How To Trade In a Car That You Still Owe Money On – or That Has a Payoff! #car #hire #orlando


#trade in your car
#

How To Trade In a Car That You Still Owe Money On,

or That Has a Payoff!

Many people get thrown for a loop when it comes time to trade in a vehicle with an outstanding loan payoff on it. Car dealers are very familiar with how to take trades with money owed on them, but often, when they try to explain the process the customer gets more confused then when they started!

Here’s How It Works:

You take the selling price of the vehicle you’re buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.

The payoff has to be paid off in order for the dealer to get a clear title to your trade. In essence, when you trade a car to a dealer you are really selling it to them. You can’t sell a car without providing a clear title. By a clear title I mean a title that is lien free. By refinancing the payoff you are giving the dealer the money to pay off your outstanding loan.

The Calculations Should Look Like This:

Selling Price of the New Vehicle You are Purchasing

+ Sales Tax and Title Fees

Trade-in Allowance

+ Payoff

Rebates and/or Cash Down (if any)

________________________________

= Amount Due or Amount to be Financed

One Word of Caution However:

Make the car dealer put in writing that they are going to use the payoff amount to immediately pay off your car loan on your trade. This is very common, and most dealers take care of it right away.

However, I’ve seen cases where a dealer was having cash flow problems and they sat on the money and waited a month or more before they got around to paying off a loan. Until the loan is paid off you are responsible for making the payments on it. So be careful.

I hope this helps. It is very easy to get confused when there is a payoff involved. If you just take it a step at a time it is very easy to follow. By adding it to the new loan after the trade-in allowance has been subtracted you are in essence killing two birds with one stone:

you are paying off the outstanding loan

you are trading your car to the car dealer with a clear title so he can then resell the vehicle

The bottom line to remember is that the payoff owed is your loan and therefore it is your responsibility to pay in full.


New IRS Fresh Start Initiative Helps Taxpayers Who Owe Taxes #i #owe #taxes


#

Like – Click this link to Add this page to your bookmarks Share – Click this link to Share this page through email or social media Print – Click this link to Print this page

New IRS Fresh Start Initiative Helps Taxpayers Who Owe Taxes

IRS Tax Tip 2012-48, March 12, 2012

The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes. The following four tips explain the expanded relief for taxpayers.

  1. Penalty relief Part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill.The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes. Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.

The penalty relief is available to two categories of taxpayers:

* Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline.

* Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.

To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower. Your 2011 balance due can not exceed $50,000.

Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief. The new form is available on www.irs.gov or by calling 1-800-829-3676 (TAX FORM).

  • Installment agreements An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.

    The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This option requires limited financial information, meaning far less burden to the taxpayer. The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.

    If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). You also can pay your balance down to $50,000 or less to qualify for this payment option.

    With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.

    You can set up an installment agreement with the IRS through the On-line Payment Agreement (OPA) page at www.irs.gov

  • Offer in Compromise Under the first round of Fresh Start in 2011, the IRS expanded the Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.

    The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations.

    Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

  • More information A series of eight short videos are available to familiarize taxpayers and practitioners with the IRS collection process. The series “Owe Taxes? Understanding IRS Collection Efforts,” is available on the IRS website, www.irs.gov.

    The IRS website has a variety of other online resources available to help taxpayers meet their payment obligations.


  • How Can you Pay, if you Owe Back Taxes #owe #back #taxes #to #irs


    #

    How Can you Pay, if you Owe Back Taxes

    March 16, 2015. Mike Slack – The Tax Institute

    Ed note:If you finished preparing your tax return only to discover that you OWE the government a large sum of money you might be upset or worried about how to pay the amount. You need to know that there are options available to you. Mike Slack, from The Tax Institute, explains.

    The consequences of not being able to pay your tax liability may appear to be dire to most. There are two penalties that generally apply to taxpayers who owe the IRS.

    • The first is the “failure to file” penalty, which accrues at the rate of 5% per month (to a maximum of 25%) on the amount owed.
    • The second is the “failure to pay” penalty, which accrues at the rate of only 1/2% per month (to a maximum of 25%) on the amount due.

    If both apply, the failure to file penalty drops to 4.5% per month, so the total combined penalty remains at 5%.

    The maximum combined penalty for the first five months is 25%. Thereafter, the failure to pay penalty can continue at 1/2% per month for 45 more months. Thus, the combined penalties can reach a total of 47.5% over time.

    However, if your return is more than 60 days late, the minimum penalty will be $135 or the amount of any tax you owe, whichever is smaller.

    To add insult to injury, both of these penalties are in addition to the interest you will be charged for late payment that is calculated separately. Luckily, for those individuals unable to pay their taxes on the due date of their tax return, there are options.

    How you can pay a tax bill over time

    If paying your taxes would cause financial hardship, and you have the documents to prove it, you may qualify for a “hardship extension” to pay tax due. Under a hardship extension:

    • You will avoid the failure to pay penalty if the extension is granted, but you will still be charged interest.
    • If you qualify, you will be given an extra six months to pay the tax shown as due on your tax return.
    • If the IRS determines a “deficiency,” i.e. that you owe taxes in excess of the amount shown on your return, the undue hardship extension generally can be as long as 18 months, with some extensions. However, no extension will be granted if the deficiency was the result of negligence, intentional disregard of the tax rules or fraud.

    It is important to note that in order to establish undue hardship, it is not enough to show that it would just be inconvenient to pay your taxes when due.

    Another way to defer your tax payments is to enter into an “installment agreement” with the IRS, where you can make monthly payments on your tax debt and reduce, or even eliminate, the imposition of penalties or interest.

    • A taxpayer requests an installment agreement by filing Form 9465, and paying a fee ranging from $43 to $120 which is deducted from the first payment.
    • Installment agreements can have repayment periods of up to 72 months, and are subject to an interest rate that right now is approximately 3.40%.

    One additional option is to borrow money to pay the tax debt, especially if you do not qualify for the options above. For example, loans from relatives or friends are often the simplest method to pay the bill. One advantage of such loans is that the interest rate will probably be low. However loans over $10,000 at below market interest rates may cause adverse tax consequences.

    If after exhausting all other possible options, you might want to consider an “offer-in-compromise.” The IRS would prefer at least a partial payment of a tax debt, as opposed to no payment at all. Therefore, the IRS is sometimes willing to settle a tax liability for less than the full amount if (a) the taxpayer is unable to pay the full amount, (b) there is doubt as to how much the tax liability is, (c) collection would create economic hardship, or (d) compelling public policy or equity considerations exist. It is important to note that the IRS only accepts a minority of offers-in-compromises.

    Lastly, as with any issues related to debt settlement, it is important to be mindful that there may be some unscrupulous companies claiming they can settle your tax debt for pennies-on-the-dollar in exchange for a fee. It is always good advice to consult reviews or the Better Business Bureau before engaging one of these companies.

    At H R Block we are here to help you with your taxes in all manners, not just the filing of your return. If you’re having behind on paying your taxes, we strongly suggest you visit one our trained tax professionals to explore your options going forward.

    The views expressed on this blog are those of the author, and not necessarily of H R Block. Third-party contributors may have received payment. H R Block is not responsible for any information, opinions, assertions or statements expressed in their materials, or the identity or credentials of the individuals communicating through the site. This blog is for informational purposes onlyand does not provide legal, financial, accounting or tax advice. It is “as is” and carries no warranties.


    How To Trade In a Car That You Still Owe Money On – or That Has a Payoff! #cheapest #car #insurance #for #young #drivers


    #trade in your car
    #

    How To Trade In a Car That You Still Owe Money On,

    or That Has a Payoff!

    Many people get thrown for a loop when it comes time to trade in a vehicle with an outstanding loan payoff on it. Car dealers are very familiar with how to take trades with money owed on them, but often, when they try to explain the process the customer gets more confused then when they started!

    Here’s How It Works:

    You take the selling price of the vehicle you’re buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.

    The payoff has to be paid off in order for the dealer to get a clear title to your trade. In essence, when you trade a car to a dealer you are really selling it to them. You can’t sell a car without providing a clear title. By a clear title I mean a title that is lien free. By refinancing the payoff you are giving the dealer the money to pay off your outstanding loan.

    The Calculations Should Look Like This:

    Selling Price of the New Vehicle You are Purchasing

    + Sales Tax and Title Fees

    Trade-in Allowance

    + Payoff

    Rebates and/or Cash Down (if any)

    ________________________________

    = Amount Due or Amount to be Financed

    One Word of Caution However:

    Make the car dealer put in writing that they are going to use the payoff amount to immediately pay off your car loan on your trade. This is very common, and most dealers take care of it right away.

    However, I’ve seen cases where a dealer was having cash flow problems and they sat on the money and waited a month or more before they got around to paying off a loan. Until the loan is paid off you are responsible for making the payments on it. So be careful.

    I hope this helps. It is very easy to get confused when there is a payoff involved. If you just take it a step at a time it is very easy to follow. By adding it to the new loan after the trade-in allowance has been subtracted you are in essence killing two birds with one stone:

    you are paying off the outstanding loan

    you are trading your car to the car dealer with a clear title so he can then resell the vehicle

    The bottom line to remember is that the payoff owed is your loan and therefore it is your responsibility to pay in full.


    How To Trade In a Car That You Still Owe Money On – or That Has a Payoff! #vehicles #for #sale


    #trade in your car
    #

    How To Trade In a Car That You Still Owe Money On,

    or That Has a Payoff!

    Many people get thrown for a loop when it comes time to trade in a vehicle with an outstanding loan payoff on it. Car dealers are very familiar with how to take trades with money owed on them, but often, when they try to explain the process the customer gets more confused then when they started!

    Here’s How It Works:

    You take the selling price of the vehicle you’re buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.

    The payoff has to be paid off in order for the dealer to get a clear title to your trade. In essence, when you trade a car to a dealer you are really selling it to them. You can’t sell a car without providing a clear title. By a clear title I mean a title that is lien free. By refinancing the payoff you are giving the dealer the money to pay off your outstanding loan.

    The Calculations Should Look Like This:

    Selling Price of the New Vehicle You are Purchasing

    + Sales Tax and Title Fees

    Trade-in Allowance

    + Payoff

    Rebates and/or Cash Down (if any)

    ________________________________

    = Amount Due or Amount to be Financed

    One Word of Caution However:

    Make the car dealer put in writing that they are going to use the payoff amount to immediately pay off your car loan on your trade. This is very common, and most dealers take care of it right away.

    However, I’ve seen cases where a dealer was having cash flow problems and they sat on the money and waited a month or more before they got around to paying off a loan. Until the loan is paid off you are responsible for making the payments on it. So be careful.

    I hope this helps. It is very easy to get confused when there is a payoff involved. If you just take it a step at a time it is very easy to follow. By adding it to the new loan after the trade-in allowance has been subtracted you are in essence killing two birds with one stone:

    you are paying off the outstanding loan

    you are trading your car to the car dealer with a clear title so he can then resell the vehicle

    The bottom line to remember is that the payoff owed is your loan and therefore it is your responsibility to pay in full.


    How To Trade In a Car That You Still Owe Money On – or That Has a Payoff! #sale #car


    #trade in your car
    #

    How To Trade In a Car That You Still Owe Money On,

    or That Has a Payoff!

    Many people get thrown for a loop when it comes time to trade in a vehicle with an outstanding loan payoff on it. Car dealers are very familiar with how to take trades with money owed on them, but often, when they try to explain the process the customer gets more confused then when they started!

    Here’s How It Works:

    You take the selling price of the vehicle you’re buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.

    The payoff has to be paid off in order for the dealer to get a clear title to your trade. In essence, when you trade a car to a dealer you are really selling it to them. You can’t sell a car without providing a clear title. By a clear title I mean a title that is lien free. By refinancing the payoff you are giving the dealer the money to pay off your outstanding loan.

    The Calculations Should Look Like This:

    Selling Price of the New Vehicle You are Purchasing

    + Sales Tax and Title Fees

    Trade-in Allowance

    + Payoff

    Rebates and/or Cash Down (if any)

    ________________________________

    = Amount Due or Amount to be Financed

    One Word of Caution However:

    Make the car dealer put in writing that they are going to use the payoff amount to immediately pay off your car loan on your trade. This is very common, and most dealers take care of it right away.

    However, I’ve seen cases where a dealer was having cash flow problems and they sat on the money and waited a month or more before they got around to paying off a loan. Until the loan is paid off you are responsible for making the payments on it. So be careful.

    I hope this helps. It is very easy to get confused when there is a payoff involved. If you just take it a step at a time it is very easy to follow. By adding it to the new loan after the trade-in allowance has been subtracted you are in essence killing two birds with one stone:

    you are paying off the outstanding loan

    you are trading your car to the car dealer with a clear title so he can then resell the vehicle

    The bottom line to remember is that the payoff owed is your loan and therefore it is your responsibility to pay in full.


    How To Trade In a Car That You Still Owe Money On – or That Has a Payoff! #car #lifts #for #sale


    #trade in your car
    #

    How To Trade In a Car That You Still Owe Money On,

    or That Has a Payoff!

    Many people get thrown for a loop when it comes time to trade in a vehicle with an outstanding loan payoff on it. Car dealers are very familiar with how to take trades with money owed on them, but often, when they try to explain the process the customer gets more confused then when they started!

    Here’s How It Works:

    You take the selling price of the vehicle you’re buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.

    The payoff has to be paid off in order for the dealer to get a clear title to your trade. In essence, when you trade a car to a dealer you are really selling it to them. You can’t sell a car without providing a clear title. By a clear title I mean a title that is lien free. By refinancing the payoff you are giving the dealer the money to pay off your outstanding loan.

    The Calculations Should Look Like This:

    Selling Price of the New Vehicle You are Purchasing

    + Sales Tax and Title Fees

    Trade-in Allowance

    + Payoff

    Rebates and/or Cash Down (if any)

    ________________________________

    = Amount Due or Amount to be Financed

    One Word of Caution However:

    Make the car dealer put in writing that they are going to use the payoff amount to immediately pay off your car loan on your trade. This is very common, and most dealers take care of it right away.

    However, I’ve seen cases where a dealer was having cash flow problems and they sat on the money and waited a month or more before they got around to paying off a loan. Until the loan is paid off you are responsible for making the payments on it. So be careful.

    I hope this helps. It is very easy to get confused when there is a payoff involved. If you just take it a step at a time it is very easy to follow. By adding it to the new loan after the trade-in allowance has been subtracted you are in essence killing two birds with one stone:

    you are paying off the outstanding loan

    you are trading your car to the car dealer with a clear title so he can then resell the vehicle

    The bottom line to remember is that the payoff owed is your loan and therefore it is your responsibility to pay in full.