Dear Liz: My husband and I have saved close to $2 million. He is 58, and I am 59. Our son is a hardworking, bright young man awaiting responses to medical school applications. My husband wants to loan him $200,000 to $500,000 to reduce his debt from interest on loans. I want to help too, but I think $200,000 should be the limit.I want a legal contract to determine when it will be paid back, how much interest we will charge, and so on. My concern is that we are unsure how to set this up and I don’t want a nice gesture to end up causing problems with our son down the road. My husband is still working and has a nominal pension from military retirement.Answer: The first rule of friends-and-family loans is to offer only what you can afford to lose. Even with all the proper documents, many loans turn into inadvertent gifts when the borrower can’t or won’t make the payments.So your first stop should be a fee-only financial planner, who can review your entire financial … [Read more...] about How to keep a loan to family from turning into a problem
Changes to family tax benefit
By Ben Casselman and Jim Tankersley, New York Times News Service Updated 6:00 am CDT, Saturday, March 23, 2019 FILE - This March 22, 2013 file photo, shows the exterior of the Internal Revenue Service building in Washington. The Internal Revenue Service is recalling about 46,000 of its employees furloughed by the government shutdown, nearly 60 percent of its workforce, to handle tax returns and pay out refunds. The employees won't be paid. (AP Photo/Susan Walsh, File) less FILE - This March 22, 2013 file photo, shows the exterior of the Internal Revenue Service building in Washington. The Internal Revenue Service is recalling about 46,000 of its employees furloughed by the ... more Photo: Susan Walsh, STF / Associated Press Photo: Susan Walsh, STF / Associated Press Image 1 of / 3 Caption … [Read more...] about Faster tax cuts could be backfiring on Republicans
Gallery: New coaltion wants business tax breaks to require community benefit +5 more photos Nearly a hundred people gathered in East Chattanooga on Saturday — despite rain and fog — to launch a grassroots coalition set on pressuring Chattanooga City Council members to refuse support for the sale of the city-owned former Tubman public housing site unless the buyer signs a community benefits agreement. The meeting — hosted by Hope for the Inner City, Unity Group of Chattanooga, Chattanooga Area Labor Council, Chattanooga Organized for Action, Glass House Collective, Urban League of Greater Chattanooga and Accountability for Taxpayer Money — was held at Hope for the Inner City. It was spurred by shared frustration over the recent industrial zoning of the former Harriet Tubman site, which was purchased from the Chattanooga Housing Authority by the city of Chattanooga in 2014. The group is now seeking to start a community-led development process with the … [Read more...] about New coaltion wants business tax breaks to require community benefit
TRENTON, Ga. — A significant piece of the Dade County Board of Education's requested "65 and 5" reform will not go on ballots next year. State Rep. Colton Moore said he will not include a proposed decrease in the tax break for elderly property owners. Currently, anyone in the county older than 65 is exempt from paying any school taxes on their home and up to 5 acres of land. The board requested a change, in which those property owners instead would be exempt on the first $150,000 of assessed value. The board unanimously voted on Feb. 4 to request the change. But after a town hall meeting Sunday, in which several residents criticized the board's request, Moore said he will not back their proposal. He wants the tax break to still help elderly residents on fixed incomes, and he's not sure what impact the proposed change would have. "I have not been shown enough data to support an accurate cap," he said. "Until we can see that data, I will not go forward with putting that cap on." … [Read more...] about Georgia state representative declines key piece of Dade County school board’s request to decrease tax breaks for elderly property owners
Mark Zandi, The Washington Post Published 4:15 am PST, Thursday, January 3, 2019 SAN FRANCISCO, CA - APRIL 21: Pedestrians walk by an apartment for rent on April 21, 2015 in San Francisco, California. According to a report by Forbes magazine, San Francisco, Oakland and San Jose top the list of worst places in the nation for renters. Bay Area renters are faced with extremely low vacancy rates that have prompted high rents that average over $3,100 for a one bedroom in San Francisco. (Photo by Justin Sullivan/Getty Images) less SAN FRANCISCO, CA - APRIL 21: Pedestrians walk by an apartment for rent on April 21, 2015 in San Francisco, California. According to a report by Forbes magazine, San Francisco, Oakland and San Jose top the ... more Photo: Justin Sullivan/Getty Images Photo: Justin … [Read more...] about A national housing crisis is brewing. What actions can policymakers take to head it off?