Your Questions About Paper Trading Options

Sandra asks…

i need help on a research paper !!!!?

i have this paper due on drivers ed and i have no idea how to get started on this , i am going to copy and paste the instructions for the paper below , if you guys could help in any way possible that would be great 🙂

Your Aunt Crazy has just hit the lottery and has decided to give you money to purchase a car.  She has decided to give you $500.00 a month towards your purchase.  This money needs to be used to purchase a car and pay for insurance (“Your Fault” is not an insurance company).  You now have the opportunity to buy any car that will fit into your budget.  Before you begin, you are asked to trade in any car in your family to help with your finances.  Enjoy the shopping experience!!
 
Task
Your cover will consist of a title.  You may use any title you wish.  This page must also include your name, class period and date.  Be creative and design a cover that is colorful and interesting.
Your second page will be the specifics of your new car.  This will include all of the options and the price that were quoted by the dealer.  You may add a picture of this car if you can find one.
The third page will be specifics on the vehicle that you traded in, including the price that was suggested by Kelley Blue Book or Edmunds.
The fourth page will explain the payment for your new car including the insurance that you will purchase for the car and the monthly breakdown for both payments.
The fifth page will be economy information on your car such as mileage in city and open roads.  Also included on this page will be a safety rating for your trade-in vehicle and the new car that you are purchasing.  You must provide two examples of cars that have the safest rating and two that have the poorest ratings.  Give a brief explanation on why two cars you chose have a poor rating.  Also on this page, you are to explain the “Lemon Law” and provide information on this law that protects consumers.
The sixth page will be dedicated to scams.  You are to search the resources to find 4 dealer scams and 4 insurance scams that you should be aware of when purchasing a car and insurance.
The seventh and final page will consist of a detailed explanation on how to jump start your car.  You can also find this information in the resources provided for you.  Lastly, you must give credit for information that you borrowed from a source.  Always give credit where credit is due!!
Resources
Remember to use the sites search option if you are unable to find the information that you are looking for.
Trade In Sites
HYPERLINK “http://www.edmunds.com/” Edmunds
HYPERLINK “http://www.kbb.com/” Kelley’ Blue Book          
 
HYPERLINK “http://www.nhtsa.dot.gov/” National Highway Traffic Safety Administration – Automobile Safety Ratings/Crash Tests
HYPERLINK “http://carbuyingtips.com/” Car Buying Tips – Lemon Law Information/Dealer Scams/Jump Start/Loan Spreadsheets
HYPERLINK “http://www.calcbuilder.com/cgi-bin/calcs/AUT5.cgi/aol_auto” Calculate Financing – Gives monthly payment for a car being financed
HYPERLINK “http://rd.com” Reader’s Digest HYPERLINK “http://rd.com” – Safety ratings and other important car information
 
FAQ’s – Frequently Asked Questions
1.  Must I use the recommended resources to complete this assignment?
        You may use any web resources that you would like to use.  Just keep in mind that the sites that you choose must be within the guidelines.
2.  Do I have to credit my resources?
        Yes you must!!  It is very important to give credit where credit is due….Make sure you copy and paste the web sites address of all sites that you use on the last page of your assignment.  This includes any pictures or text that you borrowed from another source.
3.  Can I use a digital camera or scanner for parts of my project?
        You most certainly can!!  Use anything that you want to put pictures in your project.  The more creative you are, the better your grade will be.

John answers:

Oh this is an easy one. Take the most expensive car your family owns for trade in. Look up the kelly blue book price online. This can be a jumping off point. Then go to somewhere like vehix.cm and look for the kind of car you like in a reasonable price range (like $169 a month) then go to like progressive and get a free rate quote. The hardest part is making the numbers fit, but I guess the point of the paper is to simulate real life.

Richard asks…

Do I have to report granted stock options on my tax return?

In lieu of payment, I was granted X amount of shares in a private company that is not publicly traded. I did not pay anything for them, and they were not employee ISO options (I am not an employee of the company). They were just given, on paper (a contract; no real stock certificate or anything). Do I have to report the value of what the shares are on my taxes?
Just wanted to add, that these were not stock options. There was nothing to exercise. These were shares. Also, there was no market in which these shares could be traded, or a fair market value assessed to them. I cannot transfer the shares in any way.

John answers:

“In lieu of payment” means you got paid. You need to report the value on schedule C and pay not only income tax, but self-employment tax as well. The amount as income becomes your cost basis.

So, it’s not an option. It’s stock. It’s STILL income when you get it and since it’s for services, you have to pay fica/mc as well.

Think of it as barter income. You have to convert it to cash–the FMV you would have been paid if
you’d charged them your going rate.

From IRS pub 525. Example 1 is you.

Bartering
Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.

Generally, you report this income on Schedule C or Schedule C-EZ (Form 1040). However, if the barter involves an exchange of something other than services, such as in Example 4 below, you may have to use another form or schedule instead.

Example 1.

You are a self-employed attorney who performs legal services for a client, a small corporation. The corporation gives you shares of its stock as payment for your services. You must include the fair market value of the shares in your income on Schedule C or Schedule C-EZ (Form 1040) in the year you receive them.

Linda asks…

Dealership made a error on the finance,what are my options?

I have purchased a used truck and traded in my old car, which I stilled owed money on. They were supposed to roll over the amount I owed on my old car into the new loan but the finance guy forgot too. I signed all the papers and repeatedly stated when we finished signing all the paper, the final numbers and my monthly payments have everything included. The finance personal stated everything is accounted for. It has been two weeks and now he is calling me. I have not called him back. I was wondering what are my options? I do not want to have to pay more, when clearly it was the dealerships fault.

John answers:

What would you do if the situation were reversed, and they charged you more than they should have? Of course you would want them to correct the mistake.

Go in and sign the papers. You made a verbal agreement to roll in the debt from your prior loan, their mistake does not change that fact.

Mandy asks…

Dealership is asking us to resign papers?

Contacted dealership after we have had vehicle for 11 days becasue we had not recieved a copy of the papers. dealership informs us that we need to come in and resign, I call back and then they also inform me that they are asking for more money down. Traded in two vehicles for one not sure if dealership still ahs the two trade ins. What are my options?

John answers:

This is a bait and switch. File a complaint with the State Attorney General’s Office.

Notify the dealership that you will not resign and that you filed a complaint with the SAG.

James asks…

Can a car dealer rescission the contract?

We purchased a new car from a dealer? The negotiation was done. The contract was signed. We put some cash in, took some financing from them and trade in our old vehicle. We left the trade in vehicle and drove the new one.

The dealer called 3 days after the transaction and said the trade-in car was not worth enough what they offered us. They asked more money not to cancel the contract. I refused.

I have not heard them last 2 weeks. Now, they called and told me that they did not send the loan papers to their financial institution, already canceled the contract. They either sent or planed to send me a rescission letter for the contract. Before sending it they asked more money to initiate a new contract. I have a good credit score and it would not be a problem to get a loan if they send the loan application.

What are my legal options?

John answers:

If they made the deal, they should stand behind it. Did you owe any money on your old (trade in) vehicle? It is possible that you owed more than they figured you did. In that case, you would have to make up the difference, or change the amount that you are financing.

If they are trying to give you less for your trade, consult a lawyer

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