Use Nongrantor Trusts to Bypass the SALT Deduction Limit

If you reside in a high-tax state, you may want to want to use nongrantor trusts to bypass the SALT deduction limit (the $10,000 federal limit on State And Local Tax deductions. The limit can significantly reduce itemized deductions if your state income and property taxes are well over $10,000. A potential strategy for avoiding the limit is to transfer interests in real estate to several nongrantor trusts, each of which enjoys its own $10,000 SALT deduction. Grantor vs. nongrantor trusts The main difference between a grantor and nongrantor trust is that a grantor trust is treated as your alter ego for tax purposes, while a nongrantor trust is treated as a separate entity. Traditionally, grantor trusts have been the vehicle of choice for estate planning purposes...

Coronavirus Incubation Period May Be Up To 24 Days

As  posted to the Peak Prosperity YouTube Channel on February 10, 2020 (Run time 20 min 44 sec) In Update #18, on the Wuhan New Coronavirus (officially "2019-ncov"), Chris Martenson reports: "A new report finds that the incubation period for the Coronavirus may be as long as 24 days, 10 days longer than previous expected. That means that the potential size of "infected & contagious yet unaware" masses walking around (outside of China's quarantine borders) could be substantially larger than feared. On top of that, additional data from China's hospitals in Wuhan show that once a patient is hospitalized, meaning their condition has become severe, the death rate is very high (~20%). More reinforcement that you want to avoid this virus if at all possible. And yet, the stock market...

4 Changes That May Affect Your Retirement Plan

If you save for retirement with an IRA or other plan, you’ll be interested to know that Congress recently passed a law that makes significant modifications to these accounts. The SECURE Act, which was signed into law on December 20, 2019, made these four changes which may affect your retirement plan. Change #1: The maximum age for making traditional IRA contributions is repealed Before 2020, traditional IRA contributions weren’t allowed once you reached age 70½. Starting in 2020, an individual of any age can make contributions to a traditional IRA, as long he or she has compensation, which generally means earned income from wages or self-employment. Change #2: The required minimum distribution (RMD) age was raised from 70½ to 72 Before 2020, retirement plan participants and IRA owners were...

Coronavirus Far Worse Than We Thought

As  posted to the Peak Prosperity YouTube Channel on February 9, 2020 (Run time 27 min 35 sec) In Update #17, on the Wuhan New Coronavirus (officially "2019-ncov"), Chris Martenson reports: Is the Coronavirus far worse than we thought?  New research suggest that is the case. "Chinese officials are now warning the Wuhan Coronavirus may spread by aerosol transmission. We have known it spreads via fomites contained within mucus-based globules, spread by coughing, sneezing, etc.  But if it also transmits from human to human via aerosol means, it's likely FAR more contagious than previously feared. Many of the most contagious diseases, like measles, spread as aerosols  -- tiny particles that hang in the air for a protracted time. If confirmed, this makes a very bad situation substantially worse.  And adding...

SECURE Act Helps Secure Employees Retirement

A significant law was recently passed that adds tax breaks and makes changes to employer-provided retirement plans. If your small business has a current plan for employees or if you’re thinking about adding one, you should familiarize yourself with the new rules.  The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law on December 20, 2019 as part of a larger spending bill. Here are three provisions of interest to small businesses which helps secure employees retirement. Employers that are unrelated will be able to join together to create one retirement plan Beginning in 2021, new rules will make it easier to create and maintain a multiple employer plan (MEP). A MEP is a single plan operated by two or more unrelated employers....

Dont Contemplate Fraud Litigation without a CPA

You may already know how CPAs can help businesses uncover and prevent fraud. But what about when a fraud incident leads to civil litigation? Don't contemplate fraud litigation without an experienced CPA that can help your legal team collect and summarize complex financial documents and reconstruct lost or stolen records. CPAs can also serve as expert witnesses in court. From investigator to expert witness As a fraud investigation becomes a fraud case, CPAs can help identify critical evidence. They may also be enlisted to analyze and translate financial data for attorneys, insurers and other parties. These financial experts can be equally valuable with depositions by helping to frame questions that attorneys ask witnesses. They also are skilled at spotting inconsistencies and flaws in witness testimony. Once a case...

Coronavirus Impact on the Global Economy

As  posted to the Peak Prosperity YouTube Channel on February 7, 2020 (Run time 10 min 44 sec) In Update #16, on the Wuhan New Coronavirus (officially "2019-ncov"), Chris Martenson reports: "As China now has placed over 400 million of its citizens under quarantine, China's economy is grinding to a halt. Workers can't leave their homes. Factories are idle. Most (if not all) of China's ports are no longer shipping. International flights are increasingly banned from the country. When the world's #2 economy hangs up a big "CLOSED" sign, that's going to result in a major negative impact on global trade. As the manufacturing powerhouse to the world, you'll be challenged to think of ANY industry that won't experience serious supply chain interruptions and shortages from China's woes. Did...

Non-Deductible IRA Contributions Require Tracking

If, like many people, your traditional IRA holds a mixture of deductible (after-tax) and nondeductible (pretax) contributions, it’s important to know that non-deductible IRA contributions require tracking. Why? Because the IRS treats distributions as a blend of pretax and after-tax dollars. If you treat distributions as fully taxable, you’ll end up overpaying. An example Dan, age 62, withdraws $40,000 from his traditional IRA on August 1, 2019. At the time, his IRA balance is $200,000, consisting of $50,000 in deductible contributions, $80,000 in nondeductible contributions and $70,000 in investment earnings. On December 31, 2019, the IRA’s balance is $170,000 — $200,000 minus the $40,000 distribution plus additional contributions and earnings after August 1. To ensure that his distribution is taxed correctly, Dan must calculate the portion attributable to nondeductible contributions. These are...

Coronavirus: 50,000+ Infections Per Day Suggested

As  posted to the Peak Prosperity YouTube Channel on February 6, 2020 (Run time 18 min 12 sec) In Update #15, on the Wuhan New Coronavirus (officially "2019-ncov"), Chris Martenson reports: ". . . Dr. Neil Ferguson of the Imperial College of London and director of J-IDEA, the Abdul Latif Jameel Institute for Disease and Emergency Analytics, estimates that the official numbers released by China of less than 30,000 in total infectious cases are far too low. His organization calculates the true infection rate is over 50,000 people PER DAY!! Meanwhile, the contrast between what we're told by the various world government and what we're seeing them do continues to widen. "Everything is under control", "No need for concern", and "Stocks are doing great!" is what we hear. But what we...