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Archive for October, 2012

AMT & Disposition of Business or Rental Property

October 31st, 2012 Comments off

In our last article we talked about the Alternative Minimum Tax item resulting from depreciation of business or rental property. A direct corollary of that issue is the AMT item that results from any subsequent sale or other disposition of such property. Critical to minimizing a taxpayer’s AMT is an understanding of the relationship between these two items.

When property is disposed of, a taxpayer calculates the gain or loss based on the difference between the selling price and his tax basis. For something like a stock or a bond, tax basis is the amount originally paid for the investment – that is all that is needed. This same concept also applies to the sale of business or rental property, but with one important difference – depreciation. In the case of depreciable property, tax basis is the amount originally paid, but then reduced for any depreciation taken.

The tax basis of depreciable property changes every year. In the example in the last article, a $10,000 machine was depreciated by taking a $4,000 deduction in the first year, and a $2,400 deduction in the second year. At the end of year 2, therefore, the tax basis of this machine was $3,600 ($10,000 less the $6,400 of total depreciation taken).

What would happen if the machine were sold at this point? The same basic principle of computing the difference between selling price and tax basis applies. Assume, for example, a sales price of $5,000. In this case the taxpayer’s gain would be $1,400, and this amount would be included in taxable income. This is the Regular Tax treatment.

The AMT item arises at the time of sale of property because, in general, a taxpayer uses a different method of depreciation for purposes of the Alternative Minimum Tax than is used for Regular Tax purposes. To the extent the taxpayer has these AMT items from differences in depreciation in prior years, the tax basis of that property similarly is different for the AMT than it is for the Regular Tax. Therefore, gain or loss on a sale of the property also is different. Essentially, the AMT difference in computing the gain or loss is a reversal of the Regular Tax-AMT depreciation differences in the past.

Continuing with the same example, if after two years a taxpayer has been allowed $5,100 in depreciation deductions for the AMT (see the prior article), the machine’s AMT tax basis is $4,900. Assuming a sale for $5,000, taxable gain for AMT purposes would be $100.

This $1,300 difference in taxable gain (the $100 of AMT gain compared to the $1,400 of Regular Tax gain) is an AMT item in the year of sale. This is a favorable adjustment in computing the taxpayer’s Alternative Minimum Tax. It would be entered as a negative number on the Form 6251, making Alternative Minimum Taxable Income $1,300 less than Regular Tax taxable income.

One out of every 14 AMT payers has this item, so it is important that both the Alternative Minimum Tax basis and the Regular Tax basis of depreciable property are properly calculated. Incorrect calculations can have the effect of negating other AMT planning that a taxpayer may have accomplished, costing real tax dollars.

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Universal Life Insurance Guide

October 31st, 2012 Comments off

Universal life insurance is insurance with convenience of i.e. flexible premium, manageable benefit life insurance policy that accumulates account value. Universal life insurance is an improvement over the ordinary form of life insurance in terms of flexibility. The universal life insurance provides you a cash-in-value but you can make timely withdrawal from your gathered fund.

Universal life insurance is popular amongst people for it allows the policyholder to decide the on premium and benefit whereas the other kinds of policies do not let the policyholder to get the benefits from the life insurance fund till the time of death. Buying a universal life insurance can also protect your loved ones against financial problems that may occur after the insurer dies.

The universal life insurance functions like a high interest bank account because the insurance company puts your premium into an account after deducting nominal charges. The amount so accumulated gets an interest that is also added in the account. The interests are adjusted monthly and not annually. With every premium payment made the accumulation of money in the fund augments. Also the compound interest is earned on the account every month. In universal life insurance withdrawals can be made from cash surrender value. Each withdrawal must be at least $500. You are permitted to withdraw four times in a year. The amount that you withdraw is deducted from the Account Value and the death benefit. While you withdraw or surrender from your account value, you might have to pay surrender charges. The cash surrender value is the Account Value minus any surrender charges and any outstanding loans.

In order to have maximum benefit of the policy the policyholder should avoid repeated withdrawals from his accumulated fund. Withdrawal of money time and again will result in fewer benefits at the time of actual need. Moreover there will occur futility in the years of premium payment if the accumulated fund is just a part of the intended original benefit amount to be considered.

However there is a dark side too to universal life insurance. The problem stems due to the interest rate assumption used by carrier proving to be wrong and consequently in the bad performance of the policy. The policy premiums increase if the returns are not earned that often results in inability to payoff and so the cancellation of the policy. For instance numerous universal life insurance policies were surrendered or cancelled from 1970 to 1980.

But over the years the insurance companies have lowered the rates rendering initial assumptions invalid. It then became the choice of the policyholder to make up for the difference through higher premiums. So despite of purchasing a permanent insurance scheme the policyholders are burdened with rising premiums.

So if you want to save the trouble of increasing premiums, buying a whole life insurance policy is the best idea. Universal life insurance is good if you look want to pay less in present moment but keep it in mind that you might have pay more later if the interest rates do not fluctuate as you expected.

Specializes in the senior market with products including Ohio whole life insurance, final expense policies, annuities, and Medicare Supplement insurance.

deCondo Real Estate WordPress Theme

October 30th, 2012 Comments off

deCondo is a light and very elegant premium real estate WordPress theme, Display your most important real estate objects in deCondo’s featured properties slider. Simply select your slider category through the theme options page and give your users a quick auto-slide overview of your top objects. Come with object details, description, image gallery, Google Map and contact form, different layout options, color schemes and various elements of the page and more. Which converts your WordPress in a fully professional real estate website. Setup your real estate website within minutes.

deCondo

deCondo

Demo & Release Page | Download Theme

Features

  • Featured properties slider
  • Customizable search panel
  • Searchable custom fields
  • Home page layout options:
    Latest entries, latest properties, featured properties, with sidebar, without sidebar
  • Property archive layout options: with sidebar, without sidebar
  • Muli-level dropdown menu
  • WordPress 2.9 post thumbnails
  • Nice property exposée
  • Property image gallery
  • Built-in Google Map to display porperty location
  • Built-in contact form on property pages (optional)
  • Custom search results
  • Custom page templates: agents list, contact page, full width
  • Custom author template: agents listings
  • Optional news / blog section
  • Threaded comments
  • Comment form validation
  • Search form validation
  • CSS styles for WP-PageNavi plugin – activate and you’re done
    (also see plugin page)
  • Theme options page
  • Property settings custom meta box
  • Custom widgets (recent properties, recent news)

Demo & Release Page | Download Theme

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ThemeShift deCondo Real Estate WordPress Theme | Premium Themes Directory

Ideal Ways To Prevent Ants From coming Into Your Home

October 30th, 2012 Comments off

Spring is actually not here yet, but it is absolutely coming soon. When the weather gets warmer there are a lot of nice things that come with that. One thing that isn’t nice when it comes spring are ants. It will soon be the good time for the ants to start looking for food especially as the weather gets warmer. So in this article we are going to look for ways to prevent the ants from invading your home.

First off be ready if you see ants outside your home. That doesn’t actually mean that they can’t be in your home simply because you don’t see any ants within the home. Remember ants are small and can live in many small areas. They could eventually spring into activity once it gets warm.

The next important thing is you need to look around your house. What you are looking for is for any plants touching your home. Why this is important is because those can be access points where ants come into your home. In general you want to really make sure that you have at least 2 feet between your home and any plants around. Just trim your plants back when you really don’t have this.

Finally you need to look for any ant hills that are probably close to your home. This is a real big telltale sign that ants are close by. When the ants are looking for food, that ant hill could quickly invade your home. If you do notice an ant hill you will definitely want to treat it with some ant poison to try and kill it.

Now if you do end up getting some ants in your home often times you will wan to hire a pest control company. Once the ants are in your home a lot of times the ant sprays will not be enough to kill off all the ants. A good pest control company will be really able to take the best action for those ants quickly.

As you can actually see, ants simply disappear in the winter season making people feel that they don’t have ant problems anymore. But definitely, they will be back so make extra sure that you are ready.

Pests don’t have to get out of hand in your home. Use this San Diego pest control. Have your mice eliminated from your home with our San Diego mouse controlservice.

How Health Care Fraud Affects You

October 29th, 2012 Comments off

People always look for ways to get something for nothing. This may be even truer in cases of health care fraud. This affects each and every person in the United States in a number of ways. If you know of anyone committing any type of health care fraud then you should report them to the proper authorities right away. Help protect your family and everyone in America by helping to wipe out this type of fraud. A criminal attorney in Fort Lauderdale or even a criminal lawyer may be needed.

Fraud within the health care system raises insurance prices. For every claim insurance companies pay that are fraudulent we pay higher premiums. It may not be fair but this is exactly what happens. The premiums are raised so that companies can recuperate money that has been paid out to those who shouldn’t have received it to begin with.

Health care fraud within the government has an even bigger affect. Not only do your tax dollars pay for this but it means that care may be taken away from those who deserve it and are in desperate need. Imagine children not being able to receive care they need because an adult is getting free care simply because they don’t want to work.

This type of fraud also leads to stricter policies and regulations. Medicine that is needed may not be available to some people because a select few abuse it. Pain medicine is the most widely regulated due to people with addictions. This in turn means that some people may suffer in pain due to not being able to get the proper medications.

Of course it isn’t just individuals who commit fraud. Doctors and hospitals are involved as well. Some may submit bills for services they didn’t provide. Some doctors and hospitals have even gone as far as to create ghost patients. Often times this could be as simple as performing procedures that are not necessary.

Some of these types of fraud are very hard to prove. Unnecessary procedures, for instance, may be the hardest to prove. What one doctor considerers unnecessary another can argue is perfectly legitimate. Unless you have access to the doctor’s records and know exactly what his orders were then there may be know way of knowing if fraud was committed.

Health care fraud also occurs through medical identity theft. This occurs when a person uses another persons insurance to receive health care service. This may occur because the person is uninsured or simply doesn’t want to use their own insurance. This could even be so the person can receive narcotics without using their own name.

Fraud is a growing problem in our society. It hurts every honest person in one way or another. Because of fraud it is very possible that some of the programs we rely on could be discontinued. If these programs are taken away it could cost innocent lives.

If you know anyone who is guilty of health care fraud then there are places you can report it to. You never even have to give your name. Help stop fraud and you can help make help insure health care is available for all who need it most.

Fraud within the health care system raises insurance prices. For every claim insurance companies pay that are fraudulent we pay higher premiums. It may not be fair but this is exactly what happens. The premiums are raised so that companies can recuperate money that has been paid out to those who shouldn’t have received it to begin with.

Health care fraud within the government has an even bigger affect. Not only do your tax dollars pay for this but it means that care may be taken away from those who deserve it and are in desperate need. Imagine children not being able to receive care they need because an adult is getting free care simply because they don’t want to work.

This type of fraud also leads to stricter policies and regulations. Medicine that is needed may not be available to some people because a select few abuse it. Pain medicine is the most widely regulated due to people with addictions. This in turn means that some people may suffer in pain due to not being able to get the proper medications.

Of course it isn’t just individuals who commit fraud. Doctors and hospitals are involved as well. Some may submit bills for services they didn’t provide. Some doctors and hospitals have even gone as far as to create ghost patients. Often times this could be as simple as performing procedures that are not necessary.

Some of these types of fraud are very hard to prove. Unnecessary procedures, for instance, may be the hardest to prove. What one doctor considerers unnecessary another can argue is perfectly legitimate. Unless you have access to the doctor’s records and know exactly what his orders were then there may be know way of knowing if fraud was committed.

Health care fraud also occurs through medical identity theft. This occurs when a person uses another persons insurance to receive health care service. This may occur because the person is uninsured or simply doesn’t want to use their own insurance. This could even be so the person can receive narcotics without using their own name.

Fraud is a growing problem in our society. It hurts every honest person in one way or another. Because of fraud it is very possible that some of the programs we rely on could be discontinued. If these programs are taken away it could cost innocent lives.

If you know anyone who is guilty of health care fraud then there are places you can report it to. You never even have to give your name. Help stop fraud and you can help make help insure health care is available for all who need it most.

Are you a victim of health care fraud? If you are looking for a criminal attorney in Fort Lauderdale to help you fight this fraud, look no further! We have many criminal lawyer in Fort Lauderdale who are ready to provide their help for you right now!