The Tally App will pay your credit cards for you

When establishing credit, late payments can really drag you down. A new app is available that is designed to eliminate late payments forever. -

Meet Tally

Your personal credit card optimizer
From inflated APRs to late fees, credit cards are designed to make money off us. Tally is the first app that helps you fight back—potentially saving you hundreds. Just keep using your cards like normal, and let Tally work in the background to find you savings.

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In an age where there is app for everything, managing all your credit cards in one place was an inevitable app. The new Tally app promises to do that and more. Just how much it actually does is still a bit of a secret as the app is only available on limited release.

What we do know from Mashable.com is that the app will be a financial tool that if configured correctly and if it works without any errors, it should:

There's a lot to like about Tally, but at its core, the app still operates much like a credit card company combined with a financial manager.

Tally tracks your accounts and then figures out the best way to pay off your credit cards. Users have to apply and get a line of credit from the company. You pay Tally, Tally pays the credit card companies"

The Major Concerns:

1. Identity theft. This app will have access to every single one of your credit cards and the ability to access them. In the event of a massive security breach, every Tally user will have all of their credit card information exposed. In the event your phone is stolen, you may have all of your credit card information exposed. Big risks.
2. Monthly payments not made on time. What happens if the app has a some sort of problem, whether at the software, data-server, connectivity, or even device-specific problem and NONE of your payments are made. What if you don't notice until after three months, when your credit card companies start calling. You will then have to go to Credit Repair to fix a problem that you did not cause. Who is going to pay for that? Who is going to pay for your late fees, fines, etc?
3. Bad artificial intelligence. We are assuming that the app will be smarter than us at managing debt, allowing it to pay off higher interest (APR) cards quickly. What happens when the app makes mistakes, like paying off a card that is at 0% APR, or transfers debt over to a card that has a limited time 0% APR with a much higher APR after that?

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Here are the bullet points for the new Tally App

Add your credit cards to Tally Tally analyzes your cards and credit history. If you’re approved for a Tally Credit Line, the app starts managing your cards and pays off any higher APR balances up to your limit. Each month Tally optimizes your payments Instead of paying your cards directly, let Tally automatically pay your cards so you don't get overcharged or miss a payment. All you do is pay Tally. Manage your cards in one place Easily track your savings, update your preferences, and see when Tally makes payments to your credit cards.

To learn more about the Tally app visit:

Mashable: http://mashable.com/2016/05/29/tally-credit-card-app/#39UtD5HXkuqY

Tally: http:www/meettally.com

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How Long Do Negative Items Remain on My Credit Report?

In this blog post we will discuss how long different types of negative or derogatory accounts remain on your credit report.  Download your very own credit optimizer at our website at www.CreditPathway.com.

The following items remain on your credit profile for the listed specified number of years.

• Open accounts with no negative payment history: remain indefinitely as long as they are open and active.
• Closed accounts with no negative payment history: remain 10 years from the date they are closed. Positive accounts remain on your credit report longer than negative accounts.
• Late payments remain seven years from the original delinquency date. A single late payment is deleted at seven years. If there was a series of late payments (not paid at 30 days, or 60 days, or 90 days) and then brought current, the payments would be deleted seven years from the first one missed in the series. If the account was never brought current and charged off and placed for collection, the entire account will be deleted based on the date the account became late and was never again current. This is known as the original delinquency date.
• Collection accounts remain seven years from the original delinquency date of the original account. Collection accounts are treated as a continuation of the original debt and are deleted at the same time.
• Chapter 13 bankruptcy is deleted seven years from the filing date because at least a portion of the debt is repaid. 
• Chapter 7 bankruptcy remains 10 years from the filing date because none of the debt is repaid.
• Civil judgments remain seven years from the filing debt. A civil judgment is essentially a debt you owe through the court.
• Unpaid tax liens remain 10 years from the filing date. Once paid, the lien will remain seven years from the paid date.
• Inquiries: remain two years from the inquiry date. However, the impact of inquiries on credit scores is minimal and decreases rapidly.

Read More

How Long Do Negative Items Remain on My Credit Report?

In this blog post we will discuss how long different types of negative or derogatory accounts remain on your credit report. Download your very own credit optimizer at our website at www.CreditPathway.com.

The following items remain on your credit profile for the listed specified number of years.

How Long Do Negative Items Remain on My Credit Report?

• Open accounts with no negative payment history: remain indefinitely as long as they are open and active.
• Closed accounts with no negative payment history: remain 10 years from the date they are closed. Positive accounts remain on your credit report longer than negative accounts.
• Late payments remain seven years from the original delinquency date. A single late payment is deleted at seven years. If there was a series of late payments (not paid at 30 days, or 60 days, or 90 days) and then brought current, the payments would be deleted seven years from the first one missed in the series. If the account was never brought current and charged off and placed for collection, the entire account will be deleted based on the date the account became late and was never again current. This is known as the original delinquency date.
• Collection accounts remain seven years from the original delinquency date of the original account. Collection accounts are treated as a continuation of the original debt and are deleted at the same time.
• Chapter 13 bankruptcy is deleted seven years from the filing date because at least a portion of the debt is repaid. Chapter 7 bankruptcy remains 10 years from the filing date because none of the debt is repaid.
• Civil judgments remain seven years from the filing debt. A civil judgment is essentially a debt you owe through the court.
• Unpaid tax liens remain 10 years from the filing date. Once paid, the lien will remain seven years from the paid date.
• Inquiries: remain two years from the inquiry date. However, the impact of inquiries on credit scores is minimal and decreases rapidly.

The following image shows the timeline as provided by Experian.com:

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Understanding Your Business Tax Plan: Part 3 of 3

There are so many business taxes that it is important to understand the general categories of business taxes and how they will affect your business. For more information on the five states to form your business with the lowest amount of business taxes, see our most recent blog post on the best five states with no to lowest business taxes.

Assets and Depreciation:

Businesses invest in major equipment, vehicles, machinery, or furniture as a cost of doing business. Also included can be franchise fees, buildings, or even raw land. Capital assets are defined as major assets used in the operation of business in excess of more than one year and as such are subject to special tax treatments. Generally speaking, the entire cost cannot be deducted in one year.

• The basic calculation is taking the base cost and deducting it as an expense over the number of years that it will be used. Typically, the assets estimated drop in value each year will be applied as a framework for how much to depreciate it. In essence it is deducted down to the fair market current value.
  
• A value called the “salvage value” is the un-deducted amount which remains leftover at the end of the asset's usage life.
  
• Of course as it is difficult and time consuming to estimate depreciation rates on the far ranging types of assets involved in businesses, two methods are generally used by tax professionals.The straight-line method uses an annual depreciating percentage for assets, while the declining balance method uses more depreciation in the asset’s earlier years.
  
• As customary and standard, the IRS has specific rules dictating how deductions for depreciation for tax purposes are to be calculated.

Self-Employment Taxes and Net Profit-Loss:

After the overall calculations that have been previously listed in arriving at taxable income, the final considerations are self-employment taxes. It is for these reasons that many tax and legal professionals recommend forming a corporation or limited liability company for your business.

• Self-employment taxes. Sole proprietors will pay self-employment taxes on the full amount of taxable income for the business. Corporations and limited liability companies on the other hand use a different formula and are given many benefits by the IRS with respect to this category.
  
• Net operating losses. Businesses quite obviously produce different financial numbers each year. Some years may produce profits while others will produce losses. It is important to think ahead as loses can be carried forward and applied towards profits. From a tax planning perspective, this of course is always a consideration to keep in mind.

Read More

Understanding Your Business Tax Plan: Part 2 of 3

There are so many business taxes that it is important to understand the general categories of business taxes and how they will affect your business. For more information on the five states to form your business with the lowest amount of business taxes, see our most recent blog post on the best five states with no to lowest business taxes.

Your Core Calculation = Business Income Less Itemized Deductions

Clearly to determine your business income tax is the business formula of subtracting your itemized deductions from your gross business income.  So essentially, your total of gross receipts, deposits, cash flows, or any other revenue otherwise collected by the business will be added together and then reduced in appropriate proportion from your total sum of valid itemized deductions/ expenses.

Your Categories of Calculations:

• Gross Sales Revenue: As mentioned above, this is your total of gross receipts, deposits, cash flows, or any other revenue otherwise collected by the business.
• Miscellaneous Business Income: This is where a business specific tax professional comes into the picture as you must be report miscellaneous business income on the relevant different sections of your tax return.
• Goods Sold Costs: Again as just mentioned, your business tax professional will need to calculate this if indeed your business uses inventory, so that you can finalize the business income section of your tax return.
• Deductions: Every tax and legal professional alike agrees that goal number is properly deducting expenses to make a massive difference in the bottom line in taxes. The largest most common business deductions are capital expenditures, start-up, travel, vehicles, meal and entertainment expenses, business gifts, salaries, insurance, and home office deductions.

Claiming tax credits

Tax credits come with sets of very complicated rules, which your tax professional must follow in order to legally claim them. Tax credits are stronger than tax deductions because they are debited straight from your tax bill. Tax deductions are deducted from the business income on which your tax bill is based upon. Tax credits are only available for certain scenarios and industries so be sure to check for them on a real time basis as they do change from year to year, state to state, etc.

Read More

Understanding Your Business Tax Plan: Part 1 of 3

There are so many business taxes that it is important to understand the general categories of business taxes and how they will affect your business.  For more information on the five states to form your business with the lowest amount of business taxes, see our most recent blog post on the best five states with no to lowest business taxes.



Your Initial Tax Plan  (Four Parts): There are three basic generally recognized elements to structuring your initial overall tax plan.  You will need to answer these questions BEFORE you file for your Employer Identification Number, (EIN).For that reason, you should consult with your tax and/or legal professional prior to proceeding any further in your business.

1. Category of Trade: Upon filing your EIN, the IRS requires you to declare your category of business.  Naturally, this presupposes that your business in engaged in a specific category of trade such as financial services or marketing with the sole motive or purpose being that of business profit.
2. Business Entity Type: A consultation with your tax and or legal professional should made as to whether your business should be formed as a sole proprietorship, partnership, limited liability company, (LLC) or corporation.  There are distinct advantages to each formation and of course attorneys universally agree that if significantly reducing your liability is the goal along with other various tax benefits, the LLC or corporation should be strongly considered.
3. Accounting Method: Again upon the filing of your EIN, the IRS will require that you declare your accounting method type.  While certain business types can utilize special accounting methodologies, it is generally accepted as standard accounting practice by tax professionals for businesses to choose from amongst either cash or accrual methods.  While some businesses under certain circumstances can use a hybrid approach, you will definitely want to consult with your tax professional as to which system you should be using.
4. Tax Year: This is simply the calendar period to which your taxable income will be calculated.  The IRS allows businesses to select either the calendar year option or the fiscal year option. The calendar year means that you are choosing your taxes for the current year to end December 31st while the fiscal year means that your tax calendar will end at any month that you chose other December.

The above four items should and much be considered prior to engaging in business.  While there are forms to change the above four elements of your initial tax plan assuming that you are an existing business, you can as well make changes as needed and appropriate in the future if you are a new business and thus are not locked into place.

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