Social Security Funding Many people assume that payroll taxes solely fund Social Security benefits. However, this is not the case. Social Security is financed through a combination of payroll taxes, interest earned on its trust fund investments, and general revenue from the federal budget. Payroll Taxes Payroll taxes are the primary source of funding for … Read more
Cash basis taxpayers generally deduct expenses when they pay them, and recognize income when they receive it. Prepaid rent does not fit this rule. Prepaid rent is rent paid in advance, for future use of a property. Instead of deducting prepaid rent when it is paid, cash basis taxpayers must wait and spread the deduction … Read more
Latifundia refers to vast agricultural estates that are characteristic of certain regions around the world. These estates are typically characterized by their immense size and the fact that they are owned by a single individual or a small group. Latifundia often encompass thousands of acres of land and are used for agricultural purposes such as … Read more
Finding your Modified Adjusted Gross Income (MAGI) on TurboTax involves a straightforward process. Start by locating the “Federal” tab in the top menu bar. Under the “Income & Expenses” section, expand the “All Income” category. Scroll down until you see an entry labeled “Gross income.” Directly below it, you will find an entry for “Modified … Read more
General obligation (GO) bonds are a type of municipal bond that is backed by the full faith and credit of the issuing government. This means that the government pledges to use its taxing power to repay the bonds. As a result, GO bonds are considered to be a very safe investment. However, this safety comes … Read more
Determining the world’s richest person is not always straightforward. Wealth estimates rely on calculations by organizations like Forbes and Bloomberg, which consider publicly available information, including stock holdings and other assets. These organizations assign a net worth to individuals based on their estimated value, taking into account factors such as company ownership, investments, and real … Read more
If you receive a redundancy payment, understanding your tax obligations is crucial. Redundancy payments often fall into one of two tax categories: either they’re fully taxable as employment income or tax-free up to a certain amount. To avoid paying unnecessary tax, it’s important to know which category applies to you. The tax-free threshold varies depending … Read more
Economists have studied the relationship between money and happiness for decades, and they’ve found that while money can buy you some happiness, it doesn’t guarantee it. In fact, studies have shown that the relationship between money and happiness is more complex than we might think. While having enough money to meet your basic needs is … Read more
The Knights of Columbus, a Catholic fraternal organization, generates revenue through various income streams. Membership dues and assessments from its vast network of members contribute significantly to the organization’s financial stability. Additionally, the Knights of Columbus operates several profitable insurance programs, including life insurance, annuities, and disability income insurance. Investment income, derived from a diversified … Read more
Diversification is a risk management strategy that involves investing in a variety of assets to reduce the overall risk of a portfolio. By spreading investments across different asset classes, such as stocks, bonds, and real estate, investors can reduce the impact of any single investment performing poorly. Diversification also helps to reduce the volatility of … Read more