How will your taxes be affected if you did not carry medical insurance? Live presentation

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You stop ebola by implementing a surfaced based protocol because this is where the germs are! This study shows that defense protocol for continued surface and air pathogen kill is a requirement!

Where the Germs Are: New Study Finds Office Kitchens and Break Rooms are Crawling with Bacteria

ROSWELL, Ga. - May 23, 2012 - If you thought the restroom was the epicenter of workplace germs you don't want to know about office break rooms and kitchens.
The place where U.S. workers eat and prepare their lunch topped the list of office germ "hot-spots," with sink and microwave door handles found to be the dirtiest surfaces touched by office workers on a daily basis.
The findings are from a study carried out by Kimberly-Clark Professional* and is believed to be one of the most detailed and comprehensive studies ever conducted on identifying workplace hotspots where germs can lurk. Hygienists from Kimberly-Clark Professional* The Healthy Workplace Project* collected nearly 5,000 individual swabs from office buildings housing more than 3,000 employees. The participating office buildings represented a broad cross-section of office "types" including manufacturing facilities, law firms, insurance companies, healthcare companies and call centers.
According to the study, which was carried out in consultation with Dr. Charles Gerba, Professor of Microbiology at the University of Arizona, the percentage of the office surfaces tested and found to have high levels of contamination (an ATP count of 300 or higher), includes:

• 75 percent of break room sink faucet handles
• 48 percent of microwave door handles
• 27 percent of keyboards
• 26 percent of refrigerator door handles
• 23 percent of water fountain buttons
• 21 percent of vending machine buttons

In addition, half of all computer mice and desk phones were found to have ATP levels above 100, suggesting that while people appear to be taking more responsibility for the cleanliness of their personal spaces, there is still a need for increased awareness of the importance of hand and surface hygiene in the office.
The bottom line? Office workers are potentially being exposed to illness-causing bacteria right in their own lunchrooms, as well as elsewhere around the office.
"People are aware of the risk of germs in the restroom, but areas like break rooms have not received the same degree of attention," said Dr. Gerba. "This study demonstrates that contamination can be spread throughout the workplace when office workers heat up lunch, make coffee or simply type on their keyboards."
The results reinforce the crucial role of contract cleaners, whose services go a long way in successfully disinfecting office common areas at the end of every day. However, because kitchens and personal work spaces can become instantly re-contaminated, employers need to arm their employees with the knowledge and tools necessary to reduce the spread of germs. Simple solutions, like placing sanitizing wipes in kitchens and providing employees with easy access to hand sanitizers, underscored by education in hand and surface hygiene, can serve as the impetus to engage employees in maintaining a healthy office environment.
"This study demonstrates that contamination is all over the workplace and has the potential to reach people where they eat and prepare food, as well as elsewhere," said Brad Reynolds, North American Platform Leader, The Healthy Workplace Project*, Kimberly-Clark Professional. "No one can avoid it entirely, but by washing, wiping and sanitizing, employees can reduce their rates of cold, flu and stomach illness by up to 80 percent."
The Testing Methodology and Complete Results
Using a Hygiena SystemSURE II™ ATP Meter, a device commonly used to monitor sanitary conditions in industry, hygienists swabbed the objects to measure levels of Adenosine Triphosphate (ATP). ATP is present in all animal, vegetable, bacteria, yeast and mold cells. Detection of ATP indicates the presence of contamination by any of these sources. Everyday objects with an ATP reading of 300 or higher are considered to have a high risk for illness transmission. Objects with an ATP reading between 100 and 300 suggest room for improvement in the cleanliness level.
About The Healthy Workplace Project*
The Healthy Workplace Project* is a multi-faceted program designed by Kimberly-Clark Professional to help companies provide their employees with a healthier and more productive office environment. It offers a unique approach to hand and surface hygiene that helps employees understand how germs are transmitted to help stop their spread throughout the workplace. The program provides educational materials in conjunction with hand and surface hygiene products to employees, arming them with the tools and knowledge necessary to break the cycle of germ transmission in the office. By reinforcing the importance of "washing, wiping and sanitizing" through The Healthy Workplace Project*, employers can help reduce that impact.
For more information on Kimberly-Clark Professional and The Healthy Workplace Project* visit www.healthyworkplaceproject.com.
About Kimberly-Clark Professional
Kimberly-Clark Professional partners with businesses to create Exceptional Workplaces*. Kimberly-Clark Professional helps transform workplaces making them safer, healthier, and more productive. Key brands in this segment include: Kleenex, Scott, WypAll, Kimtech, and Jackson Safety. Kimberly-Clark Professional, located in Roswell, Ga., is one of Kimberly-Clark Corporation's four business segments and can be visited on the web at www.kcprofessional.com.
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 175 countries. Every day, nearly a quarter of the world's population trust K-C's brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share positions in more than 80 countries.

EBOLA....Surface treatment should be the 1st line of defense!!!!!! Here is that initial Protection!

A Liberian Man died yesterday of Ebola. Why was there no medicine or vaccine for him? Why is there not a first line of defense established as a protocol for travel, restaurants and other public facilities? I say we are all at risk and policy should be in place or liability should be assessed upon public and private domains that don't take the necessary precautions.

Lawyers should make an example of companies that don't do the minimum, such as surfaced base defense. Protocol guidelines should be to test, treat, and test again. No one people, company or government has adopted the proper lines of defense to establish protocol against the viral and bacterial war.

There is a local company that test for viral loads in public places, restaurants, sports stadiums, hospitals, airports, malls, meat packing plants and other locations. Their testing identifies virus's and bacteria that will cause infection and spread disease. The company also has effective treatment for these facilities. They have treated a host of facilities and hospitals.

They recently received the Lt. Governors award for best new technology for the state of Georgia. Their surface based treatment can effectively kill Ebola, MRSA, HIV and a litany of contaminants on contact that would kill humans or cause sickness. The treatment continues to kill for up to a year. They use a TiO2 mechanical particle that encapsulates and stops the virus from breathing or eating. Afterwards, it destroys the virus by tearing it apart. No adaption opportunity for the germs.

This is what is considered by a lot of companies and scientist within those companies as a first line of defense against the germ warfare. By the way many public facilities have been tested and I think you would find the results in your own facility quite stunning. They have treated facilities and tested before and after with third parties to protect the integrity of the results 12 months out.

 I believe that I could get these guys to provide treatment product and protocols to Missionaries in Africa to assist in stopping and eradicating the spread of Ebola. Here at home we need to encourage all powers that be to do the same. CNN and other News agencies should follow the progress of the offering of such solutions to reassure Americans that we are safe and give the world hope in the wake of this crisis. Let's stop Ebola and all strains from spreading and create a first line of defense. Prevention saves lives. Call 888-753-2521 for more information.  Share this with someone you love.

Travel Alert-Watch Out for Priceline.Com and American Airlines!

The last time I did this I was initially told no by the giant of a hotel, but in 30 days I received a check for $600.  Not about the money it is about a wrong being corrected. Every once in a while hiccups occur that should not go un-reported by consumers, because after all, it could happen to you.  This is what happened to me and this is what I did. 


I booked a trip via priceline.com to Nassau flying out of Orlando MCO to Miami and then to Nassau.  Hotel accommodations included in the fair.  I am quite used to airports but because I live in Florida I have never flown into or out of surrounding cities.  What an experience.  I am used to Hartsfield-Jackson International and Jacksonville International where I know people, but Orlando is a different animal. 


I left from Jacksonville and thunderstorms arose from no where covering much of the state and the rain was a pour.  Prohibiting fast travel.  I got to the airport at 7:30pm and was not so busy no luggage to check, just a few gates, no lines, so I thought I am good right? Wrong!  When I got to the counter for American Airlines it was empty.  Now this was startling to me because they had planes on the ground and that is just good business.  Their kiosk did not work so there was no way to check in or obtain a boarding pass.


TSA directs me to the baggage claim for help and no one in baggage claim would contact customer service nor could they help.  I contacted customer after 3 hours of dropped calls and long waits for contact with a human voice.  Customer service had canceled my flight as a no show and told me that I had to book another flight.  There where 2 legs to the flight.  So I could see canceling that leg, but to cancel the total flight... are you serious? 


Priceline informed me that they could do nothing, but they would be keeping my money and that was that.  Now me being the person that I am...I call a spade a spade and this was clearly wrong and unjustified.  These airline mergers and reduction of service do not serve the public at all.  Flights keep increasing while service suffers and consumers are treated with disdain and don't seek avenues for resolution and that provide notice to other consumers.  


I am delayed on a business opportunity as a result, but I did get smarter as a result of this rendezvous with injustice.  I went direct to a counter in Ft. Lauderdale and found that JetBlue and Nassau Air are inexpensive and accommodating.  Direct is better then priceline and airlines with increasing deficiencies.  I am an advocate for destination countries Airlines and I will fly via their Airline in the future because after all if I am traveling to a country that has their own why not be direct, American businesses in some cases take local consumers for granted.  We need to take the time to deliver complaints and avoidance of businesses that have a don't care attitude. 


I am boycotting American Airlines and Priceline.com pending resolution of the complaints that I have filed against both as promised to there customer service teams.  I escalated my concerns, but did not get resolution with their customer service team most of which is outsourced and without teeth to act.  This in itself says that companies hire teams to hear concerns and provide no effective remediation via escalation and they have no way to make a consumer whole. 


I filed complaints with a Consumer Complaints Organization, FAA, Federal and State DOT, FTC, Inspector Generals Office, DOJ and Attorney Generals Office.  I plan to issue letters and direct letters to my attorney.  File a civil and criminal complaint as well as file a UCC claim against the CEO, President and Operations Officers of both Business as well as the corporate entities themselves on any assets that I can identify.


Now this may seem overboard, but if you are wronged you have to let the parties that wronged you know first that I don't want to engage in litigation, but if you do not make me whole that I will engage and I will not stop until I have resolution.  Please take note and do the same when this happens to you.  If you are interested in the results subscribe to this blog.
https://forumforenterprise.blogspot.com
File your own consumer complaint at:
http://www.consumercomplaintagency.org/

HSA Contribution Limits

IRS Releases 2015 HSA Limits
On April 23, 2014, the Internal Revenue Service (IRS) via Revenue Procedure 2014-30, released inflation-adjusted health savings account (HSA) contributions and high-deductible health plan (HDHP) limitations for calendar year 2015.  These limits are indexed for inflation and released annually by June 1 for the following year, as established under the Tax Relief and Health Care Act of 2006.

An HSA is a tax-advantaged savings account that belongs to the person who establishes it and must be paired with a qualified high-deductible health plan (HDHP).

Anyone who participates in an HDHP can make HSA contributions for the tax year generally through April 15 of the following year – and in some instances, other parties including employers also make a contribution on behalf of each employee who is participating in an HDHP.

The 2015 limits are as follows:
2015 Annual HSA Contribution Limits:
Self-only HDHP coverage: $3,350* (up $50 from 2014)
Family HDHP coverage: $6,650* (up $100 from 2014)

*However, an individual who has reached the age of 55 by the end of the calendar year may contribute an additional $1,000 per year.

2015 Annual HDHP Minimum Deductibles:
Self-only coverage: $1,300 (up $50 from 2014)
Family coverage: $2,600 (up $100 from 2014)

2015 HDHP Out-of-Pocket Limits: (includes deductibles, copayments and other amounts, but not premiums)
Self-only coverage: $6,450 (up $100 from 2014)
Family coverage: $12,900 (up $200 from 2014)

For a copy of Revenue Procedure 2014-30, please click on the link provided below.
http://www.irs.gov/pub/irs-drop/rp-14-30.pdf

Business Framework for control, group investment, tax compliance and protection.

Global Enterprises Trust assist many businesses in determining and establishing the framework that is essential for achieving success, control, tax avoidance and protection.  The primary goal is to maintain integrity between investors that have pooled their resources for investments and protecting those investments. 


The last thing that is needed is for values to diminish after an investment is made.  No one is interested in bringing parties to the table that cause dilution of hard earned investment dollars.  Therefore, vehicles and buy/sale arrangements have to be planned and thought out long before anything occurs that will cause values to lower because investments are sold as a distressed item and not as a valued commodity. 


Criteria for acceptable parties must be established for those invited to participate in an investment pool.  The initial criteria is the investment vehicle is going to be an S Corporation.  Therefore everyone should sign stock purchase agreements that will stipulate that stock will be purchased by investors that are invited to invest and held for a period of time before any buy sale action will be valid or activated. 


The only reason for not adhering to this agreement is termination for cause such as malfeasance, fraud, violations of fiduciary responsibility for active parties of the corporation, or eminent default of a return to investors of their initial capital.  The only calculable termination is eminent default which would result from making a bad investment outside of the established investment criteria or unforeseen market conditions that are beyond any of the parties control that causes the asset purchased to lose value and not be sold for at least investment cost.


Each investor in this case should have disbursement of profit to a simple LLC which will allow schedule C reporting of expenses related to meetings, travel, investing that is direct to the investor.  Any investment into the LLC that purchases equipment etc., offers depreciation and on investment by the LLC into other organizations can be capitalized and amortized.  A lot of flexibility here. 


Investors seeking a Trust, a ROB, a self directed IRA disbursement into a ROB C Corp should raise their hand for the structure request for these vehicles.  Each one has tax advantages and limitations depending what is to be achieved with the particular investment program.


Buy/Sale agreements should be signed by each investor as well as an affidavit stating that each investor is qualified to invest funds that the investment of these funds present no hardship to their existing financial position.    An investment criteria should be signed and any investments made outside of this criteria be done by corporate resolution that is provided as a result of quorum vote. Voting should be authorized to occur via conference call, Skype conference, or teleconference. 


Investment criteria will be based on property purchased at 50% below market and resold at a minimum of 65% of value as is or 85% of value ARV.  A minimum of one investment using 70% of funds should be turned over per quarter to turnover 100% of funds semi annually.  In a perfect world, the funds would turnover every 90 days and be readily available for reinvestment.   


Investment estimated profit and loss will be provided upon investment inception disclosing details such as subject property address, interior and exterior pictures of the property, assumed value based on comps and research, cost of renovation with quotes and job cost reports (if required), potential buyers and/or tenants, life cycle of the project and proof of prequalification or lease, disclosure of how property will be titled, Trust, LLC or Company.


Upon purchase, sale, lease and/or renovation completion and sale.  HUD 1 will provided to the parties with a full accounting of revenues and expenses.  A summary of overall project any variances report good, bad or indifferent. 


Funds will be disbursed according to corporate resolution, individual direction and or agreement. Investment Management provided by Global Enterprises Trust.  Accounting services provided by Global Enterprises' Trust agent Chet Jones.  Real Estate and Tax Deed Acquisition and Sale provided by Michael Scott.   Wholesale properties provided by Unity Investment Group.  Call 888-753-2521 for more information or email me at chet.thecontroller@gmail.com








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Obtaining wealth is easy, having the discipline and nerve it takes will require courage and faith! Several steps to change courses away from tax and continual cashflow!

I have given tons of advice and direction to those who seek wealth, but lack courage, stamina and/or discipline to get to the next step.  Many people would see me and lack enough courage or faith to use the direction that I lay before them, sought other experts that lack understanding and then come back a few years later in the same or worse position. 

 

Currently, if you evaluate your current position are you financially fit?  Are you tax free?  Have you used debt to increase your wealth? Can you access cash out of your CD or IRA or SEP or 401K without the risk of incurring penalties?  Do you have cash in a bank or CD earning under 50% interest annually?  Do you have cash in a mutual fund that you control?  Do you have a guaranteed wealth position?


I would assume for many that your answer to all these questions are no.  If you answered yes to any of these questions then I am all ears as to how and would love to compare plans, but if no, then I would like to sit down with you and redirect your path by providing you with a clear path to financial success by using a system that is customized for you in your current position. 

• Obtain a self directed IRA, Rollover any or all of your investments into a self directed IRA or SEP
• Obtain Universal Life Insurance Policies for yourself and your children using our strategy for tax avoidance.
• Buy a businesses out of our pool with cash flows and leverage the cash flow to expand and pay return your capital...(repeat)
• Buy a tax deed out of our pool of tax deeds obtain quiet title in 60 days and resale property upon receipt (pre-qualified buyers available) or keep and lease for cash flow.
• Purchase properties out of our property pool and resale property upon receipt of title in 10 days (pre-qualified buyers available)
• Use HSA to assist in lowering tax liability and obtaining medical coverage that provides a tax credit that provides a refund an lowers tax liability
• Invest in properties that provide tax credits and lower tax liability.
• Invest in offshore companies, IRAs and Trusts that provide income that is excluded from taxation. 
• Establish Trusts that provide asset protection and direct non taxable income into wealth plans for your children, grand children and generations to come.

Let's start with where you are now and no matter where it is and obtain a real path toward financial success that is achievable in 60 months.  Let me just say that if you don't reach your financial goals in 60 month then every fee that is charged by me will be returned to you paid in full. 

 

There is limited space available and therefore everyone is not eligible for this program because I can only take on a select group every six months. Therefore, interested parties should contact me and request a financial fitness evaluation at chet.thecontroller@gmail.com  or call 888-753-2521.  Let me provide you with a free financial fitness evaluation to customize a program customized for you to accomplish your financial goals in 60 months or less. 

 

 

 

 

A Ray Of Hope For Affordable, Convenient, Quality Health Care

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There are few palatable prescriptions for the ailing health care industry, but telemedicine continues to provide some welcome relief. (Photo credit: Wikipedia)

Steven Brill’s recent 24,000-word cover story in Time captured, in demoralizing detail, all that’s wrong with America’s bloated, dysfunctional health care system. How about a ray of hope?
It’s called telemedicine. Say you have symptoms of a sinus infection or the flu, or even need a trip to the emergency room. Rather than wait days for a diagnosis from your primary doc, a telemedicine service can get a bona fide physician on the phone, by email, or on a video screen via Skype in 60 minutes or less—24 hours a day, seven days a week.
“Our health care system is broken in many ways, but telemedicine is a game-changer,” says Daniel McGugin, partner at Virtus Benefits, an employee benefits provider in Nashville, Tenn.
Good Medicine For Small Business
McGugin shared one case study involving a 150-person trucking company he’ll call “Abecee Transportation.” (Virtus won’t release real client names.) This month Abecee faced a 17% increase in its health insurance premiums. To ease the pain, the company considered switching to a plan with a higher deductible. That would have saved $150,000 a year in premiums; it also would have aggravated Abecee’s employees who would be forced to pay a bigger portion of their medical bills from their own pockets.

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Enter telemedicine. In 2012 Abecee paid $120,000 in claims for “non-emergent” doctor visits (the sniffles and such), including expensive trips to the ER. According to a recent study by AmeriDoc—a leading telemedicine provider, along with Teledoc and Consult A Doctor—17,000 patients with access to a telemedicine plan reduced their number of visits to doctors’ offices by 30%, and to hospitals by 60%. At those same proportions, Abecee would save roughly $65,000 in claims. Cost of AmeriDoc’s telemedicine plan: $24,000.
As for Abecee’s employees, they’d get to keep their health benefits while not wasting productive hours schlepping to a doctor’s office or an ER. A 2010 report by Press Garney, a health care consultancy in South Bend, In., found that the average ER wait time is a little over 4 hours. AmeriDoc guarantees that doctors in its network respond within an hour.
“Health premiums are only going higher and employers will continue to shift the burden to employees through high-deductible plans,” says McGugin. “We’re telling all of our clients to take a hard look at telemedicine.”
To be clear, telemedicine is no substitute for traditional insurance. Nor is it particularly cheap for individuals buying it in the open market. Individual telemedicine plans cost roughly $120 a year (including dependents), plus a $30 “consult fee” per call. (Employer-sponsored plans generally don’t charge a consult fee.)
If you’re a healthy male, have no preexisting medical conditions and are willing to take chances, you might want to pair telemedicine service with a super-high-deductible insurance plan that has a rock-bottom premium. That combo provides access to affordable treatment for non-emergencies while cushioning the financial blow of a catastrophic illness or accident. Other target customers include those who simply can’t afford traditional insurance but want access to basic care.
You can sign up for telemedicine service by calling a provider directly or working through a broker like McGugin. The cost is the same—providers pay the broker fee, not you.
Point Of No Return
While telemedicine isn’t new (hospitals have used phones to serve remote rural areas for 40 years), less than 1% of Americans have access to it. Expect more to join the ranks—and soon—thanks to affordable high-speed Internet connectivity and, of course, rocketing health costs.
The Society of Actuaries just released a study estimating that premiums on individual health plans will jump 32% over the next three years. Towers Watson, an HR consulting firm, found that 70% of companies with more than 1,000 employees will offer high-deductible plans ($1,250 minimum deductible) this year, up from 59% in 2011. And Rand Corp. estimates that, within a decade, half of all workers with employer-sponsored health care (including government employees) will have high-deductible plans.
All that bad news is good for David Lindsey, CEO of AmeriDoc. Founded just five years ago, the Dallas company has quietly amassed 1.3 million paying patients (not including dependents). That number is on track to triple by the end of the year, says Lindsey.
AmeriDoc’s network includes 290 doctors (some licensed in multiple states) who agree to be on call when they aren’t seeing patients on-site. Lindsey claims he has enough capacity to handle current members, though he looks to add more white coats all the time. “Doctors inquire every day about joining the network,” he says.  A big reason: more patients per hour with little additional overhead. “They hate dealing with insurance companies. [Telemedicine] is how they’re going to get paid in the future.”
To control quality (and avoid malpractice suits), AmeriDoc records all visits electronically and stores the data for seven years. Customer-service staffers review random samples of calls every week; they also call every patient within two days after a consultation. “We call three times,” says Lindsey. “If [the member] doesn’t respond, we assume all went well. We’ve never had a malpractice claim.”
Lindsey concedes that, thus far, a lot of subscribers use telemedicine to “shop for prescriptions” without having to visit a doctor. Viagra is a big request—one that AmeriDoc’s physicians routinely deny without the requisite heart-rate and blood-pressure tests.

Meanwhile, AmeriDoc’s remote-delivery menu of services is expanding. The company created a finger-prick blood-testing pack that lets patients take their own samples and mail them in sterilized packs to a lab to measure testosterone, cholesterol and glucose levels. Next month AmeriDoc will roll out another self-blood test that aims to detect future cardiovascular disease.
Bottom line on telemedicine, says Lindsey: “It would be irrational if you did not call it a ray of hope for American health care.”
Have thoughts on telemedicine? Please comment on this post. Have any other smart ideas for taming health care costs? Share those, too.

Sign up with Ameridoc now at www.GlobalEnterprisesTrust.myAmeridoc.com  Call 888-753-2521 with any questions. 

Generational Wealth Part 1 of a series. How to obtain it and how to keep it.

This will be one in a series of post regarding the strategy for generational wealth.  There are multiple strategies for this result, some are riskier than others.  A true generational wealth plan in my strategy should have a spending period that offsets total tax liability, converts what you are spending to investments or a safe vehicle that can grow, give you access to this money after a seasoning period or at some point in the future without having a taxable event, provide cash flows that sustain wealthy lifestyle for your life cycle, provide cash flow for your offspring during their life cycle, and provide a lump sum payout to a third, fourth and fifth generation as well as a re-visitation of the cycle you initiated. Generational wealth is not a new concept. 

The need for capitalization is a standard among anyone starting a business or acquiring a business, or expanding an existing business.  Chances are; most business owners will retire from their business not as well off as they began and most have businesses that are not designed to operate if they are not working in the business.  Most small business models are designed with the owner as the central figure in the operation.  That is a scary thought because it is hard to wear all those hats and get truly wealthy.  You might have huge lump sums of cash or continual cash flow over the business life cycle, but so many people that have successfully generated cash flow do not have long term stability and find themselves without cash before retirement or having to come out of the retirement that was the result of the payoff.  This false since of security has set a lot of people up for monetary failure because of the financial instability and a self-destructive strategy.   

Most, if not all individual’s desire wealth, a wealthy retirement, and security of their current lifestyle as they age as well as security for those they leave behind.  So how do you go about attaining such a thing as security for yourself and off-spring?  Many people might perceive such a thing as financial security as an illusion.  Of course the major reason is because it has eluded so many and even when some have found security they have lost it.  Financial security for many is perceived as something that is attainable by individuals and corporations that are already wealthy, but not for themselves; not for their organizations.  Many have bought into vehicles that just don’t cut the muster, so to speak.  Many have been deceived for so long and have been taught so wrong that even if I showed them a way to generational wealth that can be used right now today and used by their family in the future, then they would not move forward with a since of urgency that the subject deserves.  Many would rather trick themselves into believing that they are safe when they are not.  The adage goes, “you can lead a horse to water, but you can’t make him drink”; to elaborate, “even if they are thirsty and about to die”. 

Most individuals have a financial blueprint that will self-destruct long before they figure out that they have been bamboozled.  Most financial plans associated with big corporations are setup to benefit the company more than the employees they pilfer for deposits into 401K’s, IRA’s, and Pensions.  Most of these vehicles have taxable when money is disbursed.  These vehicles have a low threshold for tax avoidance approximately $6,000 X 25% or $12,000 X 25% if married filing joint.  These vehicles defer taxes to future periods and that means that you will pay a higher tax rate, after all, taxes are increasing not decreasing.  Many who are invested in these vehicles need to go to the next step by investigating how to avoid a taxable event and move out of these vehicles.  I am pretty much a self-proclaimed expert in this area because I don’t know of many that are versed and as experienced as my organization is regarding the steps taken to disburse and move money out of these vehicles into other investments that provide a better hedge for your money and basically has the ability to put you in an arbitrage position by leveraging your cash.  Make sure you follow these series for more information on this subject as we provide information on the subjects of tax avoidance and reveal strategies that work.  Contact me at 888-753-2521 or email questions at chet@thecontroller.net .

Deductions provide a windfall for taxpayers if they are taken!

One thing we know for sure is that the opportunity to make mistakes is almost unlimited, and missed deductions can be the most costly. About 45 million of us itemize on our 1040s -- claiming more than $1 trillion worth of deductions. That's right: $1,000,000,000,000, a number rarely spoken out loud until Congress started tying itself up in knots trying to deal with the budget deficit and national debt.

Another 92 million taxpayers claim about $700 billion worth using standard deductions -- and some of you who take the easy way out probably shortchange yourselves. (If you turned 65 in 2012, remember that you now deserve a bigger standard deduction than when you were younger.)

Yes, friends, tax time is a dangerous time. It's all too easy to miss a trick and pay too much. Years ago, the fellow who ran the IRS at the time told the public that he figured millions of taxpayers overpay their taxes every year by overlooking just one of the money-savers listed below.

State sales taxes
This is an especially dangerous issue for 2012 returns because, throughout 2012, this tax deduction simply didn't exist. The right for taxpayers to deduct state sales taxes paid expired at the end of 2011. Everyone expected Congress to revive the tax break sometime during 2012, but the issue got tangled up in fiscal cliff negotiations. Finally, in the bill approved January 1, 2013, the deduction was restored ... retroactively for 2012 and for 2013 returns that will be filed next year.

This is particularly important to you if you live in a state that does not impose a state income tax. You see, Congress offers you the choice between deducting state income taxes paid or state sales taxes paid. You choose whichever gives you the largest deduction, of course, and if your state doesn't have an income tax, the sales tax write-off is clearly the way to go.

In some cases, even filers who pay state income taxes can come out ahead with the sales tax choice.

The IRS has tables that show how much residents of various states can deduct, based on their income and state and local sales tax rates. But the tables aren't the last word. If you purchased a vehicle, boat or airplane, you may add the sales tax you paid on that big-ticket item to the amount shown in the IRS table for your state.

The same goes for any homebuilding materials you purchased. These add-on items are easy to overlook, but could make the sales-tax deduction a better deal even if you live in a state with an income tax. The IRS has a calculator on its Web site to help you figure the deduction. (As this is written, the IRS is working to update the calculator for 2012 returns.)

Reinvested dividends
This isn't really a tax deduction, but it is an important subtraction that can save you a bundle. And this is the break that former IRS commissioner told the public that a lot of taxpayers miss.

If, like most investors, your mutual fund dividends are automatically used to buy extra shares, remember that each reinvestment increases your tax basis in the fund. That, in turn, reduces the taxable capital gain (or increases the tax-saving loss) when you redeem shares. Forgetting to include the reinvested dividends in your basis results in double taxation of the dividends -- once when they were paid out and immediately reinvested in more shares and later when they're included in the proceeds of the sale. Don't make that costly mistake.

If you're not sure what your basis is, ask the fund for help. (Starting with sales in 2012, mutual funds must report to investors -- and the IRS -- the tax basis of shares redeemed during the year. But note this: The new rule applies only to shares purchased in 2012 and later years. If you redeemed shares you purchased prior to 2012, it's still up to you to figure your basis. Don't forget those reinvested dividends!)

Out-of-pocket charitable contributions
It's hard to overlook the big charitable gifts you made during the year, by check or payroll deduction (check your December pay stub).

But the little things add up, too, and you can write off out-of-pocket costs incurred while doing work for a charity. For example, ingredients for casseroles you prepare for a nonprofit organization's soup kitchen and stamps you buy for your school's fundraising mailing count as a charitable contribution. Keep your receipts and if your contribution totals more than $250, you'll need an acknowledgement from the charity documenting the support you provided. If you drove your car for charity in 2012, remember to deduct 14 cents per mile plus parking and tolls paid in your philanthropic journeys.

Student-loan interest paid by Mom and Dad
Generally, you can only deduct mortgage or student-loan interest if you are legally required to repay the debt. But if parents pay back a child's student loans, the IRS treats the money as if it was given to the child, who then paid the debt. So, a child who's not claimed as a dependent can qualify to deduct up to $2,500 of student-loan interest paid by Mom and Dad. And he or she doesn't have to itemize to use this money-saver. Mom and Dad can't claim the interest deduction even though they actually foot the bill since they are not liable for the debt.

Job-hunting costs
If you're among the millions of unemployed Americans who were looking for a job in 2012, we hope you kept track of your job-search expenses ... or can reconstruct them. If you're looking for a position in the same line of work, you can deduct job-hunting costs as miscellaneous expenses if you itemize. Qualifying expenses can be written off even if you didn't land a new job. In any case, such expenses can be deducted only to the extent that your total miscellaneous expenses exceed 2% of your adjusted gross income. Job-hunting expenses incurred while looking for your first job don't qualify. Deductible job-search costs include, but aren't limited to:

• Transportation expenses incurred as part of the job search, including 55.5 cents a mile for driving your own car plus parking and tolls
• Food and lodging expenses if your search takes you away from home overnight
• Cab fares
• Employment agency fees
• Costs of printing resumes, business cards, postage, and advertising

The cost of moving for your first job
Although job-hunting expenses are not deductible when looking for your first job, moving expenses to get to that job are. And you get this write-off even if you don't itemize.

To qualify for the deduction, your first job must be at least 50 miles away from your old home. If you qualify, you can deduct the cost of getting yourself and your household goods to the new area. If you drove your own car on a 2012 move, deduct 23 cents a mile, plus what you paid for parking and tolls.

Military reservists' travel expenses
Members of the National Guard or military reserve may tap a deduction for travel expenses to drills or meetings. To qualify, you must travel more than 100 miles from home and be away from home overnight. If you qualify, you can deduct the cost of lodging and half the cost of your meals, plus an allowance for driving your own car to get to and from drills. For 2012 travel, the rate is 55.5 cents a mile, plus what you paid for parking fees and tolls.

Deduction of Medicare premiums for the self-employed
Folks who continue to run their own businesses after qualifying for Medicare can deduct the premiums they pay for Medicare Part B and Medicare Part D and the cost of supplemental Medicare (medigap) policies. This deduction is available whether or not you itemize and is not subject the 7.5% of AGI test that applies to itemized medical expenses. One caveat: You can't claim this deduction if you are eligible to be covered under an employer-subsidized health plan offered by your employer (if you have a job as well as your business) or your spouse's employer if he or she has a job that offers family medical coverage.

Child-care credit
A credit is so much better than a deduction; it reduces your tax bill dollar for dollar. So missing one is even more painful than missing a deduction that simply reduces the amount of income that's subject to tax. In the 25% bracket, each dollar of deductions is worth a quarter; each dollar of credits is worth a greenback.

You can qualify for a tax credit worth between 20% and 35% of what you pay for child care while you work. But if your boss offers a child care reimbursement account -- which allows you to pay for the child care with pre-tax dollars -- that might be an even better deal. If you qualify for a 20% credit but are in the 25% tax bracket, for example, the reimbursement plan is the way to go. (In any case, only amounts paid for the care of children under age 13 count.)

You can't double dip. Expenses paid through a plan can't also be used to generate the tax credit. But get this: Although only $5,000 in expenses can be paid through a tax-favored reimbursement account, up to $6,000 for the care of two or more children can qualify for the credit. So, if you run the maximum through a plan at work but spend even more for work-related child care, you can claim the credit on as much as $1,000 of additional expenses. That would cut your tax bill by at least $200.

Estate tax on income in respect of a decedent
This sounds complicated, but it can save you a lot of money if you inherited an IRA from someone whose estate was big enough to be subject to the federal estate tax.

Basically, you get an income-tax deduction for the amount of estate tax paid on the IRA assets you received. Let's say you inherited a $100,000 IRA, and the fact that the money was included in your benefactor's estate added $35,000 to the estate-tax bill. You get to deduct that $35,000 on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one year, for example, you get to claim a $17,500 itemized deduction on Schedule A. That would save you $4,900 in the 28% bracket.

State tax paid last spring
Did you owe tax when you filed your 2011 state income tax return in the spring of 2012? Then, for goodness' sake, remember to include that amount in your state-tax deduction on your 2012 federal return, along with state income taxes withheld from your paychecks or paid via quarterly estimated payments.

Refinancing points
When you buy a house, you get to deduct in one fell swoop the points paid to get your mortgage. When you refinance, though, you have to deduct the points on the new loan over the life of that loan. That means you can deduct 1/30th of the points a year if it's a 30-year mortgage. That's $33 a year for each $1,000 of points you paid -- not much, maybe, but don't throw it away.

Even more important, in the year you pay off the loan -- because you sell the house or refinance again -- you get to deduct all as-yet-undeducted points. There's one exception to this sweet rule: If you refinance a refinanced loan with the same lender, you add the points paid on the latest deal to the leftovers from the previous refinancing -- and deduct that amount gradually over the life of the new loan. A pain? Yes, but at least you'll be compensated for the hassle.

Jury pay turned over to your employer
Many employers continue to pay employees' full salary while they serve on jury duty, and some impose a quid pro quo: the employees have to turn over their jury pay to the company coffers. The only problem is that the IRS demands that you report those jury fees as taxable income. To even things out, you get to deduct the amount you give to your employer.

But how do you do it? There's no line on the Form 1040 labeled jury fees. Instead the write-off goes on line 36, which purports to be for simply totaling up deductions that get their own lines. Add your jury fees to the total of your other write-offs and write "jury pay" on the dotted line.

American Opportunity Credit
Unlike the Hope Credit that this one has temporarily replaced, the American Opportunity Credit is good for all four years of college, not just the first two. Don't shortchange yourself by missing this critical difference. This tax credit is based on 100% of the first $2,000 spent on qualifying college expenses and 25% of the next $2,000 . . . for a maximum annual credit per student of $2,500. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less ($160,000 or less for married couples filing a joint return). The credit is phased out for taxpayers with incomes above those levels. If the credit exceeds your tax liability, it can trigger a refund. (Most credits can reduce your tax to $0, but not get you a check from the IRS.)

Deduct those blasted baggage fees
In recent years airlines have been driving passengers batty with extra fees for baggage and for making changes in travel plans. All together, such fees add up to billions of dollars each year. If you get burned, maybe Uncle Sam will help ease the pain. If you're self-employed and travelling on business, be sure to add those cost to your deductible travel expenses.

Credits for energy-saving home improvements
It's widely believed that tax credit for energy saving home improvement have expired. And that's true for the credits that encouraged homeowners to replace windows and doors, add insulation and upgrade air conditioning and furnace systems to more energy-efficient units. But the most valuable credits still exist ... and will through 2016. These credits effectively refund 30% of the cost (including labor) of installing l qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. If you installed such a system in 2012, be sure to let Uncle Sam lend you a hand with the cost.

Additional bonus depreciation
A break that allowed business owners -- including those who run businesses out of their homes -- to write off 100% of the cost of qualified assets placed in service expired at the end of 2011. Although Congress did not extend this break retroactively as part of the fiscal cliff deal, bonus deprecation didn't disappear completely – it's available at the 50% level for qualified assets purchased in 2012.

Perhaps more valuable is a break Congress did make retroactive for 2012 purchases. The lawmakers restored a supercharged “expensing” provision -- which basically lets you write off the full cost of new assets in the year you put them into service. While the dollar limit for expensing had fallen to $139,000 worth of assets for 2012, the fiscal cliff deal boosted the cap to $500,000. Note that the right to use expensing phases out if you put more than $2 million worth of assets into service in 2012

Break on the sale of demutualized stock
The year 2012 brought another court victory for taxpayers battling the IRS over the issue of demutualized stock. That's stock that a life insurance policyholder receives when the insurer switches from being a mutual company owned by policyholders to a stock company owned by stockholders. The IRS's longstanding position is that such stock had no tax basis, so that when the shares were sold, the taxpayer owed tax on 100% of the proceeds of the sale. But after a long legal struggle, a federal court ruled in 2009 that the IRS was wrong. And this year, a federal district court sided with taxpayers, too. The courts haven't said what the basis of the stock should be, but many experts think it's whatever the shares were worth when they were distributed to policyholders. If you sold stock in 2012 that you received in a demutualization, be sure to claim a basis to hold down your tax bill.

Tax-free transit subsidy
The fiscal cliff deal signed by President Obama's autopen on January 2 brought a retroactive break for commuters who use public transit to get to work in 2012. Last year, folks who drove to work could receive up to $240 tax-free from their employers to cover the cost of parking. But, due to a glitch in the law, workers who used mass transit were limited to $125 a month tax-free to pay for their bus, subway and train rides to the job. The new law brings parity to the tax break, hiking the tax-free limit for transit expenses to $240 ... retroactive to January 1, 2012.

At this writing, it's unclear exactly how transit riders will be able to claim this money-saver. But if your employer offers a transit-subsidy program and you spent more than $125 a month in 2012, you could be due a refund of both income and Social Security taxes. Check with your human resources office.
Contact Chet at 888-753-2521 ofc or email questions to taxmax@rocketmail.com .

IRS Due Diligence and Compliance

Current requirements for taxpayers this year is going to be easier for the employed and self employed non ethnic filers.  The self employed that have been immersed in a culture rich with deception and the illusion of wrong doing will find it more difficult.  Many have missed filing for years and they actually qualify for the earned income credit.  Not only do they qualify for the earned income credit, but they should also be participants in the first time home buyer program. 

No one need till many of the taxpayers that they have done nothing wrong. The belief of righteousness as a relationship to employment is so conditioned into the fiber of many low income taxpayers that they believe that they are actually income deficient.  In actuality, they are not.  Many can document their income quite well, but in many cases they are persuaded to allow someone else to climb their children fraudulently.  This will come to a screeching halt this year as a result of the due diligence requirements and documentation needed to support and claim a dependent for the child credit.

The economic turnaround will occur once again without engaging the economy of low income African Americans that are actually ripe for participants in the first time home buyer program.  Unless low income self employed filers are taken seriously as taxpayers.  The difficulty herein is the IRS's aggression toward the fabric of the African American culture and what they have done to survive into the transition of the millennium and the recent depression could undermine this much needed movement.  Participate in this recovery by telling your friends and family claim their own kids and follow someone who has guidelines for documenting income and their dependent's residency.

Many of us know some African Americans that have never filed taxes because they don't have a job, but have allowed themselves to be exploited by their friends and family because they are not aware of how to document their income.  The IRS requirements for allowing a refund in case of an audit of these individuals perpetuates this exploitation by requiring many self employed low income taxpayers to have license, website, journals and operational books of receipts and expenses for income documentation.   Many of these taxpayers earn income and should step forward and file. 

This harrasment by the IRS should stop and actually be a gimme to low income taxpayers that meet earned income credit requirements because many of them have cars, homes, clothes, electronics and I am finding that it wasn't obtained illegally.  See from observations I have noticed peddlers selling watches as if they are stolen, but they where actually purchased from the Merchandise Mart and marketed in parking lots as if they are hot to make the purchase seem as if it's a discount. The delusion is a setback to African Americans cultural social economy. 

There are ways to document legitimate income made from babysitting, baking cakes, selling scrap metals, selling goods on eBay or craigslist, referring clients in your circle of influence for a fee and tons of things that people do on a day to day basis.  Transferring this information to forms that conform to due diligence requirements has not guaranteed refunds for many clients that qualify for the earned income credit.  Cultural difference may be taken into account at some point in the future and presentation is everything.  Documentation is  key and that will be taken into account. Meanwhile, as we wait, write your congressman and share the information that you have learned.

Contact my group at 888-753-2521 ofc or 888-675-0583 fax or request documents by emailing me at chet.thecontroller@gmail.com . 

 

Health Related Tax Credit

Eligibility for the Refundable Health Related Tax Credit Tightened
Code ˜36B currently provides a premium assistance credit for eligible individuals and families who buy health insurance through an exchange. The credit, which applies to tax years ending after December 31, 2013, is refundable and subsidizes the purchase of certain health insurance plans through an exchange.
The credit is available to individuals who file single or married filing joint with household incomes between 100% and 400% of the federal poverty level and who do not receive health insurance through an employer or a spouse employer.
For purposes of the credit, household income is defined as the sum of: (1) the taxpayer's modified adjusted gross income (MAGI), plus (2) the aggregate MAGI of all other individuals taken into account in determining that taxpayer's family size (but only if those individuals must file a tax return for the tax year). Under existing law, MAGI is defined as adjusted gross income increased by: (1) any amount excluded by Code 911 (exclusion from gross income for citizens or residents living abroad), plus (2) any tax exempt interest received or accrued during the tax year.
The 3% Withholding Repeal and Job Creation Act signed into law by President Obama on November 21, 2011 revises the definition of MAGI to include the amount of the taxpayers Social Security benefits that are otherwise excluded from gross income. As a result, MAGI is now defined as adjusted gross income plus: (1) any amount excluded by Code Sec. 911 (exclusion from gross income for citizens or residents living abroad); (2) any tax exempt interest received or accrued during the tax year; and (3) the
amount of Social Security benefits of the taxpayer that is excluded from gross income under Code 86.  Call 888-753-2521or email chet.thecontroller@gmail.com for more information.

Tax Deductible Life Insurance, but how?

Universal Life Insurance

Universal Life Insurance is a form of Permanent Life Insurance, with considerable differences between the two. This form of insurance was created to provide customers with a better understanding of their policy and relieve them of some of the stricter policy provisions that come with standard whole life insurance.

Universal Life Insurance: How it Works

With universal life, the policyholder can arrange the benefits to meet his or her needs. The policyholder controls how much of the premium is paid toward the insurance and toward the savings, and can change the value of the policy as well. There may be a specific limit to how much the policy can be changed at one time, especially if the policyholder does not provide another health exam. Increases in the death benefit usually require updated proof of insurability. Universal life policies also allow for changing the amount and timing of premiums from time to time, as long as the premium covers the cost of monthly maintenance of the policy and maintains a basic benefit amount. If you fail to cover these minimum premiums, the death benefit of your policy can be greatly reduced.

Get a Quote for Life Insurance Today >>

Choosing a Universal Life Policy

Universal life policies usually have a minimum interest rate, but the rates can fluctuate similarly to a money market account. Therefore there are no guarantees as far as savings or cash value earnings. However, the growth of these accounts is at a substantially higher rate than average whole life insurance. These policies can sometimes allow any dividends paid by the insurer to be placed in the cash value account, as well.

Universal life insurance is the perfect policy for someone who has yet to purchase a home or start a family but expects to do so in the future because of its easy changeability and quick profit margin. However, because it involves more participation from the policyholder, consultation is recommended.

 

For more info on makeing this tax deductible contact:

www.thecontroller.net or chet@thecontroller.net

ROBS Plans.

ROBS plans, while not considered an abusive tax avoidance transaction, are, according to the IRS, "questionable" because they may solely benefit one individual – the individual who rolls over his or her existing retirement 401k withdrawal funds to the ROBS plan in a tax-free transaction. In most cases, since the IRS pronouncement concerning this potentially discriminatory approach, ROBS plans have been inclusive of all participants and provide broad-based participation for all employees. The ROBS plan then uses the rollover assets to purchase the stock of the new business. A C corporation must be set up in order to roll the 401K withdrawal.
Promoters, such as a Roth IRA broker of a self directed IRA LLC, or small business financing, aggressively market IRS ROBS arrangements to prospective entrepreneurs and business owners for funding for a business as small business financing. In the case of most ROBS facilitators, there is a very close relationship between the promoter/facilitator and the franchise industry, seeking to sell and promote business "opportunities" and seeking funding sources for these sales and promotions. Most ROBS "promoters" and facilitators pay substantial referral fees to the franchise brokers who refer business to the promoters. Rarely are these fees disclosed to the entrepreneur. Fees charged by most "promoters," consequently, are in excess of the fees that would be charged by attorneys and accountants for the same services who are prohibited from paying referral fees. There remains a substantial question whether such referral fees are illegal under ERISA and the U.S. Criminal Code: Offer, Acceptance, or Solicitation to Influence Operations of Employee Benefit Plan (18 U.S.C. Section 1954).
In many cases, the broker will apply to IRS for a favorable determination letter (DL) as a way to assure their clients that IRS approves the ROBS arrangement. The IRS issues a DL based on the plan’s terms meeting Internal Revenue Code requirements. DLs do not give plan sponsors protection from incorrectly applying the plan’s terms or from operating the plan in a discriminatory manner. When a plan sponsor administers a plan in a way that results in prohibited discrimination or engages in prohibited transactions, it can result in plan disqualification and adverse tax consequences to the plan’s sponsor and its participants. Accordingly, promoters who emphasize or "promote" base on a favorable determination letter are, at a minimum, engaging in deceptive trade practices.

ROBS Project Findings

New Business Failures
Preliminary results from the ROBS Project indicate that, although there were a few success stories, most ROBS businesses either failed or were on the road to failure with high rates of bankruptcy (business and personal), liens (business and personal), and corporate dissolutions by individual Secretaries of State. Some of the individuals who started ROBS plans lost not only the retirement assets they accumulated over many years, but also their dream of owning a business. As a result, much of the retirement savings invested in their unsuccessful ROBS plan was depleted or ‘lost,’ in many cases even before they had begun to offer their product or service to the public. These findings are questionable since there are many ROBS arrangements in which the businesses are quite successful and represent very prudent alternatives to more traditional investments.
Specific Problems with ROBS
Some other areas the ROBS plan could run into trouble:

• After the ROBS plan sponsor purchases the new company’s employer stock with the rollover funds, the sponsor amends the plan to prevent other participants from purchasing stock. Since the 2008 announcement from the IRS such amendments are rare.
• If the sponsor amends the plan to prevent other employees from participating after the DL is issued, this may violate the Code qualification requirements. These types of amendments tend to result in problems with coverage, discrimination and potentially result in violations of benefits, rights and features requirements.
• Promoter fees
• Valuation of assets
• Failure to issue a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., when the assets are rolled over into the ROBS plan.

More Info:
www.thecontroller.net or contact chet@thecontroller.net

 

Do's and Don'ts of Tranactions for Self Directed IRA's

Prohibited Asset Types
IRS regulations prohibit IRA investments in life insurance and in collectibles such as artwork, rugs, antiques, metals (there are exceptions for certain kinds of bullion), gems, stamps, coins (there are exceptions for certain coins minted by the U.S. Treasury), alcoholic beverages, and certain other tangible personal property.

Prohibited Transactions

IRS regulations prohibit transactions that are an improper use of the value in the account or annuity by the account owner, the account owner's beneficiary, or any other disqualified person. These rules are generally designed to prevent self-dealing. Disqualified persons include your fiduciary and members of your family, such as your spouse, ancestor, lineal descendant (e.g. children), and any spouse of a lineal descendant). In addition, other disqualified persons include:

• Service providers of the IRA (e.g., custodian, CPA, financial planner);
• An entity (such as a corporation, partnership, limited liability company, trust or estate) of which 50% or more is owned directly or indirectly or held by a fiduciary or service provider;
• An entity that is a 10% or more partner or joint venturer of with an entity that is 50% or more owned directly or indirectly or held by a fiduciary or service provider;
• Additionally, in the case of a SEP or SIMPLE IRA:
  • The Employer;
  • 50% or more owner of the Employer;
  • Officers, directors, 10% or more shareholders, and highly compensated employees of the Employer;
  • An entity 50% or more owned by the Employer;
  • 10% or more partner or joint venturer of the Employer.

The following are prohibited transactions with an IRA:

• Borrowing money from it.
• Selling property to it.
• Receiving unreasonable compensation for managing it.
• Using it as security for a loan.
• Buying property for personal use (present or future) with IRA funds.

If the account owner or beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year in which the transaction occurred. The distribution would be subject to any taxes or penalties associated with an early distribution. Generally, a 10% early withdrawal penalty and treatment of the distribution as ordinary income for the purposes of income taxes.
Examples of self-dealing include:

• Having your IRA purchase real estate that you own or use.
• Issuing a mortgage on a relative’s new residence purchased by a family member who is a disqualified person as listed above.
• Granting a child a second mortgage for the down payment on his or her first home.
• Buying stock from the account owner involving IRA funds and a disqualified person.
• Purchasing stock in a closely held corporation in which the account owner has a controlling equity position.
• Purchasing restricted stock from a family member who is a disqualified person listed above.

Common Permitted Investments

Some of the additional investment options permitted under the regulations include real estate, stocks, mortgages, franchises, partnerships, private equity and tax liens. Real estate may include residential and commercial properties (U.S. & Internationally), farmland, raw land, new construction, property renovation, development, and passive rental income. Real estate purchased in a self-directed IRA can have a mortgage placed against the property, thus lowering the amount of total cash needed for a purchase; however, neither the IRA nor the account owner of the IRA can have personal liability on the mortgage. Business investments may include partnerships, joint ventures, and private stock. This can be a platform to fund a start-up business or other for-profit venture that is managed by someone other than the account owner of the IRA. Other alternative investments include: commodities, hedge funds, commercial paper, foreign stock, royalty rights, equipment & leases, American depository receipts, and U.S. T-bill

Limited liability company structured IRA

In an effort to reduce fees, paperwork, and processing delays, some self-directed IRA investors choose to employ a Limited Liability Company (LLC) IRA structure. In such a structure the account holder directs his IRA custodian to invest into a limited liability company that the account owner manages himself. The account owner can then execute transactions on the LLC level without the involvement of the IRA custodian, thus reducing fees and eliminating custodian transactional fees and delays. The profits of the LLC pass through to the IRA with nearly identical tax favorable treatment. Some claim that this IRA LLC strategy has been legitimized through a tax court case: Swanson v. Commissioner, 106 T.C. 76 (1996). Others disagree on the validity of the court case.^[1] Some refer to this structure as "checkbook control" because the IRA account holder often has sole signing authority for the LLC and its bank accounts.
Although Swanson v. Commissioner doesn't directly relate to a single member IRA LLC, but instead merely sets a precedence that an individual can control an entity owned by an IRA or IRAs that they are a disqualified person to, there are other cases, private letter rulings and IRS Memorandums that collaborate the validity of the IRA LLC and Checkbook Control over an IRA. To quote a few:
Ancira v. Commissioner 119 T.C. No. 6 (2002)- Ancira acted as a conduit for her self directed IRA custodian
DOL Advisory Opinions 97-23A and 2005-03A - The Department of Labor takes the position that if an asset is owned 100% by a plan, that asset becomes the plan
IRS Field Service Advice 200128011 - IRS Confirms: "The type of investment that may be held in an IRA is limited only with respect to insurance contracts, under section 408(a)(3), and with respect to certain collectibles, under section 408(m)(1").

More Info:
More Info:
www.thecontroller.net or contact chet@thecontroller.net

The Ultimate Self Directed IRA

The Ultimate IRA redefines investment freedom.

• True Diversification. With the Ultimate Self-directed IRA you can invest your retirement funds directly into real estate, tax liens, small businesses, private placements, personal loans, foreclosures, gold & silver and all other alternative (i.e. non-Wall Street) investments that are not available through a typical IRA. Of course, you can continue to invest your retirement funds in all traditional investments (e.g. stocks, bonds, mutual funds, etc.)
• Checkbook Control. The Ultimate IRA comes with a checking account, which we will assist you in setting-up at your bank so your retirement funds will always be under your control. Once the account is set-up, it's easy to begin placing investments, all you have to do is simply write a check. This enables you to move quickly when time-sensitive opportunities and other on-the-spot investments present themselves.
• Investment Control. The Ultimate IRA is the ultimate self-directed IRA, giving you complete control over your retirement account, enabling you to make all investment decisions alone, or with the help of a financial professional.
• Tax-Deferred Investing. The Ultimate IRA enables you to take control of your retirement funds without incurring any early distribution penalties or taxes. Furthermore, the profits generated from your investments flow back into your account and continue to grow tax-deferred, or tax-free in the case of a Roth, helping you build the retirement you want.
• Rollover Options. Your Ultimate IRA can be funded by transferring or rolling-over funds from any of your existing retirement accounts or plans IRA, 401K, Roth IRA, SEP IRA, Keogh, 403b, etc., or by making an initial contribution.
• Limited Fees. Once your Ultimate IRA is set-up, there are no asset-based-holding fees or transaction fees, rather there is a low fixed annual fee regardless of how large your account is or how many transactions you place during the year.

How does the Ultimate Self-Directed IRA work?

Let’s look under the hood of the self-directed IRA, and see how it works.

1. Broad starts the process by facilitating a new self-directed IRA at a registered self-directed IRA custodian.
2. With the new self-directed IRA in place, funds from previous retirement accounts (IRA, 401K, etc.) can now be rolled over. Or the account can be started with an initial contribution.
3. Broad then sets up a Limited Liability Company (LLC) for the self-directed IRA. This is an important step as the LLC will serve as the investing platform for the plan. Each LLC is customized to adhere to the laws and regulations which govern self-directed IRA investment platforms.
4. Capitalization now occurs by instructing the self-directed custodian to invest the self-directed IRA in the newly formed LLC. This is a process that is similar to buying stock, i.e. the self-directed IRA buys all the “shares” of the LLC. The self-directed IRA now owns the LLC.
5. The custodian sends a capitalization check to the account holder. The account holder can now open a checking account at the bank of their choosing in the name of their LLC.
6. And now… start investing!

How easy is it to set up the Ultimate Self-Directed IRA?

The Broad process for establishing a self-directed IRA has been crafted with only one consideration: you. As a company whose defining hallmark is industry leading customer service, we’ve worked hard to make sure that your experience is smooth and hassle-free. Our team of accountants, self-directed specialists, and attorneys is dedicated to giving you a complete package. We’ll hold your hand the entire way, and we’re always available for any questions you may have.

More Info:
www.thecontroller.net or contact chet@thecontroller.net

Don't make these mistakes when buying or starting a business!

I have invested, owned, developed, bought and sold many businesses.  I am currently acquiring a litany of operations and real estate holdings.  I found these to be mistakes that can get you into trouble quickly in business.

Mistake #1 – Paying too much
This results from the combination of all the other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.
Mistake #2 – Letting your emotions rule
If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.
Mistake #3 – Paying for potential
You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest in these things, so he does not deserve to be paid for them.
Mistake #4 – Not evaluating yourself
Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.
Mistake # 5 – Not building a team of experts
At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should also consider adding a business valuation professional to your team. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, competition, and economic conditions.
Mistake #6 – Not verifying information
You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.
Mistake #7 – Changing too much, too fast
Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.
Mistake #8 – Buying a business because you like to do what the business does
One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.
Conclusion
Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.
Courtesy of GlobalBx, October 14, 2009

Posted in Business Brokerage, Business Buyers, Buy A Business, Buyer Financing, Investing, SBA | 1 Comment

Tax avoidance is not illegal, but just smart business

The IRS is hiring over 100,000 new personnel to address tax evasion, non payment of payroll liability and for the performance of audits.  The momentun is shifting away from corporations.   I service a diverse niche of individuals as well as small to medium size businesses which include; medical facilities, manufactorers, retail operations and federal contractors.  What I tend to notice is that many of my clients have kids in college that are in undergraduate and post graduate programs.  In most cases the parents are paying the tuition of about $25,000 which have a limit on the deductions at about $4,000. I am seeing a trend of clients coming from other accountants and tax attorneys that have paid tax liabilities at average of $35K per year.  Additionally, I am seeing retirees withdrawing cash from there IRA's only to realize that they have had a partner (IRS) and have deferred paying taxes into a period of higher taxes.

All of this is resulting from not receiving any advise from their accountants or attorneys.  The right advice would have assisted these taxpayers in avoiding the liabilities that are saddling them with high tax liabilities, levies and payment plans.  Tax avoidance is not illegal, but tax evasion is illegal and celebrities are target practice right now.  If you don't pay the IRS any money and you are W2'd that does not mean that you avoided paying taxes.  The amount that was withheld paid taxes and that means that you are still in the liability section.  Guess what?  In the future the rate of taxation will be higher. 

There is something that you can do about it.  If you are not an entrepreneur and you work 9 to 5 and you are an emptynester start a business today.  If you or in a 401K and close to retirement you are going to have a partner and you will be taxed upon disbursement.  So how do you get the money paid in to the IRS back in the form of a refund?   Make the right investment and get a sizable refund otherwise you could lose about 40% of your disbursement forever.  Seek professional assistance to avoid paying tax liabilities that I consider avoidable. 

Those of you that have businesses that are not structured to provide you with maximum tax benefits find how what changes need to be made to avoid paying taxes.  Tax Avoidance vs. Tax Deferral a no-brainer right now...taxes are increases so avoidance is much safer.  Documentation is key and 3rd party documentation is certainly safe when it comes to large expenses that will be used as a write off. 

IRS Audits are not always avoidable, but it is all about maintaining good verifiable records.  Nothing to fear as long as you plan within the rules and document the activity. Existing businesses should always expand rather then pay tax liability.  All those that have tax accountants and attorney's that are advising them to defer tax liability fire them or ask them to cut the check for the payment of the future liability.  Get savvy attorney's, consultants and accountants in your business now.  They are less expensive then the interest and penalties you will pay if you don't avoid taxation.  For more information or if you have questions email us at chet@thecontroller.net or secureprojectz@gmail.com .