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Know All Eligibility Criteria & Documents Required For A Loan Against Property

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Loans against property are one of the most affordable credits in terms of repayment. Different types of this loan cater to the unique needs of individuals. End-user flexibility of such loans also makes them more utilitarian for the borrower.

loan against property is secured loans provided against a property mortgaged by financial institutions. Lenders prefer to lend offer such loans more than other secured or unsecured loans. They offer a loan amount as per the LTV they determine the borrower should be eligible for.

LTV or Loan to Value is the percentage of the mortgaged property’s current market value sanctioned as the loan to the borrower. Thus, such loans are less risky for a lender and require only some basic eligibility requirements.

Eligibility Required For A Loan Against Property

Due to its secured nature, a loan against property eligibility is quite easily met by most applicants. The requirements are slightly different for salaried and self-employed professionals.

  • For salaried individuals –

The applicant must be a salaried employee of an MNC, a private company, or the public sector. The minimum age required is 33 years, while the maximum is 58 years. Additionally, the applicant must be experienced for at least 3 years in his/her respective field of work.

  • Eligibility for self-employed individuals –

Self-employed individuals can be a minimum of 25 years of age and a maximum of 70 years old. Additionally, he/she must be able to produce proof of a stable income source. The applicant’s business must have at least 3 years of vintage.

Additionally, a decent CIBIL score is a prerequisite for a loan against property in India. A CIBIL score above 700 can prompt lenders to provide the best terms and features.

Different types of properties yield varying values loan amount. The lender evaluates your property carefully for a loan against property eligibility, and by considering multiple parameters. The lender decides the LTV after a thorough assessment.

You can opt for lenders such Bajaj Finserv who offers Loans Against Properties with attractive interest rates as well as multiple borrower-friendly beneficial features. Bajaj Finserv also provides pre-approved offers on such loans as well on numerous other financial products including personal loans, home loans, business loans, etc. These offers simplify the process of availing finances and help save the borrower’s time. 

How Lenders Evaluate A Property

An independent valuer will be hired by the lender, who will visit the property and measure its dimensions to verify whether the construction is as per the approved plan. The valuer will derive the property’s value based on the current and prevalent property prices in the locality, its area in square meters or square feet, and its age and condition.

For larger loans, lenders will consider valuation reports from two independent assessments. They’ll take an average of the two to determine the property’s final value. After doing so, they’ll calculate the loan amount to be granted based on LTV.

Documents Required For A Loan Against Property

The borrower is required to furnish valid documents which prove a borrower’s ownership over the property. Here is the necessary loan against property documents required.

  • Registered sale deed
  • Lease deed, if any
  • Latest house tax returns
  • Approved building plans from the municipal corporation

Additionally, a borrower must furnish all other necessary documents as mandated by KYC rules.

Other required documents are –

  • PAN or Aadhaar card.
  • Salaried individuals are required to furnish the account statements with all transactions during the last 3 months. Self-employed individuals have to provide the same for up to 6 months.
  • IT returns papers to show the applicant has filed all necessary taxes.
  • Salaried individuals will also need to produce their latest salary slips. 

Ways You Can Increase Your Eligibility

You can increase your loan against property eligibility by planning your application carefully. The EMI depends on the tenure of your loan. A higher tenure reduces the EMI, so it fits better within your repayment capacity. Overestimating your repayment capacity and opting for too short tenure is one of the things to avoid when availing a loan against property.

Also, you can improve your eligibility by including another person as a co-applicant. Spouses, parents, or other family members can qualify as co-applicants. Prepare your application with careful consideration and enjoy all the benefits of a loan against property.

Alisha Antil is your best financial helper. She has a vast experience in finance and loans and provide to you the expert advise in ensuring your property and health. She has in depth knowledge and has written more than 1200 blogs on topics related loan against property. She also provide you with knowledge about home improvement and cooking.

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Need Cash? Here Are Some Solutions for Those With Poor Credit

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Those searching for a personal loan for poor credit have a few options to explore. Three of the most popular are credit cards, home equity loans and personal loans for poor credit. The obtained monies can be used for many reasons to include purchasing jewelry or upgrading a business. The type that’s best will depend on the intentions for use and personal financial state.

Here’s a bit about each type to help anyone make an informed decision when they decide to pursue a personal loan for poor credit.

Personal Loans

One can get a personal loan from most banks. As stated before, they can be used for most anything and are based on the ability to present proof of income as well as assets. Those assets have to bet worth the amount the person is borrowing. It’s a quick process for application when these things are present and accounted for and the applicant will find out within a few days tops if they are approved.

The main downfall is that interest rates are typically high around an average of 12%. The time limit for repayment varies but they’re usually no more than two years. Due to this, any very large amounts are not recommended to be financed this way as many have trouble paying them back in two years.

Credit Cards

Credit cards are another option when consumers are searching for a type of personal loan for poor credit. They are the same thing as securing a loan as they are also repaid later. The cards are easy to use because they are widely accepted for payment on most everything.

They are simple to apply for and can be upwards of $10,000. The application is reviewed fast, usually no more than two weeks. There are also those that are reviewed over the phone and approved in only minutes. It all depends on the card company. Terms vary greatly, so it’s important for whomever is applying to really look over all the fine print.

Within this print, there will be many things to take note of. At the top of the list are interest rate, yearly fees, overage fees and more. It’s been proven that debts pile up more quickly using credit cards than other types of loans because they are so available and easy to swipe at any retailer. For someone looking to a personal loan for bad credit, this may be an unwise decision and end up hurting credit not repair it.

Home Equity Line

The home equity line of credit is a smart decision. It allows homeowners the ability to borrow against the value of their home. It’s easy to figure how much someone can get. All they have to do is take the home’s market value against what is still owed on it. Many choose to not do this if they are planning on selling in the near future. However, if they are planning on staying there for the long haul it’s a great option.

Like other personal loans for poor credit the money can be utilized for whatever they please. Often they’re used for home improvements, consolidating debt and so much more. The interest rates are low to average and can be repaid over the course of up to 20 years in some circumstances. There aren’t many downsides to a home equity loan of credit; in some cases the interest is a tax deduction. That’s hard to beat!

The main negative to this type of personal loan for poor credit is that the person taking it on can sometimes get in a worse situation in regards to their mortgage. If there are two sources of income and they are well above the bills being paid each month the individual can probably repay the loan with ease. Otherwise, it may not be of any benefit. Especially of the consumer ends up losing a job or suddenly is unable to work. Plus, rates sometimes fluctuate.

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Top 5 Reasons To Choose Loans For Bad Credit With No Guarantor Option

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Long days of unemployment, unexpected expenses, medical emergency, and increasing debts can be the reasons why you have a financial problem in your life. It is a tough situation to be in and you have to find out a suitable financial alternative to combat it. Choosing a loan can provide you the desired funds but in most of the loan options, individuals should have a pleasant credit record to attract the funding. If you have a good credit rating, a lender is always ready to help you with quick financial assistance. Other than that, you need to search a lot for accessing a peace of mind.

Loans for bad credit with no guarantor can only protect you from a financial drench. These credits provide a way to get money quickly without credit check process and no obligation of having signature of a guarantor.

There are strong reasons to prove that why more and more people are inclining towards these loans. Here are the top five reasons:

Uncomplicated Registration Process

You do not need to follow a cumbersome application procedure when there is an urgent need of cash. In previous days, the loan applicants had to travel a lot at the lender’s office and provide many papers to seek approval of the lender. A lot has been changed now and the majority of loan companies have acquired an online registration method. Borrowers need to fill an online application form on lender’s website and submit it with mandatory details. Thereafter, the lender verifies all the details, and subsequently, transfers the cash to their registered bank account after a few hours of application submitted.

Credit Check is Not Involved

Applying for a bank loan require a pleasant credit record. The bad credit people do not have the financial credibility to show to their lender. Therefore, banks do not provide money to them because of the risk of losing repayments. On the other hand, the professional lenders are ready to provide the financial assistance without credit check procedure. Loans for bad credit with no guarantor are the best example in which there is no hurdle of a bad credit score.

No Need of A Guarantor

A bank loan always has the compulsion of bringing a guarantor to co-sign for the loan amount with the primary borrower. Sometimes, finding a responsible person to own the responsibility of loan repayments becomes tough, which is not the right thing to do during a financial emergency. Therefore, these no guarantor loans provide an opportunity to acquire money in a hassle-free way despite not having a co-signer.

Unsecured Option is Available

Do you not have collateral to secure the money that you have borrowed? You are still eligible for these bad credit loans because they are also available with an unsecured option. Borrowers do not require keeping their home, car or residential property as collateral to the lender. You may have to pay higher interest rates in comparison to the secured loans but the money you receive through unsecured loans helps you in a crucial time.

Relief from Hefty Repayments

You can only request a small amount to avail benefits of the loans for bad credit with no guarantor. People acquire these loans if there is a financial urgency in their life. The professional lenders understand the financial compulsions of these people and give them flexibility in the repayment schedules so that they can repay the borrowed sum as per the given schedule and improve their credit performance to attract more loans from the lenders.

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Federal Government Student Loans

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Federal government student loans are credit facility programs that have been put in place by the state to assist students in paying their fees. They are deemed useful as they have helped a lot of students get through their college education which they otherwise would have not without that money. The government gives this money through two programs which are the Federal Family Education Loan (FFEL) and the Direct Loan program.

One can only apply for either of the two. There is need to understand how the two programs work, since the repayment plans may differ slightly from each other. However, eligibility rules and regulations are all the same for both programs. A direct credit facility is usually funded strictly by the state. The FFEL on the other hand is offered by banks and other credit lending institutions that are in the private or the public sectors.

The FFEL has its own advantages in that, the money can be used to do other personal stuff. The direct one, as the name suggests, goes directly into tuition fees. The question that many students are faced with is how to access either type of the credit facility. Well, it begins by obtaining a FAFSA form, which you fill out and send back for processing.

Before the money gets to you, your school has to approve your eligibility. You then sign a promissory note, which is a legal document and which must be honored in due time. On this note, you can find the terms, rules and regulations under which the credit facility is extended to you.

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Pre-Qualified or Pre-Approved?

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Before any professional real estate agent or broker even LOOKS at you, they’re going to want (Nay require) you to have your financing already in place. The seller they represent, whether that be an individual, couple, bank, trust, or investor, your offer WON’T even be looked at without a letter from a lender. That means, bank, mortgage banker, mortgage broker, credit union or other acceptable source of funding. (Trust funds, annuity, insurance settlement, etc.)

Which brings us to the answer to the question: “Pre-Qualification” or “Pre-Approval”.

Best answer for you to be taken seriously – Pre-Approval trumps ALL other forms. This means you’ve actually APPLIED for and received loan approval. It means a formal application and all supporting documentation relative to your job, residence and savings have been verified. It means your full credit report has been retrieved and analyzed by an underwriter for layers of risk associated with carrying a mortgage. In essence, it means you have a “credit card” with a predetermined limit. It means you are a “cash buyer”. It means, you’ve done your homework and are considered GOLD in the eyes of anyone you present an offer to purchase to. You have reversed the tables and are now in control. NOT the seller, NOT the agent and NOT anyone else. You have the “thing” everyone wants. When you have what everyone wants, you’re the boss.

So, what then is “Pre-Qualification”? AKA a “PQ”.

Toilet paper. Garbage. Refuse. $1.00 a gallon gasoline.

A PQ is nothing more than a piece of paper issued by who knows, which states you’ve been interviewed by a “lender” or “Loan officer” and they’ve looked at your income and you’ve told them of your expenses and based on their calculations, you qualify for a loan of “X” dollars. No credit report. No job or savings verifications. No professional underwriter.

So, if you’re serious about buying a home, which should you have in your hand?

If you’re a home seller, which buyer are you going to take seriously?

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ABC of Student Loans

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Are you near to graduating high school and you are in need of money to continue your education at a university? Student loans can help you build the path to a successful career!

These are a type of consolidation loan and they were created to help students achieve their goals, get a diploma in the field they desire and manage to create a strong financial situation. Before you can become eligible for a student loan you have to fill out a form called FAFSA, which can be found at your school or you can also download it online.

The service offered by through the internet is quicker and easier. After you have sent this form with the necessary information and answers you will get a notification back which will tell you how much money you can borrow and under what conditions. Various types of student loans exist. You have to be well informed of the types and their terms. Every country has different ways, so you should go to your local school for additional information or log on to the internet and search for the necessary info which is available in your country.

When you apply for a loan be sure to read the contract very carefully and ask if something is not clear. Don’t borrow an amount of money which you won’t be able to pay back and choose a period of time best suitable for you and your income, or the income of your parents. You don’t want to end up with debts so be attentive and safe. Also if you notice some problems in the process of repayment, there are student consolidation loans available which can help you organize your payments. Also don’t forget of the possibility of receiving scholarships if you are a leading student.

Education is very important and the government wants to help you somehow, but you are the main person, you have to be smart and arrange your goals and opportunities in the proper way. So don’t be ashamed of using personal, direct or student loans to achieve your goals because in the end all is worth it. Your education forms your way of life! Polish it and use every help you can get!

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WoW Mining Leveling Guide – How to Level Mining 1-450 Like a Pro

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In WoW, Mining is a lucrative profession because it is used for 3 crafting professions. The drawback is that to make some decent gold off the profession you need to reach a high level. I am going to give you a quick Mining Leveling Guide and give you some of the fundamentals to level mining quickly.   

Here are the Basics of my mining leveling guide:

You can Level Mining with a couple of different ways. The traditional way is leveling the profession by smelting and also by going out and finding nodes.   Today I am going to elaborate on how to find nodes for leveling the traditional way.   Let’s talk about finding nodes. Now, finding nodes can be rather time consuming to run around looking them. But the positive thing is it has no major upfront costs.  

To start off, you must first learn the profession and you must purchase a mining pick axe. You can’t mine without one. Once you have done this you are ready to venture out into the game of WoW and begin leveling your new profession.   Now you must pick a zone which, sometimes, can be a little difficult.  However, the same general rule of finding veins of ore hold true for all zones: you can usually find it around the mountain lines or at the edges of the zone.  You also have to make sure you have track minerals on so you can find ore more easily along with looking near the ridges.   Below is a list of the level, the Ore that will level you, and the zones that are best for this range.  

Here is the WoW Mining Leveling Guide you have been looking for: 

  • Level 1-60; Ore: Copper Ore;  Zones: Azuremyst Isle, Mulgore, Dun Morogh, Durotar, Teldrassil and Elwinn Forest.
  • Level 66-125;  Ore: Copper, Silver and Tin Ore;  Zones: Thousand Needles, Redridge Mountain                             
  • Level 126-175;  Ore:  Iron, Gold and Tin Ore;  Zones:  Thousand Needles, Arathi Highland                         
  • Level 176-245;  Ore: Mithril and Truesilver Ore;  Zones: Tanaris,The Hinterlands           
  • Level 246-300;  Ore: Mithril Ore and Rich Thorium Small Thorium;  Zones: Silithus, Tanaris, Winterspring                                                      
  • Level 301-325;  Ore: Fel Iron Ore; Zones: Hellfire Peninsula    
  • Level 326-350;  Ore: Fel Iron Ore, Khorium Ore, Adamantite Ore, Rich Adamantite;  Zones: Nagrand                                                                                          
  • Level 351-400;  Ore: Rich Cobalt, Cobalt Ore; Zones: Borean Tundra                                  
  • Level 401-450;  Ore: Rich Saronite ,Saronite Ore; Zones: Scholarzar Basin   

                

Smelting is usually pretty costly, although the bars usually sell for around the price of ore.

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Reduce Cost of College With Lifetime Learning Credits

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Lifetime Learning Credit

For 2015, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American Opportunity Credit and the Lifetime Learning Credit.

TAX BENEFIT – For the tax year, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for all eligible students. There is no limit on the number of years the Lifetime Learning Credit can be claimed for each student. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. The Lifetime Learning Credit is a nonrefundable credit, so if the credit is more than your tax the excess will not be refunded to you. Your allowable Lifetime Learning Credit is limited by the amount of your income and the amount of your tax.

ONLY ONE EDUCATION CREDIT ALLOWED – For each student, you can elect for any year only one of the credits. For example, if you elect to claim the Lifetime Learning Credit for a child on your 2015 tax return, you cannot, for that same child, also claim the American Opportunity Credit for 2015. If you are eligible to claim the Lifetime Learning Credit and you are also eligible to claim the American Opportunity Credit for the same student in the same year, you can choose to claim either credit, but not both. If you pay qualified education expenses for more than one student in the same year, you can choose to claim certain credits on a per-student, per-year basis. This means that, for example, you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for another student in the same year.

CLAIMING THE CREDIT – Generally, you can claim the Lifetime Learning Credit if all three of the following requirements are met.

  • You pay qualified education expenses of higher education.
  • You pay the education expenses for an eligible student (a student who is enrolled in one or more courses at an eligible educational institution).
  • The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.

Table 3-1. Overview of the Lifetime Learning Credit for 2015

Maximum credit

Up to $2,000 credit per return

Limit on modified adjusted gross income (MAGI)

$128,000 if married filing jointly;

$64,000 if single, head of household, or qualifying widow(er)

Refundable or nonrefundable

Nonrefundable-credit limited to the amount of tax you must pay on your taxable income

Number of years of postsecondary education

Available for all years of postsecondary education and for courses to acquire or improve job skills

Number of tax years credit available

Available for an unlimited number of tax years

Type of program required

Student does not need to be pursuing a program leading to a degree or other recognized education credential

Number of courses

Available for one or more courses

Felony drug conviction

Felony drug convictions do not make the student ineligible

Qualified expenses

Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment)

Payments for academic periods

Payments made in 2015 for academic periods beginning in 2015 or beginning in the first 3 months of 2015

CANNOT CLAIM THE CREDIT – You cannot claim the Lifetime Learning Credit for 2015 if any of the following apply.

  • Your filing status is married filing separately.
  • You are listed as a dependent on another person’s tax return.
  • Your modified adjusted gross income (MAGI) is $64,000 or more ($128,000 or more in the case of a joint return).
  • You (or your spouse) were a nonresident alien for any part of 2015 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. More information on nonresident aliens can be found in Publication 519.
  • You claim the American Opportunity Credit or a Tuition and Fees Deduction for the same student in same year.

QUALIFYING EXPENSES – The Lifetime Learning Credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Generally, the credit is allowed for qualified education expenses paid in same year for an academic period beginning in the same year or in the first 3 months of the following year. For example, if you paid $1,500 in December 2015 for qualified tuition for the spring 2016 semester beginning in January 2016, you may be able to use that $1,500 in figuring your 2015 credit.

Academic period. An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period.

Paid with borrowed funds. You can claim a Lifetime Learning Credit for qualified education expenses paid with the proceeds of a loan. You use the expenses to figure the Lifetime Learning Credit for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student’s account.

Student withdraws from class (es). You can claim a Lifetime Learning Credit for qualified education expenses not refunded when a student withdraws.

For purposes of the Lifetime Learning Credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills.

Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution. Certain educational institutions located outside the United States also participate in the U.S. Department of Education’s Federal Student Aid (FSA) programs (such as Oxford University).

Related expenses. Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance.

NO DOUBLE-DIPPING – You cannot do any of the following.

  • Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a Lifetime Learning Credit based on those same expenses.
  • Claim a Lifetime Learning Credit in the same year that you are claiming a tuition and fees deduction for the same student.
  • Claim a Lifetime Learning Credit and an American Opportunity Credit based on the same qualified education expenses.
  • Claim a Lifetime Learning Credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell Education Savings Account (ESA) or Qualified Tuition Program (QTP).
  • Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer.

For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. The result is the amount of adjusted qualified education expenses for each student.

Tax-free educational assistance. For tax-free educational assistance received in 2015, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Some tax-free educational assistance received after 2015 may be treated as a refund of qualified education expenses paid in 2015. This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2015 for qualified education expenses paid on behalf of a student in 2015 (or attributable to enrollment at an eligible educational institution during 2015).

Tax-free educational assistance includes:

  • The tax-free part of scholarships and fellowship grants
  • Pell grants (Scholarships, Fellowship Grants, Grants, and Tuition Reductions)
  • Employer-provided Educational Assistance
  • Veterans’ Educational Assistance
  • Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance.

Generally, any scholarship or fellowship grant is treated as tax free. However, a scholarship or fellowship grant is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship grant is received) and either of the following is true.

  • The scholarship or fellowship grant (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses.
  • The scholarship or fellowship grant (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses.

You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received.

Refunds. A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Some tax-free educational assistance received after 2015 may be treated as a refund.

Refunds received in 2015. For each student, figure the adjusted qualified education expenses for 2015 by adding all the qualified education expenses for 2015 and subtracting any refunds of those expenses received from the eligible educational institution during 2015.

Refunds received after 2015 but before your income tax return is filed. If anyone receives a refund after 2015 of qualified education expenses paid on behalf of a student in 2015 and the refund is paid before you file an income tax return for 2015, the amount of qualified education expenses for 2015 is reduced by the amount of the refund.

Refunds received after 2015 and after your income tax return is filed. If anyone receives a refund after 2015 of qualified education expenses paid on behalf of a student in 2015 and the refund is paid after you file an income tax return for 2015, you may need to repay some or all of the credit.

Credit recapture. If any tax-free educational assistance for the qualified education expenses paid in 2015 or any refund of your qualified education expenses paid in 2015 is received after you file your 2015 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2015 by reducing the expenses by the amount of the refund or tax-free educational assistance. You then refigure your education credit(s) for 2015 and figure the amount by which your 2015 tax liability would have increased if you had claimed the refigured credit(s). Include that amount as an additional tax for the year the refund or tax-free assistance was received.

If you pay qualified education expenses in 2015 for an academic period that begins in the first 3 months of 2015 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2015 instead of reducing your expenses for 2015.

Amounts that do not reduce qualified education expenses. Do not reduce qualified education expenses by amounts paid with funds the student receives as:

  • Payment for services, such as wages,
  • A loan;
  • A gift;
  • An inheritance; or
  • A withdrawal from the student’s personal savings.

Do not reduce the qualified education expenses by any scholarship or fellowship grant reported as income on the student’s tax return in the following situations.

  • The use of the money is restricted, by the terms of the scholarship or fellowship grant, to costs of attendance (such as room and board) other than qualified education expenses, Scholarships, Fellowship Grants, Grants, and Tuition Reductions.
  • The use of the money is not restricted.

COORDINATION WITH PELL GRANTS AND OTHER SCHOLARSHIPS – You may be able to increase your Lifetime Learning Credit when the student (you, your spouse, or your dependent) includes certain scholarships or fellowship grants in the student’s gross income. Your credit may increase only if the amount of the student’s qualified education expenses minus the total amount of scholarships and fellowship grants is less than $10,000. If this situation applies, consider including some or all of the scholarship or fellowship grant in the student’s income in order to treat the included amount as paying nonqualified expenses instead of qualified education expenses. Nonqualified expenses are expenses such as room and board that are not qualified education expenses such as tuition and related fees.

Scholarships and fellowship grants that the student includes in income do not reduce the student’s qualified education expenses available to figure your Lifetime Learning Credit. Thus, including enough scholarship or fellowship grant in the student’s income to report up to $10,000 in qualified education expenses for your Lifetime Learning Credit may increase the credit by enough to increase your tax refund or reduce the amount of tax you owe even considering any increased tax liability from the additional income. However, the increase in tax liability as well as the loss of other tax credits may be greater than the additional Lifetime Learning Credit and may cause your tax refund to decrease or the amount of tax you owe to increase. Your specific circumstances will determine what amount, if any, of scholarship or fellowship grant to include in income to maximize your tax refund or minimize the amount of tax you owe. The scholarship or fellowship grant must be one that may (by its terms) be used for nonqualified expenses.

Finally, the amount of the scholarship or fellowship grant that is applied to nonqualified expenses cannot exceed the amount of the student’s actual nonqualified expenses that are paid in the tax year. This amount may differ from the student’s living expenses estimated by the student’s school in figuring the official cost of attendance under student aid rules. The fact that the educational institution applies the scholarship or fellowship grant to qualified education expenses, such as tuition and related fees, does not prevent the student from choosing to apply certain scholarships or fellowship grants to the student’s actual nonqualified expenses. By making this choice (that is, by including the part of the scholarship or fellowship grant applied to the student’s nonqualified expenses in income), the student may increase taxable income and may be required to file a tax return. But, this allows payments made in cash, by check, by credit or debit card, or with borrowed funds such as a student loan to be applied to qualified education expenses.

Something to consider is whether you will benefit from applying a scholarship or fellowship grant to nonqualified expenses will depend on the amount of the student’s qualified education expenses, the amount of the scholarship or fellowship grant, and whether the scholarship or fellowship grant may (by its terms) be used for nonqualified expenses. Any benefit will also depend on the student’s federal and state marginal tax rates as well as any federal and state tax credits the student claims. Before deciding, look at the total amount of your federal and state tax refunds or taxes owed and, if the student is your dependent, the student’s tax refunds or taxes owed. For example, if you are the student and you also claim the earned income credit, choosing to apply a scholarship or fellowship grant to nonqualified expenses by including the amount in your income may not benefit you if the decrease to your earned income credit as a result of including the scholarship or fellowship grant in income is more than the increase to your Lifetime Learning Credit as a result of including this amount in income.

NON-QUALIFYING EXPENSESQualified education expenses do not include amounts paid for:

  • Insurance;
  • Medical expenses (including student health fees);
  • Room and board;
  • Transportation; or
  • Similar personal, living, or family expenses.

This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.

Sports, games, hobbies, and noncredit courses. Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student’s degree program or is taken by the student to acquire or improve job skills, these expenses can qualify.

Comprehensive or bundled fees. Some eligible educational institutions combine all of their fees for an academic period into one amount. If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. To help you figure your Lifetime Learning Credit, the student should receive Form 1098-T. Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2015. An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. However, the amounts on Form 1098-T, boxes 1 and 2, might be different from what you paid. When figuring the credit, use only the amounts you paid or are deemed to have paid in 2015 for qualified education expenses.

In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. The eligible educational institution may ask for a completed Form W-9S, or similar statement to obtain the student’s name, address, and taxpayer identification number.

CLAIMING DEPENDENT’S EXPENSES – If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both, can claim a Lifetime Learning Credit for your dependent’s expenses for that year. For you to claim a Lifetime Learning Credit for your dependent’s expenses, you must also claim an exemption for your dependent. You do this by listing your dependent’s name and other required information on Form 1040 (or Form 1040A), line 6c.

Expenses paid by dependent. If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Include these expenses when figuring the amount of your Lifetime Learning Credit. Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent.

Expenses paid by you. If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the Lifetime Learning Credit. If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the Lifetime Learning Credit.

Expenses paid by others. Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student’s qualified education expenses. In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. If you claim an exemption on your tax return for the student, you are considered to have paid the expenses.

Tuition reduction. When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student.

FIGURING THE CREDIT – The amount of the Lifetime Learning Credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. The maximum amount of Lifetime Learning Credit you can claim for 2015 is $2,000 (20% × $10,000). However, that amount may be reduced based on your MAGI.

The amount of your Lifetime Learning Credit is phased out (gradually reduced) if your MAGI is between $54,000 and $64,000 ($108,000 and $128,000 if you file a joint return). You cannot claim a Lifetime Learning Credit if your MAGI is $64,000 or more ($128,000 or more if you file a joint return).

Modified adjusted gross income (MAGI). For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return.

MAGI when using Form 1040A. If you file Form 1040A, your MAGI is the AGI on line 22 of that form.

MAGI when using Form 1040. If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any:

1. Foreign earned income exclusion,

2. Foreign housing exclusion,

3. Foreign housing deduction,

4. Exclusion of income by bona fide residents of American Samoa, and

5. Exclusion of income by bona fide residents of Puerto Rico.

Phase Out. If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863.

You figure the tentative Lifetime Learning Credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). The result is a $1,320 (20% x $6,600 eligible expenses) tentative credit.

Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. The numerator of the fraction is $128,000 (the upper limit for those filing a joint return) minus your MAGI. The denominator is $20,000, the range of incomes for the phase out ($108,000 to $128,000). The result is the amount of your phased out (reduced) Lifetime Learning Credit ($1,056).

$1,320 x ($128,000 – $112,000)/$20,000 = $1.056

Claiming the Credit You claim the Lifetime Learning Credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Enter the credit on Form 1040, line 50, or Form 1040A, line 33.

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WoW Mining – 6 Quick Steps to Level 450!

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Mining is the most popular profession in World of Warcraft. It’s a very reliable money-making skill as all around Azeroth you can find veins of ore to mine and sell the ores, stones, gems and minerals you dig up.

Not only do you dig up the raw ores with Mining, you can also smelt them into metal bars for Blacksmiths, Jewelcrafters and Engineers to use. If you learn Mining and one of these other professions you have a potent combination.

The top level is 450, it takes a while to get there, but it’s worth it for the extremely valuable stuff you can dig for when you get there. If like me, you’re an impatient type, here is an overview of one of the quickest ways to level 450 in 6 steps:

Step 1

All races start in different places, but we’ll just cover the mining-masters Dwarves for now (also Gnomes who begin in the same area). You must get trained apprentice Mining first in town, next mine for copper ore in Durota and Dun Morogh until you reach level 30. Turn the copper into bars using your smelting ability and save them.

Step 2

When you reach level 65 become a Journeyman in Mining. Now mine in the areas of Redridge Mountains and a Thousand Needles, you want to search for tin. When you have dug up lots of tin, smelt it down into bars and then mix it with copper bars to create bronze bars. After a bit of this you will reach 95.

Step 3

Mine and smelt silver ore until you reach 125. At level 125 train to Expert Mining, keep to the thousand needles and also the Arathi Highland. From level 155 you can start smelting gold bars from gold ore, it’s best here to buy gold ore and smelt it – until level 175. Sell the bars for more ore if you run out of money.

Step 4

At 225 train up to Mining Expert. Now you want to continue your Mining around Tanaris and the Hinterlands. By the time you get to level 230 you can smelt Trusilver Ore and use it to jump up tp 245.

Step 5

Next we want to start mining in Winterspring. Start mining Thorium veins here, get your trainer to train you how to smelt thorium bars. You can find the most Torium around the Eastern Plaguelands. Then mine Fel Ore around the Hellfire Peninsula until level 325. After that you can reach 350 easily by Mining around Nagrand for Adamandite Ore.

Step 6

You’ll reach the final mining levels in Northrend. Firstly, learn Mining Grand Master when you get there. Then mine Cobalt Ore in the Borean Tundra. And finally, mine saronite ore at Sholazar Basin to reach level 450.

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Top 5 American Express Credit Cards in Singapore

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American Express is one of the biggest issuers of credit cards in the world. The company offers cards that are customized to meet the needs of all kinds of customers but mostly they cater to the needs of individuals with high net worth. At present, more than 100 million people around the world use cards that are issued by this multinational financial company. American Express has a very strong presence in most Asian countries including Singapore. It offers a range of credit cards that are very popular with residents of this island nation.

The top 5 American Express credit cards offered in Singapore are as follows:

1. True Cash Back Card – This card has been designed to help people with saving more money when they use the card for their daily expenses. A percentage of the amount spent with the card with be credited back to the cardholders’ account as cash back and so they can save money in the process. The cardholders will need to pay a little more than S$170 as annual fee for the card and they can also opt for supplementary cards for their loved ones to share with them the benefits offered with this card.

2. American Express Platinum Card – As its name suggest, this credit card comes with features that are designed for people with premier lifestyles and it can offer them with golfing, dining and travel benefits. Because of its worldwide acceptability, this card can be used at merchant outlets around the globe. The annual fee for the card charged is relatively high and so it may not be ideal for those who are looking for a card with low annual fee or other charges.

3. American Express Rewards Card – This is the ideal American Express credit card for those who want to earn reward points every time they use their card for any transaction. The reward points can be redeemed without any difficulty and on the website of American Express Singapore. The cardholders are offered with higher reward points when they use the card at some of the selected merchant outlets in Singapore. Only people aged 21 or above can apply for this card, which comes with a low annual fee of around S$50.

4. American Express Platinum Reserve Card – It is the ideal card for those who want to earn higher reward points for all of their purchases. It can the cardholders can earn up to 50,000 points in the initial 6 months of receiving the card by spending a specified amount of money. It is also very good for those who frequently dine out as it will offer them with discounts and other privileges at some of the top restaurants in the country. It does come with a high annual fee of more than S$500.

5. American Express Singapore Airlines KrisFlyer Gold Card – This American Express credit card has been designed for those who travel by Singapore Airlines on a regular basis as they can enjoy discounts of air tickets and a range of other travel benefits. With every dollar spent with the card, the cardholders earn air miles and the accumulated air miles can then be redeemed for hotel bookings, flight reservations and other travel benefits. Only people with high credit score can apply for this card.

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Home Loans With Bad Credit: 3 Key Factors To Help Get Approval

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Taking on a mortgage is no trivial thing, with the debt created typically in the hundreds of thousands of dollars. For bad credit borrowers, the task of getting approved can be extra difficult, but it is worth noting that there are some mortgage providers willing to approve applicants seeking home loans with bad credit.

Of course, securing mortgage approval comes down to meeting the criteria that lenders lay down, and convincing them that monthly repayments will be made without a hitch. Happily, credit scores actually have very little to do with it, providing bad credit borrowers with a window of opportunity.

The factors relate to income and debt-to-income ratio, and so long as these matters are addressed satisfactorily, the mortgage provider is extremely likely to grant the home loan application. But what are the factors and conditions that applicants need to be aware of?

1. Bad Credit Is Not Important

The biggest mistake applicants make is to think that the credit rating they have is a hugely important factor in the approval process. It is not, and in fact only affects the interest rate that is charged. So, those seeking home loans with bad credit can feel confident of getting the funds they need.

The reality is that if the credit score is very low, the interest rate on the mortgage is going to be high. This means two things. Firstly, the credit score can affect the affordability of the deal, thus impact on the chances of securing mortgage approval.

Secondly, it means that improving your credit score can have a positive impact, lowering the interest rate and thus helping to make the home loan more affordable.

2. Securing Better Terms

Since, the scores are linked to existing debts, the best way to improve credit scores is to clear those debts. That way, the score rises and the chances of getting a home loan with bad credit are improved.

The best way to clear those debts is to take out a consolidation loan and pay them off. The original debt is replaced by a new loan, but the new terms should make it is more affordable. This can improve the debt-to-income ratio, which in turn greatly improves the likelihood of securing mortgage approval.

Alternatively, trying to clear individual debts bit by bit. This will take a much longer amount of time, and the impact is likely to be less. Remember, a down payment needs to be saved in advance of securing a home loan too.

3. Making the Mortgage More Affordable

The affordability of any loan is the crucial element in the approval process, with the debt-to-income ratio establishing whether it is or not. But since the monthly repayment sum is the key, lowering it can help make the deal affordable. When it comes to a home loan with bad credit, this may be the fastest way to making the mortgage affordable.

Accomplishing this is pretty simple. Just take out a mortgage on a longer term than usual. Extending the term from 30 years to 40 years, for example, can reduce the repayments each month by perhaps $200. And once affordability is confirmed, securing mortgage approval is a formality.

Bear in mind, however, that a home loan with a longer repayment period is going to be more expensive in the long run. The amount or interest paid over 40 years will be more than over 30 years.

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