Categories
Taxes

How to Obtain a Clear Title to a Vessel Registered With the USCG That Has an IRS Lien

The filing of an IRS Federal Tax Lien against a vessel registered with the United States Coast Guard (USCG) encumbers the vessel and prevents a clear title transfer unless it is satisfied, discharged or proven to be null and void. In order to secure the clear transfer you have to deal with paperwork for two federal bureaucratic organizations, but it can be done.

I had a client who found out there was an IRS Lien on his boat. The Federal Tax Lien (FTL) had long ago expired due to the statute of limitations but the USCG would not allow the title to transfer on their records without documentation from IRS. We were successful in getting the USCG National Vessel Documentation Center to remove the FTL. It took a lot of back and forth between IRS, the Coast Guard, and my office to get the matter resolved.

First of all there is the issue of the Federal Tax liability. If the FTL is expired or was paid, then you obtain a Certificate of Release of Federal Tax Lien (Release). But you must have specific data on the Release that is not normally provided. The Release must show the place of filing as the “US Coast Guard, National Vessel Documentation Center, Falling Waters, WV” and it must include the vessel specific data such as original recording documentation.

Just because you may have a buyer but the price is less than the amount of the FTL, doesn’t mean you can’t sell the boat. If you are selling the vessel for less than the value of the FTL, then you must apply for a Certificate of Discharge of Property from a Federal tax Lien. You will be required to obtain independent appraisals and other documentation. Generally, if IRS is getting full value after sale expenses, they will likely approve a Discharge of Lien on the vessel. This process will allow title to transfer to the new buyer.

Most workers in the Lien Department are not familiar with how to handle releases for vessels. They often will send you a standard Release, but it will do you no good. You may have to get help from an Enrolled Agent, Attorney or CPA with experience in this area or the Taxpayer Advocate’s Office. You may contact them directly by phone at: 1-800-913-6050. Be prepared for an extended hold time.

Their postal address is:

Internal Revenue Service

Centralized Lien Operation

P.O. Box 145595

Stop 8420G

Cincinnati, OH 45250-5595

If you have a vessel that has been encumbered by a Federal Tax Lien and you need to sell it or clear title, don’t give up. With proper documentation you can get the matter resolved provided the tax liability has expired, discharged from the vessel, or satisfied.

Categories
Taxes

How Businesses and Self Employed Borrowers Obtain A No Income Verification Mortgage

If you are self-employed, a new corporation or entity or simply took a loss on your personal or business taxes then you may find it difficult to get a commercial real estate loan approval – especially from conventional financial lenders. It sometimes seems that traditional lenders have an unspoken bias against the self-employed and new entities with less than 2 years in business, a company experiencing a bad year, or seasonal workers / businesses.

But there is one solution to this, and it is called a no-income verification mortgage. Now, let us explain about this mortgage first. Afterward, we will tell you about the property owners, corporations, businesses, and small to middle market real estate investors who need this financial product, and the different things to keep in mind before applying for a no-income verification mortgage in Florida and throughout the continental United States.

Navigating the no-income verification commercial lending landscape

A low- or no-income doc commercial loan lender will not demand documentations such as personal or businesses tax returns, pay-stubs, 1099's, k-1's, tax transcripts, and other personal or business related income docs. Generally, a commercial mortgage lender offers this financial product to those who are disqualified by banks and other traditional lending sources; the reasons for the disqualification majorly, include large losses displayed on the taxes, a lower taxable income, negative income, hard-to-verify or fluctuating incomes.

The business and self-employed lot, having an unstable income but strong credit, faces such problems. Applicants for a no-income verification commercial loan, however, have to cough up slightly larger down payments; ie, a substantial deposit through personal savings or equity in security typically 25-30% of the appraised value.

Who requires this loan?

Some groups find it hard to meet the strict requirements of a traditional lender. These groups include:

  • New businesses
  • Contracted personal
  • Corporations or entities declaring a negative taxable income or larger losses than gains
  • Self-employed
  • Unemployed
  • Seasonal workers
  • New immigrants

What must be kept in mind before applying for this loan?

Slightly higher interest rates but competitive enough to allow your investment to create a positive cash flow on your investment

A no- or low-doc mortgage only requires asset based income and other related commercial real estate property documents, and that is why it is easier to qualify – but it generally carries slightly higher interest rates. The interest rates of a no-income verification loan mainly depend on lenders and your credit worthiness. A few lenders offer loans at discounted interest rates; the same figure an investor gets while securing a real estate investment loan traditionally.

Slightly larger deposits

Generally, every commercial lending institution requires a deposit of 25-30 percent; however, a few lenders may require smaller deposits.

Categories
Wealth Building

5 Easy Steps To Obtain a Grant of Probate

When disposing of an estate, you will sometimes need to obtain a document called a Grant of Probate, or, depending on the situation Letters of Administration. If needed, this document is an official statement to asset and debt holders, informing them that you are the executor in charge of distributing the assets and paying off the debts. It allows them to communicate with you, safe in the knowledge that they are resolving the estate with the designated representative.

You will need to apply for, and obtain a Grant if the value of the deceased’s estate exceeds £5,000.00 or if there is property, such as a house, to dispose of. Banks, building societies and other asset holders can, at their discretion, ask to see a Grant regardless of the value of the asset they hold.

That being said, you are unlikely to need a grant if the estate is passing to a surviving spouse, or if the assets are held in joint names and are passing to the joint owner.

Once you have established whether or not you need to obtain a Grant, you will need to follow the below steps to successfully obtain the Grant.

Step One

Your first step will be to work out the value of the estate. In the simplest terms, you will do this by adding together the estate’s assets and subtracting the estate’s debts.

The asset holders will inform you of the value of each of the assets at the time of death. You need to enter these figures into the Inheritance Tax form, and this will calculate the value of the estate.

You must do this even if the Estate is below the Inheritance Tax Threshold.

Step Two

Complete an Inheritance Tax form either IHT205 or IHT400.

To know which form you need to fill out you need to understand the differences between the forms. Form IHT205 is the form that you need to fill out if there is no inheritance tax to be paid, either because the estate is too low in value or because the estate is an exempted estate.

The IHT400 is the form that is filled out when there is inheritance tax to be paid. However, there will be some situations where there is no inheritance tax to be paid, and the IHT400 will still be the form you need to fill out so you need to be careful and assess the estate in detail. if you are unsure then start filling in IHT205 and it will guide you to form IHT400 if it is needed.

If you think that there is no inheritance tax due on the estate then you should start filling out IHT205, you may soon find however that you will need to change to form IHT400.

Step Three

Complete a probatePA1 application form.

To complete this form, you will need to know the basic details of the person who has died, e.g.: their first name & surname, date of birth, date of death, and marital status. You will also need to know some more specific information e.g.: did the deceased own any assets under another name, was the deceased adopted.

You will have to fill in questions about the Will if one exists. As well as any information on any foreign held assets e.g.: did the deceased own a holiday home abroad.

Section five of this form discusses the relatives of the deceased. Section six is a section where you provide your details.

Section seven is where you provide details of any inheritance tax owed by the estate. You can get these figures from the inheritance tax forms completed at Step Two.

Section eight applies to those who are applying on behalf of someone who has been nominated as an executor but has lost capacity. You will need to provide details of the person you are applying on behalf of.

Section nine is a helpful checklist that allows you to make sure that you have completed all of the forms and enclosed all of the necessary documents. Following this checklist means that your application is far more likely to be accepted.

Step Four

Swear an oath. You can obtain an oath from the probate registry or draft one yourself, although if you choose this, then you need to be careful as an oath will only be valid in certain formats.

Swearing the oath will not take long, you will need to swear it in front of a solicitor or a local probate office, and this will cost approximately £5.00.

Step Five

Send your application to the probate registry.

You should include:

  • The probate application form PA1,
  • The Inheritance Tax form, an official copy of the death certificate,
  • The Oath,
  • The original will and three copies – and any codicils,
  • The application fee of £215 – a cheque made payable to HM Courts and Tribunals Service (there’s no fee if the estate is under £5,000.00).

You can pay for extra copies of the grant (50p each) – this means you can send them to different organisations at the same time.

Once you have received the Grant of Probate, you can continue with gathering in the assets and paying the deceased’s debts.

You should now have a basic understanding of hen you might need a Grant of Probate as well as what steps to follow to obtain a Grant.

Categories
Mortgage

How to Obtain Mortgage Refinance and Debt Consolidation Loan?

Mortgage refinance helps the creditor by putting him in a relatively secured position where he is only required to pay one monthly installment. The amount that you borrow from the consolidation company is taken against your home mortgage. Always remember to be careful while taking a loan against your home and read and understand all intricacies involved.

Benefits Of Consolidated Debt Loans

  • The mortgage loan helps to avoid filing of bankruptcy.
  • All creditor harassment automatically gets eradicated.
  • You would now only need to pay one monthly payment which would help make matters much easier for you.
  • This provision also helps abolish all late charges and other monthly expenses that you would have to pay for the various loan amounts.
  • Reasons Why One Should Refinance Their Mortgage

  • The trend of low mortgage rates does not last for long. So one should consider refinancing at the earliest. Mortgage refinance and consolidation loan proves ideal for those who are paying a mortgage rate that is higher than 8.5%. You could end up saving thousands of dollars on your mortgage amount with the help of refinance options.
  • Refinancing the mortgage would help in paying off all credit card loan amounts that have very high interest rates. It may look silly to consider refinancing your home to pay off small credit card debts. But do you know that you could take even years to pay the amount because of the high interest rates involved? And if you pay off these loans with the help of mortgage refinance to get a debt consolidation loan, then you could save a lot of money in the long run.
  • Refinancing the mortgage can also help you add value to your house. Besides helping you pay off all your debts, you can also go ahead with the numerous things that you might have planned for your home. You can add a new room, get it painted or buy nice wallpaper for the home or even construct the porch that you always wanted. This would help increase the footage of living space, thus increasing the value of your home.
  • One of the best reasons for mortgage refinance is putting the money that is left into an investment. People who have enough money left after they have paid off their other loans can easily purchase another smaller property. This would help you get some rent which can help in paying off the consolidated debt amount.
  • Mortgage refinance and debt consolidation loan go hand in hand. Try and compare a few quotes and deals before you refinance your home with a debt consolidation company.

    Categories
    Bankruptcy

    How Can You Obtain a Good Credit Score After Bankruptcy

    A bankruptcy is not good at all. It stays on your credit card report for 7 to 10 years. There is a possibility that your credit card score will remain low until you take some steps to make it better in no time.

    But it takes a lot of persistence and patience and a steady stream of on-time payments on a monthly basis to rebuild the credit respectively. You have to think on smaller time frame when you begin applying for the credit cards. After the bankruptcy, there is a possibility that you may not be eligible for the consumer credit card at all.

    How to rebuild the credit in two ways

    1. Get a secured card: The secured card provides the best means when you are coming out of bankruptcy. Through this card, you can deposit some money in the savings account and that such a deposit secures the line of credit for you.

    For instance, if you make a 300 dollars deposit that has an annual fee of 29 dollars, then your credit card limit will be 271 dollars. If you pay the account on time and make small purchases monthly, then this secured card will be quite helpful towards your credit. The usage of 10 to 15 percent of credit line is good, but you need to keep your balances low.

    2. Get a Retail Card: The department store cards and the retail cards have relaxed credit requirements that will make you eligible to buy any of them after the bankruptcy. This can only happen once you have made a series of steady payment on time through a secured card respectively.

    You have to pay the account entirely in every month, because of the higher interest rates that are linked with these cards.

    How the credit can be used wisely

    It is better for you to use your credit wisely after you get relieved from the post-bankruptcy period. You can follow the given steps below.

    1. Set up automatic payments: It happens that several people opt not to receive the paper bills and tend to forget making the payment on time. So, you need to set up automatic payments so that the payments get directly deducted from your account each month on the respective due date.

    2. Only borrow what you can afford to borrow: As soon as you know your budget and limit, you will know what you can afford. If on the regular budget you cannot meet the expenses for a trip to Bali, do not risk using a credit card to fund such a trip. Kindly refrain from using credit card excessively and use it only for those things that you can afford to buy.

    3. Make a budget and stick to it: You need to evaluate on what you can manage to pay on your debts monthly after you have paid off your expenses. If your budget for food is 200 dollars, do not spend more on it. Overspending on one expense will not allow you to pay your debts on time.

    Conclusion

    After bankruptcy, you have to move cautiously and rebuild your credit in the correct manner. You have to ensure that you pay your bills on the stated time and avoid the bad credit score again from the late payments respectively. If you use your bank account consistently and responsibly, you will never become a victim to financial difficulty at all.