tag:blogger.com,1999:blog-150595892024-03-08T05:22:46.433-08:00SaveGainsTaxThe purpose of this blog is to provide information and education on available strategies to consider before selling highly appreciated assets in order to maximize proceeds and minimize capital gains tax obligations. Whether using a 1031/TIC Exchange, a Deferred Sales TrustTM, a Charitable Remainder Trust, or another form of Charitable Entity, SaveGainsTax and Paula Straub will strive to help you hang onto as much of your hard earned profits as legally possible.Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.comBlogger199125tag:blogger.com,1999:blog-15059589.post-54771202216586405632011-03-08T16:21:00.000-08:002011-03-08T16:21:47.346-08:00Alternative Minimum Tax FactsSix Facts the IRS Wants You to Know about the Alternative Minimum Tax <br />
<br />
<br />
The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. The AMT provides an alternative set of rules for calculating your income tax. In general, these rules should determine the minimum amount of tax that someone with your income should be required to pay. If your regular tax falls below this minimum, you have to make up the difference by paying alternative minimum tax. <br />
<br />
Here are six facts the Internal Revenue Service wants you to know about the AMT and changes for 2010. <br />
<br />
1. Tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain expenses. These benefits can drastically reduce some taxpayers’ tax obligations. Congress created the AMT in 1969, targeting higher-income taxpayers who could claim so many deductions they owed little or no income tax. <br />
<br />
2. Because the AMT is not indexed for inflation, a growing number of middle-income taxpayers are discovering they are subject to the AMT. <br />
<br />
3. You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount. <br />
<br />
4. The AMT exemption amounts are set by law for each filing status. <br />
<br />
5. For tax year 2010, Congress raised the AMT exemption amounts to the following levels: <br />
<br />
• $72,450 for a married couple filing a joint return and qualifying widows and widowers; <br />
<br />
• $47,450 for singles and heads of household; <br />
<br />
• $36,225 for a married person filing separately. <br />
<br />
6. The minimum AMT exemption amount for a child whose unearned income is taxed at the parents' tax rate has increased to $6,700 for 2010. <br />
<br />
Use the IRS AMT Assistant to determine whether you may be subject to the AMT. Taxpayers can find more information about the Alternative Minimum Tax and how it impacts them by accessing IRS Form 6251, Alternative Minimum Tax —Individuals, and its instructions at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.comtag:blogger.com,1999:blog-15059589.post-14651473469477784122011-02-09T15:22:00.000-08:002011-02-09T15:22:55.319-08:00Posting Some Humorous Sayings I Came AcrossThese are just some fun sayings for a quick smile. Sometimes we just need that!<br />
<br />
○ Do not argue with an idiot. He will drag you down to his level and beat you with experience.<br />
<br />
○ Going to church doesn't make you a Christian any more than standing in a garage makes you a car.<br />
<br />
○ "Knowledge" is knowing a tomato is a fruit - whereas "Wisdom" is not putting it in a fruit salad.<br />
<br />
○ Evening news is where they begin with "Good Evening" - and then proceed to tell you why it isn't.<br />
<br />
○ To steal ideas from one person is plagiarism. To steal from many is research.<br />
<br />
○ A bus station is where a bus stops. A train station is where a train stops. My desk is a work station.<br />
<br />
○ How is it one careless match can start a forest fire, but it takes a whole box to start a campfire?<br />
<br />
○ Dolphins are so smart, that within a few weeks of captivity they can train people to stand on the edge of the pool and throw them fish.<br />
<br />
○ I thought I wanted a career; turns out I just wanted a paycheck.<br />
<br />
○ I saw a well endowed woman wearing a sweat shirt with the word "Guess" printed on it. So I said "implants?"<br />
<br />
○ Why is it that someone will believe you when you say there are four billion stars in the sky - but must touch the wall when you say the paint is wet?<br />
<br />
○ Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.<br />
<br />
○ You do not need a parachute to sky dive. You only need a parachute to sky dive again.<br />
<br />
○ A clear conscience is usually the sign of a bad memory. <br />
<br />
○ Some people cause happiness wherever they go - while others cause happiness whenever they go.<br />
<br />
○ I always take life with a grain of salt . . . plus a slice of lemon and a shot of tequila.<br />
<br />
○ A bus is a vehicle that seems to move twice as fast when you are trying to catch it - than when you are actually riding in it.<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-5272519867701788582010-12-22T12:00:00.000-08:002010-12-22T12:05:51.894-08:00New 2011 Estate Tax Law SummaryHere's a good summary of the new laws concerning the estate tax and planning opportunities over the next couple of years.<br /><br /><br /><em>By Julius Giarmarco December 21, 2010<br /> <br />On December 17, 2010, President Obama signed into law H.R. 4853, The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This two-year tax extenders bill makes significant changes to the gift, estate and generation skipping transfer tax (GST). <br /><br /><strong>Exemption and rate </strong><br /><br />For 2011 and 2012, H.R. 4853 sets the gift, estate and GST exemption at $5 million per person and $10 million per couple, with a tax rate of 35 percent. Thus, the estate, gift and GST exemptions are unified again for two years. The $5 million exemption amount is indexed for inflation beginning in 2012. But remember that these changes are for only two years. On January 1, 2013, unless Congress acts again, the gift, estate and GST tax exemption will be $1 million (adjusted for inflation) with a top tax rate of 55 percent. <br /><br /><strong>Optional retroactivity for 2010 decedents</strong> <br /><br />Estates of persons who died in 2010 will have the option of electing no estate tax with a modified carryover basis — i.e., a limited step-up in basis of $1.3 million, plus $3 million for property passing to a spouse — or a $5 million exemption with a complete step-up in basis. Any election would be revocable only with the consent of the IRS. <br /><br /><strong>Gifts and generation skipping transfers</strong> <br /><br />For 2010, the gift tax exemption remains at $1 million with a tax rate of 35 percent, and the GST exemption is $5 million with a 0 percent GST tax rate. For 2011 and 2012, the gift and GST tax exemption is $5 million per person and $10 million per couple, with a top rate of 35 percent. Since it's possible that in 2013, the estate, gift and GST exemptions might drop to $1 million (as adjusted for inflation) with a top rate of 55 percent, persons with large estates should consider using their $5 million gift and GST tax exemptions in 2011 or 2012. <br /><br />H.R. 4853 clarifies that direct skips to trusts for grandchildren in 2010 will not result in the GST tax applying when distributions are made from the trust to the grandchild in later years. Therefore, it is possible (before year end) for a grandparent to transfer significant funds in trust for grandchildren, pay only a 35 percent gift tax and defer any estate tax until the grandchild's death. In any other year, the grandparent would have to pay GST tax of 35 percent in addition to the 35 percent gift tax. On the gift tax return reporting the 2010 transfer, the grandparent must opt out of the automatic GST allocation rules.<br /><br />1) the deceased spouse's unused exemption is not indexed for inflation; <br />2) the unused exemption from the first deceased spouse will be lost if the surviving spouse remarries and survives his/her next spouse; <br />3) the growth in the assets in the credit shelter trust are removed from the surviving spouse's estate; <br />4) there is no portability of the GST exemption; and <br />5) the credit shelter trust allows the deceased spouse to make certain that the assets in the credit shelter trust are managed and distributed according to his/her wishes (and not those of the surviving spouse). <br /><br /><strong>Portability of estate tax exemptions between spouses </strong><br /><br />For persons dying in 2011 or 2012, the executor of the estate may transfer any unused estate tax exemption to a surviving spouse — on a timely filed estate tax return. However, to prohibit "serial" marriages, only the most recent deceased spouse's unused exemption may be transferred by the surviving spouse. <br /><br />Despite the relative simplicity of portability, there are several reasons for still using credit shelter trusts at the first spouse's death, including: <br /><br />1) the deceased spouse's unused exemption is not indexed for inflation; <br />2) the unused exemption from the first deceased spouse will be lost if the surviving spouse remarries and survives his/her next spouse; <br />3) the growth in the assets in the credit shelter trust are removed from the surviving spouse's estate; <br />4) there is no portability of the GST exemption; and <br />5) the credit shelter trust allows the deceased spouse to make certain that the assets in the credit shelter trust are managed and distributed according to his/her wishes (and not those of the surviving spouse). <br /><br /><strong>Planning opportunities</strong> <br /><br />The ability to gift $5 million — $10 million for a married couple — without having to pay a gift tax will allow high-net-worth individuals to put a huge dent in their estate tax bill. For example, a gift of $10 million by a married grantor to an intentionally defective irrevocable trust (IDIT) will permit a sale of $90 million dollars of assets to the IDIT at current historically low interest rates. Further estate tax reduction occurs because the grantor is now paying income taxes on the income generated by the entire $100 million in the IDIT. <br /><br />Moreover, if the assets gifted and sold to the IDIT can be discounted — for lack of control and lack of marketability — the value that can be transferred via the IDIT is further expanded. Finally, further leverage of the gift and GST tax exemption can be accomplished by having the IDIT use a portion of its cash flow to purchase life insurance on the life of the grantor or the joint lives of the grantor and his/her spouse. <br /><br />With every new tax law comes challenges and opportunities. The 2010 Tax Act offers plenty of both.</em><br /><br />Paula Straub<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-76762529102943984032010-12-07T14:29:00.000-08:002010-12-07T14:33:46.994-08:00Looks Like We Are Getting A ReprieveLooks like we will get a reprieve from capital gains tax increases for the next couple of years.<br /><br />Why this couldn't have been decided months ago I have no idea. Makes no sense to raise taxes until we get this economy back on track.<br /><br />Here are some of the highlights- but nothing has been passed just yet. I believe it will happen very soon.<br /><br />Individual tax rates: The agreement would extend the Bush-era tax rates for two years for all taxpayers. Current rates would remain in place, with a top rate of 35%.<br /><br />Capital gains: Current rates would be extended, and the top rate on long-term capital gains would remain at its historic low of 15% for two years. The rate applies to gains on assets held longer than a year. <br /><br />Dividends: Current rates would be extended, and the top rate for qualified dividends—those on most stocks held longer than two months—would remain 15% for two years.<br />Payroll tax: The agreement calls for a two-percentage-point cut in the employee's portion of payroll (FICA) taxes, just for 2011. The change would make the tax 4.2% instead of 6.2% on the first $106,800 of wages per worker, according to the nonpartisan Tax Policy Center. No phase-in or phase-out or other limit was specified by the White House document, so the maximum a working couple could pocket is $4,272—$2,136 per individual wage-earner.<br /><br />Alternative minimum tax: A two-year "patch," for 2010 and 2011, would keep the AMT exemption at or near current levels. Without the patch, 21 million additional taxpayers would owe AMT for 2010. <br /><br />Estate and gift tax: No language on the estate or gift tax appeared in the document released by the White House, but a source familiar with the framework said it includes an estate-tax provision for 2011 and 2012 that has a top rate of 35% and an exemption of $5 million per individual.<br /><br />Stay tuned for more info over the next week or two.<br /><br />Paula Straub<br />760-917-0858<br />savegainstax@gmail.com<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-76093026954393065472010-11-30T13:30:00.000-08:002010-11-30T13:38:16.847-08:00Still Waiting for Capital Gains Changes for 2011Well, it's almost December and we still are waiting to find out what is going to happen to the capital gains tax rates and Estate Tax rate for next year.<br /><br />I really thought earlier in the year we would get notification that the estate tax rates reverted back to 2009 but no such luck.<br /><br />It's great if you are rich and die with cash type assets to pass on estate tax free to your heirs in 2010 but you have a whole other ball of wax to deal with if you are rich in stocks and real estate which have capital gains tax consequences.<br /><br />I have been lax in posting because Congress is waiting until the last possible minute to inform us of what to expect in the New Year.<br /><br />I am rooting for the Bush tax cuts to be extended for at least two years to let things with this economy settle down and give us the ability to plan accordingly. <br /><br />I do believe in the next 30 days we will find some common ground so until then, I wait with everyone else with fingers crossed.<br /><br />The good news is that I am seeing some capital freeing up for business purchases. I hope this is a trend that will continue for real estate because it's been a long time coming!<br /><br />Paula Straub<br />760-917-0858<br />savegainstax@gmail.com<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-1765094886794552212010-09-22T10:27:00.000-07:002010-09-22T10:37:48.800-07:00Nightmares for Heirs of Descedents from 2010This year's estate planning rules are really messing a lot of family's up. There is still the question if the unusual rules for 2010 only will remain in effect or if legislators will do something before the end of the year and make it retroactive to Jan 1, 2010. This is causing a lot of lawyers to freeze estates of those who have passed away this year because they don't want to do something that can't be reversed. The following is an exerpt from a Financial Advisor article that shows that even the IRS has not issued the forms required to file an estate tax return. You would think someone whould have been all over this by now but it is just one more way our government is dropping the ball. They should be ashamed.<br /><br /><em>"The prospect of a retroactive estate tax also plays into how quickly people are collecting on bequests. The worry is that lawmakers could levy such a tax, going back to the start of the year. In that case, a beneficiary who had already taken an inheritance tax-free might owe tax after all.<br /><br />This possibility grows slimmer each day, but worries about it carry enough weight to have prompted some advisers to freeze wills until the end of the year.<br /><br />Lauren Y. Detzel, chairman of the estate and succession-planning department at Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth in Orlando, Fla., said a big concern are new income-tax rules to figure the value of inherited items. The task is to find the cost basis of an item for tax purposes, used to figure capital gains once the item is ultimately sold.<br /><br />Under usual rules, the basis for heirs is what the asset was worth when the person died. For items inherited this year, though, heirs must "carry over" the basis, valuing the asset at its original cost.<br /><br />When the estate tax lapsed, a new requirement was made for estates with non-cash assets over $1.3 million to notify the Internal Revenue Service of basis adjustments. The statute lists information that must be contained in the report but also refers to IRS regulations that haven't yet been issued.<br /><br />Duncan E. Osborne, a partner at Osborne, Helman, Knebel & Deleery, said the newly required tax return hasn't even been issued yet. With the possibility the law may change and no clear knowledge of what tax filings need to be done, it is very difficult for attorneys to close an estate, he said.</em> "<br /><br />The Deferred Sales TrustTM may solve some of these issues. If you have a large amount of property in your estate you wish to pass to heirs on a tax preferred basis go to <a href="http://www.mydstplan.com/savegainstax">Deferred Sales TrustTM Info </a>and find out what you need to do to prepare.<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-29819493374683717452010-09-07T16:48:00.000-07:002010-09-07T16:50:44.621-07:00Reminder about 2010 Estate Tax/Capital Gains Tax Rule ChangesAs you probably know, there is no estate tax due for people who die in 2010. All year, we have been expecting the estate tax laws to be updated (and possibly imposed retroactively to January 1, 2010) but that has not happened. Further, it now appears that there will be no changes for 2010 and that people who die this year will not owe any estate taxes (or more accurately, their estate won't owe any estate taxes.)<br /><br />However, that doesn't mean that large estates get a "free pass" this year. Things might even be more complicated. That is because a "carryover basis" rule is in effect this year. In previous years, people inheriting property enjoyed a "step up" in basis. That is, the basis of the property they inherited was generally the value of the property when the previous owner died. In 2010 however, people inheriting property also inherit the decedent's tax basis. This means that if you are inheriting property this year, you have to hope the decedent kept very detailed records.<br /><br />The executor administering the estate can, however, increase the basis of the assets by $1.3M plus any expiring loss carryforwards and the amount by which any asset is worth less than its original cost. The practical implication of this $1.3M is that any estate with untaxed appreciation of up to $1.3M will escape tax free. However, the executor is responsible for designating those assets that will receive the $1.3M. If he or she doesn't pick the assets you inherited, you could find yourself owing taxes upon the sale of the inherited property. However, the good news is that the gains will be taxed at capital gains tax rates.<br /><br />It is important to note that assets that pass to a surviving spouse are entitled to another $3M in untaxed apprection so it is still possible to shelter as much as $4.3M in appreciation. If you are the executor of an estate for someone who died in 2010, be sure to seek the assistance of a CPA because the rules can be very complicated and you don't want to make a costly error. And if you inherit assets from someone who died in 2010 be sure you know the basis of the asset and if you might owe capital gains taxes be careful to time the sale to minimize any taxes.<br /><br />The Deferred Sales Trust can really help in this planning process. Go to <a href="http://www.mydstplan.com/savegainstax">http://www.mydstplan.com/savegainstax</a> for more info<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-39905102561209184422010-08-24T10:45:00.000-07:002010-08-24T10:49:08.958-07:00Five Great Ways To Lose Money When Selling AssetsHere are some great ways to lose money on the sale of your appreciated asset.<br /><br />1. Forget exploring options and pay all taxes due at once from proceeds of sale.<br /><br />Most sellers get an offer, sell their asset and don’t or even know about all the tax consequences until their tax return is due. Then it’s too late to do anything but pay the piper, and the bill is usually much larger than anticipated.<br /><br />2. Borrow money against the asset during ownership or prior to sale so that you owe more than your adjusted cost basis.<br /><br />This is called mortgage over basis and is a problem for a lot of owners. It is a common misconception that taxes are only owed on equity in the asset (what’s left after paying all the creditors). Imagine the surprise when you might have to dig into savings or take out a loan to cover the tax bill!<br /><br />3. Become the banker for the buyer.<br /><br />It may sound appealing to make out your own installment agreement with the buyer, where they pay you over time with interest and you get to defer your taxes. That is, until the buyer defaults, is slow to pay or you have to go through the foreclosure process and get the asset back in worse shape than you left it. If this is retirement income you may not be able to afford missed payments, court costs or pulling money from savings to get the foreclosed asset back up to par.<br /><br />4. When you hold the installment note, the sellers refinances and you get the tax bill.<br /><br />Another downfall of being the bank is that if the buyer refinances the loan and pays you back all at once, your tax deferral ends there. That nice long income stream is gone and you get to pay the remainder of tax due.<br /><br />5. Opt to do a 1031 property exchange to save on taxes and have the exchange fall through.<br /><br />This is a fairly common occurrence if not enough properties were identified for exchange, the sellers pulls out, or any of the other IRS deadlines are missed during the process. Now all taxes are due and you no longer have any options.<br /><br />If only someone had warned you of what might happen before it was too late…<br /><br />The good news is that there are options to consider that can avoid all of the above mistakes if you know how to find them. <br /><br />The Deferred Sales Trust™ is a very effective and tax compliant tool which can help you maximize your proceeds and minimize your tax consequences. Developed in 2002 and available exclusively through members of the Estate Planning Team, the DST allows for safe tax deferral and effective financial planning which can facilitate a secure retirement. For more information and an illustration of the Deferred Sales Trust™, go to http://www.mydstplan.com/savegainstax <br /><br />Paula Straub, a capital gains tax saving strategist and owner of Save Gains Tax LLC in San Marcos, CA is able to compare and contrast a number of tax strategies and help sellers across the United States maximize their sale proceeds. Paula can be reached directly at (760)917-0858, savegainstax@gmail.com, or at http://www.savegainstax.com .<br /><br />Collecting more taxes than is absolutely necessary is legalized robbery. ~Calvin Coolidge<br /><br />The avoidance of taxes is the only intellectual pursuit that carries any reward.<br />-- John Maynard Keynes<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-74498604906076021012010-07-30T13:30:00.001-07:002010-07-30T13:34:24.670-07:00Now Offering Deferred Sales Trusts to Minimize Capital Gains Tax SavingsThis news just in. I am now offering Deferred Sales Trusts to Minimize Capital Gains Tax Savings. Just one more great tool in the belt.<br /><br />I will be posting more on this option, but one of the strengths is that Private Letter Rulings have been favorably issued on this strategy. This is always a comfort for those who wonder if the IRS will challenge in later years.<br /><br />You can get an illustration for your situation on my special web page which is <br /><br />http://www.mydstplan.com/savegainstax<br /><br />Paula Straub<br />http://www.savegains.com<br />(760)917-0858<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-49141690632663301652010-07-08T16:31:00.000-07:002010-07-08T16:33:20.695-07:00News on Future Capital Gains Tax PossibilitiesFound this on the Washington Wire Today. Who knows exactly what is coming down the pike!<br /><br />By John D. McKinnon<br />Treasury Secretary Tim Geithner offered a glimmer of hope to investors who are facing huge tax increases on capital gains and dividends next January.<br /><br />In a CNBC interview late Wednesday, Geithner said the Obama administration still hopes to hold the top tax rate on both capital gains and dividends to 20% next year – the level the White House has been proposing since taking office.<br /><br />Of course, a 20% rate would represent a big increase over the current 15%. But it’s a lot better than the 39.6% top rate for dividends that congressional Democrats have signaled they were planning next year for higher earners.<br /><br />“This is good news for people who worry about dividends, because it reinforces the administration’s commitment to 20%,” said Clint Stretch of Deloitte Tax LLP.<br />The tax changes are happening as the Bush-era tax cuts expire at the end of this year. <br /><br />Congress currently is planning to extend most of the Bush breaks – particularly those for middle-income earners – for some period, perhaps only a year or two. But budget rules that lawmakers passed earlier this year anticipated the Bush-era breaks for higher income earners would expire immediately. That would mean the tax on dividends for higher earners would return to the pre-Bush ordinary income rate. That rate is expected to rise to 39.6% next year. <br /><br />However, there are growing worries among Democrats that their plans to allow taxes to rise substantially for higher earners will create drag on the recovery, and particularly on financial markets. That appears to be opening the possibility that some of their severest tax increases will be put off, at least for a bit longer. <br />“There’s…real concern about what would happen in the markets” if dividend rates went as high as 39.6%,” Stretch said. Given the fragile state of the economy, lawmakers “are not in the mood to experiment with the markets.”<br /><br />Ironically, another factor working in favor of higher earners is the growing public concern over deficits. That’s leading Democrats to consider the short-term extension of the Bush-era breaks for the middle class, instead of the permanent extension that everyone was discussing a year ago. If the middle-class breaks are extended for only a year or two, that could make room for higher earners to catch a few breaks, too.<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-48893758139645380002010-07-08T16:23:00.000-07:002010-07-08T16:26:24.239-07:00Fear of Death is Now Not Biggest FearFor older Americans surveyed by Allianz Life Insurance Co., death is not such a big deal. Not, that is, when it compares to the spectre of a dwindling bank account. In a poll of people between the ages of 44 and 75, 61% said that running out money was their biggest fear. The remaining 39% thought death was scarier.<br /><br />With a couple of banking crises under our belts, we've become almost entirely focused on the monetary aspect of advanced age. The context is important. The poll of 3,257 people, released last month, found that a whopping 92% of respondents agreed that "the United States is facing a crisis in its retirement system," the AARP wrote about the report.<br /><br />It's so well-known that the U.S. won't have enough to fund Social Security in the next several decades that most younger people are throwing up their hands in disgust and counting, instead, on their own ability to save, as well as family and community support. The younger cohort among the old folks, who may after all be farther from retirement than they'd like, have really nail-biting fears: 56% are concerned they won't be able to cover their basic living expenses once they reach retirement age. <br /><br />A movement known as the "Radical Homemakers" argues that building a community safety net is so important, many of us would be better off quitting our jobs and focusing on creating a grassroots old-age support system -- building up assets of family, friendship and community ties instead of a 401(k). In addition, they advise that people build the skills to live on less -- the sorts of skills probably keenly honed in the parents of the 44- to 75-year olds that Allianz surveyed. After all, more than half of those surveyed said their net worth has tanked since the economic crisis began and many of them have already been forced to cut back. <br /><br />So why is the financial crisis, and our greatly diminishing faith in financial institutions, such a big deal? Even in the golden age of lifetime employment and secure pension funds, we never placed so much of our hopes and dreams in corporations and the. Instead, we found our emotional security through religion or family or both. We might be wise to return to such comforts. While our banks may be "too big to fail," they surely do fail us, all the time; and our Social Security system's most commonly-used descriptor is "imploding." Little associations fail us too, but their impacts are more personal and don't require a deficit-doubling government bailout. <br /><br />It's hard to face retirement in an age where even taxes seem uncertain and death is the only constant. It's assured, so why be afraid? Far more terrifying is the stuff leading up to it. Perhaps we would do better to spend more time focusing on our intangible assets; without a dollar-value market to go bust, they're a lot less stressful.<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-31682214725164570022010-07-01T12:32:00.000-07:002010-07-01T12:46:49.079-07:00Reviewing CRTs and other Charitable OptionsIt's been quite a while since my last post and I've promised myself to do better from here on in. With all the "social media" sometimes the tasks get a bit overwhelming.<br /><br />I want to do a series of posts on Charitable Remainder Trusts. This first installment is why one might decide to set one up. The second, why one might choose to sell their interest, and the third how that sale might be possible.<br /><br />Why People Create CRTs<br /><br />There are four main reasons<br />1. to diversify a highly appreciated asset, while deferring tax on the sale into the future<br />2. to generate a stream of income for life (or for a set term)<br />3. to generate an up-front income tax deduction<br />4. to benefit charity in the future, usually upon the death of the last grantor<br /><br />Reasons 1 and 2 are closely related, because almost everyone who creates a CRT does so because they expect that the value of the resulting cash flow or income stream will be greater than the amount they could have realized from the sale of the asset. This may or may not be the case after the CRT is set up and is influenced by investment returns, tax rates, and life spans.<br /><br />Reason 3 is also important. A person receives a tax deduction in the year they fund the CRT. Even if they subsequently sell their income interest, they keep the original tax deduction.<br /><br />Reason 4 is actually usually quite low on the list. People who generally have high charitable motivation will often opt for a more direct means of donation and support. They may donate the entire asset to a charity and avoid tax on the sale of the asset and not require cash flow. These are people who have more than enough to live on and just want to help a particular cause. Think Bill Gates and Warren Buffet.<br /><br />Whatever the reason the CRT is created, it may later turn out to be lacking on some level and the grantor may want to sell their remainder interests. The next post will give examples of what may motivate someone to sell.<br /><br />Paula Straub<br />760-917-0858<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-51797133932827657882010-04-12T17:01:00.000-07:002010-04-12T17:08:40.927-07:00Tax Time Again, Bah humbugIt's that time of year again and I don't mind saying I hate it!<br /><br />I've spent the last few days buried in paperwork to get my taxes filed on time. I tend to wait till the last moment because I really hate the work involved each year.<br /><br />We need a simplified tax code!<br /><br />Congress still has not changed the new policy for estate taxes this year and many of my clients are sweating that most of their assets are in real estate and stocks and if they were to pass away thier families would be subject to estate tax because of the non-step up in basis currently in force.<br /><br />Not to mention I got my new health care rates and they went up by 16% and the benefites are decreased! These insurance companies are out of control and it seems they can run rampant until at least 2014 when the new law takes effect.<br /><br />If I sound a little cranky it's because I am. This too shall pass.<br /><br />Paula Straub<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-9465566766746308402010-04-01T15:50:00.000-07:002010-04-01T16:02:39.700-07:00Is Your Power of Attorney Powerless or Powerful?I can't stress enough, how everyone no matter what age, should have a power of attorney in place.<br /><br />This should be a durable power of attorney that covers not only your health decisions but also your financial decisions should you not be able to make them for yourself.<br /><br />This can happen from a stroke, an accident, dementia, or a debilitating medical condition. Sure, it happens more often among the elderly, but can happen at any age without notice.<br /><br />Many people think that as soon as you sign one you turn over decisions to someone else, but unless it is an immediate power of attorney this is not the case.<br /><br />You don't need an attorney to create one, but it doesn't hurt if your situation is at all complicated. Since this is an important document, you want it to be state compliant and not have any "got-yas" you may not be aware of.<br /><br />Many generated even by attorneys may have language that will come back and haunt you. It may limit what your agent can do by too much and tie their hands. Each situation is unique and should be well thought out. <br /><br />It should be your wishes carried out and not those of a judge who has never met or spoken with you. This is the only choice when a power of attorney is not in place before a situation occurs when you are not able to speak for yourself.<br /><br />I'm not an attorney, but I can review your documents and look for common language that may not be in your best interest. Then an attorney can modify the document to work for you and not against you.<br /><br />Whether you are 20 or 90 this is one of the most important documents you will ever need. <br /><br />Paula Straub<br />760-917-0858<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-57628008962807240802010-03-04T10:49:00.001-08:002010-03-04T10:51:42.076-08:00Capital Gains Tips from the IRSIt's that time of year again so here are some capital gains tips right from the IRS.<br /><br /> <br />A tax tip from IRS.gov<br /><br />Have you heard of capital gains and losses? If not, you may want to read up on them because they might have an impact on your tax return. The IRS wants you to know these ten facts about gains and losses and how they could affect your tax situation.<br /><br />1) Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.<br /><br />2) When you sell a capital asset, the difference between the amount you sell it for and your basis -- which is usually what you paid for it -- is a capital gain or a capital loss.<br /><br />3) You must report all capital gains.<br /><br />4) You may deduct capital losses only on investment property, not on property held for personal use.<br /><br />5) Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.<br /><br />6) If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.<br /><br />7) The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2009, the maximum capital gains rate for most people is 15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.<br /><br />8) If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.<br /><br />9) If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.<br /><br />10) Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.<br /><br />For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-76840941946994757412010-01-13T11:38:00.000-08:002010-01-13T12:07:07.944-08:00Web Hosting Disaster- Severe Data Loss OccuredThe words I never wanted to hear were "your web accounts were hacked by terrorists and all of your data is lost forever". The web host company is Direct Horizon and I seriously recommend never to use them. Hackers were able to penetrate their shared servers and delete entire accounts, email databases and the backups that went with them. They have no record of any of my 5 web sites or my entire database of email customers. It's like I never existed as their customer.<br /><br />I do have backups of my websites which will be a pain to get back up and running on a new web host, but I was never told I needed to back up my autoresponder with my email list of 20,000 names which I have cultivated and nurtured for over 6 years. This was ARP3 autoresponder and I mistakenly assumed it was kept separate and secure like my Aweber account is. Had I known it could be easily deleted of course I would have kept my own backups. It seems to me in these days of technology and assurances of security by web hosting companies things this devastating should not occur.<br /><br />Direct Horizon bought out the original hosting company named Fat Jack and I stayed with them because they migrated my ARP3 list with my accounts and it was going to be a pain to find another host which supported ART3. Big mistake.<br /><br />Direct Horizon blames me for not having a backup and takes no responsibility for being hacked and losing client accounts. Their response was I should have had my own dedicated server for a lot more money each month and then this would not have happened. They wanted to know if I wanted to set that up now. Are you kidding me?????<br /><br />I now am forced to start over from scratch. I have a limited amount of people who have emailed me that I can contact gradually and let them know what happened. Unfortunately the majority will probably wonder why they have stopped getting updates and I will never know who they are to explain.<br /><br />If you are reading this post and were on my list, please email me and I will get you set up on my new list just as soon as I get things going again.<br /><br />Let my tragedy be a lesson to anyone with websites or ARP3 autoresponders. Back up everything you have on your web hosting account because it might not be there tomorrow.<br /><br />Luckily, my blog and main website <a href="http://www.savegainstax.com/">www.savegainstax.com</a> were not affected because they are hosted by reliable companies. I will be moving my other websites to these hosts soon.<br /><br />Believe me, I will be backing up everything I possibly can from now on.<br /><br />Paula Straub<br /><a href="mailto:savegainstax@gmail.com">savegainstax@gmail.com</a><br />760-917-0858<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-11160742366148862462009-12-22T16:18:00.000-08:002009-12-22T16:29:45.831-08:00Happy Holidays!No matter what faith you observe, I just want to take a minute and wish you a Happy Holiday season.<br /><br />It's almost impossible to do much business at this time of year, and most emails are answered with "out of office" messages. Who doesn't crave some hard earned time off?<br /><br />It is my wish for everyone that 2010 ushers in a new era of hope and begins a turnaround for ailing businesses and unemployed individuals who just want to get back to work and support their families.<br /><br />I'd like to think decent <span id="SPELLING_ERROR_0" class="blsp-spelling-corrected">health care</span> will be available to all, but I'm not as encouraged by what I am seeing evolve as new legislation. If only our elected members of both houses would work together in the best interest of the people in this great country instead of pursuing their own selfish ends we might actually create a system that works.<br /><br />Hope you all have great times with family and friends and that 2010 brings health, wealth and happiness to all those who deserve it.<br /><br />If you want to help your <span id="SPELLING_ERROR_1" class="blsp-spelling-corrected">favorite</span> charity or non-profit provide for their cause, pass them to this link and have them contact me. I'd like to help. <a href="http://www.savegainstax.com/legacy.html">Help Your Charity Now</a><br /><br />Paula <span id="SPELLING_ERROR_2" class="blsp-spelling-error">Straub</span><br />760-917-0858<br /><a href="mailto:savegainstax@gmail.com">savegainstax@gmail.com</a><div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-29257952913409957472009-12-18T16:31:00.001-08:002009-12-18T16:31:53.371-08:00Tax Nightmares on the Horizon for 2010With the government bodies embroiled in the health care debate and trying to get something passed by year’s end, they have failed to enact the proper laws to deal with estate tax issues for 2010.<br /><br />Several options have been brought up for vote, but none have passed both Houses.<br /><br />So, this leaves us at least for now with there being no estate tax in 2010- which might be good for the families of a few very wealthy individuals who pass away. However, if this happens, thousands of less wealthy families may pay much more in capital gains tax, as the step up in basis for inherited property goes out the window. Not a good trade off for the average middle class.<br /><br />Several options have been passed around, such as extending the current rule for another year until they have time to give this more attention, increasing the estate tax exclusion and making it permanent, changing the rates at which it is taxed, etc.<br /><br />Odds are very good something will be enacted sometime next year and be made retroactive to January 1. This opens up all types of lawsuits for people who pass away before the law is passed and would have benefitted from the ruling in place at the time.<br /><br />One thing I’m fairly certain of is that this will not end particularly well. I swear we elect some really inept people into government who mess up more than they ever fix. Stay tuned for future updates.<br /><br />Paula Straub<br /><a href="http://www.savegainstax.com/">www.savegainstax.com</a><br />760-917-0858<br /><br />Learn how to help your favorite non-profit by checking out this link:<br /><a href="http://www.savegainstax.com/legacy.html">www.savegainstax.com/legacy.html</a><div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-7645400870810644822009-12-10T16:31:00.000-08:002009-12-10T16:34:43.936-08:00You or Your Family Member Needs Assisted Care- Now How Do You Pay For It?I was asked to write an article for a local publication so I thought I'd pass on the info here as well.<br /><br />More often than not we prefer not to think of the time we or our family member s will need the assistance of another person or place to help with our physical or mental needs. In our minds it happens to other people but not to us.<br /><br />However, it does happen and we are rarely prepared. It might be a sudden stroke, the onset of dementia, complications after surgery or a fall, macular degeneration or simply just getting more frail as we naturally age.<br /><br />Now we have to pay someone to come to our homes, move in with family, move to assisted living or even to a 24 hour care facility. Costs can run from an average of $20/hr for homecare to 3 to 7 thousand or more per month.<br /><br />A lifetime of savings can disappear in months and a spouse may become impoverished if the other spouse requires extended care. Medicare does not cover many costs of this type and the state welfare program, Medical , only kicks in once your savings are gone- and then your choices are limited home care or a nursing facility of their choice.<br /><br />So, what are some options to pay for care? Limited space cannot afford much detail, but here are some choices:<br /><br />· Long Term Care Policies, purchased prior to need, can be worth their weight in gold and well worth the premiums paid. They come in all shapes and sizes and should be geared to your personal situation and budget<br /><br />· There are now both life insurance policies and annuities that have long term care riders which allow for financial benefits should long term care be needed in the future.<br /><br />· There are companies that may offer lump sum payments for such things as no longer needed life policies, annuities in payout, and even interests in established CRTs. These don’t apply to everyone, but it pays to know about them in case they do.<br /><br />· There are some benefits for veterans and surviving spouses under the VA non service connected Improved Pension Benefit with aid and attendance add on.<br /><br />· If you need to sell assets such as appreciated real estate, there are tax saving strategies that will allow you to keep more of the value of your asset and minimize your tax obligations. These need to be put in place prior to the sale.<br /><br />· There may be some foundations, churches and charities that provide support services.<br />· Family members may be able to chip in or you might share some services with a neighbor.<br /><br />It really helps to do some checking into facilities and home care companies prior to needing them. Scrambling for information when the need is a reality might lead to bad experiences and loss of precious savings. Also, be sure you have a power of attorney document for both medical and financial decisions. Let your preferences be known to those you trust so the decision for your care is not left up to the courts and strangers.<br /><br />For more information on any of the above, call Paula Straub at 760-917-0858 or email Paula at <a href="mailto:savegainstax@gmail.com">savegainstax@gmail.com</a><div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-63565911540451224702009-12-03T13:16:00.000-08:002010-01-05T15:51:30.830-08:00How A New Fundraising Strategy Can Help Your CharityIn speaking with a number of charities recently, I notice a big difference between those who have workers that are in it for the cause and those who just subsist in order to collect a paycheck. A bit like politicians, I think, who should be in politics to serve the public but often just serve themselves.<br /><br />Anyway, in order to find a way to help those who really do want to see their mission succeed, I put up a web page that can provide an overview of the benefits of a new charitable fund raising strategy, watch a recent interview with the developer of it and then contact me if more details are desired.<br /><br />Here is the link:<br /><br /><a href="http://www.savegainstax.com/legacy.html">http://www.savegainstax.com/legacy.html</a><br /><br />Feel free to forward this to any charity you believe can benefit from additional funds. This is not a magic bullet or a cure all for every non-profit, but when it works it works extremely well and everybody wins.<br /><br />Paula Straub<br /><a href="http://www.savegainstax.com/">http://www.savegainstax.com/</a><br />760-917-0858<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-44480626582773469562009-11-06T13:03:00.000-08:002009-11-06T13:04:40.432-08:00Do You Support A Worthwhile Cause?There are so many good Charities and Non-Profits who are really hurting these days because donations are down just when money is most needed.<br /><br />I have an important favor to ask of you and it won’t cost you a dime.<br /><br />I want you to email me, fax me or call me with the name of your favorite charity and the contact information for the person who is responsible for fund raising. That’s it.<br /><br />It can be a school, church, research foundation, animal charity or any legitimate non profit you feel is doing good work and in need of additional donations.<br /><br />I will invite them personally to a webinar introducing a brand new way to raise significant immediate donations that has no cost to the organization and no net out of pocket cost to the supporter. There are no risky financial tools used.<br /><br />In all my years of financial planning, I haven’t seen a better win-win situation for both parties when the fit is right.<br /><br />This will be by invitation only and only open to non-profits. It will take 45 minutes of their time from the comfort of their home or office and they can decide if they want to find out more after attending.<br /><br />I personally guarantee they have not seen this method before and their time will be well spent.<br /><br />So, help me help your favorite charity. Feel free to forward this post to anyone who supports a good cause. You can make a difference.<br /><br />Paula Straub<br /><a href="mailto:savegainstax@gmail.com">savegainstax@gmail.com</a><br />760-917-0858 phone<br />866-401-0424 fax<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-58092844650034900302009-10-07T16:35:00.000-07:002009-10-07T16:38:32.878-07:00Do You Know If You Are Paying Too Much In Taxes?"It’s not how much you make, but how much you keep." How true.<br /><br />I specialize in capital gains tax savings but also talk with my clients about how else taxes may be impacting their bottom line. I know they do mine.<br /><br />Not everyone has a CPA do their taxes. You might do your own, use a software program like Turbo Tax, or take your data to a local tax preparer like H&R Block.<br /><br />CPAs can be pricey to employ and you may not think you have enough issues to hire one to prepare your returns. However, you may also be missing something that may be costing you money that could be still in your bank account.<br /><br />I have worked out a deal with a CPA firm I do some work with that you can take advantage of.<br /> For $30.00, a CPA from Gradient Tax Services will do a thorough review of your last year’s tax return. I get no compensation from this offer. It goes directly to them for the review.<br /><br />They will let you know if you are not taking advantage of any tax breaks you are entitled to, or if there might be a way to reduce future taxes. You may be eligible to amend your return and get money back from last year.<br /><br />With this economy, we need to keep every penny we’re entitled to.<br /><br />If you would like to have Gradient review your return, email me your name and telephone contact number and I will tell you the procedure to complete the review.<br /><br />$30.00 is a minimal amount for a Certified Public Accountant to see if they can save you a heck of a lot more.<br /><br />Paula Straub<br /><a href="mailto:Savegainstax@gmail.com">Savegainstax@gmail.com</a><br />760-917-0858<div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-44020464150242820472009-09-30T15:23:00.001-07:002009-09-30T15:23:59.123-07:00More Are Seeing the LightThank you for all the emails I received following my last email titled “Lump Sums vs. Income Streams”. It tells me that mindsets are truly beginning to change, mostly due to personal experiences and recent losses.<br /><br />Just a few situations presented were people getting hit with a large tax bill after the installment sale note they were carrying was terminated due to the buyer selling the property part way into the note term, a person falling prey to a Ponzi scheme and losing a large sum of money, several people who opted for a lump sum after taxes to reinvest and seeing their proceeds further diminish, a person losing most of his life savings after trusting an advisor his attorney recommended, several more who were promised double digit returns and who now have much less than they started with.<br /><br />It will be difficult to overcome these unfortunate losses.<br /><br />There is something to be said for a protected and fixed income stream which at least covers your basic expenses. This is the principle pensions and social security benefits were based on.<br /><br />As you are approaching or are in retirement stages this should be your first priority. This means no matter what else happens, you have money to live on and money you cannot outlive. You need a reasonable (5-7%) annual return (not found in CDs) but this is not money you gamble with. This means not investing in anything that can go down or is subject to changing market conditions.<br /><br />Once you have the basics covered, you can consider more risky investments if you need a little excitement. Excitement is not all it is cracked up to be when you run out of money!<br /><br />This is not a new concept, it’s just that we have strayed from the basic rules of protecting ourselves from the very disasters many of us are facing now and in the foreseeable future.<br /><br />So, if you are selling your appreciated assets, it is prudent to minimize your taxes, protect your principle and provide yourself with a steady income. I am here to help guide you to the best plan for you and your family. Call or email me.<br /><br />Paula Straub<br />(760)917-0858<br /><a href="mailto:savegainstax@gmail.com">savegainstax@gmail.com</a><br /><a href="http://www.savegainstax.com/">www.savegainstax.com</a><div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-13607494723896313432009-09-15T15:24:00.000-07:002009-09-15T15:25:31.137-07:00Lump Sum vs. Income StreamPeter decided to take a lump sum of approximately 500K, pay his capital gains and depreciation recapture of close to 150K and invest the 350K he had left over after the sale of his investment property. Peter was 64.<br /><br />Peter paid off credit cards and bought some purchases he had been putting off such as a new car and gave some money to his kids and put the remainder into some investments his financial advisor recommended. That was two years ago.<br /><br />Peter is now out of work and has been selling stocks and mutual funds at a loss to cover his bills. He lost a good deal in value on his investments over the last year. He has about 120K left of that 350K and it is dropping fast.<br /><br />If Peter had taken a 20 year income stream from a self directed installment sale, he would be receiving about $3500.00 per month or 42K per year for another 18 years. After paying his taxes on this it would still be about $2450. per month he could count on coming in.<br /><br />If he had simply used this income to pay off his credit cards over the last couple of years he would be out of debt. He may not have the new car or his kids may not have gotten the monetary gifts but he would have an ongoing source of income when he lost his job and would have a means of support going forward if he is unable to find another.<br /><br />His investments would not have lost value and over the 20 year period he would have received about 110K more using the compounded earning power of the money that went immediately to taxes when he took the lump sum.<br /><br />Which would you rather have, the lump sum or the income stream?<br /><br />Paula Straub<br />760-917-0858<br /><a href="mailto:savegainstax@gmail.com">savegainstax@gmail.com</a><br /><a href="http://www.savegainstax.com/">www.savegainstax.com</a><div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0tag:blogger.com,1999:blog-15059589.post-85637015929428423972009-09-02T13:49:00.000-07:002009-09-02T13:50:07.832-07:00Is There Any Way Out of a CRT or Other Charitable Trust?A couple of times of year I get a call from someone who is unhappy with a CRT or other Charitable Trust they are receiving payments from.<br /><br />Either they no longer like the charity it was set up with, someone (the trustee) has mismanaged funds, they need a lump sum rather than the monthly payments they are receiving or the trust has lost money and they are afraid it will run out short of making the payments due.<br /><br />Up until now, there haven’t been many options to make any significant changes, but recently I have met with a couple of companies that may have a viable solution. It is definitely worth exploring.<br /><br />Upon review of your trust, you may be eligible for a cash offer of a lump sum payment in exchange for your future rights to payments from the trust. This lump sum may be taxed at capital gains tax rates versus ordinary income that you have been paying for your monthly check.<br /><br />Currently, this option was only available to large corporations and investment firms, but now individual cases are being considered.<br /><br />This can solve an immediate need for long term care expenses, a way to pass more money to heirs, and a way to disengage from a less than desirable situation with the charity.<br /><br />You may even have an option to spread out the lump sum over a number of years to minimize the taxes if you wish.<br /><br />If you or someone you know finds themselves in a similar situation, please give me a call to go over your options.<br /><br />Paula Straub<br /><a href="mailto:Savegainstax@gmail.com">Savegainstax@gmail.com</a><br />760-917-0858 or 888-338-3036 toll free<br /><a href="http://www.savegainstax.com/">www.savegainstax.com</a><div class="blogger-post-footer"><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml"><img src="http://www.feedburner.com/fb/images/pub/feed-icon32x32.png" alt="" style="border:0"/></a><a href="http://feeds.feedburner.com/blogspot/dOAM" title="Subscribe to my feed" rel="alternate" type="application/rss+xml">Subscribe in a reader</a></div>Paula Straubhttp://www.blogger.com/profile/16661411794582980794noreply@blogger.com0