Archive for July, 2015

07.17
15

When S Corporations Make Tax-sense For Real Estate Investors

by como ·

Accountants and lawyers sometimes joke that there’s an eleventh commandment, “Thou shall not use corporations to invest in real estate.” And for good reason. Real estate loses many of its tax benefits when you invest through or inside a corporation.

In a handful of cases, however, a special sort of corporation– a subchapter S corporation–may be useful for real estate investors, as discussed below…

S Corporations Work Well for Real Estate Flippers

One situation where an S corporation works well is flipping.

If someone regularly flips real estate, profits and losses are not treated as capital gains or capital losses. Rather, profits and losses are treated as ordinary income and loss.

That “ordinary” treatment isn’t all bad. For example, while ordinary income never gets taxed using the low capital gains rates (which is bad), an ordinary loss unlike a capital loss can easily be used to offset other income (which is good).

However, “ordinary” treatment creates a trap for real estate flippers. Ordinary income is subject not just to income taxes–but also to self-employment taxes. Specifically, in addition to any income taxes a real estate flipper pays on his or her profits, a flipper also pays a 15.3% self-employment tax on roughly the first $100,000 of annual profit and a 2.9% self-employment tax on anything over $100,000 in annual profit.

For example, a house flipper that makes $100,000 in some year pays not only income taxes but also a 15.3% self-employment tax, or roughly $15,000.

An S corporation, however, offers up a loophole. In an S corporation, only that portion of the profit that gets paid out as designated wages gets subjected to the employment tax.

Suppose, for example, someone flipping houses operates as an S corp, earns $100,000 in profit, but pays only $50,000 of this profit out as wages (and then the remaining $50,000 as a shareholder “dividend”). In this case, the employment tax equals 15.3% of the $50,000 of wages, or roughly $7500. And the S corporation therefore saves the real estate investor about $7500.

S Corporations Work Well for Rehabbers

And there’s a related group of real estate investors for whom an S corporation works, too.

If you’re someone who’s buying fixers, making substantial improvements, and then re-selling, there’s a good chance that your real estate activities are considered an active trade or business (which means ordinary income treatment and self-employment taxes).

Accordingly, rehabbers may be able to use an S corporation to save on employment taxes, too, just like flippers do.

A quick digression: If you’re confused about why flipping or rehab-ing houses is treated as an active trade or business and subject to self-employment taxes, consider the cases of a retailer or a home builder. A retailer selling, for example, furniture does not get to call his profit capital gain. And a home builder constructing spec homes does not get to call his profit capital gain.

From the point of the tax laws, a flipper is just a “retailer” whose inventory consists of houses. And a rehabber is sort of a home builder.

S Corporations For Property Management Activities

One other S corporation opportunity exists for real estate investors. Specifically, passive real estate investors may sometimes benefit by setting up an S corporation to perform property management for their real estate. This S corporation then employs the real estate investor to do the work of managing, the properties.

A property management S corporation sometimes makes sense because the S corporation allows the real estate investor to accrue social security benefits and because the S corporation, by creating earned income for the real estate investor, also lets the investor provide him- or herself with tax-free fringe benefits like a retirement plan or health insurance.

A real estate investor with, for example, several rentals might form a property management S corporation, pay a reasonable salary, and then get tax-free health insurance and a 401(k). These sorts of tax-free fringe benefits could save a family $5,000 to $10,000 a year in taxes.

Note: Setting up an S corporation for property management purposes can be tricky. While real estate investors tend to be a do-it-yourself bunch, for an S corporation, you probably want to get expert help from a knowledgeable CPA, tax attorney or enrolled agent.

07.16
15

Employee Benefits Explained

by como ·

Whether youve just started a new business or youre simply an employee in a new job trying to understand employee benefits and how they relate to your tax obligations, this post is designed to answer some of the questions you might have and clear up exactly what employee benefits are, what the advantages are and how to make them work for you. Accountants and other tax professionals can definitely help you further with your specific situation, and it is a good idea to seek advice in order to make the most of your benefits.

What Are Employee Benefits?

Employee benefits, put simply, are any non-wage compensation an employee receives on top of a cash salary. Things like health insurance, discounted products, a work car, phone or salary sacrificing agreement are all employee benefits. These are often called fringe benefits or perks and are non-monetary ways that an employer can make a position within the company more attractive.

Salary Sacrificing

Salary Sacrificing is an agreement an employee enters into with their employer which sees a portion of their total wages being used in certain areas specified by the employee. For example, an employee can choose to have a insurance premiums, a certain amount of rent, a leased vehicle repayments or credit card repayments taken care of by his or her employer under a salary sacrificing agreement. These are most popular in not-for-profit organisations as the salary sacrificed portion of wages is not taxed.

According to the ATO, there should always be a written agreement when it comes to salary sacrificing:

It is advisable that you and your employer clearly state and agree on all the terms of any salary sacrifice arrangement. The contract is usually in writing, but may be a verbal one. If you enter into an undocumented salary sacrifice arrangement, you may have difficulty establishing the facts of your agreement. Subject to the terms of any contract of employment or industrial agreement, employees can renegotiate a salary sacrifice arrangement at any time. Where you have a renewable contract, you can renegotiate amounts of salary or wages to be sacrificed before the start of each renewal.
It is important to understand employee benefits regardless of whether you are an employer or an employee. A tax accountant can advise you as to how to make the arrangement work best for both parties, and can help you devise a mutually beneficial program.

07.15
15

A Good Anger Management Class Should Teach You How to Use the F-Bomb!

by como ·

The F-bomb is an important part of an anger management class? Isn’t that what got you in trouble in the first place?

Using the F-bomb that you are thinking of comes easy to most of us who struggle with anger. But there is another kind of F-bomb that most of us have a much harder time using – forgiveness.
When I first raise that idea with most people in my anger management classes, they look at me like I’m out of my f-bombing mind. But thats because most people misunderstand the purpose of forgiveness, thinking that it shows weakness or that you have to forget what happened that made you angry in the first place.

Forgiveness is just about acknowledging that someone did something wrong to you and that you deserve better. Its also about setting you free from all the stress you carry around with you by holding all those grudges.

“How’s that?” you might ask. Well, many of us think of anger as a way of keeping the one who did them wrong in a kind of emotional prison. As long as they hold onto the anger and bitterness, the other person stays in jail. But when you really stop and think about it, the only one who is really in an emotional prison is you. Usually the person you are angry with is either unaware, doesnt care or simply dont give it as much thought as you. In the meantime, you’re obsessing yourself into a nice steady simmer over what was done to you. The person who angered you is on vacation and you are the one in prison! Your anger management problem ends up affecting you more than the one who hurt you. Is it just me or is there something wrong with this picture?

An anger management class should help you to understand that forgiveness is the key to unlocking the prison door. There is not some automatic “click” that sets you free. You must choose to walk out of that cell. Some have lived with the label of “angry victim” for so long that its become part of them. Theyd rather live in the cell because at least they know what to expect there. Forgiveness frees you from all that pent up anger. Its one of the strongest cures an anger management class can offer.

07.14
15

Are Time-honoured Offline Banks Really Better Than Online Banking-00-222

by como ·

With the omnipresent internet connection, you can conveniently organize your online banking transactions from the screen of your home computer, while in your office or even as you travel . The Internet as an over-the-top technological invention has so caused life to become easier for everyone including the business community, housewives, students and professionals. Notwithstanding, this new communication phenomenon people have not stopped patronizing the usual off line banks . The traditional banks will invariably remain in existence; most people still choose to transact in an actual bank in which they feel to the highest degree comfortable and secure.

The banks that are now online though provide same services yet , they have their advantages and disadvantages and. It’s actually up to you to decide the type of bank to transact your financial affairs with. What really count s is that you should know your financial demands so as to be able to actually be on the look out for the latest tendency in the banking industry and understudy them to see how it favors you. Even if you are loyal to your usual offline bank, you may also have the need to sometimes use the online banking service for an urgent transaction or when you are where the bank is not near by .

Established banks are still making use of the traditional writing materials for banking transactions off line while also maintaining an online presence whit computer, internet connection and keyboard as the writing materials . It is obvious that everyday several people go online to introduce internet-only banking business websites that compete with the traditional banks . Though these conservative banks cater mainly to their old customers, people who should know are advising them to also open online offices to serve the internet-savvy young people and by so doing attract more customers

Security and person to person interactions are the main reasons people maintain the use of traditional banks. A lot of people feel that human contact is a necessity in any bank transaction; they want to hand their hard earned cash over to real teller .

Banking on the internet brings about the same result as with an offline bank . The important difference is the replacement of bank staff, paper and pen with your computer and internet connection for making and receiving payments and statements reconciliations . You dont really have to worry about going to your local bank branch when you can do all the things necessary to effect a bank transaction in the comfort of your home with a desktop computer or laptop and internet connection.

A principal advantage that internet banking offers people who go for online banking is cost effectiveness. Certain banks are known to charge their customers lower fees if the bank online banking services.

07.13
15

Customer Relationship Management Strategies in Times of Crisis

by como ·

The current customers are the key to overcoming the current economic downturn. Attracting new customers costs between 6 and 13 times more expensive than the preservation and sale on existing ones. Under normal conditions, companies lose about 50% of existing customers average on every five years, while the difficult attraction of new ones in an environment of shrinking market and financial crisis, imposes to look at this as a cost-effective source of revenue. Effective management of customer relationships is essential in times of crisis and organizations can use customer – oriented strategies and Customer Relationship Management (CRM) tools to maximize the value and loyalty of their customers to open up new opportunities not only for survival but also for development.

Should the customer relationships be managed?

The typical client no longer exist and some companies learned it by the hard way.Until recently, business was more concerned about what sells. In otherwords, companies focused on selling as many products and services without giving importance who buys them. Still, many companies are product-oriented, based on its organizational structure and bonus plans on the products, which they sell, than on customers who buy them.

Modern companies have already changed or plan to change their organizational structure and information from product to customer-oriented, applying reengineering on core business processes and laying the groundwork for transition to the next stage of their development – active management of customer relationships.

If we perform an analysis, we will see that focusing on only 5% of loyal and valuable customers can increase profits by 25% to 70%. This, together with the fact that it costs much more expensive to sell to new customer than to an existing and loyal one, motivates companies to try to maximize their existing customer relationships. Also, dynamic market environment and business conditions make it necessary to take into account the following factors:

– Changed organization of work: In today’s business and corporate structure often professionals working in the departments of marketing, sales and customer service rarely and sometimes never made direct contact with customers. CRM is a business strategy, philosophy and technology that aims to fill this gap.

– Changed business environment: Changed is the behavior of customers and it is not the same as prior years. It is becoming increasingly difficult for companies to operate, meeting the symptoms of “marketing fatigue” in potential customers. The increasing variety of marketing and communication messages to customers, leads to the effect of continuing contraction of the benefits of traditional marketing tools and for the search for new ones.

– The increasing complexity of markets: The increasing globalization leads to the emergence of new competitors that offer completely new products and services.

07.12
15

Chemicals Investment Banking Requires Industry Experts

by como ·

After successful finishing in the internet banking enrollment process, it is possible to get a message welcoming you to definitely M&T net banking and you are going to need to log on to your web bank account to receive the necessary M&T online banking stipulations.

Many small businesses proprietors – or large business owners for that matter – wonder what their company is worth. For those owners who have money and so are particularly curious, they are able to hire a firm valuation specialist to complete a valuation just an appraiser would could come an do an appraisal of your house. For those who not merely want to have a valuation for company but who also want to understand the fundamental value drivers of the business, they can learn how to do that valuation themselves. One such valuation method will be the comparable companies analysis. Let’s have a look at what it involves.

Finally, we can use the multiples statistics to calculate the value of the company showcased. To accomplish that, we pull together the identical corresponding financial statistics for that company in question in the same period. We can then multiply them from the mean, median, minimum and maximum multiples of each from the statistics to distinguish an estimated value and range for each from the multiples.

Corporate Finance: Corporate finance includes a array of areas for example debt and equity capital, appropriate capital structures and mergers and acquisitions. Advisory services include sector specialists, who are backed up by several general service teams.

In addition, Gary Silversmith companies offer services such because facilitating of corporate mergers and managing your assets wisely. They also assist in raising capital for corporations through the sale of corporate securities, corporate reconstruction, and IPO selling.

This is a qualifier useful for income statement operating statistics and is also among essentially the most common calculations performed in financial analysis. It is employed to get a business’s latest available information without reference to when the organization sets its fiscal year end.

Remember, performing a comparable companies analysis is surely an art, not a science, so it is critical to pay careful attention to how we select your comp set, how you spread the financial for each and every company and which multiples you favor inside your analysis. Once you might have completed the analysis, you may not only have a good sense from the value with the company you might be analyzing, but you may also have a good sense of what drives value just for this industry inside the financial markets.

An example of an non-traded investment trust with a high dividend yield is Inland American with $10.8 billion (,7.2 billion) in assets which in fact had an annualised yield of 6.9 pecent in the end from the third quarter of its fiscal 2012. Bycomparison, the dividend yield from the BBREIT index,which includes 129 public real estate investment opportunities trusts, was 3.5 percent to the same period. Inland American is one with the non-listed REITs which can be already considering its exit options. The firm is working together with investment banking professionals to find out the smartest choice for returning a reimbursement to investors.

07.11
15

Oil Field Employment Want To Get An Oilfield Job Faster Spend Some Money

by como ·

Most people try to get oil field employment without spending any cash. Unfortunately, there are only a few free methods to look for a job – submitting your resume to Monster, free online job boards, recruitment agencies and your local unemployment office (if you stay in an oil town); and scanning newspaper advertisements for oil job vacancies. With a ratio of 10,000 or more people all chasing the same 10 oilfield jobs, your chances of success are pretty poor.

Most of the people competing with you to chase for an oilfield job are not willing to spend any money. They are:

Afraid of scams

Stingy cheapskates

No money to spend

Ignorant of how the world really works

They think they are entitled to a job, so someone should give them one even if they don’t do anything to earn it

If you are doing the same things that everyone else is doing, and not getting any interviews, it is foolish to continue following the crowd. You have to seriously think about doing things that most job-seekers do not do. Firstly, do you have a good resume and cover letter suitable for jobs in oil field? Someone with 20 years of relevant experience can put together a slapdash resume and still get interviews. But a recent high school or college graduate does not have that same luxury. Don’t you think spending $50 to get a professionally written resume is worth the money?

Secondly, do you know that getting an oilfield job is a numbers game? This is especially the case when there is a recession. The more resumes you send out, the better your chance of a successful interview. Experience shows that for every 30 job applications an experienced guy submits, he will get three to six interviews. Depending on how greedy or competent he is, every 5 interviews he attends will get him at least one or two job offers.

In good times, sending out 10 resumes using only the free online job boards like Monster will get you one or even two job offers (as long as you don’t flub the job interview). But in tough times, you may need to send 100 to 200 resumes to get a decent offer for jobs in oil field. How many resumes have you sent out so far – 10, 50, 200? The person who sent out 200 resumes is much more likely to get hired for oil field jobs. But relying only on job boards and newspaper advertisements, it is very hard to see how you can send out even 100 resumes quickly. Even if you look on the internet, it is difficult to find the email address of the human resource departments for oil companies – especially the smaller oil service contractors who do the bulk of the hiring. The situation gets worse when you consider that many small companies do not have a website.

You have spend money to get all these contact phone numbers, postal addresses and email addresses:

Order the membership directories of trade associations in the oil industry

Order the membership directories published by business associations/bureaus

Buy the Yellow Pages from the telephone companies

If you want to save time and effort, you can try paying one of the resume submission companies who specialize in the oil and gas industry. They will send your resume to hundreds or even thousands of oil companies. Not all of them are good – you’ll have to do some research to find out which ones are reliable and can do a good job.

Getting hired for oil field employment fast, means doing more than what all your competitors are doing. If you follow the crowd like a lemming, you’ll join them when they go over the cliff. Is that what you want?

07.10
15

The Advantages And Disadvantages Of Pre-employment Drug-screens

by como ·

Many organizations consider pre-employment drug screening as an effective strategy to save their workplace from unwanted conflicts due to the drug abusers. Pre-employment drug screening is a proactive measure companies take to maintain high productivity environment. It helps them to make the workplace safer, and their employees free from frequent sick leaves and to prevent drug abuse on the job.

The Advantages of Pre-Employment Drug Screens
Pre-employment drug testing has many advantages.

Pre-employment drug testing helps organizations to check drug-abuse habits of the job applicants. Thus, it helps them to avoid hiring people with habit of frequent drug abuse.
Pre-employment drug testing not only helps organizations to create a safer and drug-free workplace but also reduces or avoids their chances of handling any future conflicts due to the drug abused employees in their organization. These conflicts include workplace violence or accidents, health benefit utilization and costs, lowered productivity, high insurance premiums, and frequent health-related absences.
The pre-employment drug-screening program in an organization also has an ample potential to drive the drug abusers away from applying in it. This can be very helpful for small and medium businesses where drug abusers are more likely to apply, as they dont need to invest much of their time and money on such applicants.

Drawbacks of pre-employment drug screens
Though pre-employment drug screening has many advantages, there are some issues associated with it.

The major drawback of drug screening is its sample collection process where job applicants are likely to feel violation of their privacy. This increases the hassle for organizations of handling the screening more sensitively.
Some drugs such as marijuana remain detectable for up to three weeks after their usage. Some other drugs such as cocaine might remain only for few hours after usage. Thus, making a hiring decision based on these results requires much caution as it may affect the career of a job applicant.
There are some possibilities of prescription-drugs affecting the drug-testing results. Organizations discriminating a job applicant based on the prescription drug-abuse could be violating the Americans with Disabilities Act.

Some latest advances in medical testing have resulted in evolvement of certain drug-screening products, which are easy to monitor, adulteration proof, affordable, and provide instant and reliable results. These enable organizations to conduct pre-employment drug-screening effectively, with a decreased potential of drawbacks.

07.9
15

Mlm Business Opportunity Networking Marketing Secrets Made Use Of By Pros

by como ·

If you’d prefer to become self-employed, MLM home business opportunity is an excellent approach the place you will get inspiration, intensive training and much much more support. You’ll learn how you can run your enterprise from home and generate leads for ones online brand. It might take you up to several years of complete focus in making big money with network marketing even so the end justifies the means.

Exactly what is MLM?

MLM (Multi-level marketing) is usually a online marketing strategy where the sales force is compensated for personally generated sales and purchasers generated by sales guys recruited. You might have multiple stages of getting compensation since the sales team levels increase.

The world’s your oyster towards quantity of levels that could exist. The truth is, a lot more levels you have, the harder compensation you obtain. MLM business opportunity is likewise called network marketing, pyramid selling or referral marketing.

Although referral marketing has been considered some sort of illegal pyramid scheme, there are turned out to be bring more good than injury to many internet and even offline marketers.
You could make use of an MLM business opportunity to sponsor numerous others into your network marketing through social networking networks.

Should you be new or possibly a month or two old in internet marketing, MLM is a great technique to build brand awareness, generate leads and getting more customers to seek out your the merchandise you are offering.

MLM Business Opportunity: Secrets the Successful MLM’ers Use

1. Home based
The web is an ideal tool on your MLM business opportunity along with the good news can it be is out there everywhere. There’s no need to get out of bed at the beginning of the morning to visit work.

Get net connection in your house and work online. No rush hour traffic, being your personal boss and making great money, wouldn’t you want this?

With pyramid selling, not one person will coerce anyone to signing an agreement you are not considering, you do not attend extended stays closed-door meetings, and everything relies on you.

2. Depend on the device
An MLM system will coach you precisely how to reach your goals. You may be trained by way of a team of other experienced affiliate marketers who definitely have made big money offline and online.

Networking marketing also relies on recommendations, so, you’ll probably do offline activities. It is actually from within it that you find out how the entire online strategy is implemented and what you must do to be removed victorious.

3. Get Support, Resources and Guidance
Regardless of regardless of whether you currently have an on-line brand, since you will not be yet an experienced means you may need more knowledge, resources, support and guidance to reach a similar level as advanced internet marketers.

Do you think you’re very happy with the outcomes of this inbound marketing efforts? Or even, are you willing to do business from home or somewhere else not really any office?

If so, then MLM business opportunity will probably be your golden chance. You won’t just attract traffic and generate leads but make a lot of money and turn into a pro internet marketer.

07.8
15

Ichimoku Trading Strategies and the Relation to Price and Price Action

by como ·

There are myriad of strategies that you can make use of to trade in the Forex market and among all of these, one of the most efficient are the ichimoku trading strategies. Mainly when you’re trading in Forex, it doesn’t matter what currencies you’re trading in. It doesn’t even matter what method, indicator or strategy you make use of. The main focus of your trading will always be the price and the price action. Once you gain a good understanding of these two things, you’ll be able to enhance your trading system.

In conjunction with using ichimoku trading strategies along with looking at the price and price action of your currencies, you’ll have a good edge in Forex trading. Before, the scenario might be divided between hit and a miss but now you can always make a hit on the profits. If you have a currency pair of the GBP/USD and trading on a daily time period, you’ll have a good way of knowing when it’s time to enter into selling or exit a selling position – it’s the same with entering and exiting a buying position.

On this situation, you only need to look at the price line and the current price. When the price line goes over the chikou span line or the lagging line in the ichimoku, it’s a good indicator that it’s the best time to sell. In contrast, the entry signal to buy will be when the chikou span is above the price line. In relation to the current price, selling is the best move when this is below the cloud and of course buying is the best move when current price are found above the cloud. If you focus your attention on price and price action, you can make the most out of your strategy. If it’s the ichimoku trading strategies, you’re in for some big profits.

At http://2ndskiesforex.com/, Chris Capre offers his unique Institutional and Retail market experience teaching Price Action & Ichimoku Strategies to trade the market successfully.