How to fix errors on your credit report,

Legacy Investment Advisors, LLC

Albert Sturdivant
Financial Advisor Wealth Management
3000 Atrium Way
Suite 520A
Mount Laurel, NJ 08054
Voice:(856) 751-7909
Fax: (856) 751-1141
legacy@legacyria.com
www.legacyria.com

I recently came across an error on my credit report. Is there any way I can fix it?

 Good credit is an important part of your overall financial well-being. It can impact everything from the interest rates you'll pay to being a prerequisite for employment. As a result, you'll want to try to fix any errors on your credit report and have them removed as soon as possible.

 Your first step should be to contact the credit reporting agency in writing to indicate that you are disputing the information contained on your credit report. The credit reporting agency usually has 30 days to complete an investigation of the disputed information. Once the credit reporting agency investigation is complete, they must provide you with written results of their investigation.

If, during its investigation, the credit reporting agency confirms that your credit report does contain errors, the information on your report either must be removed or corrected.

 If the investigation does not resolve the issue, you still have a couple of options. First, you can try to mitigate the disputed information by adding a 100-word consumer statement to your credit bureau file. Even though consumer statements are often dismissed or ignored by potential creditors, it can at least provide you with a chance to tell your side of the story. You can also try to resolve the issue with the creditor that submitted the inaccurate information in the first place. The creditor will be obligated to investigate the disputed issue and notify you of its findings.

 If you believe that the error is the result of identity theft, you may need to take additional steps to try and resolve the issue, such as placing a fraud alert or security freeze on your credit report. You can visit the Federal Trade Commission (FTC) website at www.ftc.gov for more information on the various identity theft protections that might be available to you.

 Finally, due to the amount of paperwork and steps involved, fixing a credit report error can often be a time-consuming and emotionally draining process. If at any time you believe that your credit reporting rights are being violated, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at www.consumerfinance.gov.

Home Office Deduction Rules Get a Remodel

Legacy Investment Advisors, LLC
Albert Sturdivant Financial Advisor Wealth Management
3000 Atrium Way Suite 520A
 Mount Laurel, NJ 08054
Voice:(856) 751-7909 Fax: (856) 751-1141
egacy@legacyria.com
www.legacyria.com

 If you run a business out of your home, it's important to understand the associated federal income tax deductions that you might be entitled to. That's especially true this year, with new rules that make it easier than ever for some to claim a deduction.

 What's a home office?

 A home office is generally a room in your home, a portion of a room in your home, or a separate building next to your home (such as a converted garage or barn) that you use to conduct business activities. In order to deduct associated expenses, though, certain requirements apply.

Basic requirements

 Your home office must be used regularly and exclusively as your principal place of business, or as a place where you meet or deal with clients, patients, or customers, in the normal course of your business. If you have a business outside your home, but conduct substantial administrative and management tasks for your business at home (e.g., billing clients, keeping books and records) you may qualify, provided that you have no other fixed location where you could conduct these activities.

 The portion of your home used for business purposes (i.e., your home office) must be used exclusively for business purposes. You will not qualify for a deduction if the portion of your home is also used for personal purposes. There are two exceptions, however, relating to the storage of inventory and product samples, and the use of part of your home as a day-care facility.

 Separate structures 

 What if your home office is in a separate unattached structure next to your home, like a shed or garage? In this case, the office doesn't have to be your principal place of business, or a place where you regularly meet with clients. However, to qualify for the deduction, you must use that office regularly and exclusively in connection with your trade or business.

Employees can claim deduction 

 If you're an employee and use part of your home for business, you may qualify for the home office deduction. You'd have to meet all other requirements (i.e., your home office must be used regularly and exclusively as your principal place of business), and in addition, your home office must be for the convenience of your employer. You also can't have an arrangement in which you're renting that portion of your home to your employer.

 Regular method of determining allowable deduction 

 Under this method, you determine your actual expenses relating to your home office. Deductible expenses can include both direct expenses and indirect expenses. Direct expenses are costs that apply only to your home office, like the cost of a second telephone line used exclusively for your business.

 Indirect expenses are costs that benefit your entire home. Only the business portion of your indirect expenses is deductible as part of the home office deduction (even if you don't claim a home office deduction, some of these indirect expenses may be deductible as itemized deductions on Schedule A of Form 1040). Some examples of indirect costs include rent, deductible mortgage interest, real estate taxes, and homeowners insurance. The business percentage of your home is determined by dividing the area exclusively used for business by the total area of the home. For example, if your home is 2,000 square feet and your home office is 200 square feet, your business percentage is 10% (200 divided by 2,000). In such a case, if you rent your home, you can deduct 10% of your rent as part of your home office deduction.

New simplified option available 

 Starting in 2013, a new simplified option is available for calculating the home office deduction. Under this method, instead of determining and allocating actual expenses, you calculate the home office deduction by simply multiplying the square footage of the home office by $5. There's a cap of 300 square feet, so the maximum deduction available under this method is $1,500. You can't use this method if you are an employee with a home office and receive advances, allowances, or reimbursements for expenses related to the business use of your home under an expense or reimbursement allowance with your employer. Each year, you can choose whether to use the regular or simplified method of calculating the deduction. If you use the simplified method in one year, and in a later year use the regular method, special rules will apply in calculating your allowable depreciation deduction. Additionally, if you are carrying forward an unused deduction from a prior year (because your business deduction exceeded your business income in a prior year), you will not be able to claim the deduction in any year in which you use the simplified method--you'll have to wait for the next year you use the regular method to claim the unused deduction.

REFER A FRIEND

Legacy Investment Advisors, LLC (“Legacy”) is a registered investment advisor located in Mt. Laurel, New Jersey, in the suburbs of Philadelphia. Legacy and its representatives are in compliance with current registration and/or notice filing requirements imposed upon registered investment advisors by those states in which Legacy maintains clients. Legacy may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Any direct communication by Legacy with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. Legacy does not make any representations or warranties as to the accuracy, completeness, or relevance of any information prepared by an unaffiliated third party provider. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. The information contained herein does not represent a recommendation or offer to buy or sell securities. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. Past performance is no guarantee of future results.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013.

Just my thoughts on the School District

This morning I woke up thinking about the fact that Philadelphia boasts 3 black mayors. Each one left a dark spot oh this city. Wilson Goode Sr. still is a force working with the incarcerated masses, but he will always be remembered as the mayor who dropped a bomb in a residential neighborhood. Mayor Street who leaves a legacy of making minority participation on public contracts mandatory, but he will be remembered mostly as the mayor on whose watch “Pay to play” came under investigation, Ron White died and poor Cory Kemp took the downfall.

This present mayor – Michael Nutter – will also leave a legacy. I can’t think of one positive contribution he’s made to the city in the last 7 years. In my opinion, his legacy is the most heinous of all. His legacy hurts the most innocent citizens of this city – and our future. His legacy hurts the children. Before I tear into Nutter, let me say this. In my opinion, all the mayors mentioned walked into a situation that was already into existence. They just became the fall guys. I believe that to be true with Nutter as well. What makes me so angry about him is that he knows it. He knows he’s a puppet and allows himself to be used - Him and Dr. Hite. This issue with the school district ain’t nothing new. I said it before and I’ll say it again…THEY GAVE US A BLUEPRINT OF THEIR PLAN IN 2009 WHEN THEY RELEASED THE FACILITIES MANAGEMENT PLAN. They told us they were planning to close 27 school 4 years ago. Nobody paid attention. They’re using Dr. Hite (and paying him quite handsomely) to act as the fall guy/scape goat to move the plan forward to make public schools in Philadelphia non-existent. I’m heartbroken for the kids. For too many students, school was an outlet for them - A kind of haven for them to go for 7 hours each day to get away from the madness at home. It was a place where they knew they’d at least receive one meal that day. Yes, sadly the schools had become a place where kids could get the social services they so desperately needed. That’s what Dr. Ackerman realized and that’s why she worked so hard to put the mechanisms in place to help save our children. And it worked!!! But once she started tampering with the good ole boy network and gave a contract that normally went to them to one of our own…that was the beginning of her end.

I said all this to say what? I don’t really know. My oldest daughter just received her Master’s in Education this year. What’s she gonna do with that? What are these kids gonna do this school year? It wasn’t bad enough that they were combining schools and lacking in support staff, now they’re talking about just not opening until October? Where’s the money? You can’t tell me there’s no money. I don’t believe it. Oh, that’s right. They’re building more prisons. That’s the new education system for Philadelphia kids.

Mid-Year Reality Check: Covering Your Bases in Uncertain Times

Legacy Investment Advisors, LLC
Albert Sturdivant Financial Advisor Wealth Management
3000 Atrium Way Suite 520A Mount Laurel, NJ 08054
Voice:(856) 751-7909 Fax: (856) 751-1141
legacy@legacyria.com
www.legacyria.com

Imagine playing a complicated game, but the rules of the game are changing, and the new rules have yet to be announced. That's what income tax planning is like this year. In fact, if there was ever a year to spend some quality time with your financial professional, this is it. Here are a few items to discuss. How will higher rates next year affect you? Federal income tax rates are scheduled to jump in 2013, with the bottom (10%) rate disappearing, and the top rate increasing from 35% to 39.6%. Starting in 2013, high wage earners--those with wages exceeding $200,000 ($250,000 for married couples filing jointly and $125,000 for married individuals filing separately)--will also have to pay an additional 0.9% in the hospital insurance (HI) portion of their payroll tax, commonly referred to as the Medicare portion.

Could the current federal income tax rates be extended again? Of course, but it's far from a certain bet, and the odds are that any action would not take place until after the presidential election. That means any financial plan you put in place has to account for this uncertainty. And the uncertainty extends beyond just tax rates, because a number of popular tax breaks are also scheduled to expire at the end of the year, while others have already expired. So, any potential moves have to be considered in the context of several "what if" scenarios. For example, if you have the opportunity to defer compensation to next year, you have to really think about whether that makes sense, or if you would be better off paying tax on the income at this year's rates. Potential investment moves.

In addition to increased tax rates on earnings, the rates that apply to long-term capital gain and qualifying dividends are scheduled to increase in 2013. The maximum rate on long-term capital gain will jump from 15% to 20%. And while qualifying dividends currently benefit from being taxed at the rates that apply to long-term capital gain, in 2013 they'll be taxed at ordinary income tax rates. Also beginning in 2013, a new 3.8% Medicare contribution tax will be imposed on the net investment income of individuals with modified adjusted gross income that exceeds $200,000 ($250,000 for married couples filing jointly and $125,000 for married individuals filing separately). That means someone in the top tax bracket could potentially end up paying tax on some investment income at a total rate of 43.4%. Potentially higher rates in 2013 could be a motivating factor in your investment strategy. For example, you might want to consider selling investments that have appreciated in value to recognize long-term capital gain in 2012, before the maximum rate is scheduled to increase. Alternatively, you might consider timing the sale of an investment to postpone the recognition of a capital loss until 2013, when it could be more valuable. Roth conversions--is this the year?

If you've been on the fence about converting traditional IRA funds or pretax 401(k) contributions to a Roth account, you ought to give the matter one last hard look before the year ends. That's because when you convert a traditional IRA to a Roth IRA, or pretax dollars in a 401(k) plan to a Roth account, the converted funds are subject to federal income tax (to the extent the funds represent investment earnings, tax-deductible IRA contributions, or pretax 401(k) contributions) in the year that you make the conversion.

If tax rates go up next year, so will the effective cost of doing a Roth conversion. Additionally, qualified distributions from Roth IRAs and Roth 401(k)s are free from federal income tax. That could make a big difference in retirement if you're paying tax at a higher rate at the time. Whether a Roth conversion is right for you depends on a number of factors. If it makes sense for you, though, it might pay to think about acting now, rather than later.

To find out more click here

Legacy Investment Advisors, LLC (“Legacy”) is a registered investment advisor located in Mt. Laurel, New Jersey, in the suburbs of Philadelphia. Legacy and its representatives are in compliance with current registration and/or notice filing requirements imposed upon registered investment advisors by those states in which Legacy maintains clients. Legacy may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Any direct communication by Legacy with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.
Legacy does not make any representations or warranties as to the accuracy, completeness, or relevance of any information prepared by an unaffiliated third party provider. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. The information contained herein does not represent a recommendation or offer to buy or sell securities.
The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. Past performance is no guarantee of future results. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013.

IMPACT 2013 VENTURE SUMMIT | Basecamp Business

IMPACT 2013 VENTURE SUMMIT | Basecamp Business

*REGISTRATION IS NOW OPEN!

Hosted by Fox Rothschild LLP

October 22 & 23

The Ritz-Carlton, Philadelphia and the Crystal Tea Room

PACT’s annual venture conference, IMPACT 2013 Venture Summit Mid-Atlantic, is the most established venture conference in the northeast. For over 20 years, IMPACT has been showcasing the best and most promising investment opportunities in the Technology, Healthcare, and Early Stage sectors. IMPACT’s Featured Companies have raised more than a $1 billion in venture financing and are some of the region’s most recognizable names such as iPipeline, Protez Pharmaceuticals, and The Neat Company.

The Gala is on October 23rd at the Crystal Tea Room.

Build your credit wisely

Few Americans can afford to pay cash for everything they want or need — a car to get to work, a house to live in, or a college education to increase earning potential. For most people in our modern society, some form of credit has become a necessity. And the way in which a person's credit history is established often affects the interest rates that lenders are willing to offer and the likelihood that loan applications will be approved. So it's important to build credit wisely.
Following are three tips to help establish your credit worthiness in the eyes of potential lenders.

• Cash is still king. Just because a financial institution offers to extend credit, don't forget that it's often wiser to defer purchases until later. Pushy sales people may claim that you can "afford" the minimum monthly payments on a luxury automobile that costs more than a lakeside bungalow. But when your bills stretch the limits of every paycheck, you may be headed for financial disaster. Ironically, avoiding certain debts is often a prudent way to establish good credit.

• Take it slowly. Apply for one credit card, use it sparingly, and pay off the balance every month. That's the golden rule for bolstering your credit score. Opening multiple accounts over a short time may signal to lenders that you're overextended. When you take out a loan for a car, make sure you can meet the monthly payments even if your other expenses spike in a given month. In other words, establish some wiggle room in your budget. Don't assume that expenses will always remain at current levels. Emergencies happen. Plan for them so you don't end up missing a minimum payment on a loan or credit card bill.

• Beware of increased credit limits. As your credit score climbs, banks and other financial institutions will likely allow you to borrow more. Use caution. Remember that lenders have a vested interest in lending money to folks who pay on time. When you take out loans, they make money. Maybe you can borrow; that doesn't necessarily mean that you should borrow. Again, the choice to acquire debt in the form of loans or credit card purchases should be driven by a plan — not an impulse.

For more ideas about building strong credit, give us a call.

aconner@atconnercpa.com