Tax Stuff Archives

I Could Not Believe It.

Is This Really True?

It Is In The Planning Stages Now

The Federal Transaction Tax!

President Obama’s finance team and Nancy Pelosi are recommending a 1% transaction tax on all financial transactions.

It is true.

The bill is HR-4646 introduced by US Rep Peter deFazio D-Oregon and US Senator Tom Harkin D-Iowa.

Their plan is to sneak it in after the November election to keep it under the radar.
See what Nancy has to say about this wonderful idea!  http://tinyurl.com/24dn5ud

It’s only 1%! This is a 1% tax on all transactions to or from any financial institution i.e. Banks, Credit Unions, Mutual funds, Brokers, etc.

Any deposit you make will have a 1% tax charged.

Any withdrawal you make, 1% tax.

Any transfer within your account, a transfer to or from savings and checking, will have a 1% tax charged.

Any ATM transaction, withdrawal or deposit, 1% tax.

If your pay check or your Social Security is direct deposited, 1% tax.

If you carry a check to your bank to deposit, 1% tax.

If you take cash in to deposit, 1% tax.

If you receive any income from a bond or a dividend from stock, 1% tax.

Any Real Estate Transaction, 1% tax.

This is from the man who promised that if you make under $250,000 per year, you will not see one penny of new tax! Remember, he is completely honest and trustworthy.
Keep your eyes and ears open.

Folks, Nancy says this would be a minimal tax on the people, but 1 percent every time you pay a bill or make a deposit is not minimal. This would no doubt tax investment transactions as well as bank account transactions.

Excerpt from American Debt Relief

Contact Your U.S. Representative AND U.S. Senator Now

Here is the Link for fill-in-the-blank email to Your U.S. Representative

https://writerep.house.gov/writerep/welcome.shtml

 


 

 

My CPA emailed me this morning

Obama Administration Announces Panelists and Agenda for Conference on the Future of Housing Finance

WASHINGTON – Today, the Obama Administration announced additional details about its August 17 Conference on the Future of Housing Finance, including a list of panelists and the conference agenda. This event will provide a forum for public input as the Administration continues its work developing a comprehensive housing finance reform proposal for delivery to Congress by January 2011.

“Across the spectrum, stakeholders agree that our current system of housing finance requires fundamental reform,” said Jeffrey A. Goldstein, Under Secretary of the Treasury for Domestic Finance.  “This conference is an opportunity for us to broaden our perspectives on a number of key issues in a transparent way to make certain that all of the best ideas are on the table.”

“This conference is an opportunity to engage stakeholders and experts with broad knowledge and many perspectives,” said Dr. Raphael Bostic, HUD Assistant Secretary for Policy Development and Research.  “It is part of our larger effort to make sure that we have a deep and wide understanding of these issues as we chart a thoughtful, sound path forward in reforming our housing finance system.”

During the conference, Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan will moderate panel discussions with a diverse group of experts about the critical issues surrounding housing finance reform. These panelists represent a cross-section of stakeholder groups with interests in the outcome of this reform process, including citizen advocacy groups, economists, investors, market researchers, originators, securitizers, servicers, and private mortgage insurers. The following individuals will be panelists at the August 17 conference:

 

·         Barbara J. Desoer, President of Bank of America Home Loans

·         Ingrid Gould Ellen, Professor of Urban Planning and Public Policy at New York University’s Wagner Graduate School of Public Service and Co-Director of the Furman Center for Real Estate and Urban Policy

·         Bill Gross, Co-founder and Co-chief Investment Officer of PIMCO

·         Mike Heid, Co-president of Wells Fargo Home Mortgage

·         S.A. Ibrahim, Chief Executive Officer of Radian Group Inc.

·         Marc H. Morial, President and Chief Executive Officer of the National Urban League

·         Alex Pollock, Resident Fellow at the American Enterprise Institute

·         Lewis Ranieri, Chairman of Ranieri and Company, Inc.

·         Ellen Seidman, Ellen Seidman, Executive Vice President for Mission and Strategy, at ShoreBank Corporation, and Chair of the Board of Directors at the Center for Financial Services Innovation

·         Michael A. Stegman, Director of Policy and Housing for the Program on Human and Community Development of the John D. and Catherine T. MacArthur Foundation

·         Susan Wachter, Richard B. Worley Professor of Financial Management, Professor of Real Estate, Finance and City and Regional Planning at the University of Pennsylvania’s Wharton School

·         Mark Zandi, Chief Economist of Moody’s Analytics

 

Details regarding the event, including topics for panel discussions and breakout sessions, and logistics for members of the media seeking to attend the conference, appear below.

Media Logistics:

WHAT:           Conference on the Future of Housing Finance

WHEN:          Tuesday August 17, 2010 
                        9:00 a.m. – 1:30 p.m. EDT

WHERE:        Cash Room 
U.S. Treasury Department 
1500 Pennsylvania Ave., NW 
Washington, D.C. 20220 
The event will also be streamed live on 
www.treasury.gov.

 

9:00 AM EDT  
Treasury Secretary Tim Geithner
Opening Remarks
Cash Room 
U.S. Treasury Department 
1500 Pennsylvania Ave., NW 
Washington, D.C.

Coverage: Open Press

 

 

9:15 AM EDT 
HUD Secretary Shaun Donovan
Delivers Remarks
Cash Room 
U.S. Treasury Department 
1500 Pennsylvania Ave., NW 
Washington, D.C. 
Coverage: Open Press

 

9:30 AM EDT
PANEL DISCUSSION ONE – Housing Finance Reform and Broader Financial Markets
Moderated by Treasury Secretary Tim Geithner
Cash Room 
U.S. Treasury Department 
1500 Pennsylvania Ave., NW 
Washington, D.C. 
Coverage: Open Press

 

10:30 AM EDT
PANEL DISCUSSION TWO – Housing Finance Reform and Broader Housing Policy Goals 
Moderated by HUD Secretary Shaun Donovan
Cash Room 
U.S. Treasury Department 
1500 Pennsylvania Ave., NW 
Washington, D.C. 
Coverage: Open Press

 

11:45 PM EDT 
WORKING BREAKOUT LUNCHES 
Hosted by Senior White House, HUD, and Treasury Officials 

Breakout Session Topics: 
Breakout Session One:  Key Players in a Reformed System: Role of the Private Sector and of Government
Breakout Session Two:  Delivering Access and Affordability
Breakout Session Three:  Funding Housing and the Role of Securitization
Breakout Session Four:  Aligning Private Market Incentives in the Housing Finance Chain
Breakout Session Five:  Supporting Capital for Multifamily Finance
Breakout Session Six:  Managing the Process of Transition

Coverage:  Open to correspondents only. No recording devices for broadcast purposes will be allowed. Space is extremely limited and will be allocated on a first-come, first-served basis. Interested reporters should gather at 11:35 AM at the Cash Room press riser for escort.

1:15 PM EDT 
CLOSING REMARKS

Media Notes: 
Conference panels and official remarks are all open to press; working breakout lunches are open to correspondents only. Space is limited and is first come, first serve. The event will also be streamed live on 
www.treasury.gov.

Media without Treasury press credentials planning to attend must contact Frances Anderson in Treasury’s Office of Public Affairs at (202) 622-2960 with the following information: full name, Social Security number, date of birth, and country of citizenship.  This information may also be emailed to frances.anderson@do.treas.gov.  Congressional and White House press passes will not grant you access to Treasury. Please note if you have camera equipment. The deadline to RSVP is Monday, August 16, 2010 at 12:00 PM EST.

Press with camera equipment should arrive at the Moat Entrance (south side of the Treasury building, adjacent to the Hamilton entrance) no later than 7:00 a.m. to allow time for equipment sweeps and escorts to the Cash Room. No vehicles will be permitted onto Treasury grounds; equipment must be carried in. All other media can enter the Treasury building through the Pennsylvania Avenue entrance and should allow 45 minutes to clear through security. Final access to the Cash Room will be 8:45 a.m.

###

 


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Mike

I have recently converted a house I bought in 1988 that was my principal residence till 2009 into a rental unit under my LLC.

How do you suggest that this conversion be recorded so that it is tax advantaged for the LLC.

Meaning, when the property gets sold at some future date the LLC does not get hit with capital gains that is non-existent.

I am thinking of cost basis of the property circa 2009, what should it be?

Since it was a principal residence up until then no depreciation was taken or reported over the 20+ years; there were some improvements done since the house was originally bought; the market value and also the assessed value have gone up and down with the market, at any rate market values are irrelevant – what then would be proper accounting for the property in the books? Would appreciate if you would enlighten me

 

Shaw Ali

 

———————————————–

 

ANSWER:

Fantastic Question Shaw!

Long story short, for the time being and in recent years, one could sell their residence for Tax Free Profit. There were some guidelines and limits. For example, a single person was limited to 250k profit and married was limited to 500k. Many investors were using this one tax strategies to generate big chunks of tax free cash about every 2 years.

Odds are, there is a time limit on such a beautiful tax strategy. This date I am not sure of and will have to check with my CPA, and I recommend you to do the same.

As far as the LLC, there are a number of variables to factor including how you are reporting the activity of your LLC. Are you reporting it as a sole proprietorship for tax purposes?

If not, you might be able to sell your residence to your LLC and get “tax free profit” on paper and start your LLC off with a high cost basis.

Either way, please get an expert real estate investor CPA to give you a very precise laser focused to your situation answer and solution.

 

Mike Butler

 

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