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I'm so angry right now and need to vent.
Two weeks ago, I had a discussion with my husband about making a major payment on our line of credit ($15 grand). The plan was to do it tomorrow since our new fiscal year would be starting. I wanted to do more, but because we won't be doing corporate taxes until May, I thought this would be a good chunk to work with now.
Well, I told him tomorrow was the day and it's like he had no understanding of the conversation. He said there must have been some miscommunication because he thought I was talking about after the taxes were done in May.
So, for two weeks I've been pumped thinking we wouldn't have much left, only to be squashed the day before.
I feel like throwing the books at him and tell him to deal with it, since he doesn't really listen when I talk. We are throwing away about $150. a month in interest when a lot of the money is sitting in the business account. We make nothing in the business account in the way of interest by the way....it just sits there.
His fear is that we will end up in trouble at tax time because this is our first year doing it.
What can I do to get my positive energy back, and not be furious (which I absolutely am) at him.
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No real advice for you.. i'm sorry! I'd just try to explain why you're so upset/worried, and perhaps you could put down 1/2 the amount at least.. ?
Hang in there! " class="inlineimg" />
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Big hugs...money things stink! and now that I think about it, dh's that don't pay attention when we talk stink too.
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He is right.
You're thinking of using 'business money' to pay a personal debt. That could result in some kind of tax consequence for you. If you have an accountant, it is best to discuss the situation first.
While it is tempting to use the business money to pay off personal debt, when you have a new business it is important to plow any extra cash flow back into the business. You may have incurred the equity loan debt to start the business, in which case, it would be a good idea to speak with an accountant on how the business can payback that debt.
Answer:
Originally Posted by Cookie2
He is right.
You're thinking of using 'business money' to pay a personal debt. That could result in some kind of tax consequence for you. If you have an accountant, it is best to discuss the situation first.
While it is tempting to use the business money to pay off personal debt, when you have a new business it is important to plow any extra cash flow back into the business. You may have incurred the equity loan debt to start the business, in which case, it would be a good idea to speak with an accountant on how the business can payback that debt.
How can you tell she is using a business account to pay off a personal debt?!?! I guess I'm not very money savy in that area.
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My DH is a computer programmer so there is no need to have a great deal of excess money in the account. He works from home, has 3 new computers and is usually given a company computer from the contract is is working on.
This isn't the type of business where there is much overhead needed...a kitchen table and power source is all he needs!
I realize that there could be tax consequences but the money has to come out at some point. He earned it. In some respect this is no different than a SAHM running a licensed daycare from home, meaning that once she is set up, there isn't a need for major funds under her name.
Just for additional info, he does have an accountant and we draw from this account monthly. It is set up in a manner that the money we draw is considered dividends. Each month the money that is withdrawn varies, sometimes by thousands of dollars so it's not like he pulls a set wage.
Anyhow, the major problem is that he agreed to plan over two weeks ago. I even emailed him with the plan. Now he says there must have been some miscommunication.
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Agh! You took the wind out of my sails - my one recommendation was what you did! My dh is notorious for not listening. I actually would email him at work w/important things. Now, however, his stupid company's IT dept. goes through emails and deletes what they feel inappropriate without telling him! Yet, other ones I send go through.
However, you did email him. What next? Lipstick on the bathroom mirror? Frying pan on the head?
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You're right.
The vent was that you two had a conversation. The result of the conversation was that you two had an understanding and an action plan. When it came to impliment the action, he backed out.
Now that you have his attention, what is the game plan? It will cost you $450 in interest to wait until May. Will he back out again in May? Does he have an alternate solution?
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I think I got my point across because he put a call into the accountant to see what he suggests. He isn't against it really, just wants to make sure we don't shoot ourself in the foot by doing it.
I really have to give him credit though because he is just trying to do the right thing. He is notorious (sp?) for being paranoid though and sometimes it drives me crazy. The fact that I am now a full time SAHM (and my paycheck was substantial) has put some stress on him but I am trying to show him how lucky we are to be prepared, and responsible, and it will all work out.
I'll keep you posted on the call with the accountant. THanks for your support!
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Ok that was fast!
As soon as I was done my last post, the phone rang and it was the accountant. They discussed numbers and there is no problem withdrawing the money. It's actually to our advantage to take it out today, because we can allocate it to last years earnings which gives us more room to play this year.
I thanked DH very much for looking into it, and also gave him the positive news that by paying this down, if something should happen to his job (this is another paranoid thing for him), then our monthly payment would be much less. He seemed pleased with the info, and I'm sure pleased that I had a smile on my face!!!!!
Glad to have you gals around to keep me calm!