Archive for December 14th, 2009

Is a loss from a personal loan the same tax category as a loss from stock investments?

Monday, December 14th, 2009
Jan R asked:


I loaned a friend some money several years ago to help start a business, and the business failed and I was not repaid for the loan. I also, the same year, had losses from other investments (in the stock market). My understanding is that I can only deduct $3000 in investment losses for that year. Is the personal loan in the same category as the other investments — in other words, does it count as part of the $3000 limit? Or is there a way I can claim that loss separately? Thanks!

ORVILLE

Posted in United States | 1 Comment »

What are the worst investments and spendings?

Monday, December 14th, 2009
Smartass asked:


Ok, so we know what are good investments, stock, housing, mutual funds, retirement. But where does most of our money go wasted? After eating and renting and gas, where do you see yourself, or most Americans waste money on?

Books? Movies? Junk food? Education they didn’t need? Travel? Timeshares? Certain bills? Excessive taxes?

I’m asking for two reasons, if I can know what people waste money on, I can avoid them. Secondly, if I can know what’s profitable and people are stupid enough to buy, why would I let it pass me?
Yes, I know “waste” is subject, but I think most people once in debt and need of money, would agree (in 20/20 hindsight) that lots of luxuries such as pets, cars, books, tipping waiters, eating out are things they ‘wasted’ and probably better spent if they saved it and prepared for times of unemployment or pay cuts.
Also, we have every right to say people are wasteful or stupid just a they have every right to ignore our opinion. Luckily from environments like these, we can remain anonymous and just tell stories (maybe even some fake ones) that can be advice or lesson to others.

RYAN

Posted in Personal Finance | 8 Comments »