident who works in another state is only required to pay taxes in the state of their permanent residence or where they are domiciled it is important to consult the laws of each state that you frequent to determine if you are required to pay their income taxes | |
how do i calculate the 183 day rule | for most countries that apply a 183 day rule you are a tax resident of that country if you spend 183 or more there the united states however has a different criteria for applying a tax residency test you are a tax resident if you were physically present in the u s for 31 days of the current year and 183 days in the last three years including all days present in the current year 1 3 of the days from the previous year and 1 6 of the days from the year before that the bottom linethe 183 day rule refers to a common test used to determine tax residency in most countries individuals who are physically present for 183 days or more are considered residents for tax purposes in the u s a substantial presence test is used to determine tax residency and it s slightly more tricky than the common 183 day rule it considers time spent in the u s in a given year in addition to fractions of time spent in the u s in the two years prior lastly many states use a 183 day rule to determine residency for local tax purposes consulting local and federal tax regulations and international tax treaties can help an individual determine their total tax obligations | |
what was the 1979 energy crisis | the 1979 energy crisis the second of two oil price shocks in the 70s resulted in a widespread panic about potential gasoline shortages and far higher prices for both crude oil and refined products oil output declined by only 7 or less but the short term supply disruption led to a spike in prices panic buying and long lines at gas stations understanding the 1979 energy crisisthe 1979 energy crisis occurred in the aftermath of the iranian revolution which started in early 1978 and ended in early 1979 with the fall of shah mohammad reza pahlavi the state s monarch turmoil in iran a major petroleum exporting country caused the global supply of crude oil to decline significantly triggering noteworthy shortages and a surge in panic buying within 12 months the price per barrel of this widely used resource almost doubled to 39 50 short run disruptions in the global supply of gasoline and diesel fuel were particularly acute in the spring and early summer of 1979 several states responded by rationing gasoline including california new york pennsylvania texas and new jersey in these populous states consumers could only purchase gas every other day based on whether the last digit of their license plate numbers was even or odd the gasoline shortage also led to fears that heating oil might be in short supply through the 1979 1980 winter this prospect was especially concerning for new england states where demand for home heating oil was the highest special considerationsit would be erroneous to blame the crisis solely on the fall of the shah notably the u s faced more acute pain from the crisis than other developed countries in europe which also depended on oil from iran and other middle east countries part of the reason behind the crisis had to do with fiscal policy decisions in the u s in early 1979 the u s government regulated oil prices regulators ordered refiners to restrict the supply of gasoline in the early days of the crisis to build inventories directly contributing to higher prices at the pump another factor was unintended supply restriction after the department of energy doe decided to make a handful of large u s refiners sell crude to smaller refiners who could not find a ready supply of oil because smaller refiners had limited production capabilities the decision further delayed gasoline supply monetary policy leading up to the crisis also seemingly played a role to a degree the federal open market committee fomc was reluctant to raise target interest rates too quickly and this hesitation contributed to rising inflation late in the decade the jump in inflation was accompanied by higher prices for energy and a range of other consumer products and services benefits of the 1979 energy crisisamid the crisis politicians actively encouraged consumers to conserve energy and limit unnecessary travel in subsequent years the 1979 crisis led to the sale of more compact and subcompact vehicles in the u s these smaller vehicles had smaller engines and provided better fuel economy in addition the crisis prompted utility companies worldwide to seek out alternatives to crude oil generators including nuclear power plants and governments to spend billions on the research and development r d of other fuel sources combined these efforts resulted in daily worldwide oil consumption declining in the six years following the crisis meanwhile the organization of petroleum exporting countries opec global market share fell to 29 in 1985 down from 50 in 1979 | |
how 2 1 buydowns work | a buydown is a real estate financing technique that makes it easier for a borrower to qualify for a mortgage with a lower interest rate that lower rate can last for the duration of the mortgage as is often the case when borrowers pay extra points up front to the lender or for a particular period of time a 2 1 buydown is one kind of temporary buydown in this case lasting for two years in a 2 1 buydown the interest rate will increase from one year to the next until it settles into its permanent rate in year three to make up for the interest that they won t be receiving in those early years lenders will charge an additional fee either a homebuyer or a home seller can pay for a buydown that payment may be in the form of mortgage points or a lump sum deposited in an escrow account with the lender and used to subsidize the borrower s reduced monthly payments sellers including home builders often use 2 1 buydowns as an incentive for potential purchasers example of a 2 1 buydown mortgagesuppose a real estate developer is offering a 2 1 buydown on its new homes if the prevailing interest rate on 30 year mortgages is 5 a homebuyer could get a mortgage that charged just 3 in the first year then 4 in the second year and 5 after that if the homebuyer took out a 200 000 30 year mortgage for example then their monthly payments during the first year would be 843 in the second year they would pay 995 after the end of the second year their monthly payment would rise to 1 074 where it would stay for the remainder of the mortgage 2 1 buydown pros and consfor home sellers a 2 1 buydown can help them by making it easier and sometimes faster for them to sell their homes for a good price the downside of course is that it comes at a cost which ultimately reduces how much they will net from the sale for homebuyers a 2 1 buydown has several potential benefits for one thing it can help them afford a larger mortgage and a more expensive home than they might otherwise qualify for for another it buys them some time before their mortgage payments rise to the full amount which can be helpful if their income is also rising from year to year the downside for homebuyers is the risk that their income won t keep pace with those increasing mortgage payments in that case they might find themselves stretched too thin and even have to sell the home | |
when to use a 2 1 buydown | home sellers may want to consider offering and paying for a 2 1 buydown if they re having difficulty selling and need to provide an incentive to find a buyer borrowers may benefit from a buydown if it allows them to buy the home they want at a price they can afford however they will also want to consider what would happen if their income doesn t rise fast enough to keep up with their future monthly payments buyers should also make sure that they are getting a fair deal on the home in the first place that s because some sellers might increase the home s price to make up for the cost of the 2 1 buydown note that buydowns may not be available under some state and federal mortgage programs or from all lenders a 2 1 buydown is available on fixed rate federal housing administration fha loans but only for new mortgages and not for refinancing terms can also vary from lender to lender 1 | |
what is the 2000 investor limit | the 2 000 investor limit is a stipulation required by the securities exchange commission sec that mandates a company that exceeds 2 000 individual investors and with more than 10 million in combined assets must file its financials with the commission 1 according to sec rules a company that meets these criteria has 120 days to file following its fiscal year s end understanding the 2000 investor limitthe 2 000 investor limit or rule is a key threshold for private businesses that do not wish to disclose financial information for public consumption congress raised the limit from 500 individual shareholders in 2016 as part of the jumpstart our business startups jobs act and title lxxxv of the fixing america s surface transportation fast act the revised rules also specify a limit of 500 persons who are not accredited investors before public filing is required 2the prior threshold had been 500 holders of record without regard to accredited investor status congress began debating an increase in the limit in the wake of the 2008 recession and an explosion in online businesses some of which complained that they were growing so fast that the disclosure rules had become a burden at too early a stage of their lifecycle the jobs act also set up a separate registration threshold for banks and bank holding companies allowing them to terminate the registration of securities or suspend reporting if that class of shares is held by less than 1 200 people investor thresholds and equity crowdfundingthe jobs act revisions to sec rules helped facilitate the growth of crowdfunding platforms these platforms are able to raise money from individual investors online without providing detailed financial data the rules established limits on how much individuals can invest in sec approved crowdfunding platforms as a percent of the lesser of their annual income or net worth the individual limits for crowdfunding through an investment portal approved by the sec as of may 2017 3 4 these calculations don t include the value of your home examplefor example suppose that your annual income is 150 000 and your net worth is 80 000 jobs act crowdfunding rules allow you to invest the greater of 2 200 or 5 of 80 000 4 000 during a 12 month period 3 so in this case you can invest 4 000 over a 12 month period | |
what is the 2011 u s debt ceiling crisis | the 2011 u s debt ceiling crisis was a contentious debate in congress that occurred in july 2011 regarding the maximum amount of debt that the federal government should be allowed understanding the 2011 u s debt ceiling crisisthe federal government has rarely achieved a balanced budget and its budget deficit ballooned following the 2007 08 financial crisis in the 2008 fiscal year the deficit stood at 458 6 billion widening to 1 4 trillion in 2009 as the government engaged in a massive fiscal policy response to the economic downturn 1from 2008 to 2010 congress raised the debt ceiling from 10 6 trillion to 14 3 trillion 3 in 2011 as the economy showed early signs of recovery and federal debt approached its limit once again negotiations began in congress to balance spending priorities against the ever rising debt burden a heated debate ensued pitting proponents of spending and debt against fiscal conservatives pro debt politicians argued that failing to raise the limit would require immediate cuts to spending already authorized by congress which could result in late partial or missed payments to social security and medicare recipients government employees and government contractors moreover they asserted that the treasury could suspend interest payments on existing debt rather than withhold funds committed to federal programs the prospect of cutting back on already promised spending was labeled a crisis by debt proponents on the other hand the specter of a technical default on existing treasury debt roiled financial markets fiscal conservatives argued that any debt limit increase should come with constraints on the growth of federal spending and debt accumulation the u s has raised the debt limit 78 times since 1960 most recently it raised the debt limit in 2023 45outcome of the 2011 u s debt ceiling crisiscongress resolved the debt ceiling crisis by passing the budget control act of 2011 which became law on aug 2 2011 6 this act allowed the debt ceiling to be raised by 2 4 trillion in two phases or installments in the first phase a 400 billion increase would occur immediately followed by another 500 billion unless congress disapproved it the second phase allowed for an increase of 1 2 trillion to 1 5 trillion subject to congressional disapproval as well 2in return the law included 900 billion in slowdowns in planned spending increases over a 10 year period it also established a special committee charged with finding at least 1 5 trillion in additional savings 2in effect the legislation incrementally raised the debt ceiling from 14 3 trillion to 16 4 trillion by jan 27 2012 3following the passage of the act standard poor s s p took the radical step of downgrading the united states long term credit rating from aaa to aa even though the u s did not default the s p report says the downgrade reflects our opinion that the fiscal consolidation plan that congress and the obama administration recently agreed to fall short of what in our view would be necessary to stabilize the government s medium term debt dynamics the credit rating agency cited the unimpressive size of deficit reduction plans relative to the likely future prospects for politically driven spending and debt accumulation 7debt approval process leading to the 2011 u s debt ceiling crisisthe u s constitution gives congress the power to borrow money before 1917 this power was exercised by congress authorizing the treasury to borrow specified amounts of debt to fund limited expenses such as wartime military spending which would be repaid after the end of hostilities this kept the national debt directly linked to authorized spending in 1917 congress imposed a limit on federal debt as well as individual issuance limits in 1939 congress gave the treasury more flexibility in how it managed the overall structure of federal debt giving it an aggregate limit 8 however by delegating debt management authority to the treasury congress was able to break the direct connection between authorized spending and the debt that finances it while allowing greater flexibility to raise spending this practice also created a need for congress to repeatedly raise the debt limit when spending threatens to overrun available credit due to occasional political resistance to the idea of continually expanding the federal debt this process of raising the debt limit has at times engendered controversy which occurred during the 2011 debt ceiling crisis longer term implications of 2011 debt ceiling crisisthe american economy politics and financial markets were all affected in the long run by the country s 2011 debt limit issue as mentioned before standard poor s downgraded the united states credit rating for the first time ever from aaa to aa this resulted in several longer term implications first the protracted debt ceiling talks and brinkmanship had an adverse effect on consumer and corporate confidence on aug 8 2011 the s p 500 dropped 79 2 points while the nasdaq composite index dropped 174 72 points each of those two indexes lost over 6 6 of its value that day with the dow jones industrial average djia dropping 634 points or 5 55 9concerns about the long term viability of u s government debt were raised as a result of the debt limit crisis s failure to address the underlying fiscal issues the nation s fiscal stability and long term economic prospects may be impacted by the unsolved concerns around budget deficits and the national debt most recently the u s senate has increased the debt ceiling limit to 31 4 trillion 10the debt limit issue and the ensuing credit rating cut had some effect on the u s dollar even while there may not have been much of an immediate impact it prompted concerns about the strength and stability of the dollar in the long run the debt limit debate also sparked talks about possible adjustments to both the budgetary procedures and the debt ceiling mechanism measures have been taken to prevent similar crises in the future such as changes to the budgeting schedule and discussions about prospective changes to the debt cap structure | |
what could happen if congress does not vote to raise the debt ceiling | according to u s treasury secretary janet yellen failure to meet the government s obligations would cause irreparable harm to the u s economy the livelihood of all americans and global financial stability she also mentioned that the u s would risk facing another credit rating downgrade similar to that of 2011 11once the debt ceiling is reached what spending will be cut in a letter to the u s house of representatives yellen warned congressional leaders that the treasury would implement extraordinary measures to prevent the u s from defaulting on its obligations in the past the treasury has suspended new investments in the civil service retirement and disability fund and the postal service retiree health benefits fund it also suspended reinvestment of the government securities investment fund of the federal employees retirement system thrift savings plan 11 keep in mind that every debt ceiling debate cycle is unique and may be resolved using unique measures | |
why did increasing the debt ceiling cause contentious debate in 2011 | from 2008 to 2010 congress raised the debt ceiling from 10 6 trillion to 14 3 trillion 3 in 2011 as the economy showed early signs of recovery and federal debt approached its limit again negotiations began in congress to decide spending priorities a heated debate ensued between pro debt politicians and fiscal conservatives pro debt politicians argued that failing to raise the limit could result in late partial or missed payments to social security and medicare recipients government employees and government contractors fiscal conservatives argued that any debt limit increase should come with limits on federal spending and debt accumulation the bottom linefollowing the 2007 08 financial crisis in an effort to slow down the great recession as well as the persistently high unemployment rate the u s government increased federal spending as a result the federal debt reached its limit on multiple occasions from 2008 to 2011 which led to a series of increases in the debt limit in 2011 the treasury asked for its borrowing capacity to be extended the 2011 u s debt ceiling crisis was a contentious debate in congress that occurred in july 2011 regarding the maximum amount of debt that the federal government should be allowed congress resolved the debt ceiling crisis by passing the budget control act of 2011 which became law on aug 2 2011 6 this act allowed the debt ceiling to be raised by 2 4 trillion in two phases or installments | |
what was the 0x zrx protocol | the 0x zero x protocol enabled the peer to peer exchange of assets on the ethereum blockchain it was launched in 2017 by zeroex labs an organization based in san francisco the protocol itself was not by the developer s definition a decentralized exchange it allowed for the creation of decentralized exchanges that can be used in broad applications however the commodities and futures trading commission disagreed it shut down the 0x protocol in september 2023 for operating as an unregistered exchange and its developers were fined 200 000 the history of 0x zrx protocol0x was founded by will warren and amir bandeali in 2017 who launched an initial coin offering in 2017 the ico was a success raising 24 million and another 85 million between two fundraising rounds between 2021 and 2022 1the secondary protocol was created on ethereum to act as a settlement layer for trading erc 20 tokens erc 20 tokens are fungible exchangeable tokens that follow the standards set by ethereum request for comment 20 in 2021 0x launched the 0x decentralized autonomous organization dao the organization that would allow participants to govern the progress of the project 2but in september 2023 the commodities and futures trading commission filed and settled charges against zeroex inc along with two other digital asset exchanges opyn inc and deridex charges included failing to register as a futures commission merchant failing to register as a swap execution facility and illegally offering leveraged and margined retail commodity transactions 3zeroex was ordered to pay 200 000 in fines and cease operating as an exchange as of june 26 2024 the project community was very small and the 0x project s reddit page had been abandoned 45as of this writing 0x the zrx token had a market cap of 307 6 million and a 24 hour trading volume of 10 5 million it had a circulating supply of 847 5 million zrx 6 | |
how the 0x zrx protocol worked | the protocol set up a system of makers takers and relayers makers were the users who placed orders on the exchange proxy and waited for a match providing liquidity takers placed orders that were immediately matched removing liquidity relayers were network participants who maintained the order book acting similarly to an exchange the 0x protocol s message format was composed of a set of data fields that carried vital information such as the digital asset or token to be traded the price value of the transaction the expiration time and the defined identities of the transacting parties 7smart contracts took care of the necessary business logic for generating sending receiving and processing the data linked to the trading activity zrx was 0x s native governance and staking token zrx owners had a say in how the protocol evolved and token holders could also stake their tokens to earn eth the ethereum token ether liquidity rewards the future of 0x zrk 0x s future is somewhat unclear as its market cap and price have continued a general downward trend since its introduction having been shut down by regulators in 2023 the protocol and its few remaining fans don t have many options unless it transitions from exchange services or registered with the cftc | |
what is the 0x protocol | 0x was a protocol for the ethereum blockchain it facilitated peer to peer exchanges of assets built using ethereum the project was shut down by the cftc for operating as an unregistered exchange and abandoned by its developers | |
what is a 0x exchange proxy | a 0x exchange proxy was an entity that allowed applications to be developed using the protocol | |
what is the price prediction for 0x protocol | although the project has been abandoned there is still zrx trading activity however as there is no active development zrx is likely to continue to decline in market value the bottom linethe 0z protocol allowed users to exchange assets using the ethereum blockchain in 2023 the cftc shut it down for operating as an unregistered exchange the comments opinions and analyses expressed on investopedia are for informational purposes only read our warranty and liability disclaimer for more info as of the date this article was written the author does not own zrx | |
what is 1 10 net 30 | the 1 10 net 30 calculation is a way of providing cash discounts on purchases it means that if the bill is paid within 10 days there is a 1 discount otherwise the total amount is due within 30 days understanding 1 10 net 30the 1 10 net 30 calculation represents the credit terms and payment requirements outlined by a seller the vendor may offer incentives to pay early to accelerate the inflow of cash this is particularly important for cash strapped businesses or companies with no revolving lines of credit companies with higher profit margins are more likely to offer cash discounts although the numbers are always interchangeable across vendors the standard structure for offering a payment discount is the same the first number will always be the percentage discount this figure will indicate the total percentage discount on the invoice prior to shipping or taxes that may be discounted upon early payment special considerationsdiscount terms like 1 10 net 30 are virtual short term loans this is because if the discount is not taken the buyer must pay the higher price as opposed to paying a reduced cost in effect the difference between these two prices reflects the discount lost which can be reported as a percentage this percentage is called the cost of credit | |
when the credit terms are 1 10 net 30 the net result becomes in essence an interest charge of 18 2 upon the failure to take the discount | companies with higher profit margins are more likely to offer cash discounts the accounting entry for a cash discount taken may be performed in two ways the gross method of purchase discounts assumes the discount will not be taken and will only input the discount upon actual receipt of payment within the discount period therefore the entire amount of receivable will be debited when payment is received the receivable will be credited in the amount of the payment and the difference will be a credit to discounts taken the alternative method is called the net method for a discount of 1 10 net 30 it is assumed that the 1 discount will be taken this results in a receivable being debited for 99 of the total cost example of 1 10 net 30for example if 1 000 1 10 net 30 is written on a bill the buyer can take a 1 discount 1 000 0 01 10 and make a payment of 990 within 10 days or pay the entire 1 000 within 30 days if the invoice is not paid within the discount period no price reduction occurs and the invoice must be paid within the stipulated number of days before late fees may be assessed the second number is always the number of days of the discount period in the example above the discount period is 10 days finally the third number always reflects the invoice due date | |
what does 1 10 net 30 represent | the 1 10 net 30 calculation represents the credit terms and payment requirements outlined by a seller the vendor may offer incentives to pay early to accelerate the inflow of cash | |
is 1 10 net 30 a loan | yes discount terms like 1 10 net 30 are virtual short term loans if the discount is not taken the buyer must then pay the higher price as opposed to paying a reduced cost | |
what do the numbers in a 1 10 net 30 type calculation stand for | the first number is always the percentage of the discount the second number is always the number of days of the discount period the third number always reflects the invoice due date the bottom linethe 1 10 net 30 calculation provides cash discounts on purchases if the bill is paid within 10 days there is a 1 discount otherwise the total amount is due within 30 days | |
what is form 10 k | form 10 k is a comprehensive report filed annually by a publicly traded company about its financial performance and is required by the u s securities and exchange commission sec some of the information a company is required to document in the 10 k includes its history organizational structure financial statements earnings per share subsidiaries executive compensation and any other relevant data investopedia yurle villegasunderstanding form 10 kbecause of the depth and nature of the information they contain 10 ks are fairly long and tend to be complicated but investors need to understand that this is one of the most comprehensive and most important documents a public company can publish on a yearly basis the more information they can gather from the 10 k the more they can understand the company canadian companies will file sec form 40 f to provide this information the government requires companies to publish 10 k forms so investors have fundamental information about companies so they can make informed investment decisions this form gives a clearer picture of everything a company does and what kinds of risks it faces investors in the know are aware that 10 ks can also be retrieved by using the company search function through the sec s edgar database the 10 k includes five distinct sections a 10 k filing also includes signed letters from the company s chief executive officer and chief financial officer in it the executives swear under oath that the information included in the 10 k is accurate these letters became a requirement after several high profile cases involving accounting fraud following the dot com bust 10 k filings and deadlinesnotably 10 k filings are public information and readily available through a number of sources in fact the vast majority of companies include them in the investor relations section of their website the information included in a 10 k can be difficult to move through but the more familiar investors become with the layout and the type of information included it will likely become easier to identify the most important details filing deadlines for the 10 k vary based on the size of the company according to the sec companies with a public float shares issued to the public that are available to trade of 700 million or more must file their 10 k within 60 days after the end of their fiscal year companies with a float between 75 million and 700 million have 75 days while companies with less than 75 million in their float have 90 days purpose of form 10 kthe primary purpose of filing a form 10 k is to provide comprehensive transparent information about how a company is doing because this information is useful to a variety of people the sec requires certain information to be presented in a certain way at a very high level it s fair to say form 10 k s purpose can be broken down into the following five categories which slightly overlap but are more high level than the five categories listed above form 10 k is prescribed by the 1934 securities exchange act who files form 10 kform 10 k is required to be filed by all publicly traded companies in the united states this requirement applies to companies listed on u s stock exchanges such as the new york stock exchange the sec imposes this filing requirement to ensure transparency and accountability in the financial markets allowing investors and other stakeholders to access relevant information about the company s operations financial condition and performance the filing of form 10 k is not limited to large corporations it applies to companies of all sizes that meet the criteria for being publicly traded this includes both domestic and foreign companies whose securities are listed on u s exchanges or are registered with the sec additionally certain smaller reporting companies may file a streamlined version of the form 10 k known as form 10 ksb or form 10 kt note that in order to file this alternative version a company has to meet some eligibility requirements penalties for form 10 k noncompliancethere are penalties for not filing a form 10 k on time these penalties can vary depending on the severity of the violation and the circumstances surrounding the late filing in most cases companies pay a fee for non compliance failure to file required periodic reports can result in the loss of good standing with stock exchanges and other regulatory bodies this could lead to delisting from stock exchanges or temporary suspensions of 10 trading days in addition the sec may take legal and regulatory actions against companies that repeatedly fail to meet filing deadlines or comply with disclosure requirements these actions can include enforcement proceedings investigations fines and sanctions against the company its officers directors or other responsible parties on the softer side of the consequences late or incomplete filings can erode investor confidence and trust in the company s management investors may perceive delayed filings as a red flag indicating potential financial problems lack of transparency or poor internal controls there s little reason for a form 10 k to be filed late and investors may and probably should be curious about the reasons behind any non compliance limitations of form 10 kwhile form 10 k reports a wealth of useful information it does have its downsides these limitations include but aren t necessarily limited to forms 10 q vs form 8 kalong with the 10 k the sec requires that public companies regularly file forms 10 q and 8 k form 10 q must be submitted to the sec on a quarterly basis this form is a comprehensive report of a company s performance and includes relevant information about its financial position unlike the 10 k the information in the 10 q is usually unaudited the company is only required to file it three times a year as the 10 k is filed in the fourth quarter the form 8 k though is required by the sec whenever companies announce major events of which shareholders must be made aware these events may include but aren t limited to sales acquisitions delistings departures and elections of executives as well as changes in a company s status or control bankruptcies information about operations assets and any other relevant news form 10 k vs annual reportthe form 10 k and the annual report serve distinct purposes and cater to different audiences the form 10 k is a regulatory filing mandated by the sec on the other hand the annual report represents a broader communication tool utilized by companies to engage with a wider range of stakeholders while it may include form 10 k as its core financial and regulatory component the annual report often incorporates additional elements such as narrative descriptions graphics photos and other visually appealing features these elements aim to provide a more reader friendly and engaging format for shareholders employees customers and other stakeholders for example companies may have high quality photographs or graphic designs as part of the introduction to their annual report the intention is to make the annual report visually attractive to entice readership form 10 k is not meant to look nearly as pretty unlike the form 10 k which is subject to specific regulatory requirements and accounting standards the annual report is not bound by such constraints instead it allows companies greater flexibility in crafting a narrative that aligns with their objectives and corporate identity through the annual report companies seek to showcase their accomplishments company values and vision to stakeholders in many ways it s fair to call an annual report a marketing and communication tool whereas the form 10 k is much more of a regulatory compliance document | |
what is form 10 k | form 10 k is a comprehensive annual report filed by publicly traded companies with the u s sec it provides a detailed summary of the company s financial performance this form is required by the sec to ensure transparency and provide investors with essential information to make informed decisions | |
when is form 10 k due | the due date for form 10 k depends on the size of the company large accelerated filers must file within 60 days after the end of their fiscal year other companies with smaller float may file within 75 days or 90 days after their fiscal year | |
where can i find a company s form 10 k | a company s form 10 k can be found on the sec s edgar electronic data gathering analysis and retrieval database which is accessible to the public online additionally companies often provide links to their 10 k filings on their investor relations websites | |
how do i read a form 10 k | reading a form 10 k involves understanding its structure and the significance of its various sections start with the business overview to get a sense of what the company does then review the risk factors to understand potential challenges move onto the md a for insights into management s perspective on financial results then review the actual financial numbers to understand actual company performance the bottom lineform 10 k is an annual comprehensive report filed by publicly traded companies with the sec detailing their financial performance and business operations it includes audited financial statements management s discussion and analysis risk factors and other important disclosures this document provides investors and stakeholders with crucial information to assess the company s financial health and is required by regulatory bodies | |
what is a 10 k wrap | a 10 k wrap is a summary report of a company s annual performance that bundles the 10 k report required by the securities and exchange commission sec with additional commentary from the company covering such things as the corporate vision letter to shareholders and business overview among other topics the 10 k wrap is often released instead of a traditional annual report and generally contains fewer images and comments from management understanding a 10 k wrapform 10 k is a detailed annual report that is required to be submitted to the u s securities and exchange commission sec the filing provides a comprehensive summary of a company s performance for the year it is more detailed than the annual report that is sent to shareholders during the annual meeting to elect directors sec filing 10 k outlines the company s history equity subsidiaries organizational structure audited financial statements and other relevant information 1the most significant difference between the traditional annual report and the 10 k wrap is how the information is presented and how much additional information is included above the required 10 k information the traditional annual report has a greater focus on comments from the company and the document includes more images and graphs to communicate performance as well as a list of corporate objectives of the company by contrast the 10 k wrap is essentially the 10 k filed with the sec and some additional editorial from the company but not nearly as much as the annual report it usually has a lower production cost because it is often printed on lower quality paper the 10 k wrap is typically made available in print and digital formats to maximize access for shareholders investors and analysts elements of a 10 k wrapthe basic elements of a 10 k wrap typically include a summary of the company s financial results for the previous year and an overview of its plans for upcoming quarters including spending and debt level forecasts a 10 k plan can also include an elaborate cover design with perhaps a theme that focuses on investors and analysts involved in the company s projects for the upcoming year graphics in the 10 k wrap will usually provide a brief overview of the company s financials including revenue net profit costs income and any highlights from the previous year the graphics may also outline the company s geographical reach or other elements of growth 10 k due monday april 18 2022 for the fiscal year ended on jan 31 2022 10 q due tuesday may 10 2022 for the quarterly period ended on march 31 2022 special considerationsas the 10 k wrap has evolved it has come to include more images and content such as a shareholder letter and high quality photographs however pictures will often be kept to a minimum the 10 k wrap document is usually no more than four pages long and could be even shorter depending on what company executives want to see from the 10 k wrap report | |
what is sec form 10 q | sec form 10 q is a comprehensive unaudited report of financial performance that must be submitted quarterly by all public companies to the securities and exchange commission sec it stands in contrast to sec form 10 k which is required to be filed annually and is audited in the 10 q firms are required to disclose relevant information regarding their finances related to their business operations a 10 q must be filed for each of the first three quarters of the company s fiscal year understanding sec form 10 qfederal securities laws mandate that publicly traded companies provide certain information to shareholders and the general public these disclosures may occur periodically or as specific events occur a company utilizes form 10 q one of many required by the sec upon the completion of each quarter to release unaudited financial statements and give an overview of the company s financial situation the exact filing dates depend on the organization s fiscal year but it is necessary to file three 10 q reports each year a 10 q for the final quarter of the year is not required a company files form 10 k an annual report instead this report unlike the 10 q is audited and tends to contain more details 1a company s form 10 q is public information anyone who wishes to examine a company s quarterly report can go to the sec s edgar database you can search by company name ticker symbol or sec central index key cik many companies also post their 10 qs on their websites in an investor relations section sec form 10 q filing deadlinesthe deadline for filing a 10 q varies and depends on the number of outstanding shares a company has 1a company filing a 10 q is classified in one of three categories its category is determined by its public float that is the portion of outstanding stock that is in the hands of the public and not held by officers owners or the government essentially the float is comprised of all of a company s freely traded common stock shares the largest companies are classified as large accelerated filers to fit this classification an organization must have at least 700 million in public float large accelerated filers have 40 days after the close of the quarter to file a 10 q 1accelerated filers are companies with at least 75 million in public float but less than 700 million they also have 40 days to file the 10 q they have a little more time to file the 10 k 1finally non accelerated filers are companies with less than 75 million of public float these companies have 45 days from the end of the quarter to file a 10 q 1source investor govfailure to meet the form 10 q filing deadline | |
when a company fails to file a 10 q by the filing deadline it must make a non timely nt filing of sec form nt 10 q | an nt filing must explain why the deadline has not been met it includes a request for an additional five days to file as long as a company has a reasonable explanation the sec allows late filings within a specified time period common reasons why companies are not able to file on time include mergers and acquisitions m a corporate litigation an ongoing review by corporate auditors or lingering effects from bankruptcy a 10 q filing is considered timely if it is filed within this extension period failure to comply with this extended deadline results in consequences including the potential loss of the sec registration removal from stock exchanges and legal ramifications components of sec form 10 qthere are two parts to a 10 q filing the first part contains relevant financial information covering the period this includes condensed financial statements management discussion analysis of the financial condition of the entity disclosures regarding market risk and internal controls 2the second part contains all other pertinent information this includes legal proceedings unregistered sales of equity securities the use of proceeds from the sale of unregistered sales of equity and defaults upon senior securities the company discloses any other information and includes exhibits in this section form 10 q and the requirement for filing it was established by the securities and exchange act of 1934 the aim was to promote transparency in public companies operations by providing investors with the financial position of companies on an ongoing basis importance of sec form 10 qthe 10 q provides a window into the financial health of a company investors can use the form to get a sense of its quarterly earnings and other elements of its operations and to compare them to previous quarters thus it is a dependable performance tracking tool some areas of interest to investors that are commonly visible in the 10 q include changes to working capital and or accounts receivables factors affecting a company s inventory share buybacks and even any legal risks that a company faces you can compare a close competitor s 10 q to that of a company in which you are invested or considering whether to invest to see how its performance stacks up this will give you an idea of whether it s a strong choice where its weaknesses are and how it could improve other important sec filingsthe 10 q is one of many reports that public companies are required to file with the sec other important and mandated filings include form 10 k the 10 k must be filed once per year and includes the final quarter of the company s performance replacing a fourth quarter 10 q the 10 k summarizes the year often contains more detailed information than an annual report and must be filed within 90 days of the end of a company s fiscal year it generally includes a summary of the company s operations management s financial outlook financial statements and any legal or administrative issues involving the company form 8 k this report is filed if there are any changes or developments to a business that didn t make the 10 q or 10 k reports the 8 k is considered an unscheduled document and may contain information such as press releases if a company disposes of or acquires assets has announcements of executive hiring or departures or goes into receivership this information is filed with an 8 k annual report a company s annual report is filed every year and contains a wealth of company news including but not limited to general information about the company a letter to shareholders from the ceo financial statements and an auditors report this report is submitted a few months after the end of a company s fiscal year the report is available through a company s website or investor relations team and can also be obtained from the sec | |
are public companies required to file form 10 q | yes all u s public companies issuing common shares of stock that trade on exchanges are required to file form 10 q the date by which they have to file varies according to the number of shares expressed in terms of dollar worth that they have outstanding who signs form 10 q according to the sec at least one complete copy of the report filed with the commission and one such copy filed with each exchange must be manually signed on the registrant s behalf by a duly authorized officer of the registrant and by the principal financial or chief accounting officer of the registrant more information is available in the instructions for form 10 q 3must review reports accompany financial statements in a 10 q 10 qs generally are not audited or accompanied by accountants reports sec regulations prohibit companies from making materially false or misleading statements or omitting material information to make disclosures not misleading the sec staff reviews 10 qs and may provide comments to a company where disclosures appear to be inconsistent with the disclosure requirements or deficient in explanation or clarity 4the bottom linesec form 10 q is a report filed by public companies and sent to the sec after the close of each of the first three quarters of every year the final quarter is covered by sec form 10 k an annual report form 10 q can be a valuable research tool for investors because it contains a substantial amount of financial data about a company s quarterly performance as well as information regarding business operations management discussions pertinent market risks and disclosures | |
what is a 10 year treasury note | the 10 year treasury note is a debt obligation issued by the u s government with a maturity of 10 years upon initial issuance a 10 year treasury note pays interest at a fixed rate every six months and pays the face value to the holder at maturity the u s government partially funds itself by issuing these notes understanding 10 year treasury notesthe u s government issues three types of debt securities to fund its obligations treasury bills treasury notes and treasury bonds bills bonds and notes are distinguished by their length of maturity treasury bills t bills have the shortest lengths of time to maturity one year or less the treasury offers t bills with maturities of four eight 13 26 and 52 weeks 1 treasury notes have maturities ranging from one to 10 years 2 bonds are treasury securities with maturities longer than 10 years 3the u s government partially funds itself by issuing 10 year treasury notes treasury notes and bonds pay interest at a fixed rate every six months to maturity they re then redeemed at par value the treasury repays the principal it borrowed t bills are issued at discounts to par and they don t have coupon payments the interest on t bills is the difference between the face value repaid at maturity and the purchase price 1the 10 year note yield as a benchmarkthe 10 year t note is the most widely tracked government debt instrument its yield is frequently used as a benchmark for other interest rates like mortgage and corporate debt commercial interest rates don t follow the 10 year yield however this chart shows a historical example of the 10 year treasury yield from march 2019 to march 2020 the yield steadily declined over this span with expectations that the federal reserve would maintain low interest rates or cut them further the decline in yield accelerated amid growing concerns about the economic effects of the covid 19 pandemic in late february 2020 the decline of the 10 year yield accelerated even further as the federal reserve ordered an emergency rate cut of 50 basis points in early march the yield dropped to a record low of 0 32 before rebounding 4image by sabrina jiang investopedia 2021the 10 year note is undoubtedly a highly significant benchmark for global financial markets a rising yield indicates investor confidence in the economy but also suggests higher borrowing costs potentially slowing economic growth conversely a falling yield may signal economic uncertainty since march 2020 the 10 year treasury yield has had significant fluctuations it hit an all time low of 0 318 amid pandemic induced market uncertainty however the low interest environment ended over the next 18 24 months with several annual peaks in 2023 the federal reserve mainly increased interest rates to curb inflation and control the soaring prices of consumer goods in early 2024 the 10 year treasury yield stood at 4 01 5 | |
what impacts the 10 year treasury yield | several factors influence the 10 year treasury yield it s directly affected by investor confidence in the markets when investors are optimistic about the economy s health they tend to invest in riskier assets reducing demand for treasury notes causing a need to increase their yield conversely in times of economic uncertainty investors often flock to the safety of treasury notes driving up their prices and lowering them inflation is another major influence as we have seen more recently higher inflation can decrease the real return on treasury notes causing yields to rise as investors demand higher returns to offset the erosion of buying power conversely low inflation can lead to lower yields lastly the yield is also affected by monetary policy decisions by the federal reserve for instance when the federal reserve chooses to raise interest rates yields on treasury notes also tend to increase reflecting the higher cost of borrowing the advantages of investing in treasury notesfixed income securities offer important portfolio diversification benefits because their returns aren t correlated with the performance of stocks government debt and the 10 year treasury note in particular are considered among the safest investments its price often but not always moves inversely to the trend of the major stock market indexes central banks tend to lower interest rates in a recession which reduces the coupon rate on new treasurys this then makes older treasury securities with higher coupon rates more desirable another advantage of investing in 10 year treasury notes and other federal government securities is that the coupon payments are exempt from state and local income taxes they re still taxable at the federal level however 6investors can choose to hold treasury notes until maturity or sell them early in the secondary market there s no minimum holding term the disadvantages of investing in treasury notesinvesting in treasury notes while considered safe comes with drawbacks treasury notes can yield less than riskier assets like equity investments or higher yielding corporate bonds this makes them potentially less profitable for investors than alternatives during periods of high inflation fixed interest payments from treasury notes can lose purchasing power if inflation outpaces the yield the real return can turn negative if you are holding longer running notes you need to ensure you understand how inflation will affect your investment an uptick in interest rates could lower the value of existing treasury notes this could result in capital losses should you liquidate your holdings before their maturity date low risk because of government backingeasy to buy and sellpartially free from state and local taxeslower yield compared with other investmentsvulnerability to inflationpotential capital loss if sold before maturity | |
how to buy 10 year treasury bonds | the u s treasury sells its notes bonds and bills through the treasurydirect website sales are done through competitive or noncompetitive bidding with a minimum purchase of 100 with bidding increasing in 100 increments treasury securities can also be bought through a bank or broker 2 | |
how are t notes issued | all t notes are issued electronically so investors cannot obtain paper certificates 2 series i savings bonds are the only treasury securities still issued on paper and they can only be bought on paper with tax refund proceeds 7 | |
when are t notes issued | the treasury issues new t notes of shorter maturities every month however new 10 year notes are only issued in february may august and november the treasury sells additional 10 year notes from the most recent issue in what is known as reopenings in other months reopened notes have the same maturity date and coupon interest rate as the original issue but they have a different issue date and a purchase price that reflects subsequent changes in the market s interest rates 2can i buy treasury bills from my bank yes you can purchase treasury bills from many banks but you may end up paying additional expenses such as sales commissions and other transaction charges over time these fees and expenses can eat into your returns the bottom linea 10 year treasury note pays interest at a fixed rate twice a year and will pay its face value at maturity they are issued by the u s government and provide low risk investments and they re generally tax exempt at the state and local levels t notes can be a good choice for those who prefer not to roll the dice with more iffy investments | |
what is a 100 equities strategy | a 100 equities strategy is a strategy commonly adopted by pooled funds such as a mutual fund that allocates all investable cash solely to stocks only equity securities are considered for investment whether they be listed stocks over the counter stocks or private equity shares understanding a 100 equities strategy100 equities strategies represent portfolios that only select investments from the equities i e stocks universe 100 equity strategies are predominant in the market and encompass a large majority of offerings generally very few funds would be able to deploy all available capital to equity market investments without holding some cash and cash equivalents for transactions and operating activities in practice many 100 equity strategies will have an investment objective or mandate to invest at least 80 in equities the 80 threshold is a formality used in regulatory or registration documentation for the majority of equity funds in the marketplace with many funds deploying anywhere from 90 to 100 to equities 100 equity means that there will be no bonds or other asset classes furthermore it implies that the portfolio would not make use of related products like equity derivatives or employ riskier strategies such as short selling or buying on margin instead 100 equities implies a more focused traditional approach to equity investment special considerationsequities are generally considered a riskier asset class over alternatives such as bonds money market funds and cash a well diversified portfolio of all stocks can protect against individual company risk or even sector risk but market risks will still persist that can affect the equities asset class thus both systemic and idiosyncratic risks are important considerations for aggressive equity investors as a result most financial advice recommends a portfolio that includes both equity and fixed income bond components 100 equities strategy typesin the 100 equity strategy category an investor will find a wide range of sub classes to choose from including those that focus on one or a combination of labels like capital appreciation aggressive growth growth value and income outlined below are some of the characteristics investors can expect from some of the most prominent 100 equity strategies growth investing is a style used by many aggressive equity investors who are comfortable with higher risk investments and seek to take advantage of growing companies the russell 3000 growth index is a broad market index that helps to represent the growth category growth companies offer emerging technologies new innovations or a significant sector advantage that gives them above average expectations for revenue and earnings growth value stocks are often known as long term core holdings for an investor s portfolio these equity funds will rely on fundamental analysis to identify stocks that are undervalued in comparison to their fundamental value investment metrics for value investing often include price to earnings price to book and free cash flow income investing is also a top category for core long term holdings in a portfolio income funds will invest in equities with a focus on current income income from equity investments is primarily focused on mature companies paying steady dividend rates in the income category real estate investment trusts and master limited partnerships are two publicly traded stock categories with unique incorporation structures that require them to pay high levels of income to equity investors 12capitalization is a popular investing strategy for all equity portfolios generally capitalization is broken down by large cap mid cap and small cap large cap companies can offer the lowest volatility as they have established businesses and steady earnings that pay dividends small cap companies on the other hand are usually considered to have the highest risk since they are typically in the early stages of their development | |
what is form 1040 u s individual tax return | form 1040 is the standard internal revenue service irs form that individual taxpayers use to file their annual income tax returns the form contains sections that require taxpayers to disclose their taxable income for the year to determine whether additional taxes are owed or whether the filer will receive a tax refund who can file form 1040 u s individual tax return form 1040 needs to be filed with the irs by april 15 in most years everyone who earns income over a certain threshold must file an income tax return with the irs keep in mind that businesses have different forms to report their profits if a united states citizen wants to or needs to file a federal income tax return they need to file form 1040 or a variation of form 1040 mentioned above there are three general conditions to consider regarding whether an individual needs to file first the irs requires individuals with certain levels of gross income to file taxes this threshold varies based on the individual s filing status and age the table below lists the income limits for individuals under 65 years old keep in mind that older taxpayers tend to have higher thresholds and the threshold changes if neither one or both individuals in a marriage are 65 or older children and dependents may not be required to file if they can be claimed as a dependent in 2023 if the dependent s unearned income is greater than 1 250 1 300 in 2024 but under 12 500 13 000 in 2024 earned income is greater than 13 850 14 600 in 2024 or gross income meets certain thresholds the dependent must file their own form 1040 these rules are slightly different for single dependents as opposed to dependents who are married finally some specific situations require an individual to file form 1040 regardless of their income or dependency status some of those situations include but are not limited to | |
how to file form 1040 u s individual tax return | form 1040 is available on the irs website and has two pages that must be filled out form 1040 can be mailed in or e filed tax filers are asked for their filing status along with their personal information such as their name address social security number some information on one s spouse may also be needed and the number of dependents the form also asks whether the taxpayer wishes to contribute 3 to presidential campaign funds the 1040 income section asks the filer to report wages salary taxable interest capital gains pensions social security benefits and other types of income the new tax legislation eliminated many deductions including unreimbursed employee expenses tax preparation fees and the cost of moving for a job except for military on active duty the form uses what the irs terms a building block approach and allows taxpayers to add only the schedules they need to their tax returns some individuals may need to file one or more of six supplemental schedules with their 1040 in addition to long standing schedules for items like business income or loss this depends on whether they re claiming tax credits or owe additional taxes many individual taxpayers however only need to file a 1040 and no schedules types of form 1040taxpayers in certain situations may need to file a different variant of the 1040 form instead of the standard version below are the options certain nonresident aliens or their representatives need to file this form including the irs also produces the 1040 ss and 1040 pr the 1040 ss is for residents of american samoa the cnmi guam puerto rico or the u s virgin islands who have net self employment income and do not have to file form 1040 with the u s form 1040 pr is the spanish language equivalent of form 1040 ss this form is used to determine and pay estimated quarterly taxes the estimated tax applies to income that isn t subject to withholding which includes earnings from self employment interest dividends and rents this may also include unemployment compensation pension income and the taxable portion of social security benefits this is a statement accompanying a taxpayer s payment for any balance on the amount you owe line of the 1040 or 1040 nr if a filer makes a mistake or forgets to include information on any 1040 form form 1040 x is used for making changes to previously filed 1040s the irs introduced a new 1040 form in 2019 form 1040 sr which is designed for taxpayers over the age of 65 changes include a larger font no shading shaded sections can be hard to read and a standard deduction chart that includes the extra standard deduction for taxpayers over 65 taxpayers in this age bracket who fill out their taxes online won t see a difference but those who do it on paper will standard deductions on form 1040the 1040 income section asks taxpayers for their filing status this filing determines the taxpayer s standard deduction the table below highlights the deductions for the 2023 and 2024 tax years keep in mind that you file 2023 taxes in 2024 and 2024 taxes in 2025 an additional deduction may be taken by those who are age 65 or older or blind just like the standard deduction these figures are adjusted annually for inflation the standard deduction cannot be taken by an estate or trust an individual who is filing a short return due to a change in accounting periods an individual who was a nonresident alien part of the tax year or a married individual whose spouse is filing separately and itemizing additional schedulesas noted above form 1040 uses a variety of additional schedules to help taxpayers report their tax obligations the following schedules are used to compile financial information away from form 1040 to later use form 1040 as the primary source of reporting schedule 1 is used to report additional income or adjustments to income this may include alimony disposition proceeds from the sale of a business educator expenses health savings account hsa contributions or unemployment compensation it s important to note that schedule 2 is used to report additional taxes one part of schedule 2 reports alternative minimum tax and repayment of excess premium tax credits for insurance bought through health insurance marketplaces another part of schedule 2 is used to report self employment taxes medicare taxes taxes on individual retirement accounts iras household employment taxes and other taxes these two parts from schedule 2 are reported on line 17 and line 23 on form 1040 schedule 3 is used to report additional tax credits and payments these credits include dependent care expense credits residential energy credits excess social security taxes previously remitted and excess federal income taxes previously remitted nonrefundable credits from schedule 3 are reported on line 20 of form 1040 while refundable credits from schedule 3 are reported on line 31 of form 1040 schedule a is used to figure out a taxpayer s itemized deduction a taxpayer s federal income liability is most often minimized when choosing the larger of their standard deduction or itemized deduction the itemized deduction calculation includes medical expenses dental expenses certain taxes certain interest assessments theft losses and other expenses any input from schedule a is entered into line 12a on form 1040 schedule b is used for taxpayers who received greater than 1 500 of taxable interest or ordinary dividends it is also used to report interest from a seller financed mortgage accrued interest from a bond interest or ordinary dividends as a nominee and other similar types of interest input from schedule b is entered into line 2b and line 3b on form 1040 schedule c is used to report business income or loss an activity qualifies as a business if the taxpayer is engaged in the activity for the primary purpose of producing income or profit the activity is also considered a business as long as the taxpayer is involved in the activity with regularity and continuity profit from schedule c is entered on schedule 1 line 3 it is also used on schedule se if your business was a sole proprietorship or qualified joint venture and you meet other criteria you can report your business operations using schedule c schedule d is used to report taxable income from the sale or exchange of a capital asset this gain may have arisen from an exchange or an involuntary conversion schedule d is also used to report capital gain distributions not otherwise reported on form 1040 as well as nonbusiness bad debts input from schedule d is entered on form 1040 line 7 schedule e is used to report various types of additional income or losses this supplemental financial activity ranges from real estate rental income royalties partnerships estates trusts and residual interests in real estate mortgage investment conduits supplemental income figures from schedule e are reported on form 1040 in the income section schedule eic is quite different from other tax schedules the earned income credit is calculated separately from this schedule however schedule eic is used to substantiate the qualification of your qualifying children by remitting to the irs your child s name social security number birth year relationship to you and residency status information from schedule eic is not directly input into form 1040 the earned income credit is maximized if a taxpayer has at least three children therefore schedule eic only asks for information on three children additional forms for additional children beyond three are not required other notable supplementary schedules to form 1040 include | |
what is form 1040 used for | form 1040 is the primary tax form used by u s taxpayers to file their annual income tax returns taxpayers input their personal information and tax information onto the form then submit the form to the irs for review | |
is form 1040 the same as a w 2 | form 1040 is different from a w 2 a w 2 is a wage and tax statement an employee receives from a company they worked for during the tax year the information listed on the w 2 is used to fill out form 1040 | |
where can i find form 1040 | form 1040 is not a tax statement or form that gets distributed to taxpayers unlike a w 2 or 1099 statement that is mailed by an employer or party you ve contracted with form 1040 is available for download on the irs website in addition free irs filing platforms such as free file fillable forms will provide digital copies last some public courthouses or federal buildings in your community may offer paper copies available for pickup | |
what is the difference between a 1040 and a 1099 | form 1040 and form 1099 are different components of an individual s tax return there are many different types of form 1099 but form 1099 is most commonly given to independent contractors to remit tax information relating to payments they received during the tax year this information is used to complete form 1040 as the financial records listed on form 1099 are input into form 1040 the bottom lineform 1040 is the central part of tax filing for united states citizens it is the tax form that all taxpayer financial statements eventually feed into and support tax schedules branch out of regardless of an individual s filing status or income taxpayers who file taxes will complete some version of form 1040 | |
what was form 1040 a u s individual tax return | form 1040 a of the internal revenue service irs was a simplified version of form 1040 used by u s taxpayers to file an annual income tax return to have been eligible to use form 1040 a an individual needed to meet certain requirements such as not itemizing deductions not owning a business and having a taxable income of less than 100 000 unofficially known as the short form form 1040 a was eliminated for the 2018 tax year in favor of the redesigned form 1040 that debuted that year 1who had to file form 1040 a u s individual tax return most u s taxpayers use irs form 1040 to file their income tax returns form 1040 is a detailed form that offers taxpayers with complex investments itemized deductions multiple tax credits and more than 100 000 in annual income more opportunities to lower their tax liability because additional paperwork is usually required with form 1040 individuals with simpler tax situations previously had the option to use form 1040 a instead 2 form 1040 a was a simplified version of form 1040 the two page form allowed taxpayers to report ordinary income some deductions and credits individuals who fell under any of the five status options single head of household married filing separately married filing jointly or widowed could file their tax returns using the 1040 a though form 1040 a was available to taxpayers of any age and filing status not everyone qualified to use this form 3 tax filers who used 1040 a must have earned less than 100 000 taxable income and not have exercised any incentive stock options iso during the tax year the income reported must have been earned as a wage salary tip capital gain dividend interest income unemployment compensation pension annuity taxable social security and railroad retirement benefit taxable scholarship or grant and alaska permanent fund dividend any other form of income such as business income needed to be reported on the more complex form 1040 1 | |
how did form 1040 a work | form 1040 a also gave taxpayers the opportunity to claim several tax deductions to reduce their taxable income however the only deductions they could claim included student loan interest post secondary tuition and fees classroom expenses and individual retirement account ira contributions taxpayers using form 1040 a could not claim itemized deductions this limitation meant that if an individual qualified for other deductions from sources such as charitable donations or mortgage interest and the total itemized deductible amount was more than the standard deductions it would not have been advantageous for them to use 1040 a 1form 1040 a also could be used to claim tax credits tax credits reduce the bottom line or total tax bill of a taxpayer the credits that could be claimed using this form were the american opportunity tax credit aotc earned income credit eitc child tax and additional child tax credit child and dependent care credit credits for the elderly or disabled and retirement savings contribution credit 3form 1040 a vs form 1040 ezanother variant of form 1040 was form 1040 ez which was even simpler and easier to fill out than form 1040 a and was also eliminated starting with the 2018 tax filing but with form 1040 ez the individual had to file as either a single taxpayer or as married filing jointly they could not claim deductions and could only claim the eic 4 although form 1040 a was slightly more complex than form 1040 ez it was still relatively simple compared to 1040 once their financial situation became complicated with dependents special deductions and credits such as those associated with post secondary education tuition most taxpayers needed to switch from filing with the 1040 ez to the 1040 a the redesigned form 1040 that debuted with the 2018 tax year is designed to be much simpler to use than its predecessor for this reason the irs eliminated both form 1040 a and form 1040 ez 5 | |
what was form 1040ez income tax return for single and joint filers with no dependents | irs form 1040ez income tax return for single and joint filers with no dependents was the shortened version of the internal revenue service irs form 1040 this form was for taxpayers with basic tax situations and offered a fast and easy way to file income taxes the form was discontinued as of the 2018 tax year in favor of the redesigned form 1040 1eligibility for form 1040ezto use the form a taxpayer had to have taxable income of less than 100 000 less than 1 500 of interest income and claim no dependents 2 other requirements for filing the form 1040ez included for most individuals the 1040ez was the first tax form they ever completed consider a typical high school student employed part time provided they met the income qualifications the 1040ez was likely to be the most straightforward and appropriate form to file anyone who hasn t filed a tax return using form 1040ez for tax years 2017 and earlier can still do so by going to the irs website limitations of form 1040ezform 1040ez was ultimately scrapped due to the limitations of the form the irs opted for the building block approach of allowing taxpayers to more easily add allowances or credits as applicable to their return in addition form 1040ez had several other drawbacks first the form could only be used by those below a certain amount of income and types of income anyone who had income from sources other than wages salaries tips taxable scholarships or fellowship grants could not use form 1040ez this precluded any taxpayer who received foreign income or filed using a foreign address from using the form in addition any taxpayer hoping to claim a dependent could also not use form 1040ez because of the simplistic nature of form 1040ez taxpayers were not allowed to itemize their deductions nor were they able to take other types of deductions such as the student loan interest deduction or deductions for ira contributions the form also failed to allow taxpayers to report their health coverage those who use form 1040ez were required to separately report their health coverage status form 1040ez vs form 1040form 1040ez had only a few credits or deductions available to taxpayers filers were able to include an earned income credit eic and elect nontaxable combat pay 2for most tax years form 1040 had 80 more lines than form 1040ez one significant difference was that form 1040 had fields to include information about dependents while 1040ez did not allow individuals to claim dependents similar to the standard form the ez version had sections to record wages salaries and tips and taxable interest under 1 500 the filer was also able to include unemployment compensation payments 34the first year that form 1040ez was introduced 5form 1040ez allowed filers to claim income from wages tips salaries taxable grants or scholarships the alaska permanent fund and unemployment compensation 4 form 1040 though had at least 16 income categories 3categories available on the standard form included dividend payments retirement account distributions and farm and rental income form 1040 also allowed the entry of social security benefits alimony and other forms of income this form also had a long list of deductions ranging from education costs to healthcare savings plan contributions 3transition away from form 1040ezin 2018 the irs replaced forms 1040a and 1040ez with a redesigned form 1040 this new form 1040 included six new numbered schedules in addition to the existing ones like schedule a many people now may only need to file the simplified form 1040 others can file form 1040 with additional forms for their specific needs 6the forms were changed in collaboration with several stakeholders according to the irs the irs worked closely with its partners in the tax return preparation and tax software industries to prepare for tax reform and tax form changes affecting tax year 2018 including the form 1040 this ongoing collaboration ensures taxpayers can continue to rely on the irs tax professionals and tax software programs when it s time to file their tax returns 6 | |
is the 1040ez tax form still in use | the 1040ez tax form was eliminated in 2018 and replaced with the redesigned form 1040 1 | |
is there a form 1040ez for 2022 or 2023 | no the irs no longer publishes form 1040ez although it can still be used for tax years 2017 and earlier | |
what was the 1040ez tax form used for | form 1040ez was used for taxpayers who fell into very basic income categories for most years that 1040ez was published it could only be used by taxpayers below age 65 with no dependents and very little interest income this form also had fewer tax credits and deductions than the full length 1040 form meaning that it was generally less appropriate for taxpayers with a higher income | |
what is the difference between irs forms 1040 1040a and 1040ez | form 1040a was a simplified tax form for taxpayers with an income below 100 000 who did not exercise any incentive stock options throughout the year 7 all three were eliminated in the 2018 tax year and replaced with a redesigned form 1040 the bottom linethe irs previously allowed for taxpayers to select a specific form 1040 to use based on the complexity of their tax return the simplest form for the most straight forward returns could use form 1040ez however the form was discontinued in 2018 and all taxpayers must use form 1040 as part of their annual filing | |
what is sec release ia 1092 | sec release ia 1092 is a release from the securities exchange commission sec that provides uniform interpretations of how state and federal adviser laws apply to those that provide financial services 1sec release ia 1092 builds on the investment advisers act of 1940 or the advisers act that congress enacted to protect persons who rely on investment advisers for advice on purchasing and selling securities understanding sec release ia 1092sec release ia 1092 is the result of a 1987 collaboration between the securities exchange commission sec on the federal side and the north american securities administrators association nasaa on the state side these organizations issued ia 1092 in 1987 as a memo in response to the proliferation of financial planning and investment advice professionals in the 1980s the act reaffirmed the definition of an investment adviser ia as described in sec release ia 770 and added some refinements 1with regard to sports or entertainment agents those individuals that negotiated contracts but did not render investment advice were excluded from the definition of an investment adviser sec release ia 1092 and the investment advisers act of 1940the investment advisers act of 1940 defines an investment adviser as any person who either directly or indirectly through writings engages in the business of advising others on the value or profitability of securities and receives compensation for this guidelines for the investment advisers act of 1940 can be found in title 15 section 80b 1 of the united states code which notes that investment advisers are of national concern due to 2 | |
what is the 11th district cost of funds index | the 11th district cost of funds index cofi is a monthly weighted average of the interest rates paid on checking and savings accounts offered by financial institutions operating in arizona california and nevada it is one of many indices used by mortgage lenders to adjust the interest rate on adjustable rate mortgages arm and was launched in 1981 with an arm mortgage the interest rate on a mortgage moves up and down along with some standard interest rate chosen by the lender and cofi is one of the most popular indices in the western states published on the last day of each month the cofi represents the cost of funds for western savings institutions that are members of federal home loan bank of san francisco a self regulatory agency and satisfy the bank s criteria for inclusion in the index understanding the 11th district cofithe 11th district cost of funds index cofi is computed using several different factors with interest paid on savings accounts comprising the largest weighting in the average as a result the index tends to have low volatility and follow market interest rate changes somewhat slowly it is generally regarded as a two month lagging indicator of market interest rates the interest rate on a mortgage will not match the cofi rather the arm rate is typically 2 to 3 higher than cofi depending on the borrower s credit history the size and terms of the loan the ability of the borrower to negotiate with the bank and many other factors because it is computed using data from three western states the cofi is primarily used in the western u s while the 1 year treasury index is the measure of choice in the eastern region on april 30 the federal home loan bank of san francisco announced the cofi for march 2018 of 0 814 slightly lower than february | |
what is a 125 loan | a 125 loan is a type of leveraged loan typically a mortgage used to refinance a home which allows a homeowner to borrow an amount equal to 125 of their property s appraised value for example if a home is worth 300 000 then a 125 loan would give the borrower access to 375 000 in funds | |
how a 125 loan works | in financing terminology a 125 loan has a loan to value ltv ratio of 125 the ltv ratio which compares the size of a loan relative to the appraised value of the property that serves as security is used by lenders to judge a loan s default risk a 125 loan is considered riskier than one with an ltv ratio of less than 100 in fact with conventional mortgages the loan size does not typically exceed 80 of a property s value therefore according to the risk based pricing method used by lenders a loan with an ltv ratio of 125 will carry a higher interest rate than one with a lower ltv ratio as much as double in some instances using a 125 loan for refinancinghomeowners who take out a 125 loan usually do so when refinancing their homes to gain access to more cash than they would have available from their home equity their motive might be to use the loan to pay off other debts that carry even higher interest rates such as credit cards but because 125 loans have high interest rates and may also have additional fees anyone who is considering one should plan to shop around for the best terms they can get if your goal is to obtain cash to pay off other debt and you are unable to qualify for a 125 loan or you decide that you simply don t want one then you might still consider a home equity loan you won t get as much cash out of it but the interest rate is likely to be considerably lower and you can use it to pay off at least a portion of your high interest debt another option would be to do a cash out refinance advantages and disadvantages of 125 loansthe advantage of a 125 loan is that it can allow a homeowner especially one who has not accumulated too much home equity or whose property has actually declined in value to obtain more cash than they otherwise could the disadvantage to borrower and lender alike is the added risk compared with a smaller loan the borrower will be on the hook for more debt and the lender will face added risk in case of a default if the borrower does default the lender can foreclose on the property and sell it but the lender is very unlikely to get all of its money back history of 125 loansthe 125 loans first became popular during the 1990s in some cases geared toward low risk borrowers with high credit scores who wanted to borrow more than their available home equity along with other factors 125 loans played a role in the 2007 08 housing crisis the crash of real estate markets around the country kicked off by the subprime mortgage meltdown left many people underwater that is they owed more money on their mortgage than their home was actually worth 3as home values dropped some homeowners who wanted to refinance found that they no longer had enough equity in their homes to qualify for a new loan moreover they could not recoup their losses even if they managed to sell the home the now expired federal home affordable refinance program harp was introduced in march 2009 as a way to offer relief it allowed homeowners whose homes were underwater but who were otherwise in good standing and current with their mortgages to apply for refinancing through harp homeowners who owed up to 125 of the value of their homes could refinance at lower rates to help them pay off their debts and get on sounder financial footing 45originally homeowners who owed more than that percentage could not apply but eventually even the 125 ltv ceiling was removed allowing still more homeowners to apply for harp loans after being extended several times harp ended in december 2018 6 | |
what does 125 financing mean | typically when refinancing a home a homeowner can take out a 125 loan meaning that they can borrow an amount equal to 125 of the home s appraised value this type of financing comes into play when the house is worth less than what is owed on it can you get a 90 ltv a 90 ltv means a 90 loan to value ratio this is a comparison between your mortgage and the value of your home so for example a 300 000 home and a 270 000 mortgage would have a 90 loan to value ratio to achieve this you would need a downpayment of 10 of the home s value 30 000 in the u s most homes require a 20 downpayment in this example that would result in an ltv of 80 can i take equity out of my house without refinancing yes you can take equity out of your house without refinancing ways to do this include home equity loans home equity lines of credit and home equity investments | |
what is a 12b 1 fee | a 12b 1 fee is an annual marketing or distribution fee on a mutual fund the 12b 1 fee is considered to be an operational expense and as such is included in a fund s expense ratio it is generally between 0 25 and 0 75 the maximum allowed of a fund s net assets the fee gets its name from a section of the investment company act of 1940 understanding 12b 1 feesback in the early days of the mutual fund business the 12b 1 fee was thought to help investors it was believed that by marketing a mutual fund its assets would increase and management could lower expenses because of economies of scale this has yet to be proven with mutual fund assets passing the 10 trillion mark and growing steadily critics of this fee are seriously questioning the justification for using it today the 12b 1 fee is mainly used to reward intermediaries for selling a fund s shares as a commission paid to salespersons it is currently believed to do nothing to enhance the performance of a fund in 2015 the securities and exchange commission sec began examining the use of 12b 1 fees to determine if the rules for charging these fees are being adhered to and the presence of such fees is being properly disclosed 12b 1 fee broken downthe 12b 1 fee can be broken down into two distinct charges the distribution and marketing fee and the service fee total 12b 1 fees charged by a fund are limited to 1 annually the distribution and marketing piece of the fee is capped at 0 75 annually while the service fee portion of the fee can be up to 0 25 use of 12b 1 in broker sold sharesclass b and class c shares of broker sold funds typically have 12b 1 fees but they may also be charged on no load mutual fund shares and class a broker sold shares class a shares which usually charge a front end load but no back end load may come with a reduced 12b 1 expense but normally don t come with the maximum 1 fee class b shares which typically carry no front end but charge a back end load that decreases as time passes often come with a 12b 1 fee class c shares usually have the greatest likelihood of carrying the maximum 1 12b 1 fee the presence of a 12b 1 fee frequently pushes the overall expense ratio on a fund to above 2 the calamos growth fund is an example of a fund that carries a smaller 0 25 12b 1 fee on its class a shares and charges the maximum 1 12b 1 fee on its class c shares | |
what 12b 1 fees are used for | the distribution fee covers marketing and paying brokers who sell shares they also go toward advertising the fund and mailing fund literature and prospectuses to clients shareholder service fees another form specifically pay for the fund to hire people to answer investor inquiries and distribute information when necessary though these fees may be required without the adoption of a 12b 1 plan another category of fees that can be charged is known as other expenses other expenses can include costs associated with legal accounting and administrative services they may also pay for transfer agent and custodial fees | |
what is a 12b 1 fund | a 12b 1 fund is a mutual fund that charges its holders a 12b 1 fee a 12b 1 fee pays for a mutual fund s distribution and marketing costs it is often used as a commission to brokers for selling the fund 12b 1 funds take a portion of investment assets held and use them to pay expensive fees and distribution costs these costs are included in the fund s expense ratio and are described in the prospectus 12b 1 fees are sometimes called a level load understanding 12b 1 fundsthe name 12b 1 comes from the investment company act of 1940 s rule 12b 1 which allows fund companies to act as distributors of their own shares rule 12b 1 further states that a mutual fund s own assets can be used to pay distribution charges distribution fees include fees paid for marketing and selling fund shares such as compensating brokers and others who sell fund shares and paying for advertising the printing and mailing of prospectuses to new investors and the printing and mailing of sales literature the sec does not limit the size of 12b 1 fees that funds may pay but under finra rules 12b 1 fees that are used to pay marketing and distribution expenses as opposed to shareholder service expenses cannot exceed 0 75 of a fund s average net assets per year 12b 1 feessome 12b 1 plans also authorize and include shareholder service fees which are fees paid to persons to respond to investor inquiries and provide investors with information about their investments a fund may pay shareholder service fees without adopting a 12b 1 plan if shareholder service fees are part of a fund s 12b 1 plan these fees will be included in this category of the fee table if shareholder service fees are paid outside a 12b 1 plan then they will be included in the other expenses category discussed below finra imposes an annual 0 25 cap on shareholder service fees regardless of whether these fees are authorized as part of a 12b 1 plan originally the rule was intended to pay advertising and marketing expenses today however a very small percentage of the fee tends to go toward these costs 0 75 is the current maximum amount of a fund s net assets that an investor can be charged as a 12b 1 fee special considerations12b 1 funds have fallen out of favor in recent years the growth in exchange traded fund etf options and the subsequent growth of low fee mutual fund options has given consumers a wide range of option notably 12b 1 fees are considered a dead weight and experts believe consumers who shop around can find comparable funds to ones charging 12b 1 fees | |
what is a 12b 1 plan | a 12b 1 plan is a plan structured by mutual fund companies for the distribution of funds through intermediaries 12b 1 plans provide mapping for the partnerships between distributors and intermediaries who help to ensure the sale of a fund sales commission schedules and 12b 1 distribution expenses are the primary components driving a 12b 1 plan understanding the 12b 1 plan12b 1 plans facilitate the partnerships between distributors and intermediaries offering mutual fund shares 12b 1 plans are primarily focused on open end mutual funds which have multiple class structures for sales charges and distribution expenses mutual fund companies consider two types of 12b 1 charges in their 12b 1 plans sales commissions and 12b 1 expenses sales commissionssales commission schedules are structured to provide compensation to intermediaries for transacting mutual funds these partnerships can help to increase demand for funds by being marketed from a full service broker dealer who facilitates the transaction for a sales load fee these fees are paid to the broker and are not associated with annual fund operating expenses sales loads are structured to vary across share classes share classes can include front end back end and level load sales charges these sales charges are associated with individual retail share classes which typically include class a b and c shares 1 12b 1 expenses12b 1 expenses paid from the mutual fund to distributors and intermediaries are also a key part of a 12b 1 plan to market and distribute open end mutual fund shares mutual fund companies work with distributors to get their funds listed with discount brokerages and financial advisor platforms distributors help fund companies partner with the full service brokers that transact their funds at the agreed upon sales load schedule mutual fund companies will pay 12b 1 fees from a mutual fund to compensate distributors 2 in some cases funds may also be structured with a low level load that is paid to financial advisors annually during the course of an investor s holding period financial industry legislation typically restricts 12b 1 fees to 1 of the current value of the investment on an annual basis but fees generally fall somewhere between 0 25 and 1 in most cases fund companies will have higher 12b 1 fees on share classes paying a lower sales charge and lower 12b 1 fees on share classes with higher sales charges this helps to balance out the compensation paid to intermediary brokers while also providing for payment to distribution partners 3 disclosuremutual fund companies are required to provide full disclosure on their sales load schedules and 12b 1 annual fund expenses in the fund s prospectus the prospectus is one aspect of documentation required for the mutual fund s registration and is also the key offering document providing information on the fund for investors 4 12b 1 plans and any changes to their expense structuring must be approved by the fund s board of directors and amended in its prospectus filed with the securities and exchange commission | |
what is the 130 30 strategy | the 130 30 strategy often called a long short equity strategy refers to an investing methodology used by institutional investors a 130 30 designation implies using a ratio of 130 of starting capital allocated to long positions and accomplishing this by taking in 30 of the starting capital from shorting stocks the strategy is employed in a fund for capital efficiency it uses financial leverage by shorting poor performing stocks and with the cash received by shorting those stocks purchasing shares that are expected to have high returns often investors will mimic an index such as the s p 500 when choosing stocks for this strategy understanding the 130 30 strategyto engage in a 130 30 strategy an investment manager might rank the stocks used in the s p 500 from best to worse on expected return as signaled by past performance a manager will use a number of data sources and rules for ranking individual stocks typically stocks are ranked according to some set selection criteria for example total returns risk adjusted performance or relative strength over a designated look back period of six months or one year the stocks are then ranked best to worst from the best ranking stocks the manager would invest 100 of the portfolio s value and short sell the bottom ranking stocks up to 30 of the portfolio s value the cash earned from the short sales would be reinvested into top ranking stocks allowing for greater exposure to the higher ranking stocks 130 30 strategy and shorting stocksthe 130 30 strategy incorporates short sales as a significant part of its activity shorting a stock entails borrowing securities from another party most often a broker and agreeing to pay an interest rate as a fee a negative position is subsequently recorded in the investor s account the investor then sells the newly acquired securities on the open market at the current price and receives the cash for the trade the investor waits for the securities to depreciate and then re purchases them at a lower price at this point the investor returns the purchased securities to the broker in a reverse activity from first buying and then selling securities shorting still allows the investor to profit short selling is much riskier than investing in long positions in securities thus in a 130 30 investment strategy a manager will put more emphasis on long positions than short positions short selling puts an investor in a position of unlimited risk and a capped reward for example if an investor shorts a stock trading at 30 the most they can gain is 30 minus fees while the most they can lose is infinite since the stock can technically increase in price forever hedge funds and mutual fund firms have begun offering investment vehicles in the way of private equity funds mutual funds or even exchange traded funds that follow variations of the 130 30 strategy in general these instruments have lower volatility than benchmark indexes but often fail to achieve greater total returns 1 | |
what is an 18 hour city | economists and real estate investors use the term 18 hour city to describe a mid size city with attractive amenities higher than average population growth and a lower cost of living and cost of doing business than the biggest urban areas the 18 hour city generally has a population of under one million making it a second tier city eighteen hour cities in the u s are increasingly seen as viable alternatives for investment and living to the big six markets of boston chicago los angeles new york san francisco and washington d c that make up america s first tier or 24 hour cities understanding the 18 hour citywhile loosely defined the term 18 hour city most often refers to a city that has public services amenities and job opportunities that are comparable in quality to those in the big six markets unlike the biggest cities most of their services and amenities don t operate on a 24 hour basis however they boast comparable advantages including solid public transportation systems modern infrastructure and strong economies housing prices are moderate in comparison eighteen hour cities have emerged as an attractive alternative to big cities for starting a new business relocating an existing one or investing in real estate they typically feature lower capitalization rate compression meaning property values tend to remain stable rather than spiking up or down significantly like first tier cities 18 hour cities often boast low real estate vacancy rates along with favorable supply concentrations rental growth and absorption trends all indicators of long term real estate investment potential aside from the numbers forbes com cites a distinctive and lovable culture as a key factor in creating and maintaining a vibrant 18 hour city austin is the live music capital of the world denver and the research triangle are outdoor meccas portland is just plain weird and residents would like to keep it that way one perceived downside is the increased risk inherent in cities that do not have the established track record of primary market cities examples of 18 hour cities in the u s crowdstreet a site for crowd sourced real estate investments cites austin denver and nashville as recent stars among 18 hour cities in 2020 it identified charleston south carolina as the next big success story in the category the stars among 18 hour cities are a draw for millennials turned off by big city obstacles realtor com identified its top metropolitan areas for 2020 and beyond with all of its top five picks squarely in the 18 hour city category they include boise idaho mc allen edinburg mission texas tucson arizona chattanooga tennessee and columbia south carolina the national real estate investor website chose charleston kansas city and columbus ohio based on their stellar growth in jobs these and other frequently cited 18 hour city stars have become targets for millennials whose goal is launching or advancing their careers they are characterized by the availability of recreation and entertainment opportunities that extend well beyond what the typical second tier affords employers are drawn to 18 hour cities because doing business is less expensive in these markets and this in turn attracts large numbers of job seekers and entrepreneurs | |
what is the 183 day rule | the 183 day rule refers to a threshold used by most countries to determine whether an individual should be considered a resident for tax purposes this number is often used in a tax context because it marks the point at which someone has spent more than half the calendar year in a particular jurisdiction in the u s the internal revenue service irs uses a formula to determine whether people who are neither u s citizens nor permanent residents should be considered residents for taxation this is called the substantial presence test one of its criteria includes the question of whether an individual has spent 183 days in the u s based on a calculation that considers their combined physical presence in a given tax year and the two years prior 1understanding the 183 day rulemany countries around the world use the 183 day threshold to broadly determine whether to tax someone as a resident because it marks the majority of a year these include canada australia and the united kingdom for example generally this means that if you spent 183 days or more in the country during a given year you are considered a tax resident for that year each nation maintaining a 183 day rule has its own criteria for applying it in practice for example some use the calendar year for the accounting period whereas others use a fiscal year some include the day the person arrives in the country others do not some countries have even lower thresholds that trigger tax residency for example switzerland considers you a tax resident if you have spent more than 90 days there 3the irs and the 183 day rulethe irs uses a more complicated formula to determine whether someone passes its substantial presence test and is subject to u s taxes as a result the person in question must the 183 day presence threshold is not based off a total sum of days present rather it is calculated by adding the following other irs terms and conditionsthe irs generally considers someone to have been present in the u s on a given day if they spent any part of a day there but there are some exceptions days that do not count as days of presence include u s citizens and resident aliensstrictly speaking the 183 day rule does not apply to u s citizens and permanent residents who are required to file tax returns regardless of their country of residence or the source of their income however such individuals may exclude at least part of their overseas earned income up to 126 500 in 2024 from taxation provided they meet a physical presence test in a foreign country and paid taxes there 2 to meet this physical presence test the person needs to be present in the country for 330 complete days in 12 consecutive months 4individuals residing in another country in violation of u s law will not be allowed to have their incomes qualify as foreign earned 5u s tax treaties and double taxationthe u s has tax treaties with other countries that help determine jurisdiction for income tax purposes and to avoid double taxation these agreements contain provisions for the resolution of conflicting claims of residence | |
how many days can you be in the u s without paying taxes | the irs considers you a u s resident if you were physically present in the u s on at least 31 days of the current year and 183 days during a three year period the three year period consists of the current year and the prior two years the 183 day rule includes all the days present in the current year year 3 1 3 of the days you were present in year 2 and 1 6 of the days you were present in year 1 | |
how long do you have to live in a state before you re considered a resident | many states use the 183 day rule to determine residency for state tax purposes and what constitutes a day varies among states for instance any time spent in new york except for travel to destinations outside of new york e g airport travel is considered a day 6 so if you work in manhattan but live in new jersey you may still be considered a new york resident for tax purposes even if you never spend one night there in addition some states have special agreements whereby a resident who works in another state is only required to pay taxes in the state of their permanent residence or where they are domiciled it is important to consult the laws of each state that you frequent to determine if you are required to pay their income taxes | |
how do i calculate the 183 day rule | for most countries that apply a 183 day rule you are a tax resident of that country if you spend 183 or more there the united states however has a different criteria for applying a tax residency test you are a tax resident if you were physically present in the u s for 31 days of the current year and 183 days in the last three years including all days present in the current year 1 3 of the days from the previous year and 1 6 of the days from the year before that the bottom linethe 183 day rule refers to a common test used to determine tax residency in most countries individuals who are physically present for 183 days or more are considered residents for tax purposes in the u s a substantial presence test is used to determine tax residency and it s slightly more tricky than the common 183 day rule it considers time spent in the u s in a given year in addition to fractions of time spent in the u s in the two years prior lastly many states use a 183 day rule to determine residency for local tax purposes consulting local and federal tax regulations and international tax treaties can help an individual determine their total tax obligations | |
what was the 1979 energy crisis | the 1979 energy crisis the second of two oil price shocks in the 70s resulted in a widespread panic about potential gasoline shortages and far higher prices for both crude oil and refined products oil output declined by only 7 or less but the short term supply disruption led to a spike in prices panic buying and long lines at gas stations understanding the 1979 energy crisisthe 1979 energy crisis occurred in the aftermath of the iranian revolution which started in early 1978 and ended in early 1979 with the fall of shah mohammad reza pahlavi the state s monarch turmoil in iran a major petroleum exporting country caused the global supply of crude oil to decline significantly triggering noteworthy shortages and a surge in panic buying within 12 months the price per barrel of this widely used resource almost doubled to 39 50 short run disruptions in the global supply of gasoline and diesel fuel were particularly acute in the spring and early summer of 1979 several states responded by rationing gasoline including california new york pennsylvania texas and new jersey in these populous states consumers could only purchase gas every other day based on whether the last digit of their license plate numbers was even or odd the gasoline shortage also led to fears that heating oil might be in short supply through the 1979 1980 winter this prospect was especially concerning for new england states where demand for home heating oil was the highest special considerationsit would be erroneous to blame the crisis solely on the fall of the shah notably the u s faced more acute pain from the crisis than other developed countries in europe which also depended on oil from iran and other middle east countries part of the reason behind the crisis had to do with fiscal policy decisions in the u s in early 1979 the u s government regulated oil prices regulators ordered refiners to restrict the supply of gasoline in the early days of the crisis to build inventories directly contributing to higher prices at the pump another factor was unintended supply restriction after the department of energy doe decided to make a handful of large u s refiners sell crude to smaller refiners who could not find a ready supply of oil because smaller refiners had limited production capabilities the decision further delayed gasoline supply monetary policy leading up to the crisis also seemingly played a role to a degree the federal open market committee fomc was reluctant to raise target interest rates too quickly and this hesitation contributed to rising inflation late in the decade the jump in inflation was accompanied by higher prices for energy and a range of other consumer products and services benefits of the 1979 energy crisisamid the crisis politicians actively encouraged consumers to conserve energy and limit unnecessary travel in subsequent years the 1979 crisis led to the sale of more compact and subcompact vehicles in the u s these smaller vehicles had smaller engines and provided better fuel economy in addition the crisis prompted utility companies worldwide to seek out alternatives to crude oil generators including nuclear power plants and governments to spend billions on the research and development r d of other fuel sources combined these efforts resulted in daily worldwide oil consumption declining in the six years following the crisis meanwhile the organization of petroleum exporting countries opec global market share fell to 29 in 1985 down from 50 in 1979 | |
how 2 1 buydowns work | a buydown is a real estate financing technique that makes it easier for a borrower to qualify for a mortgage with a lower interest rate that lower rate can last for the duration of the mortgage as is often the case when borrowers pay extra points up front to the lender or for a particular period of time a 2 1 buydown is one kind of temporary buydown in this case lasting for two years in a 2 1 buydown the interest rate will increase from one year to the next until it settles into its permanent rate in year three to make up for the interest that they won t be receiving in those early years lenders will charge an additional fee either a homebuyer or a home seller can pay for a buydown that payment may be in the form of mortgage points or a lump sum deposited in an escrow account with the lender and used to subsidize the borrower s reduced monthly payments sellers including home builders often use 2 1 buydowns as an incentive for potential purchasers example of a 2 1 buydown mortgagesuppose a real estate developer is offering a 2 1 buydown on its new homes if the prevailing interest rate on 30 year mortgages is 5 a homebuyer could get a mortgage that charged just 3 in the first year then 4 in the second year and 5 after that if the homebuyer took out a 200 000 30 year mortgage for example then their monthly payments during the first year would be 843 in the second year they would pay 995 after the end of the second year their monthly payment would rise to 1 074 where it would stay for the remainder of the mortgage 2 1 buydown pros and consfor home sellers a 2 1 buydown can help them by making it easier and sometimes faster for them to sell their homes for a good price the downside of course is that it comes at a cost which ultimately reduces how much they will net from the sale for homebuyers a 2 1 buydown has several potential benefits for one thing it can help them afford a larger mortgage and a more expensive home than they might otherwise qualify for for another it buys them some time before their mortgage payments rise to the full amount which can be helpful if their income is also rising from year to year the downside for homebuyers is the risk that their income won t keep pace with those increasing mortgage payments in that case they might find themselves stretched too thin and even have to sell the home |
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