Estate Planning USA.com

P9-1A

Elbert Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.

Debits
1.Cost of real estate purchased as a plant site (land $255,000 and building $25,000)$280,000
2.Installation cost of fences around property6,800
3.Cost of demolishing building to make land suitable for construction of new building24,000
4.Excavation costs for new building23,000
5.Accrued real estate taxes paid at time of purchase of real estate2,179
6.Cost of parking lots and driveways29,000
7.Architect’s fees on building plans33,000
8.Real estate taxes paid for the current year on land5,800
9.Full payment to building contractor
640,000

$1,043,779

Credits
10.Proceeds for salvage of demolished building
$8,000

Analyze the transactions using the table column headings provided here. Enter the amounts in the appropriate columns. (If answer is zero, please enter 0, do not leave any fields blank. If amount decreases total use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

ItemLandBuildingOther Accounts
1.$$$
2.
3.
4.
5.
6.
7.
8.
9.
10.

Total
$

$

Click here if you would like to Show Work for this question

Barney and Willard are two personal trainers from Seattle. They started their own company in 2001 which they formed as a LLC. They each contributed $1000 in cash to start.

Barney’s uncle, Percy lent them $90,000. With that money they purchased their initial equipment and paid for operating expenses during their first two years of operation. Barney and Willard have not actually been paying back this loan. In 2007, Percy gifted both guys $10,000 and he gifted them $11,000 in 2008. Percy planned to gift them $12,000 in 2009, but he died in February. Under his will, the remaining portion of the loan is to be forgiven and treated as bequests.

In late 2007, the company purchased their own facilities for $120,000. They made a down payment of $20,000 and the rest was mortgaged.

The financial crisis hit the company hard in 2007 and 2008. Real estate values dropped 26% and the equipment is now only worth 30% what they paid for it. Accounts receivable payments are also very slow.

Willard decides he wants to leave the company – he wants Barney to buy him out of his equitable share. Willard wants cash, but if he can’t have that then he wants ownership of the building and will assume the mortgage and he would rent the building to Barney for a reasonable amount.

They both want this settled by December 1st, 2009.

Assets

Current Assets
Cash 11,600.00
Accounts Receivable 22,000.00
Supplies 3,400.00
Total Current Assets 37,000.00

Property, Plant & Equipment
Building 120,000.00
Less: Accu Dep (4,000.00)
Equipment 78,000.00
Office Equipment 6,500.00
Less:Accu Dep (84,000.00)
Total PP&E 116,500.00

Total Assets 153,500.00

Liabilities & Owners’ Equity

Current Liabilities
Accounts Payable 15,100.00
Note Payable equipment 10,000.00
Mortgage Payable 5,000.00
Unearned revenue 7,400.00
37,500.00

Long Term Liabilities
Loan Payable - Percy 29,000.00
Note Payable - Equipment 25,000.00
Mortgage Payable 89,000.00
143,000.00

Equity
Earnings (48,000.00)
Barney Equity 22,000.00
Barney Draw (10,000.00)
Willard Equity 22,000.00
Willard Draw (13,000.00)
(27,000.00)

153,500.00

Im a 22 yr old African American female from Tennessee planning to take real estate classes in the fall. I plan to go into the field and succede either way but just wanted to know some success tips from established agents, brokers, lenders, or anyone having to do with the real estate world. Also, willing to travel.

I live in Florida technically own a house that is being given to me in some estate planning plan. I generally have nothing to do with the house, which my mother lives in and runs.

A while back there was a fire, and my mother hired some scam public adjusters to work on the case. They stole property from the house and my mother is suing them.

The opposing party is trying to require me to travel to NY for the trial. There is no need for such involvement by me because I have no direct knowledge of anything in the case. I’d be quite happy to swear out a deposition under oath here in Florida.

It seems though that he only information I have is that I am the person whose name is on the deed, and that I approve of the lawsuit my mother is filing on my behalf. Can’t that just be done via a notary?

It appears that he other party is trying to compel me, merely because they think there is some possibility I will not come down.

Can I be required to go if there is no real purpose other than to hassle me? And how does it work? I presume that he other party has to go to the judge–would he just issue a subpoena (in which case I would go), or is there a possibility that he would not do that but dismiss the case without giving me a chance?

Yes, I plan to speak to a lawyer.
<<Are you a named party in the case?>>

I’m not sure what that means.

Technically I am probably the one bringing the lawsuit because my name is on the ded and my mother is probably technically suing on my behalf. but I have no relevant testimony to give–I have prety much nothing to do with the house and have no direct information relevant to the case.

It’s not like I am the one being sued, if that is what "named party" refers to.

Graduated from college in 2005 and have been working since. Worked my butt off in school and landed a job paying in the mid 70’s starting. still live at home to save some cash (thank god for mom and dad). Been able to save over 30k in 2006 and will prob be able to do the same in 2007 (savings is earning 5% annually ). Have my 401k covered as well as a company pension plan (will be well taken care of after retirement, 42 years from now). Have an IRA and some stock investments (not much $$$ in them). My question, what should i look into for investments? I live in los angeles where a 2 bedroom shack costs $500k so real estate may be out of the question nonetheless i am banking on this bubble to burst. should i continue to save and go on a shopping spree when real estate prices come back to normal? advice from a seasoned pro would be nice….

A place for people to die quickly, painlessly, softly and quietly.
Then allow the private sector to get in on it.
- Legal help with Wills and Estates.
- Funeral Planning.
- End of Life Counseling.
- Pastoral care.

This isn’t just for the terminally ill, this would be open to all whom wish to Coup D’ Grace.

Inspired by this classic scene.
http://www.youtube.com/watch?v=WbJTBBoDFH0

Liberals remember "My Body, My choice" if someone want to do it, why would you stop them?

I have many ideals, and plans of action to move foward on some realestate deals. Residential and commercial, im looking for a mentor that dosen’t mind helping a very motivated person execute my deals from start to finish, and upon closing these deals spliting the profits!! Im a very fast learner i live in Ohio and ready to start immediately.

Make a list of five short-term goals, five intermediate goals, and five long-term goals. Before you list the goals, think seriously about your current situation. What kind of a financial future do you envision for yourself? What steps will you need to take to reach that future? Consider your present situation, and think of ways in which you can establish financial security.
Once you have completed your lists of goals, think of ways to achieve each of them. It is likely that investing will help you achieve some of your goals, but not all of them. Investments include money market securities, CDs, stocks, bonds, IRAs, mutual funds, and real estate. When you are considering investment options, refer to your course materials. Make sure you understand the risks of each kind of investment. Once you understand each type of investment, think about the timeframe of each one of your goals. Is investment an appropriate way to meet the goal?
Compile your goals and strategies into an outline. Divide your outline with three main headings—short-term goals, intermediate goals, and long-term goals. List each goal under the appropriate heading. After each goal, include a paragraph explaining how you are going to meet the goal. The paragraph should be written in complete sentences. It should include:
•A strategy for meeting the goal.
•An explanation of how you plan to use this strategy.
•Analysis of whether investment is appropriate for meeting the goal.
•An explanation of the type of investment used (if investment is appropriate).

i need help understanding this and what could be examples.!
i will vote best answer (:

I’m starting a massage therapy business and I’m trying to set up an account with the irs but I’m confused I think I need a EIN but all the answers to these questions are "No"
Do you have employees?
Do you operate your business as a corporation or a partnership?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?

Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers’ cooperatives
Plan administrators

In the near future I’m going to hire a receptionist so I guess one would be yes but not right now. The only income the business gets is the money people give me from the massages I give them which has to be taxed right? I’m just confused a little Do I need an EIN even tho all the answers to the questions are no or do I need to file with another method that I havent found on the irs website yet?

I am filling out a standard Nolo will form from a book called "The busy family’s guide to estate planning."

Wording of the section in question is as follows: If at my death a guardian is needed to care for my children, I nominate ??? as the guardian of the persons of my children. If she is unable or unwilling to serve, I nominate the persons listed below, in the order listed, to serve as guardian:

Here is my question - does this section only apply if both me and my spouse/children’s father die? Do I need to include his name here or is it assumed this section is only applicable if both of us die?