Accountant Forums


Reply
Thread Tools

Hawaii nonresident income tax

 
 
Pico Rico
Guest
Posts: n/a
Thanked:
 
      07-10-2012, 03:10 AM
If one owns a vacation rental condo in Hawaii (and that is all), a Hawaii
state income tax return is required, regardless of whether there is any
taxable income or not.

The instructions say:

Election to File Form N-15 Without Providing

Information as to Worldwide Source Income

In lieu of providing information as to worldwide source income, nonresident

taxpayers (including nonresident alien taxpayers) and part-year resident
taxpayers

may elect to file Form N-15 without claiming any standard deduction

or personal exemption amounts. Itemized deductions calculated using the

ratio of Hawaii adjusted gross income to Total adjusted gross income may not

be claimed. Also, tax credits which are based on total adjusted gross income

from all sources may not be claimed. To make this election, enter zero on
line

36, Ratio of Hawaii AGI to Total AGI.



Does this mean I can consider my California Source Income as "worldwide
source income" and substantially ease the paperwork burden with respect to
Hawaii?



Also, it says you need to file a copy of your Federal return. Is this true
if you make the above election? Yes or no, do you need to file a copy of
ALL of the federal return, or just the 1040 itself?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
 
 
 
Alan
Guest
Posts: n/a
Thanked:
 
      07-10-2012, 03:48 PM
On 7/9/12 9:10 PM, Pico Rico wrote:
> If one owns a vacation rental condo in Hawaii (and that is all), a Hawaii
> state income tax return is required, regardless of whether there is any
> taxable income or not.
>
> The instructions say:
>
> Election to File Form N-15 Without Providing
>
> Information as to Worldwide Source Income
>
> In lieu of providing information as to worldwide source income, nonresident
>
> taxpayers (including nonresident alien taxpayers) and part-year resident
> taxpayers
>
> may elect to file Form N-15 without claiming any standard deduction
>
> or personal exemption amounts. Itemized deductions calculated using the
>
> ratio of Hawaii adjusted gross income to Total adjusted gross income may not
>
> be claimed. Also, tax credits which are based on total adjusted gross income
>
> from all sources may not be claimed. To make this election, enter zero on
> line
>
> 36, Ratio of Hawaii AGI to Total AGI.
>
>
>
> Does this mean I can consider my California Source Income as "worldwide
> source income" and substantially ease the paperwork burden with respect to
> Hawaii?
>
>
>
> Also, it says you need to file a copy of your Federal return. Is this true
> if you make the above election? Yes or no, do you need to file a copy of
> ALL of the federal return, or just the 1040 itself?
>

Each year I prepare a nonresident Hawaii return for a friend who has
rental property in Hawaii. Hawaii does not use the generally accepted
method used by other states to calculate state tax. Most of the other
states calculate the tax on worldwide income and apply a ratio of state
sourced income to federal income to arrive at the tax. Hawaii calculates
the tax by using your Hawaii sourced AGI and allows you to take
deductions and exemptions by applying the AGI ratio to those items
before arriving at the taxable state income. Because of this method,
Hawaii can give you the option of foregoing any deductions, personal
exemptions and credits by using your Hawaii AGI as your Hawaii taxable
income. This election also allows you to avoid having to complete
Column A, your worldwide source income. However, you are required to
attach all forms and schedules of your federal tax return to the N-15
whether you make the election or not.

Just to make sure we are not talking past each other.... Column A of the
N-15 wants your worldwide income as if you were a Hawaii resident. This
is your federal income adjusted to Hawaii law. It's the same method that
CA uses for nonresidents. E.g., neither CA or HI would want you to
include taxable social security benefits in your worldwide income as
neither state taxes those benefits. The only difference between CA and
HI is that CA asks for your federal numbers and then gives you two
columns to add and subtract from that to conform to CA law. HI only
gives you one column to enter the income and adjustments based on HI law.

If you are a CA resident and CA is taxing your HI income and you also
pay tax to HI on that same income, CA will give you a credit for the HI
taxes. See CA Schedule S.

--
Alan
http://taxtopics.net

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
 
 
 
Pico Rico
Guest
Posts: n/a
Thanked:
 
      07-10-2012, 07:04 PM

"Alan" <(E-Mail Removed)> wrote in message
news:jthirv$4tq$(E-Mail Removed)...
> On 7/9/12 9:10 PM, Pico Rico wrote:
>> If one owns a vacation rental condo in Hawaii (and that is all), a Hawaii
>> state income tax return is required, regardless of whether there is any
>> taxable income or not.
>>
>> The instructions say:
>>
>> Election to File Form N-15 Without Providing
>>
>> Information as to Worldwide Source Income
>>
>> In lieu of providing information as to worldwide source income,
>> nonresident
>>
>> taxpayers (including nonresident alien taxpayers) and part-year resident
>> taxpayers
>>
>> may elect to file Form N-15 without claiming any standard deduction
>>
>> or personal exemption amounts. Itemized deductions calculated using the
>>
>> ratio of Hawaii adjusted gross income to Total adjusted gross income may
>> not
>>
>> be claimed. Also, tax credits which are based on total adjusted gross
>> income
>>
>> from all sources may not be claimed. To make this election, enter zero on
>> line
>>
>> 36, Ratio of Hawaii AGI to Total AGI.
>>
>>
>>
>> Does this mean I can consider my California Source Income as "worldwide
>> source income" and substantially ease the paperwork burden with respect
>> to
>> Hawaii?
>>
>>
>>
>> Also, it says you need to file a copy of your Federal return. Is this
>> true
>> if you make the above election? Yes or no, do you need to file a copy of
>> ALL of the federal return, or just the 1040 itself?
>>

> Each year I prepare a nonresident Hawaii return for a friend who has
> rental property in Hawaii. Hawaii does not use the generally accepted
> method used by other states to calculate state tax. Most of the other
> states calculate the tax on worldwide income and apply a ratio of state
> sourced income to federal income to arrive at the tax. Hawaii calculates
> the tax by using your Hawaii sourced AGI and allows you to take deductions
> and exemptions by applying the AGI ratio to those items before arriving at
> the taxable state income. Because of this method, Hawaii can give you the
> option of foregoing any deductions, personal exemptions and credits by
> using your Hawaii AGI as your Hawaii taxable income. This election also
> allows you to avoid having to complete Column A, your worldwide source
> income. However, you are required to attach all forms and schedules of
> your federal tax return to the N-15 whether you make the election or not.
>
> Just to make sure we are not talking past each other.... Column A of the
> N-15 wants your worldwide income as if you were a Hawaii resident. This is
> your federal income adjusted to Hawaii law. It's the same method that CA
> uses for nonresidents. E.g., neither CA or HI would want you to include
> taxable social security benefits in your worldwide income as neither state
> taxes those benefits. The only difference between CA and HI is that CA
> asks for your federal numbers and then gives you two columns to add and
> subtract from that to conform to CA law. HI only gives you one column to
> enter the income and adjustments based on HI law.
>
> If you are a CA resident and CA is taxing your HI income and you also pay
> tax to HI on that same income, CA will give you a credit for the HI taxes.
> See CA Schedule S.
>
> --
> Alan
> http://taxtopics.net


Thank you. I don't know why, but taxpayer hates the thought of giving a
state a copy of my federal return if it is not to be used to calculate that
state's taxes. I tend to agree, again, without a specific reason.

Another question: I am assuming that there would be a NOL from this rental
activity, given depreciation, maintenance and repairs, etc. Does Hawaii
allow NOL carryforwards (indefinitely?) for future use against positive
income for a year, or a capital gain when the property is sold?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Alan
Guest
Posts: n/a
Thanked:
 
      07-10-2012, 07:59 PM
On 7/10/12 1:04 PM, Pico Rico wrote:
> "Alan" <(E-Mail Removed)> wrote in message
> news:jthirv$4tq$(E-Mail Removed)...
>> On 7/9/12 9:10 PM, Pico Rico wrote:
>>> If one owns a vacation rental condo in Hawaii (and that is all), a Hawaii
>>> state income tax return is required, regardless of whether there is any
>>> taxable income or not.
>>>
>>> The instructions say:
>>>
>>> Election to File Form N-15 Without Providing
>>>
>>> Information as to Worldwide Source Income
>>>
>>> In lieu of providing information as to worldwide source income,
>>> nonresident
>>>
>>> taxpayers (including nonresident alien taxpayers) and part-year resident
>>> taxpayers
>>>
>>> may elect to file Form N-15 without claiming any standard deduction
>>>
>>> or personal exemption amounts. Itemized deductions calculated using the
>>>
>>> ratio of Hawaii adjusted gross income to Total adjusted gross income may
>>> not
>>>
>>> be claimed. Also, tax credits which are based on total adjusted gross
>>> income
>>>
>>> from all sources may not be claimed. To make this election, enter zero on
>>> line
>>>
>>> 36, Ratio of Hawaii AGI to Total AGI.
>>>
>>>
>>>
>>> Does this mean I can consider my California Source Income as "worldwide
>>> source income" and substantially ease the paperwork burden with respect
>>> to
>>> Hawaii?
>>>
>>>
>>>
>>> Also, it says you need to file a copy of your Federal return. Is this
>>> true
>>> if you make the above election? Yes or no, do you need to file a copy of
>>> ALL of the federal return, or just the 1040 itself?
>>>

>> Each year I prepare a nonresident Hawaii return for a friend who has
>> rental property in Hawaii. Hawaii does not use the generally accepted
>> method used by other states to calculate state tax. Most of the other
>> states calculate the tax on worldwide income and apply a ratio of state
>> sourced income to federal income to arrive at the tax. Hawaii calculates
>> the tax by using your Hawaii sourced AGI and allows you to take deductions
>> and exemptions by applying the AGI ratio to those items before arriving at
>> the taxable state income. Because of this method, Hawaii can give you the
>> option of foregoing any deductions, personal exemptions and credits by
>> using your Hawaii AGI as your Hawaii taxable income. This election also
>> allows you to avoid having to complete Column A, your worldwide source
>> income. However, you are required to attach all forms and schedules of
>> your federal tax return to the N-15 whether you make the election or not.
>>
>> Just to make sure we are not talking past each other.... Column A of the
>> N-15 wants your worldwide income as if you were a Hawaii resident. This is
>> your federal income adjusted to Hawaii law. It's the same method that CA
>> uses for nonresidents. E.g., neither CA or HI would want you to include
>> taxable social security benefits in your worldwide income as neither state
>> taxes those benefits. The only difference between CA and HI is that CA
>> asks for your federal numbers and then gives you two columns to add and
>> subtract from that to conform to CA law. HI only gives you one column to
>> enter the income and adjustments based on HI law.
>>
>> If you are a CA resident and CA is taxing your HI income and you also pay
>> tax to HI on that same income, CA will give you a credit for the HI taxes.
>> See CA Schedule S.
>>
>> --
>> Alan
>> http://taxtopics.net

>
> Thank you. I don't know why, but taxpayer hates the thought of giving a
> state a copy of my federal return if it is not to be used to calculate that
> state's taxes. I tend to agree, again, without a specific reason.


You can choose not to attach your federal return and maybe you will not
get a letter asking for it. I have no experience in this matter with HI.

>
> Another question: I am assuming that there would be a NOL from this rental
> activity, given depreciation, maintenance and repairs, etc. Does Hawaii
> allow NOL carryforwards (indefinitely?) for future use against positive
> income for a year, or a capital gain when the property is sold?
>

See the N-15 instruction on page 7 for Line 19 Other Income. It explains
the carry back and carry forward rules for NOLs.
http://www6.hawaii.gov/tax/2011/n15ins.pdf

--
Alan
http://taxtopics.net

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Pico Rico
Guest
Posts: n/a
Thanked:
 
      07-10-2012, 10:59 PM

"Alan" <(E-Mail Removed)> wrote in message
news:jti1il$193$(E-Mail Removed)...
> On 7/10/12 1:04 PM, Pico Rico wrote:
>> "Alan" <(E-Mail Removed)> wrote in message
>> news:jthirv$4tq$(E-Mail Removed)...
>>> On 7/9/12 9:10 PM, Pico Rico wrote:
>>>> If one owns a vacation rental condo in Hawaii (and that is all), a
>>>> Hawaii
>>>> state income tax return is required, regardless of whether there is any
>>>> taxable income or not.
>>>>

[snip]

>>
>> Another question: I am assuming that there would be a NOL from this
>> rental
>> activity, given depreciation, maintenance and repairs, etc. Does Hawaii
>> allow NOL carryforwards (indefinitely?) for future use against positive
>> income for a year, or a capital gain when the property is sold?
>>

> See the N-15 instruction on page 7 for Line 19 Other Income. It explains
> the carry back and carry forward rules for NOLs.
> http://www6.hawaii.gov/tax/2011/n15ins.pdf
>
> --
> Alan
> http://taxtopics.net



Thank you, Alan. One more question: can the NOL due to the Hawaii condo be
used on the Calif resident's California Income Tax return?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Alan
Guest
Posts: n/a
Thanked:
 
      07-10-2012, 11:37 PM
On 7/10/12 4:59 PM, Pico Rico wrote:
[SNIP]
>
> Thank you, Alan. One more question: can the NOL due to the Hawaii condo be
> used on the Calif resident's California Income Tax return?
>


As a resident of CA, you include your out of state rental income/loss on
your CA return because it flows from your federal return. You then make
adjustments, if required, because CA and federal law differ on
depreciation schedules (Schedule CA(540)). Then you complete CA Form FTB
3801 and its worksheets to see how much of any passive loss may be
allowed on your CA return. Completing FTB 3801 is not for the faint at
heart.
--
Alan
http://taxtopics.net

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Pico Rico
Guest
Posts: n/a
Thanked:
 
      07-11-2012, 01:36 AM

"Alan" <(E-Mail Removed)> wrote in message
news:jtieaj$hih$(E-Mail Removed)...
> On 7/10/12 4:59 PM, Pico Rico wrote:
> [SNIP]
>>
>> Thank you, Alan. One more question: can the NOL due to the Hawaii condo
>> be
>> used on the Calif resident's California Income Tax return?
>>

>
> As a resident of CA, you include your out of state rental income/loss on
> your CA return because it flows from your federal return. You then make
> adjustments, if required, because CA and federal law differ on
> depreciation schedules (Schedule CA(540)). Then you complete CA Form FTB
> 3801 and its worksheets to see how much of any passive loss may be allowed
> on your CA return. Completing FTB 3801 is not for the faint at heart.
> --



assuming taxpayer has plenty of other passive gains, then you just skip the
FTB 3801 because all the losses will be more than offset by the gains,
right?

But does Calif want you to exclude the out of state loss because it is out
of state, or can it be used?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Alan
Guest
Posts: n/a
Thanked:
 
      07-11-2012, 05:55 PM
On 7/10/12 7:36 PM, Pico Rico wrote:
> "Alan" <(E-Mail Removed)> wrote in message
> news:jtieaj$hih$(E-Mail Removed)...
>> On 7/10/12 4:59 PM, Pico Rico wrote:
>> [SNIP]
>>>
>>> Thank you, Alan. One more question: can the NOL due to the Hawaii condo
>>> be
>>> used on the Calif resident's California Income Tax return?
>>>

>>
>> As a resident of CA, you include your out of state rental income/loss on
>> your CA return because it flows from your federal return. You then make
>> adjustments, if required, because CA and federal law differ on
>> depreciation schedules (Schedule CA(540)). Then you complete CA Form FTB
>> 3801 and its worksheets to see how much of any passive loss may be allowed
>> on your CA return. Completing FTB 3801 is not for the faint at heart.
>> --

>
>
> assuming taxpayer has plenty of other passive gains, then you just skip the
> FTB 3801 because all the losses will be more than offset by the gains,
> right?


Can you pass this test?

Exception. You do not have to file form
FTB 3801 if you meet both of the following
conditions:
You have a net loss from rental real estate
activities that is fully deductible under the
special allowance for rental real estate.
You have no other passive activities.

>
> But does Calif want you to exclude the out of state loss because it is out
> of state, or can it be used?
>

I haven't prepared a CA state return with out of state passive losses in
a good number of years. However, I do monitor changes in CA tax law. I
am not aware of anything in CA tax law that says a CA resident has to
exclude the loss because it doesn't have its source in CA.

--
Alan
http://taxtopics.net

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Pico Rico
Guest
Posts: n/a
Thanked:
 
      07-11-2012, 10:25 PM

"Alan" <(E-Mail Removed)> wrote in message
news:jtken7$mdq$(E-Mail Removed)...
> On 7/10/12 7:36 PM, Pico Rico wrote:
>> "Alan" <(E-Mail Removed)> wrote in message
>> news:jtieaj$hih$(E-Mail Removed)...
>>> On 7/10/12 4:59 PM, Pico Rico wrote:
>>> [SNIP]
>>>>
>>>> Thank you, Alan. One more question: can the NOL due to the Hawaii
>>>> condo
>>>> be
>>>> used on the Calif resident's California Income Tax return?
>>>>
>>>
>>> As a resident of CA, you include your out of state rental income/loss on
>>> your CA return because it flows from your federal return. You then make
>>> adjustments, if required, because CA and federal law differ on
>>> depreciation schedules (Schedule CA(540)). Then you complete CA Form FTB
>>> 3801 and its worksheets to see how much of any passive loss may be
>>> allowed
>>> on your CA return. Completing FTB 3801 is not for the faint at heart.
>>> --

>>
>>
>> assuming taxpayer has plenty of other passive gains, then you just skip
>> the
>> FTB 3801 because all the losses will be more than offset by the gains,
>> right?

>
> Can you pass this test?
>
> Exception. You do not have to file form
> FTB 3801 if you meet both of the following
> conditions:
> You have a net loss from rental real estate
> activities that is fully deductible under the
> special allowance for rental real estate.
> You have no other passive activities.
>
>>


well, taxpayer has net passive income. Are you saying FTB 3801 must be
filled out and filed even then?
"If line 3 shows income, all of your losses are allowed, including any prior
year unallowed losses entered on line 1c or line 2c. Transfer the income and
losses to the form or schedule on which you normally report them. "



>> But does Calif want you to exclude the out of state loss because it is
>> out
>> of state, or can it be used?
>>

> I haven't prepared a CA state return with out of state passive losses in a
> good number of years. However, I do monitor changes in CA tax law. I am
> not aware of anything in CA tax law that says a CA resident has to exclude
> the loss because it doesn't have its source in CA.
>



thank you.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
Alan
Guest
Posts: n/a
Thanked:
 
      07-12-2012, 01:24 AM
On 7/11/12 4:25 PM, Pico Rico wrote:
>>
>> Can you pass this test?
>>
>> Exception. You do not have to file form
>> FTB 3801 if you meet both of the following
>> conditions:
>> You have a net loss from rental real estate
>> activities that is fully deductible under the
>> special allowance for rental real estate.
>> You have no other passive activities.
>>
>>>

>
> well, taxpayer has net passive income. Are you saying FTB 3801 must be
> filled out and filed even then?


If you have losses from a passive activity you have to file the 3801
unless you meet the exception I posted. The exception is for an entity
that has a net loss from rental real estate that is fully deductible AND
has no other type of passive activity (gain or loss).
--
Alan
http://taxtopics.net

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Re: Hawaii nonresident income tax Pico Rico Tax 0 07-11-2012 10:25 PM
Hawaii General Excise Tax Ken Schultz Microsoft Accounting 5 02-14-2011 04:12 AM
Source income/nonresident income tax Wallace Tax 5 07-02-2010 01:30 AM
Foreign Company Liability for Hawaii Corporation Income Tax philip_b_taylor@yahoo.co.uk Tax 3 07-04-2008 07:59 PM
Tracking Hawaii excise tax BK Quickbooks 0 01-25-2005 10:58 PM


All times are GMT. The time now is 01:30 PM.
Posts in this forum do not constitute the advice of AccountantForums.com or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.