Expense

The 2% rule states that your monthly rent should be approximately 2% of the pur- chase price. In other words, a $100,000 home should rent for $2,000 per month; a $50,000 home should rent for $1,000 per month. This is a very conservative esti- mate that is very simplistic but can help in deciding if a property warrants a deeper look. In most parts of the country, the 2% is very difficult to achieve, but the closer you can get to that, the better cash flow you'll receive. Real World…

this budget exercise, I found that the category I will spend most of my money on is other car expenses as I am going to buy a car next month. My projected spending for that category is 3700 dollar from September to December which represents about 33 percent of my budget. I don’t’ have spending input from January to August because I have yet to have a car. Following other car expenses, my biggest expenses are miscellaneous where I will spend 1,563 dollars which represent 14 percent of my budget.…

projected expenses below where you believe they are or may be. Instead, err on the side of caution and make them larger. Conversely, the income should be conservative and below any expectations. Being conservative helps to minimize variances on a negative sum. A good guideline is to overestimate expenses by 5-10% and underestimate income by the same percentages.…

Oct. 1 Pete Hanshew begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided. 27 Pays $700 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2,500 in salary for October. Instructions Complete the debit-credit analysis for each transaction…

principle, where revenues and expenses both appear in the income statement in the same reporting period, which gives the best view of how well a company has performed in a given accounting period. (What is the purpose of depreciation? - Questions & Answers – AccountingTools, 2016) According to What is the purpose of depreciation? - Questions & Answers – AccountingTools (2016) ‘If we were not to utilize depreciation at all, then we would be forced to charge all assets to expense as soon as we…

capitalize an expense if it is paid or incurred to create a right or benefit that does not extend beyond the earlier of 12 months after the first date of the right or benefit or the end of the tax year following the tax year in which the expense was paid or incurred. Basically if you have paid or incurred an expense that has benefit within a 12 month period or before the end of the tax year following the tax year in which the benefit is realized you do not have to capitalize the expense and you…

unusual expenses taxpayers have successfully deducted previously. Successful Offbeat Deductions Inspire Taxpayers Deducting legitimate expenses is at the heart of business strategy whether you earn millions of dollars or just a few thousand bucks. If you take friends to a game and discuss business, you can deduct all the costs that relate to promoting your business. If you claim a medical expense as a business deduction, it helps to get a note from your doctor that explains why the expense is…

Adhering to the HIPAA/ARRA Compliance Privacy Rules can be very expensive. There are two angels to whom organizations have expenses: (1) the costs incurred when organizations are not in compliance with the privacy rule and (2) the companies’ costs for managing administration, general expenses, and capital fees. When a covered entity is not in compliance with regulations and does not successfully resolve the violation in the specified time frame, the office of civil rights (OCR) may decide to…

The expense of getting individual damage cases, regardless of the referral charge boycott, is around £700 – £200 more than the legislature is proposing for routine street activity cases even before the lawful work is figured in, as per new research. Andrew Otterburn of Otterburn Legal Consulting likewise recommended that the changing protection business implies it may bode well for insurance agencies to bring the lawful work around cases in-house. The report – dispatched by the Association…

Financial Management b. Expenses: These are the costs related with producing goods and services. E.g. the expenses associated with the sale include cost of acquiring, selling and delivering the product. Sometimes there are expenses that will be paid later. c. Net Income: It is the revenue over expenses during a particular period. If revenue exceeds expense, it is net profit and if expense exceeds revenue, it is net loss. At the end of the period, all revenues and expenses with sales of…