Estate Planning USA.com

We are a group of student doing a business plan about a software company. However we are not sure how to determine the price for our product. Here is the basic calculation about the fixed cost and variable cost of our company

Fixed Costs
Salaries (directors’ remuneration) $8,000
Supplies (printing &stationery) $1,200
Repairs & maintenance(upkeep of office) $-
Advertising $20,000
Car, delivery and travel $2,400
Accounting and legal& financial charges $3,800
Rent $12,000
R&D Developments $5,000
Utilities $1,000
Insurance $1,440
Taxes (Real estate, etc.) $-
Interest $-
Depreciation $3,900
Medical Fee $-
Miscellaneous expenses $-
Principal portion of debt payment $17,645
Owner’s draw $-

Total Fixed Costs $78,385

Variable Costs
Cost of Goods Sold $45,150
Inventory
Raw Materials
Direct Labor (Includes Payroll Taxes) $24,000

Total Variable Cost : $69,150

Break event Sales level =76749

We plan to sell the product for $5000/unit. But our teacher query why and how we determine the price. Anybody please answer me how to determine the selling price please. Thank you.

Im planning to buy a house. Its really solid, a good investment in my opinion. 3BR 1.5BA and basement..Nice yard, garage, privacy fence, deck, inside has all new electric, could use some paint and carpet (we plan to do those things regardless if it needs it or not). The house is on the market for $15,000. Taxes are up to date, real estate agent said the taxes for this house would be around $500 per yr. I’ll have to check with the utility companies to make sure there aren’t any outstanding balances. We plan to pay cash upfront, but have been considering a mortgage to boost our credit.

Please tell me if there is any information that I am forgetting to find out, if a mortgage is a bad idea or a good idea, anything you could think of tell me.

Im a first time buyer, and I feel it just seems too easy to hand over the cash, get the deed and be done? Also, this is the 2nd house we looked at. There are a couple more we seen and liked, but this one has everything we want in a house (yard, fence, deck, only needs minor repairs etc)…do you think it would be best to jump on this opportunity while I can, or should we stay on the market a while longer and hope to find something better? Advice please?

i paying cash for the place and plan to rent it out all year. i have another real estate rental business in nj. i have my business address listed their, but condo is in my name. i was told i cant take the taxes orr my business exp since condo is not in my business name, so that’s why i want to put my nyc condo in my business name and not personal name.

I am currently completing my pre-licensing course to become a FL Real Estate agent. I’m putting together a rough plan for operating my real estate agent business and have noticed that many local real estate agents operate as a PA (which I believe is the same as a professional corporation used for lawyers, doctors, etc…).
What are the tax / liability advantages to operating this way? Is this the best entity to use for this business. I went to business school, so I understand the basic benefits of Corporations and LLC’s, but I’m not familiar with these specific applications.

My fiancee and I were planning on buying a home next year. On a whim, I applied to be pre-approved.

During thing time, we got fed up with our apartment complex. We moved on June 29th to a luxury apartment community. As full time students, and workers, we’re barely making ends meet — but it means that we’re not getting mugged on the way into our apartment anymore.
I got a call last night from the mortgage agent I applied with last month. She told me I was pre-approved for a decent amount.

We just moved into our new place! Our rent payment is $900 for a one-bedroom. Looking in the area that we originally wanted to buy in, we can get a move-in ready home for under 70k. That’s $500-$600 for at least three bedrooms - after taxes and insurance.

Obviously, I want to go for the house. But we have twelve months left on our lease! I think we’d have to pay 2 months to break it. And, as I said, we’re broke. [The loan that the mortgage company supplies is along with a local grant for down payment assistance and closing costs; we’re first time home buyers]

Should we pay $1700 to get out of our lease? Can we write this into a purchase agreement as a clause?

Or should we stick it out another year? We’re getting married next fall - do we want to deal with wedding planning AND real estate drama? Also, I’m afraid my credit rating will drop as the mortgage company’s requirements go up. I feel like I need to do this, or we won’t realize our home ownership dream for a number of years.

Help!
Grant is from the city that we’re looking to buy it. 10k to down payment and closing costs. I work for said city, and thus know that it’s not a mess-up.

Fiancee’s credit rating brings mine down. He’s working on it (has been for *years*).

Yep. Am currently running way too tight on my budget. Should have re-evaluated before moving to expensive apartment. But, again, if we were to buy a house, I would be fine.

I purchased a home in an excellent area for $350,000. I have spent $85,000 for remodeling. The house will easily sell for $795,000. I plan to sell as soon as possible. What tax benefits would I gain in taking my time in selling versus selling immediately? Would the tax gains be worth my while to wait for the perfect buyer? Is there a timetable showing benefits of keeping investment real estate for a period of time versus selling immediately?

I’m a bit confused about how investment property loans work. Do they need to verify that you could handle the mortgage on your own without any rental income? Or do they take the potential rental income into consideration?

We just bought our first house (primary residence) in February…a fixer upper, and we’ve made a lot of home improvements, so we’re feeling a lot more confident about the buying process and how to make improvements. I have taken my state’s real estate course and plan to become licensed as an agent. I work for a property management company so I work with tenants and rent collecting (and sometimes evicting) on a daily basis.

We want to buy an investment property, but we had a hard enough time getting a loan for our own home (fairly good credit scores, hovering in the high 600’s/low 700s) but my fiance is self-employed, which scared off a lot of lenders. However we’ve faithfully made our mortgage payments on time for the last 8 months, and paid a little extra toward principal, so hopefully that makes us look a little better?

In our area, the types of homes we would probably be looking at for potential rental properties are in the $170-$200k range. We expect to have about $15-$20k as a downpayment. Income in the $40-60k range annually, depending on how my fiance writes stuff off on his self employment taxes.
Is this remotely a realistic idea, or would we need much more of a downpayment? Thoughts?

Landlord said: "Also, sorry, but there is NO WAY you can charge between 3 and 5k a month rent on cheap 170-120k property. Not in the real world."

I don’t know what you mean by this. $170-$200k in our area is not "cheap" for a single family home or duplex. Median home price is $200k or a little under.

Also I don’t know what you mean by getting 3-5k rent. I see single family rental homes in our area going from $1000-$2000/month depending on size and amenities.

We are getting ready to purchase another house as our new primary residence. Our plan at the moment is to keep the current house and rent it out. Since we bought this house 10 years ago it has appreciated nearly $170K. My understanding is that we have a $250K tax exemption from capital gains available as long as we sell the old house within three years of moving into the new house.

So my net question is: What is the key criteria for making the decision to keep the old home beyond the three year threshold? I guess the trade-off is between the capital gains exemption and potential longer-term appreciation on the rental house. But I want to make sure I am not missing anything else…

Hey everyone,

I am a college student and I have been seriously considering buying up a foreclosed house in St. Louis area.

I have 20k cash and I am thinking about using the possible 8,000$ tax credit.

Houses here in GOOD neighborhoods are as low as 25k. Not so good neighborhoods are down to 4,000$.

I am looking at the good neighborhoods in a price range of 20-50K. I would have to hold on to the house for 3 years if I used the Tax credit, but I don’t see the market returning before then so I don’t mind.

Do you guys have any suggestions? Is this smart? Or should I put my money some place else?

I plan to fix it up with a friend of mine. We both have worked in fixing houses up before. I then plan to rent it out until I can sell in 3 years.

Thanks
Umm, well I’ve read all the requirements for using the tax credit. I qualify for them all.

Maybe I wouldnt be able to rent it out, but live in it. For 8K, ill happily do that.

My long-term goal is to do real estate investment as a career. I have been told by others that it’s very challenging (especially with taxes) and that there’s too many "dogs in the fight" and therefore too hard to find great deals before anyone else does. Do you think these are valid concerns, and what are some challenges that I should consider/plan for?