Articles

Clicking or e-mailing can create a binding contract

A New York company ran a loan-application website. As part of the application process, users had to click a box to get from one screen to the next. Above the box it said, “Clicking the box below constitutes your acceptance of … the borrower registration agreement.” The borrower registration agreement wasn’t on the page, but the words “borrower registration agreement” were a hyperlink to another page that included the complete contract. In fine print, the contract

Here’s a problem with employee arbitration clauses

A software company called TIBCO tried to protect itself by including a non-compete clause in its employment agreements. It also required that any disputes over the employment relationship go to arbitration rather than being tried in court. When an employee left to work for a competitor, TIBCO filed a lawsuit and asked for an emergency injunction so it could immediately stop the employee from competing against it. But the court said – surprise! – that it

What can you do if a competitor lies in its ads?

Your competitor’s advertising makes false claims about how great its products are – or worse yet, disparages your own products. What are your options? You have a range of alternatives, from complaining to a private or government agency to filing a lawsuit. Here’s a look at some of the choices. If your competitor is saying things it shouldn’t, the simplest approach is to complain to the Better Business Bureau’s National Advertising Division, or NAD. The NAD

New tax break for rich unmarried homeowners

You can deduct your mortgage interest on your income taxes, but there’s a limit – you can only deduct the interest on up to $1 million of mortgage debt used to buy the property, plus $100,000 in home equity loans. In a recent California case, a wealthy unmarried couple jointly owned a home that had a $2 million mortgage. They got into a dispute with the IRS over whether the $1 million limit applied to them

Be careful with ‘expense clauses’ in commercial leases

It’s common in commercial leases for the tenant to pay a portion of the landlord’s property taxes and other expenses incurred in maintaining the property. Typically, the tenant’s portion is calculated as a pro-rata share, based on how much space in the building the tenant occupies. But be careful: This pro-rata share can be calculated in two ways – as a percentage of the leased space in the building, or as a percentage of the leasable

Extended family may help with a mortgage

People who live with members of their extended family – or have boarders living with them – may have an easier time getting a mortgage, under new rules from Fannie Mae. Previously, if you applied for a mortgage, only your own income could be counted to see if you qualified, even if you had family members or others living with you who contributed to your housing payments on a regular basis. Now, however, under Fannie Mae’s

More homes are being sold ‘rent-to-own’

A growing number of homes are being sold on a “rent-to-own” basis. Here’s how it works: The potential buyer agrees to lease the home for a period of time, usually two years. The buyer also puts down a deposit (often called an “option consideration”), which is typically two to three percent of the home’s market value. At the end of the lease term, if the buyer decides to purchase the property, the deposit is credited toward

Deducting your home office can affect you when you sell

If you work at home, the home office deduction can be a great way to turn part of your house into a tax break. But you should be aware that it can also trigger a tax bill when you sell the property. Here’s some background on how the deduction works, and how it affects home sales: The deduction is available if you have a space in your home that you use regularly and exclusively for work.

Are bad business debts a tax deduction?

If you’re in business long enough, you’ll run into a customer who doesn’t pay you. Despite your best efforts, you may conclude that you’ll never receive the money. Do you have a tax-deductible bad debt? The answer depends in part on whether you operate your business using the cash or accrual method of accounting. Cash. When you use the cash method, you report taxable income when you receive it and deduct expenses when they are actually

Keep up with section 179 depreciation changes

Did you know that a recent law made changes to the section 179 expensing election for 2016? These modifications took effect as of January 1. Here’s what to consider as you make asset purchasing decisions this year.

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