27 Oct 2019
0

Get the Goods on Hidden Assets

Roger Rossmeisl, CPA
Fraud Briefs
Get the Goods on Hidden Assets

Hidden assets can be an issue in a variety of contexts — from divorce to bankruptcy to fraud. An acrimonious divorce, ownership dispute or occupational theft incident could all lead an individual or business to wrongfully hide items of value. In such cases, fraud experts use a variety of tools to uncover the assets — and the truth.  Here's how to get the goods on hidden assets. Net worth analysis Experts often start their searches with a net worth analysis that looks at changes in a person’s worth, reconciling those changes with income and expenses. The first step is to reconstruct this data, which may involve some detective work. Experts search for clues in a variety of places, including: Bank records, Real estate and court filings, Payroll...

27 Oct 2019
0

How to Withdraw Cash from your Corporation

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
How to Withdraw Cash from your Corporation

Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation. Fortunately, there are several alternative methods that may allow you to withdraw cash from a corporation while avoiding dividend treatment. Here are five ideas: (1) Capital repayments To the extent that you’ve capitalized the corporation with debt, including amounts that you’ve advanced to the business, the corporation can repay the debt without the repayment being treated as a dividend. Additionally, interest paid on the debt can be deducted by the corporation. This assumes that the...

27 Oct 2019
0

Tax Issues When Divorcing

Roger Rossmeisl, CPA
Individual Tax Briefs
Tax Issues When Divorcing

In addition to the difficult personal issues that divorce entails, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are four tax issues when divorcing that you should to understand. (1) Alimony or support payments For alimony under divorce or separation agreements that are executed after 2018, there’s no deduction for alimony and separation support payments for the spouse making them. And the alimony payments aren’t included in the gross income of the spouse receiving them. (The rules are different for divorce or separation agreements executed before 2019.) (2) Child support No matter when the divorce or separation instrument is executed, child support payments aren’t deductible by the paying spouse (or taxable to...

27 Oct 2019
0

Real Estate Money Laundering Schemes

Roger Rossmeisl, CPA
Fraud Briefs
Real Estate Money Laudering Schemes

Money laundering is the process by which criminals transform their ill-gotten gains into legitimate-looking funds. It’s widespread and wide-reaching, making it a significant corrupting influence on financial systems, governments and certain professionals. Criminals use many different types of businesses to “wash” their dirty money, but some are more useful than others. Real estate money laundering is a favorite industry, given its high dollar value and availability of inventory. Money Laundering: 3 steps The typical money laundering scheme involves three phases: Placement: Here the proceeds of criminal activity enter the financial system. Layering: This is where the money launderer conducts a series of transactions to distance the money from its criminal source. Integration: Finally, the criminal uses the money, which now appears legitimate and divorced of any crime. Executing money laundering operations effectively is critical if...

20 Oct 2019
0

Quantitative Easing Explained . . . Again

Roger Rossmeisl, CPA
Current Events, Economic Concepts
Quantitative Easing Explained

As posted to Malekanoms YouTube Channel on 11/11/10 (Run Time: 6 minutes, 48 seconds) Quantitative Easing Explained . . . Again?  Why "Again"? That's because I originally posted this clip as Blog Post #150 way back on 11/17/2010 when it was hot off the presses.  Now . . . 9 years later, the powers-that-be have learned nothing. On 10/16/2019, the Wall Street Journal (WSJ) released an article entitled, "The Fed Is Buying Treasurys Again. Just Don’t Call It Quantitative Easing".  The article alerts the reader to the fact that, on 10/15/2019, The Federal Reserve began buying short-term Treasury debt Tuesday at an initial pace of $60 billion a month, but officials say these purchases are nothing like the bond-buying stimulus campaigns unleashed by the central bank between 2008...

20 Oct 2019
0

Connection Between Fraud and Geometry

Roger Rossmeisl, CPA
Fraud Briefs
Connection Between Fraud and Geometry

What is the connection between fraud and geometry?  Fraud experts have long suggested that the presence of three conditions, known as the “fraud triangle,” greatly increases the likelihood that an employee will commit fraud. Over the years, this conceptual framework has been expanded to become a “fraud diamond.” Understanding these models can help you protect your business. Classic shape The classic fraud triangle consists of: Pressure An individual experiences some type of pressure that motivates the fraud. Pressure can come from within the organization — for example, pressure to meet aggressive earnings or revenue growth targets. Or, the pressure could be personal, such as the need to maintain a high standard of living or pay off debt from credit cards, medical bills or gambling. Rationalization Perpetrators must be able to mentally...

20 Oct 2019
0

The Right Retirement Plan for Your Business

Roger Rossmeisl, CPA
Small Business Tax Briefs
Picking the Right Retirement Plan for Your Business

If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages.  But what is the right retirement plan for your business and it's employees? 401(k) plan One of the best-known retirement plan options is the 401(k) plan. It provides for employer contributions made at the direction of employees. Specifically, the employee elects to have a certain amount of pay deferred and contributed by the employer on his or her behalf to an individual account. Employee contributions can be made on a pretax basis, saving employees current income tax on the amount contributed. Employers may, or may not, provide matching contributions on behalf of...

20 Oct 2019
0

What is the Best Fuel to Use in Your Vehicle?

Roger Rossmeisl, CPA
Automotive, Technology
Wjat is the Best Fuel to Use in Your Vehicle?

As posted to the Chris Fix YouTube Channel on 10/15/19 (Run Time: 16 min, 10 sec) What is the best fuel to use in your vehicle?  Chris Fix explains the octane rating system and other related matters in this informative clip. (This is Blog Post #635) Chris Fix creates and posts easy-to-follow, step-by-step how-to style videos for both beginners and experts that want to save money by fixing their own car.  With new content every 10 days or so, Chris takes pride in helping others at the Chris Fix YouTube Channel. ...

20 Oct 2019
0

A Family Bank Affords Intrafamily Lending

Roger Rossmeisl, CPA
Estate Planning Briefs
A Family Bank Affords Intrafamily Lending

One of the primary goals of estate planning is to put in writing how you want your wealth distributed to loved ones after your death. But what if you’d like to use that wealth to help a family member in need while you’re still alive? A family bank affords intrafamily lending. If you’re considering making an intrafamily loan to your children or other family members, it’s worth a look at establishing a “family bank.” Loan structure is important Lending can be an effective way to provide your family financial assistance without triggering unwanted gift taxes. So long as a loan is structured in a manner similar to an arm’s-length loan between unrelated parties, it won’t be treated as a taxable gift. This means, among other things: Documenting the...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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