Market Minute: Cynthia Petitjean, CPA, ESQ. Talks About the 3.8 ...

The 3.8% tax on real estate sales as put forth in the Affordable Health Care Act goes in to effect January 1, 2013. Tampa CPA and Attorney Cynthia Petitjean talks about the tax and its implications.

Cynthia Petitjean, ESQ, CPA sits down with us on the Market Minute to discuss how the new tax on capital gains will effect real estate.

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Eric: Welcome to another Market Minute. ?My name is Eric Odum, Principal Real Estate Broker for ROI Commercial Property Brokerage in Tampa, Florida. ?Today, we?re going to talk about the rumor of a 3.8% tax to be placed on real estate through the healthcare law recently passed under the Obama administration. We are going to clear this rumor up. We have with us Cynthia Petitjean. Cindy is a CPA and member of the Florida BAR since 1992> ?Her areas of practice are estate & tax planning, tax compliance, tax controversy representation at the state and national levels, and probate administration.

Eric: Cindy, thanks so much for joining me today.

Cindy: Thanks for having me.

Eric: This is a pretty controversial tax in the real estate world. ?There has been a lot of rumor and innuendo on how this tax will be applied. Where did this tax come from?

Cindy: On March 23, 2012 Congress and President Obama passed ?The Patient Protection and Affordable Care Act?. A portion of that act implemented a code section which assessed a 3.8% tax on certain high income tax payers effective January 1, 2013.

Eric: Who exactly are those high income earners?

Cindy: Beginning on January 1, 2013 this code section comes into effect. A high income tax payer is defined under this new law as a couple filing a joint return that is earning over $250,000, which I believe is just the gross income (the line on the bottom of the first page of your tax return). ?For married filing separately couples that threshold is $125,000. For all others head of household or single tax payers, its income above $200,000. ?This tax is not only assessed on real estate but wages and self-employment income.

Eric: Is there a number attached to the sale of the property; does it have to be a particular capital gain?

Cindy: There is a complex formula, but for the most part the 3.8% tax is going to be assessed on what is termed ?Net Investment Income?. ?Net investment income is traditionally dividends, rents, interest, capital gains which you just asked about, royalties and passive activity income.

Eric: I know this is complex, if someone wants to discuss their specific needs how can they reach you?

Cindy: I can be reached at 813-659-2020.If you prefer to email your questions I can be reached at cmp@cmp-law.com.

Eric:?This subject originally got people stirred up because there was a viral email that was being passed around that would not die. ?It said everyone is going to get taxed on the sale of their property. Now, that?s not really true. ?It is on capital gains?not the net sale amount, as the email stated. ?It really?doesn?t?seem to be affecting a large number of people or is it?

Cindy: That is a misconception of once you sell a property you will be taxed on the gain of the property. First off, there is the potential gain that an individual or a joint filling couple might recognize upon the sale of their principle residence. Briefly you can exempt up to a half million dollars of gain if you are filing a married filing jointly return or up to $250,000 of gain if you are a single tax payer on the sale of your principle residence. Let me make the point that gain is not total proceeds.

So for example, let?s say you sale your house for $350,000 you may not have a taxable gain there if your basis which is what you brought it for and what improvement you placed into it is greater than $100,000. As a single person, $100,000 base minus $350,000 gross proceeds from the sale (what you received from the buyers) equates to a $250,000 gain. Under current law that gain is excluded from income for a single tax payer, that gain will also be excluded from the 3.8% tax.

For the most part, if you are under the threshold of excluding a gain from a principle residence, you will be excluded from this tax. Also. the gain on the sale of non principle residence property ( i.e. property used in a trade or business) that?s sold and there?s a gain and the property is used in your trade or business that gain will also be exempt, because that gain is treated as trade or business income which is not subject to the tax.

Eric: What I focus is on commercial real estate, but talked has centered on residential property. I haven?t seen a lot of information in regards to commercial real estate, so I?m glad you touched on that. Let?s talk about the rules for commercial real estate and the $250,000 exclusion, as it pertains to the business side.

Cindy: Property that is used in a trade or business? if the property is sold and a gain is recognized because it?s in the bucket of a trade or business income is not considered under the 3.8% law as net investment income. That property is not going to be taxable if sold by a person in a trade or business. Let me make a point here that this tax is on the individual. ?If you?re a C corporation and you sell property that?s been held as an investment, this 3.8% tax doesn?t apply. This is what I call flow entities ? partnerships and S corporations ? it doesn?t matter what the entity, either a corporation or an LLC it?s tax classification of partnership or S corp and the implications that occur in those entities flow through to the individual. The character of the income that is recognized by the entity flows through to the individual and that is where you apply the rules of what is net investment income vs. active trader business income.

For example: S Corporation sells a piece of equipment and a gain is recognized on it. That piece of equipment, if used in the act of trade or business, is going to reflect a gain that?s going to flow through to the shareholder that is going to be active trader business income? and not going to be subject to the 3.8% tax. On the other hand, that S Corporation was holding a share of?publicly?traded stock for investment purposes and it was sold for a gain. That gain will be treated as capital gain that flows through to the individual shareholder and applying the other thresholds of high income taxpayer and other complex formulas may be taxed at the 3.8% rate.

Eric: Let?s talk about the reality of the situation. ?We?ve taken a beating in real estate. ?The values of real estate have been turned back a decade. Folks are going to probably have held this piece of real estate for a long period of time to actually have experienced the capital gains, plus the $250,000 or higher income to be subject. Is that correct?

Cindy: That?s correct. Let me also point out that this is not only on capital gains. ?This is on dividends and interest. Even as important, a capital gain that might be impacted by the 3.8% tax is rent. Rental real estate according to the internal revenue code is passive unless you?re a real estate professional and can treat those rentals as an active trader business? it?s passive. The new law requires passive income to be subject to this net investment tax. There is some confusion about whether this tax is going to apply to rent that a person materially participates. I?m getting into complex passive activity participation rules.

Eric: Yes, that seems like some individual rules. ?They can chat to you personally about this.

Cindy: There is some area of clarity in the law that we?re expecting regulations to come out, but it could potentially be a point of planning.

Eric: Let?s talk about a high income doctor who has had real estate for a long period of time. Seems like professionals will be the most affected by this tax. ?I?ve has this case within the last month. A doctor who has had his building and practice for thirty years or more thinking about how to get out. ?He?s at that retirement age, making $280,000 a year and has substantial gains on that building. He paid $100,000 for it back in 1984 and now it?s worth five times that. Sounds like this type of individual is going to be subject to this tax all away around, doesn?t it?

Cindy: Potentially. ?It depends on how the real estate is owned, whether is owned in the entity that he?s selling and actively used in the trade or business. I?m assuming that this is his office, the gain in the real estate portion of it may be subject to the 3.8% tax?..but remember this is only above certain tax payers that have a threshold. Hypothetically, if the doctor retires his income is going to drop, ?so there?s planning opportunities to look into an installment sale of that equipment or property used in the business to keep the gain low where he?doesn?t?hit the threshold. ?If he did sell the stock of the company that may be subject to the 3.8%tax, depending on the format of the entity he?s selling the stock in. Yes, it could impact the doctor, but there are certainly planning opportunities to be looked at to make the tax implications minimal as possible to this doctor on this exit strategy.

Eric: That?s a great idea, Cindy. I never thought about an installment sale. What you?re essentially saying is to pull that income stream on the sale over a number of years, where you?re actually going to be allocating only a portion of what he gets paid on this practice in the years that he?s going to be earning less than $250,000?..pushing him out of being subject to the tax. Is that correct?

Cindy: Potentially, yes. ?Once again, it depends on what the character of the income on the sale was. Hypothetically, it would be ordinary income upon the sale of the assets. You do endure the credit risks of collecting your sales price over a period of years, hoping you have a solvent buyer balancing the credit risk with the tax implications.

Eric: That sums it up from the commercial aspect. I really appreciate your time and input on this Cindy. Once again, please give folks your telephone number in case they want to chat with you for future planning.

Cindy: I can be reached at 813-659-2020 or if you prefer to email your questions I can be reached at cmp@cmp-law.com

Eric:? Great! Cindy thanks you so much for joining us. I?m Eric Odum, Principle Real Estate Broker for ROI Commercial Property Brokerage in Tampa, Florida and thank you for listening.

Cindy: Thank you Eric.

I?m going to include a link to our web page which is?www.FloridaTripleNet.com.

Join us next time for The Market Minute.

ROI Commercial Property, Inc. (ROI) is a licensed Florida Real Estate Corporation. While ROI endeavor to ensure that its content is accurate and correct, it makes no express or implied warranty, representation or understanding to its accuracy, reliability or completeness. This interview has been produced by ROI and is intended for informational purposed only. The opinions expressed by guest are the opinions of the guest and may not reflect the opinions of ROI or ROI employees or staff.

Interested in leasing or purchasing commercial real estate? Call us @ 813.514.1070
or email by clicking HERE!

Source: http://floridatriplenet.com/blog/tampa-commercial-real-estate-news-and-commentary/market-minute-cynthia-petitjean-cpa-esq-talks-about-the-3-8-tax-on-commercial-real-estate/

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Online Marketing Tools To Make Maximum Money | Cop 15 Post

Online marketing can help business owners take their business to new heights of success. There are numerous ways for you to market and expand your business. In fact, many of the ways are inexpensive, sometimes even free, and yet still very effective. This article can help you to enter the world of Internet marketing, and build your business to levels that you have only dreamed of.

TIP! Try to make a subtle, non-flashy website. You only have a few seconds to engage your potential customer and give them a reason to stay on your site.

Try your hand at mobile marketing. You can send out text alerts to your visitors when you have sales going or when you need to announce a new product. This is a very modern way to improve your marketing online.

Incorporate new social medial avenues like Twitter and Facebook into all new online marketing efforts. Since they provide a quick and simple way to send promotions or updated site information, social media sites are an effective way to stay in touch with potential customers. Keep in mind, on the other hand, that it does not pay to bombard your customer with comments. Try to give valuable and helpful postings with an occasional marketing message appearing here and there.

TIP! Offering customers a discount after they spend some amount of money can help attract more business. Consider offering a discount to customers who spend more than a set amount of money; you decide what that amount of money will be.

Your company needs to have a simple, memorable web address. The best name to use for your website would be your business or brand?s name. This may seem obvious, but sometimes people try to be too creative when coming up with a name. While customers can Google you, make it simpler by having an address they can easily remember and type into their search bars.

When trying to succeed with internet promotion, you should ensure you do not steal another business?s idea. It is easy to discover duplicate content, so save yourself trouble by creating your own work. Always strive for uniqueness.

TIP! Many people won?t believe ad copy. The fact is that most folks aren?t buying the stuff they read in advertisements, so don?t turn them off by simply talking big.

Learn how to use email marketing on your own. You should be able to master the necessary tools in no time. Plus, whatever added knowledge you gain always comes in handy at a later date.

TIP! You should give your customer an option of either buying in bulk or retail. You can make a small profit selling wholesale items, but the main benefit is that you can draw visitors to your site to purchase other, more expensive products.

Press releases can really draw more visitors to your web site. Once you learn to write good press releases, you can find a number of places to have them published online. This is a very simple way to increase your profile.

As you may already know, people usually hold a lot of respect for those in authority. Let people know you are the top dog. You can refer to yourself as the ?President? or ?CEO? of your company.

TIP! To gain potential customers, think of having a $1 promotional sale for new clients. You will receive extra visitors, and get your product name more widely exposed.

Interview legitimate authority figures in your niche. To avoid legal issues down the road, ensure you get the proper rights before publishing anything. You could write articles based on your interviews and post them on article directories. This is a great way to generate more traffic to your site.

As has been revealed earlier, web marketing is an amazing way to reach out to customers and to bring attention to your business and products. The opportunities are endless and the benefits are immense. By utilizing the information in the article, you can build your customer base and bring new recognition to your company.

Source: http://www.cop15post.com/online-marketing-tools-to-make-maximum-money.html

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Deep divides in Dubai at UN talks on Internet

DUBAI, United Arab Emirates (AP) ? Talks over possible new U.N. regulations for the Internet were deeply divided Monday, with Russia and others advocating for more government control, while a U.S.-led bloc warned against rules that could restrict freedoms in cyberspace.

The Dubai conference, which wraps up later this week, is not empowered to bring about any immediate changes on how the Internet operates. But the U.S. and its backers argue that sanctioning greater government roles in Internet oversight could allow governments that already heavily censor Web traffic, such as China or Iran, to justify more restrictions and monitoring.

A high-powered U.S. delegation ? including representatives from tech giants such as Google Inc. and Microsoft Corp. ? has tried to block all discussions of possible Internet regulations. The effort, however, has met strong resistance from countries such as Russia that want a greater control over Net commerce and security.

So far, the closed-door talks have failed to find much common ground at the 193-nation U.N. International Telecommunications Union, which last updated its rules in 1988, long before the Internet became a global force.

"What's happened in the conference is a variety of proposals have come in from other nations that get into the Internet, that look at Internet governance," said the head of the 123-member U.S. delegation, Ambassador Terry Kramer, in a video uploaded by organizers late Sunday. "It creates an open door for review of content and potential censorship there. It will create a chilling environment for the Internet."

For several days, U.S.-led envoys fought against a proposal submitted by the host United Arab Emirates, which last month passed sweeping new Internet laws outlawing social media posts that insult rulers or call for protests.

The proposal ? backed by Russia, China and other Arab states ? was removed from discussion Monday, conference organizers said, after an uproar from Web activists who support the American position. Among its provisions was a call for governments to have "equal rights to manage the Internet," including its technical workings, according to a text leaked by a website, wcitleaks.org. The site claimed to have access to meeting documents not yet made public.

It's unclear, however, whether the American views have gained the upper hand as the talks move into their final days. U.S. officials say other proposals that support a greater government voice in Internet affairs are still active.

"These issues will continue to be on the table for discussions in other forms during the remainder of the conference," said Kramer.

Many experts on Internet technology believe the proposals could further squeeze the Net in countries where it is already closely regulated, even though it won't fundamentally alter cyberspace practices in places with traditions of openness.

"These proposals would break what's working ? freedom of information and freedom of access," tech analyst Elise Ackerman wrote in a column for Forbes. "And they wouldn't help fix the parts of the Internet that need reinforcing, namely security and privacy."

She noted that the conference reflects a general push for more "international policymaking" as the U.S. dominance of the Internet weakens.

On Monday, the head of the U.N. telecoms agency, Hamadoun Toure, was scheduled to meet with civil society groups who have complained of being excluded from the talks.

Other issues at the conference also remain unresolved, including a European-led proposal to charge content providers for access to cross-border markets. The idea is strongly opposed by U.S. companies such as Google, Facebook Inc., Amazon.com Inc. and others. Supporters say the so-called "toll" could be used by developing countries to fund expansion of Internet services.

Source: http://news.yahoo.com/deep-divides-dubai-un-talks-internet-123040002--finance.html

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YouTube playlist: Apple II games

Hey, it's Friday! Besides Tim Cook going on a media tour recently there's not much going on, so let's reminisce. I grew up with an Apple II and this video playlist of old games for the venerable platform had me watching in awe as someone with more skill than I deftly played through games like Aztec and Castle Wolfenstein.

To this day those creepy, scratchy Nazi guard voices haunt me. To cleanse your palate, try some lemonade.

And below is a video of the Computer Chronicles talking about the "upcoming" Apple IIc and IIgs. Good times, great oldies.

Share

Source: http://www.tuaw.com/2012/12/07/youtube-playlist-apple-ii-games/

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Solid Ways To Improve Your Home Based Business Revenue ...

Many people are discovering that they can achieve financial success through running a home business enterprise. However, they do not know where they should start. In order to succeed in a home business enterprise, it is important to do all the proper research before you start. Understand all there is to know about what steps to need to follow to start a business, as well as what needs to be done to manage it properly. Read the tips in this article to help you do well with work from home business.

Begin a meal or other service catering to people who are busy. You can help those around you with a little ingenuity, so sit down and have a brainstorming session.

Get receipts from lunches with colleagues and prospects, because you can deduct expenses such as these at tax time. These meetings will always count as legal business expenses. Make sure that the people you meet with are either already clients or potential clients, as the IRS doesn?t look too favorably on claiming pleasure as business.

Implement a good SEO strategy to help your site become more readily found by your potential customers. SEO is great for owners of home businesses because it can help them be more visible online. It is very possible to do SEO work alone, especially with the many resources available.

Business Transactions

Starting a business-specific checking account helps you to establish a solid paper trail for your business transactions. Use the account for everything that is related to your business. By doing so, you will never be confused about your expenditures or how much you are making. You should also get a separate credit card for business transactions, such as ordering supplies.

If you have a work from home business, you may want to hire an accountant when tax season arrives. This will be helpful as you use your time to run your business and not to learn about tax laws.

Make an effort to reach out to your customers face-to-face. Traffic and customers can certainly be found online, but many customers are also found by meeting them at real-world events, shows and gatherings. Organize events that are in their areas.

Get a website that allows customers to order online. Many home business owners choose to conduct all sales in person; an online storefront can give you a competitive edge. There are plenty of domain registrars that offer domains as low as $10 a year, as well as hosting companies with cheap monthly plans.

Always be aware of your competition?s prices if you want to stay at the top of your game. By doing this, you will stay in competition and likely see better sales figures.

Make sure you have a separate business bank account. You can separate your business from personal expenses more effectively this way. If your business assets are separated from your personal assets, filing your business taxes will be a breeze. It goes without saying that simple tax filings are more likely to be accurate.

Use social media to market your business, but ditch the socializing. Social media outlets such as Facebook are distracting and can entice you to waste a large amount of your time that you could be using to market your products. Socializing on Facebook is best saved for when working hours are finished.

Designate a specific work area in your home. Organization is essential when working from home, so make sure you have plenty of room. Doing this will keep your home office organized, which is a key to success.

Being the sole proprietor of a work from home business includes being the sole financial officer of your business. Letting your spouse use a business credit card can lead to problems if they use the card for other purposes.

If you want to make big money as a online business owner, it is important to occasionally experiment and take chances. Trying new things will attract the attention of new customers and increase your profits. You will not know what strategies will improve your business if you only use one or two all the time.

When providing a service to others, use a contract. Contracts can help protect both you and your customer should problems arise with your transactions.

If your business will hinder you, and your family you should think about going with something else. Maybe reconsider your work from home business strategy, if it cuts into your family time too much.

If you are considering selling a product or a service, determine the going rate for that product or service in today?s marketplace. Look at your competition?s prices and price your products within the same range or more competitively if possible. The most effective way to generate more income for your business is to focus on your good qualities, rather than focusing on the bad qualities of other businesses.

Online Business

Enjoy a nice business trip. You should be able to deduct a portion of the expenses of your business trip from your taxes. If you want to take a vacation, find someplace that is offering a seminar or conference on your business type and make sure you attend. Doing so allows you to make legal deductions.

Now that you have a greater idea of what you need to do to create and manage a online business, you should start feeling like you can accomplish your home based business goals. Remember that the information you learned is only going to work if you apply it. If you follow the tips in this article, then your online business should succeed.

Source: http://www.empowernetwork.com/lesterd/blog/solid-ways-to-improve-your-home-based-business-revenue/

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A Mouse Shouldn't Need an Internet Connection to Work Properly

A mouse is a fundamental part of every desktop computer. It should just work, at all times. Odd, then, that Razer's high-end Naga gaming mouse does exactly the opposite, requiring an internet connection if you're going to stand any chance of using it. More »

Source: http://feeds.gawker.com/~r/gizmodo/full/~3/Dp082NHkHYw/a-mouse-shouldnt-need-an-internet-connection-to-work-properly

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Plan For Entertaining At Thanksgiving | Tony and Kris Official Website

10 Easy Thanksgiving Tips for Entertaining

The Thanksgiving holiday is the perfect time to entertain with family and friends. The idea of gathering together at your home is a wonderful way to give thanks and appreciation to your loved ones. Even though the idea of planning, buying, cooking, serving and entertaining may seem a little daunting, there are always easy ways to simplify entertaining. Read on for 10 easy ideas to help you entertain in style and actually enjoy the holiday too!

1.) Accept help from others: While this seems like a simple concept, the misconception that the host/hostess has to do everything is not true. If you are hosting the big meal at your home, ask for help in an area that you feel weak in. If you are good at cooking, but not planning the details of the meal, ask for help from a neighbor or friend.

2.) Search now for deals: To save money and avoid the rush, start looking for holiday sales on holiday foods. Most stores will have displays already up and if you buy a few key ingredients each time you visit the store, you run less risk of the store running out of key ingredients, like cranberries!

3.) Plan your holiday table: The night before Thanksgiving is too late to plan what your table will look like. If you prefer a formal table, assure table linen, napkins, and dinnerware is clean and polished. For a casual table, assure you have the appropriate number of settings for everyone.

4.) Invite guests early: Start making your guest lists now and inviting them. This will help you plan a menu and will give time for your guests to check their calendars. Often time?s people wait until the last minute for Thanksgiving invites, and then are disappointed when guests have made prior plans.

5.) Ask guests to bring a dish: If the thought of preparing the Thanksgiving meal is a little menacing, why not ask your guests to bring a dish? Plan how many people you will have and ask each member to bring a certain item. Keep a running list so you don?t have 20 turkeys and no side dishes!

6.) Ask guests about diet regimens: To ensure everyone can partake in the delicious meal, ask for any diet and/or restrictions they have in advance, so you can plan the menu accordingly. If you aren?t sure what to serve those that have a restriction ask them for suggestions as to what they?d prefer to eat.

7.) Plan for children: Unless your event is restricted to adults, children will need to have activities to do while the parents are socializing. Plan an area with toys, educational items and a television if possible. This will keep everyone happy and help the day be more enjoyable for all those involved.

8.) Plan seating arrangement: If you plan on having a formal meal with assigned place settings, plan this early to avoid a last minute stressful chore. Even if your meal will not have assigned seating, ensure you have enough seats and you consider where children and adults will be seated.

9.) Cook early: Start preparing desserts and side dishes now and freeze the items until a few days before Thanksgiving. This will help you space out the holiday cooking and keep you from getting tired out.

10.) Enjoy yourself amongst your guests: This season is for enjoying your loved ones. If the thought of cooking is too much, consider hiring a caterer or buying food out and heating it up. Grocery stores and restaurants often have Thanksgiving meals you can buy in advance, to make you look like you did all the work!

These 10 tips will help you enjoy the holiday and enjoy the preparation. After all the planning, cooking, and entertaining is what makes the holidays special. Start planning now and reap the benefits from seeing your guests have big smiles on their faces when you offer your hospitality. Holiday entertaining can be better than you imagined.

Freshome reader?s how do you prepare for the holidays? Have any tips for us? We always enjoy hearing your comments.

Source: Freshome

This entry was posted on Friday, November 9th, 2012 at 12:00 AM and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Source: http://www.tonyandkris.com/2012/11/09/planning-for-entertaining-at-thanksgiving/

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