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…