Archive for May, 2012

Celebrities In Trouble With Taxes

Many people look at celebrities and their seemingly endless bank accounts and often think that if they had their money, all their problems would be solved. However, when it comes to owing Uncle Sam that does not always appear to be the case. Countless celebrities over the years have found themselves in trouble with the Internal Revenue Service and owing millions of dollars in unpaid personal income taxes. There are quite a few prominent members of the rich and famous who have recently found their own names on this list and are in need of some serious debt help.

Pamela Anderson

A recent report claimed that Pamela Anderson, former Baywatch star and Playmate, owes the Californian government more than half a million dollars in back taxes on her personal income.

Joe Francis

Francis became famous for his Girls Gone Wild videos, but now he is making headlines for another reason. Francis owes almost $800,000 in back taxes. California tax authorities officially filed a lien against his assets in June of 2011.

Lionel Ritchie

Lionel Ritchie who has an estimated net worth of over $200 million dollars is on the IRS’s bad side by currently owing over one million dollars in taxes on his personal income. Ritchie has recently been served a lien which allows the government to seize enough assets to cover his delinquent bill.

Halsey M. Minor

Minor and his wife, Shannon, are at the top of the California tax delinquent list owing the state of California more than ten million dollars. Minor was a high-tech pioneer back in the 90s and founded the popular website CNET. A new California law took effect on January 1st, 2012 requiring the top 500 largest tax delinquencies to be listed twice a year.

Nicholas Cage

Cage has had problems with paying his personal income taxes for years. He recently paid over six million towards his delinquency, but still reportedly owes another seven million. To help pay off his massive tax debt, Cage has put up some of his properties for sale, although none have sold yet. In 2010, he claimed he owed more than fourteen million in back taxes and while his six million dollar payment helped, he still has the balance to contend with before he can start breathing easier.

Lindsey Lohan

Lohan is often in the news with family problems, but her latest issue is with Uncle Sam. Lohan recently had the I.R.S. file a lien against her in an attempt to collect back taxes from 2009 and 2010. While her $140,203.30 seems small in comparison to other celebrity’s back tax delinquencies, her recent financial and legal troubles may make it difficult for her to pay it as a lump sum. A Lohan representative stated that Lohan is working with the IRS to come to an acceptable payment arrangement.

Celebrities are not the only ones who find themselves in need of debt help in order to pay back taxes owed to the tax authorities. If you owe money to the IRS and cannot afford to pay it, one of the best things to do is get a loan, either a direct loan from a bank or a consolidated loan, this allows you to repay the amount due all at once and avoid the stiff penalties and fees levied by the IRS. Visit secureloanconsolidation.com for more information on consolidated loans.

Photo courtesy of Donkey Hotey on Flickr, and is used with permission from the Creative Commons License

About the Author

Ms. Bekiroglu is a published author, freelance writer and editorial consultant for secureloanconsolidation.com. After receiving a Bachelor of Arts degree from the University of South Florida, she faced the mounting obstacle of paying over $24,000 back in student loan debt. Determined to eliminate the debt, she became knowledgeable about money management. She seeks to educate others with tips on managing student loans and other kinds of debt, as well as in general personal finance and money saving tips.

3 Things You Should Know About Offset Mortgages

An offset mortgage attempts to combine various funds against the total debt of your mortgage; therefore, you pay less on your mortgage debt. You can add savings, checking and other types of accounts into your mortgage account, so you are paying less interest. Offset mortgages came to the UK in 2000, and they keep increasing in popularity. If you are considering this type of mortgage, there are three things that you should know. You can read some more tips like these on Mortgages.co.uk, one of the leading authorities on the subject.

1. They Have Tax Advantages

If your savings account accumulates interest, you would be required to pay interest on it. However, with offset mortgages, you do not receive any interest on your savings account, so you are not required to pay the income tax. In addition, the deposit account is not taxed, so the more money that you have in your deposit account, the more you will benefit from a tax break. If you have a high income tax rate, offset mortgages can be very beneficial when tax time rolls around. If you pay less money in taxes, you will have more money to keep for yourself.

2. Make Sure You Have Enough Cash Saved

If you do not have an adequate amount of money saved, offset mortgages will not be beneficial for you. Because offset mortgages have high interest rates, you need to keep a close eye on your savings balance because you could lose any unearned interest. You will not earn any interest if you owe more on your mortgage than you have in your offset savings account. If you have at least 5 percent of your mortgage balance in savings, an offset mortgage could be beneficial for you. After your mortgage is paid, you will still have your savings as an emergency fund, so you could have more money when you retire.

3. The Savings Account is Still Liquid

You still have access to your savings account. Therefore, you can withdraw money whenever you wish and there is no penalty. You do need to keep in mind that if you take out money, your mortgage payments will increase.

If you think that an offset mortgage might be right for you, research your options and search for a lender. You could possibly obtain a lower interest rate, a lower monthly payment and you could withdraw the money at will; therefore, it could save you money. You will pay off your mortgage quicker, so you will be debt free.

This post is a guest post from Gen Tupas.
Photo attribution goes to Nikcname on Flickr – it us used under the Creative Commons License.