Friday, July 27, 2012

Focus on Jobs, The Rest Will Come!

Quick note for Mr. Obama

Mr. Obama, just focus on job creation in the United State, and the rest of what we need will follow. It's not a difficult concept.  The creation of jobs in the U.S. will solve many of our other problems and ailments just by creating new jobs, which will create spending, which will create more demand for products and services, which will create more jobs, and more demand, and so for.  It's the domino effect in economics. 

Stop worrying about whether we should tax the rich or the middle class.  Stop worrying about health care at this point.  Just create jobs.  The rest will follow.  

My two cents. 

Tuesday, July 17, 2012

Mr. Obama Thinks Businesses Thrive BECAUSE of Government

Business Survives IN SPITE of Government

No, Mr. Obama.  I'm sorry, but that is simply not true. I have been a small business owner and a small business investor for many years, and I can tell you that I have NEVER EVER thrived because of anything that the government did.

It's quite the contrary.  Businesses, especially small businesses, survive IN SPITE of government interference; not because of any thing that the government did.

Obama is Out-of-Touch, Again 

The simple fact that you, Mr. Obama, believe that businesses thrive "because" of what government does for them clearly demonstrates that you are completely out-of-touch with businesses, including and especially small business owners and investors. 

The fact that you are so out-of-touch with what creates jobs in this country should scare each and every taxpayer. It is because of you that this recovery can't seem to kick into high gear.  

Business as Job Creators 

Businesses would not just survive; they would actually thrive with significantly LESS government.  And, if businesses thrive, they create more jobs and hire significantly more people.  That is what it is all about Mr. Obama - job creation!  Let's get people back to work!  

Monday, July 16, 2012

Structured Investing Quarter-In-Review

Quarter-In-Review Webinar

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Structured Investing Quarter-In-Review Webinar

The Quarter-In-Review webinar focuses on reviewing the events that have influenced global markets this last quarter and will also present research and historical data that reinforce the Structured Investing philosophy.

The Structured Investing Quarter-In-Review webinar will cover:
  • Quarterly domestic and international stock market numbers 
  • Recent economic data 
  • What moved the markets in the past quarter 
  • How the basic tenets of a Structured Investing philosophy still apply 

Tuesday, July 10, 2012

When Would a 1031 Exchange Not Benefit Me?

I get this question quite a bit. Is there ever a situation or time when a 1031 Exchange might not benefit me or would not be such a good idea? The answer, of course, is yes. 1031 Exchanges are complex tax-planning strategies that are not suitable for everyone and are certainly not appropriate under all circumstances.

The sale of any real estate should be carefully evaluated to determine the best and most suitable tax-planning strategy available for each investor. This is why investors should always visit with their legal, tax and/or financial advisors before proceeding with any 1031 Exchange. Advisors can help investors ensure that the 1031 Exchange is the best alternative for their specific situation, goals, and objectives. I cannot emphasize this enough! I know that investors like to do things themselves, and that they hate to pay advisors for their advice and guidance, but a few hundred dollars is well worth it if you can avoid a major headache later. Remember, investors often do not know what they do not know. An advisor can help you understand what you do not know, but need to be wary of.  Your team of advisors should also include a good 1031 Exchange Qualified Intermediary that can help balance each of the advisors opinions.

Having said all of that, you would generally not want to structure a 1031 Exchange transaction for the sale of investment real estate if the sale would generate an actual loss for income tax purposes. You would most likely be better off with selling the property without a 1031 Exchange so that you can recognize and write off the loss from the sale. However, there are limited situations when you might actually want to defer a loss from the sale of property by structuring a 1031 Exchange.

In many cases, an investor’s Adjusted Gross Income, also referred to as his or her AGI, might be high enough that it prevents the investor from taking advantage of his or her passive activity losses on some or all of their investment properties. The outright sale of the investment property may allow them to recognize and take full advantage of the accumulated suspended passive activity losses against other taxable income or gains. It might make more sense in cases like this to just sell a property and use up the suspended activity losses. This requires careful analysis of the investor’s overall income tax position.

Investors may also want to consider a partial 1031 Exchange where they sell property at one value and exchange into or acquire a lesser value property or what we call trading down in value. This would allow them to defer most of their taxable income tax from depreciation recapture and capital gains, but recognize a small amount to strategically offset certain other loss carry forwards. Trading down can also be an effective strategy used to reduce their overall debt service level. It is important not to automatically rush into a 1031 Exchange, but to do some carefully planning to make sure that the 1031 Exchange is the right strategy to meet your specific goals and objectives.