Category: Blog

Texas Gov. Rick Perry defended his position that Social Security is like a Ponzi Scheme in his first appearance at the GOP Debate held at the Ronald Reagan Presidential Library. The media has labeled this position from pure lunacy equating Social Security to a criminal activity to courage for speaking the truth. So is it a Ponzi Scheme? If you would like to know the history of a Ponzi Scheme a simple Google search will do. The briefest description of a Ponzi Scheme is where returns for existing investors are paid from funds of new investors and there is the ever increasing need for new investors to keep the scheme going. A Ponzi Scheme is investment fraud. Social Security is not investment fraud. However, when Social Security was enacted in…

As our society ages, the multi-generational household grows and for many families this means they are caring for aging parents, as well as having younger children in the household.  The recession has also been a factor in the growth of the multi-generational family. While caring for aging parents can be financially challenging, there may be some tax deductions available to help alleviate a portion of the financial burden. You should let your tax preparer know that you're providing care for your aging parents. https://youtu.be/Na-KcwCB0Gc Some examples of tax deductions and strategies are: Exemptions: If your aging parent's income (excluding Social Security) doesn't exceed the exemption amount you'll be able to reduce your taxable income by $3,700 (2011 figure). You must provide over half of their support and if they don't…

The New York Times has reported that Joe Paterno has transferred the ownership in his home to a trust naming his wife as trustee for $1. The transfer took place in July, a few months before the Penn State sexual abuse scandal. Unfortunately, for Joe it may not work and if he's sued and found liable the house could probably be used to satisfy the judgment. This is because there are federal and state laws against "fraudulent conveyances" which is defined as the intent to defraud creditors. The creditor in this situation would be the victims if they're successful in court showing him to be personally liable for the abuse. However, the advice that Joe received is good strategic legal advice. There are many advance estate planning techniques that incorporate…

Renouncing Citizenship is One Way to Fight Higher Taxes read more The US Tax Policy is far reaching, to the point that US Citizens are taxed regardless of where they live in the world. Giving up your US Citizenship sounds a little extreme, but there are some people who are just plain tired of being scrutinized for tax evasion and simply being taxed. As well as exhausted by the way the US Government mishandles the tax revenue they do receive.Switzerland has had an increase in applications of Americans seeking to surrender their passports. In 2008, 235 Americans renounced their citizenship. Last year 1,780 gave up their nationality. A 657% increase!! I wonder if anyone inWashingtonis paying attention??? https://youtu.be/Na-KcwCB0Gc This web site is designed for general information only. The information presented…

https://youtu.be/Na-KcwCB0Gc We’ve all heard the saying that there are only two sure things, “death and taxes.” Unfortunately for the parents of Marine Lance Cpl. Andrew Carpenter, they’ve endured the shock of their son being killed in Afghanistan while serving his country, only to be presented with a tax bill. This seems to take the familiar saying to the extreme!!Lance Cpl. Carpenter had taken out student loans that his parents co-signed. The good news is that student loans that are backed by the federal government are forgiven for deceased veterans.  However, the IRS takes the position that the forgiven indebtedness is taxable income. This is not a new position by the IRS and actually it is part of the Internal Revenue Code which Congress created. Nevertheless the parents of this fallen…

The President is determined to raise taxes and demand the wealthy pay their fair share. Yet, a new report out by Ernst and Young indicates that allowing taxes to increase for every American earning over $250,000 ($200,000 for single taxpayers) would suck $200 billion out of the economy, cost 700,000 jobs (those most likely to need jobs) and also reduce wages by 1.8 percent. This report also addresses, in part, the taxes already scheduled to take affect under Obama Care. One of the significant tax increases from this law is the increase of the Medicare Tax from 2.9% to 3.8% and will extend to the unearned income (e.g. interest, dividends and capital gains). To top it off the tax collected on unearned investment income doesn’t even go to cover Medicare!!…

https://youtu.be/Na-KcwCB0Gc The Congressional Budget Office released a warning yesterday that if Congress fails to act on the impending tax hikes schedule for January 1, 2013, also known as “Taxmageddon,” the country will experience a deeper recession. Douglas Elmendorf, director of the CBO said, “The magnitude of the slowdown we’re discussing next years is significant.” The tax hikes are a return to the rates prior to the Bush era tax cuts. These tax hikes involve income tax increases, as well as estate tax increases. But on top of that are the tax increases contained in Obamacare, recently upheld as constitutional. There are numerous payroll tax increases, capital gains tax rate hike and new taxes on investment returns. So it’s not just the expiration of the Bush tax cuts, but the implementation…

I’m a huge Dallas Cowboy fan (for those of you who don’t know it) and today I was privileged to hear a Washington Redskin Legend share his passion for helping business and even current NFL Rookies with their financial success. The legend, Brian Mitchell, a ferocious punt and kick-off return specialist who played 14 years in the NFL and is 2nd All-Time in All Purpose Yards of 23,330, behind Jerry Rice. What intrigued me about the story of Brian Mitchell was his overall mindset, but specifically how he had a plan, a succession plan, for when his football career was over. The average NFL career last less than 3 years, Brian knew this and he knew that his career could end in one play. So he planned for that. He realistically…