What Happens During a Car Accident Compensation Claim?

The accident wasn't your fault and you've just left hospital with an injury that is going to leave you out of work for months. It's a scenario that happens all too often and the perfect recipe for a car accident compensation claim.

Starting a car accident compensation claim is easy when you choose the right company. Compensation culture in the UK has grown and grown over the last few years with more and more claimants realising that they do have somebody to fight their corner. Why should you be made to pay the price when a car accident was not your fault?

If you have incurred medical expenses, loss of earnings or expensive car repairs as the result of the accident, it's time to get moving and get the claims process started. Once you have the claims process started you can get on with recovering from your accident safe in the knowledge that your compensation claim should be settled soon.

Whilst most car accident compensation claims go through without a hitch, there are many claims that need a little professional assistance. For example, insurance companies will often try to wriggle out of their part of the claim and insist that their client was not at fault. In these cases, a professional compensation lawyer will take care of everything on your behalf and represent y. In these cases, a professional compensation lawyer will take care of everything on your behalf and represent you to protect your rights and ensure that you get what you are entitled to.

Many compensation companies work on the basis that they receive a percentage of the amount awarded to you. This figure should be made clear to you from the start and there should never be any upfront charges to pay. You should also only ever deal with a company offering a no win no fee promise. If for any reason your case is dismissed without compensation being awarded, you will not owe a penny.

Car accidents can vary in severity, but it you have been injured in an accident that occurred through no fault of your own, it's time to take action and start the car accident compensation claim process. Don't suffer when you don't have to. You could be entitled to thousands of pounds in compensation even if you suffered no other injury than severe whiplash - this can cause you to be signed off work for months and you can bet your employer will only pay you for the minimum statutory period.

Start your compensation claim today and speak to a professional compensation and injury lawyer who will work patiently and professionally on your behalf to get 100% of the compensation that you deserve.

What You Need To Consider Before Buying Car Insurance Cover   Learn How To Save Money On Your Auto Insurance   Five Discounts That Will Lower Your Insurance Premiums   The Right Way to Do a Multi Car Insurance Comparison   8 Tips on How to Reduce Your Car Insurance Premiums   

Three Reasons for Getting Mechanical Breakdown Assistance

Mechanical breakdown assistance is the kind of insurance that reimburses you for all your vehicle repairs. This is like a substitute for the normal factory warranties. In this kind of coverage, the total mileage and various restrictions are affected. It is very important to consider the warranty offered before purchasing extra coverage. It is also important to key in the costs of all the payments. In addition, you should know all the deductibles and exclusions from the policy.

When you consider getting a breakdown cover, you should always be conscious about the time you will need it. You first find out the total time your factory warranty takes. It is also important to decide how long you will be under it. Something you should consider when it comes to this kind of coverage is that it has restrictions and mileage. This means that you should get this coverage when your car is new.

Normally, warranties provided by factories take at least 2-4 years or about 35,000 miles. There are those warranties that normally cover all the repairs your vehicle might need, which are not related to maintenance. Another kind of warranty is the powertrain that involves all the main mechanisms that involve the engine and transmission. It could not be advisable to get an extended coverage in form of breakdown policy in the case where you have a long coverage and a lot of time for the warranty to expire. The following reasons could lead you to purchasing this kind of breakdown cover.

1. You could buy it to keep your qualifications in place. These include the restrictions of the years and the mileage. This applies when you are given an extended factory warranty period. For instance in the case where you have a limit of 30000 miles to cover to get coverage though you have covered only 12000 miles. This still requires you to get extra coverage. It is important to do a comparison between the extended warranty and cost of coverage. You should note that in the case of a warranty, the coverage is similar but upfront payment is required. When buying a fresh car, you could add all the warranty costs to the loan or you could similarly buy it differently.

2. This kind of insurance helps make up for all the expensive repairing costs. It is however important to know the items your policy covers before buying it. You should know that you would most often be required to pay for a monthly cost for this insurance. If you expensive items like the transmission or the engine, then you could be forced to pay it from the pocket.

3. This policy covers rental cars too and all tow services. It could be impossible for you to use a car without this policy in the case where you cannot afford its maintenance.

It is important to note that wear and tear cases are not included as coverage for this policy. In addition, all repairs that result from poor maintenance like when you need a new engine or when you fail to add oil are excluded. It is important to make enquiries on these before your chose to buy any kind of policy.

What You Need To Consider Before Buying Car Insurance Cover   Learn How To Save Money On Your Auto Insurance   Five Discounts That Will Lower Your Insurance Premiums   The Right Way to Do a Multi Car Insurance Comparison   8 Tips on How to Reduce Your Car Insurance Premiums   

UBIT - It's a Good Thing, It Means You're Making Money!

If there ever was a subject that will stop an accountant is his or her tracks it is UBIT, which stands for unrelated business income tax. The origins of UBIT are obscure. This tax was placed on some taxpayers to "level the playing field" for certain businesses.

The best example of how UBIT is used is for the competition between a non-profit and a for-profit enterprise. The college book­store sells books to students and others within the structure of their "non-profit" umbrella. The college bookstore, because it is non-profit, is not taxed the same way as a for-profit enterprise. A non-profit does not pay taxes on most operations and there­fore can afford to sell books at a lower cost than the for-profit store across the street. Since both the college bookstore and the for-profit bookstore are competing for the same customers, the college bookstore has the advantage of being treated differ­ently for tax purposes and the advantage of this preferential tax treatment may allow the college bookstore to sell their books for less, thus attracting customers away from the for-profit store.

This is where UBIT jumps in to save the day. The government has placed a tax burden on the non-profit enterprise for running a business, i.e. selling books, under the main business of running a college. This same philosophy and set of rules is applied to an IRA's investment in real estate when there is debt related to the purchase of that real estate. So what is bothering the accoun­tants among us?

•The tax rate for UBIT is high, ranging from 26% to 34%.

•Calculation of this tax is, for those not familiar with the rules, complicated.

This sums up the issues. Now, for following through on what these issues mean for someone investing their IRA in real estate, continue reading.

Should I Invest in Debt Leveraged Real Estate with my IRA? The answer to this question is dependent on "doing the numbers". For any investment, calculation of the rate of return should encompass all variables, including the tax treatment of the cash flow from the investment. In the case of UBIT, simply stated, it is paid on the debt-financed portion of the net income. For example, a property purchased using 100k in IRA funds and 200k in non-recourse debt would be taxed as follows:

Calculation (simplified)

Percent Debt: 67%

Net cash flow after deductions for 67% (percent of debt of total investment) of operating expenses, interest expense and de­preciation, using 67% of the improvements to calculate depreciation: $12000

Unrelated Business Income: .67 * 12000 = $8000

Allowable deduction of $1000 applied 8000 - 1000 = $7000

UBIT based on maximum rate: .34 * 7000 = $2380

The tax of $2380 would be paid directly from the IRA. There are three things worth pointing our here.

1. This calculation should be part of determining the return on this investment and should be considered as any other expense.

2. This level of income MIGHT NOT have been generated if not for the leveraging power of the loan and

3. Rather than viewing this as going from 0% tax to 34% tax, it should be pointed out that if this investment were outside the IRA, it would be taxed at the normal income tax rate ranging from 25% to 28% a differential of 6% to 9%.

4. An "internal rate of return" inside the IRA should be calculated taking into consideration the advantage of the tax-deferred/free portion of the income.

Other details of UBIT calculation: the debt-financed proportion is defined as the average loan balance for the year divided by the depreciated basis. It may be in the best interest of the IRA to pay down the balance of the loan as quickly as possible, if cash is available, in other to decrease the debt-financed proportion of the Net Income that is subject to UBIT. Again, each deal must be analyzed. The cash flow from the property, rather than applying it to the unpaid balance of the debt, can be placed in another investment that offsets the burden placed by UBIT and this should also be included in the analysis of the investment.

This is a somewhat simplistic version of the actual calculation of UBIT but illustrates the magnitude of what this tax actually is. It needs to be part of a thorough evaluation of the investment.

What if I Sell? What Rules Apply?

The sale of a property that is debt leveraged is handled, for tax purposes, in two parts: the equity or IRA portion and the debt leveraged portion. The IRA portion of the sale proceeds goes directly back to the IRA custodian for reinvestment, tax-deferred and intact. The proceeds from the portion of the property purchased using debt also goes back to the IRA custodian but is taxed at the capital games rate. This tax is paid out of the IRA proceeds available in the account.

Qualified Plans and UBIT

UBIT applies only to IRAs with regards to debt financing. When using a qualified plan such as a 401(k), the rules are different. UBIT will NOT apply for purchases make using leverage within a 401(k) providing:

•The price of the property is fixed

•The financing of the property is a "new loan" and not owner-financed

•Use of the property or any claim on the property by the former owner must not exist

This is one reason that acquisition of income-producing property by a qualified plan such as a 401(k) is more advantageous than that acquired with an IRA, but there are other rules, such as those described above, that must be examined and followed before going under contract for the purchase of real estate.

Rules and Information

IRS Code Section 512 defines Unrelated Business Income, Section 513 defines what is an unrelated trade or business and IRS code section 514, specifically (C)9 addresses how UBIT is applied to debt-financed real estate purchases by IRAs and Qualified Plans. IRS Publication 598 pulls these three code sections together in a "plain English (or Spanish)" guide more directly appli­cable to the calculation of UBI and UBIT.

Summary

When debating the pros and cons of using leverage within an IRA to purchase an income property, the questions should never be "How do I avoid UBIT?" but rather "How much will the IRA grow using debt leverage and paying UBIT?" and "What is the resulting rate of return within my IRA?" The other due diligence items such as physical condition of the property as well as ques­tions on the ability of the cash stream to service the loan and pay expenses, including UBIT, should also be taken into consider­ation. Dismissing an investment because of the potential payment of taxes should never be a deal killer. Consult with your legal and tax advisors regarding investments involving potential UBIT within your IRA.

401K Investment Advice   How Do I Choose the Best Retirement Investment?   Provident Fund Withdrawal - Duties of the Regional PF Commissioner   Rules and Regulations For a Self-Directed IRA   

Roth 401K - Great Retirement Savings Plan

Roth 401K is a kind of plan for retirement savings that is authorized by US congress. It falls under Internal Revenue Code. Its features combine the normal 401(k) retirement plan with the IRA plan. Anyone is eligible to join this plan so long as his employer offers it. It is the discretion of the employer to decide if he will provide this service in addition to the traditional one.

With this plan an employee can choose to contribute some funds through the post-tax elective deferral instead of or in addition to pretax elective deferral under his traditional 401(k) retirement plan. The employer is permitted to contribute a matching amount on the employee's set Roth contributions. Such contributions by the employer are allocated to the pre-tax account.

This savings plan is funded by after-tax dollars unlike traditional 400(k) that is funded by pre-tax dollars. This means that any earnings on Roth are tax free and also penalty free. This applies if the distribution is made at least 5 years after the investor makes his first contribution and before he attains 59 and a half years. The workers contribute through payroll deductions just like in other retirement plans.

This plan is especially ideal for younger employees who are currently being taxed in a low tax bracket but who expect to pay higher taxes when they reach the age of retirement. As an employee, one is able to roll his contributions to a Roth IRA account if his employment is terminated. When it comes to retirement, one can roll over his funds to Roth IRA tax free.

There are many benefits of joining this plan. Since you make the contributions with after-tax dollars, the account is able to grow tax-free. If you make any withdrawals during retirement, they are not subject to income tax so long as you have had the account for at least five years and you are at least 59 and a half years old. The prospects of tax-free money makes this plan very attractive to many individuals.

Individuals with high incomes who are not able to contribute to traditional plans due to some restrictions in their income could find this plan beneficial. This is because this system has no such restrictions. It does not require the investor to meet certain income thresholds in order to participate. Those who would like to have tax-free withdrawals but their income is more that the traditional plans threshold would also find it ideal.

This system could also be beneficial to those who would like to diversify their future tax risk. It is always advisable to invest in different investment vehicles or accounts which are taxed differently. This investment plan offers a great alternative to tax-free investments compared to other tax-free investments. The future is unforeseeable and one never knows when such a plan may come in handy.

Adoption of Roth 401K is gaining momentum. It is an additional way of diversifying investments for the future. Some of the large firms have adopted it and this has motivated even the smaller firms to adopt it. This plan is now a permanent legislation and is thus here to stay.

401K Investment Advice   How Do I Choose the Best Retirement Investment?   Provident Fund Withdrawal - Duties of the Regional PF Commissioner   Rules and Regulations For a Self-Directed IRA   Why Investing In Silver Is The Way To Go   The Rules of a 401k Rollover   

Must Know! - Real Estate IRA Investment

When you're thinking about the idea of the advantage and disadvantages of a real estate IRA, there are some things to remember and to take note. The real estate IRA investment will work like any of the IRA accounts. Also, you will get some tax deductions in this; you will still get free tax profits, and most importantly you will still be the one who will decide about what you could invest in.

In order to do this you must follow all the rules and policies of the IRS provided with their retirement plans. However, yes you do have few policies to follow that do not necessarily concern to other kinds of real estate investments.

The most common type of a real estate IRA investment is the rental property. Actually any kind of real estate that makes income or costs has a special rule to follow and must be aware of. The custodian is the one who will help you to make sure that all policies and rules are followed; still the full control of the responsibility will be in your hand. Then let's proceed to the key ideas for success.

1. The process of real estate IRA in the property investment - anything in your self-directed IRA has will surely go back to your IRA account. When you make money in this investment, the funds needs to be in your self-directed account. When you're depositing the funds in your personal IRA account and afterwards put it in the self directed IRA account, this can be considered as a result for disqualification. Your money will never go back to you personally and also you can never use this money for your own expenses. But there is exception, unless you are qualified for some withdrawals. Any kind of action that can result to penalties or disqualification. Here is the only thing you can do, the renters or payers need to make checks out of your self-directed IRA account. Remember to check your custodian and Trustee Company has the money to set up. In this way, you could have the renters make all the payments straight to your account.

2. Real Estate IRA expenses with regards to the property - property expenses on the self-directed 401k or the traditional IRA really are not those much different in the process of income. You should process the funds directly in your IRA account. When you want to make an improvements or some renovation of your property, you should deduct the expenses out from your IRA account. You don't have to get money from your pocket to improve your property. When the fund isn't in your account and you have decided to make things personal, your account can be subjected to disqualification.

3. Some key factors to remember in your real estate IRA account. You might get a partner or you can invest with your family members, friends or colleagues, although you should be accurate in your records. If you have thirty percent of the funds, then thirty percent will come in your IRA account for outflow and will surely get thirty of it directly in your income.

Giving yourself to the real estate IRA does not have to be difficult; it must always know the policies and rules of it. Your custodian will guide you and help you to ensure if you are following this rules, but the responsibility is still yours.

401K Investment Advice   How Do I Choose the Best Retirement Investment?   Provident Fund Withdrawal - Duties of the Regional PF Commissioner   Rules and Regulations For a Self-Directed IRA   Borrowing Money From Your 401k   Types of 401(K) Contributions   

Best IRA Investment Accounts - How To Find The Best IRA Investment Accounts!

One of the best ways to invest is through an IRA investment account, and one of the main keys to success in investing in these types of accounts is to find the best possible IRA investment. There are many things to look for when choosing an IRA investment, and here are just a few of them!

Consistent Returns

When utilizing any type of investment to earn money, especially an IRA account, one of the things that you defintiely want to look for are consistent returns. Consistent returns show that the investment has the track record of growth and this can help to ensure that the that particular IRA investment account has amazing potential for growth as well as profits in the future.

Like all investments, there is nothing guaranteed with IRA accounts, but having consistent returns can really help you decide which one to invest in and which one to choose, as the chances and potential for growth and great profits are much greater with an account with a consistent history than for one without it!

Ability To Start Easily

Some IRA accounts make people jump through loopholes to get started, this is unnecessary. Being able to get started easily with your investment account is one of the main keys to success in investing. You want to be able to set up your account fast and be able to start investing right away, so that you can start earning money quickly and easily with your account!

Return Rates

Of course, when you invest want to find some of the best return rates possible. By finding the best rates you can hopefully earn the most profits and have the most money possible by investing. Looking for great return rates also helps you decide which account you would like to get started with whether you're starting with a little bit or a lot of money.

Amount To Start With

You want an IRA investment account that lets you start with a little or a lot. Why? Because IRA investment accounts that let you start with a little are usually very confident in their profits and their system. By letting you start with a little, they're confident that they can make you a lot of money off the little but that you deposited and that they're making you such amazing returns that you're very likely to deposit more into that particular IRA investment account!

401K Investment Advice   How Do I Choose the Best Retirement Investment?   Provident Fund Withdrawal - Duties of the Regional PF Commissioner   Rules and Regulations For a Self-Directed IRA   Planning Your Retirement Investment