Big Companies are Making Big Deals Again

By Michelle Seiler-Tucker

Recent financial woes reshaped the U.S. economy, but big companies are making big deals again, especially in health care, technology and the media industry.  Monday was a tipping point following the acquisition between two big pharmaceutical companies and then with another multi-billion dollar takeover between two oil field service companies. It's the biggest year on the books since 2000. The conditions are ideal, with borrowing costs low and share prices rising, and because deals don't happen unless people are feeling good, it seems that corporate leaders are optimistic with the times, with foresight on growth. [more...]

November's "Down Under" Theft of Your Bank Account

By Lowell Ponte

On November 16, the world of banking and money was officially flipped upside down because of actions taken by the G-20 nations meeting "down under" in Brisbane, Australia. People deposit their money in banks for safety. But on November 16, this gathering of 35 national leaders turned your bank into one of the most unsafe places to put your money. Without warning, these G-20 leaders agreed that the money in your bank account can be seized to pay bank debts. And some of these leaders - especially President Barack Obama - have already begun imposing billions of dollars in regulatory penalties on banks to squeeze money out of them to grow their governments. [more...]

Big Bank Bail-Ins vs. Bail-outs: Bad News in Disguise

By Lowell Ponte

In the November 10 London Telegraph, James Titcomb reports that the chairman of the international Financial Stability Board Mark Carney, Governor of the Bank of England, reveals how future bank problems will be handled. His plan is that future problems in banks that are "too big to fail" will never again end in government bailouts using taxpayer money. Instead, as Craig Smith and I explained in our latest book, Don't Bank On It! The Unsafe World of 21st Century Banking, governments will employ "bail ins" forcing what he calls "creditors" of various kinds to bear banks' losses.

This seemingly good news, however, conveniently neglects to reveal who all these "creditors" are. It turns out that they include mere bank employees, whose income and pensions may get a "haircut" to cover bank shortfalls. Those stuck paying for bank shortcomings may also include customers - depositors who do not understand that when they opened a bank account, they were in effect lending their money to a bank and getting in return only an IOU. [more...]

Wage Wars

By Michelle Seiler-Tucker

A series of protests partially funded by the Service Employees International Union (SEIU) sought to highlight the difficulty of low-wage workers. Workers across the country gathered over Labor Day demanding that they be paid no less than $15 per hour. President Obama, the man whose job is to make America a competitive economy globally, publicly sided against business owners when he stated, "America deserves a raise." Such a statement by the President of the United States shows that even he does not understand why the U.S. economy is flawed or how economics works. [more...]

Will America Erect an Iron Tax Curtain around us to Keep Corporations in?

By Gerard Lameiro

In a powerful and profound Editorial this week, The Wall Street Journal presents new information from the Tax Foundation that America’s tax burden on businesses is nearly the worst in the industrialized world.  That’s right, America is ranked number 32 out of 34 of industrialized nations that are part of the OECD (Organization for Economic Co-operation and Development).  This ranking is from a new index that utilizes 40 tax policy variables in its index.  If that's not enough bad news, there are some who want to raise the taxes even further, and erect barriers for corporations that seek to flee America, looking for a reduced tax burden. [more...]

Fix the U.S. Before Sticking Your Nose in Other People's Business

By Michelle Seiler-Tucker

Why is the U.S. involved in Iraq again? Even though the situation is dire in Iraq, is it really our nation’s business? Before getting into other people's business, the U.S. needs to clean up its own financial house. This is one of the key elements to determining what a business is really worth, as seen in my book, Sell Your Business for More Than It’s Worth. No matter whether we are talking about the politics of business or the business of politics, the fact of anything’s worth is found in the numbers. The U.S.'s financial records show a staggering number of unsolved conflicts within our own nation’s government - too many to afford sticking our nose in another country’s problems. [more...]

Deducting Entertainment Expenses

By Sandy Botkin

Knowing when to discuss business and how to document it can make a HUGE difference as to whether you can deduct your golf game or costs for attending a sporting event such as a football game or even attending a play. To deduct fun activities such as tickets to a football game or golf costs, these are the overriding rules:

1. You have to discuss business during the same day as the activity, but it can't be during the fun activity; it has to be either before or after the fun in a business setting.
2. You document this correctly in a tax tracker, such as Taxbot.
3. You can usually only deduct 50% of the costs.

Golf is an expensive hobby. However, everything becomes a LOT less expensive when you get a deduction. Golf costs include green fees, guest fees, cart rental fees, tees, balls, gloves, depreciation of golf clubs and also beverages, snacks, lunches and dinners at the club. NOTE that you can deduct these costs even if you pay only for yourself and not for your prospect. However, paying for the other party and his or her spouse would also be deductible. Moreover, if you entertain another couple, you can bring your own spouse or significant friend and deduct their costs, too. Think about this. With the right knowledge, you can literally golf away your taxes. We really do have some great tax laws.

Also as noted above, you have to talk business on the same day as the fun activity either before or after the fun. The IRS will NOT accept that you had a business deduction while schmoozing with prospects on the golf course. Moreover, the business discussion has to be in a quiet conducive surrounding. This means that you need to take your prospect to a restaurant or quiet bar to discuss business without having a floor show or theatrical show interfering with your discussion.

The key is that you have the burden of proof to show that you met these rules. So here is what you need to write in your tracker:

* Names of people entertained.
* Where the entertainment took place.
* When the entertainment and business discussion occurred.
* Why you entertained these people. [You need to be specific. Simply saying prospect or good will in your tracker won't be good enough.]
* How much the entertainment cost.

Example: Marc and I play golf, where I probably frustrated both of us with my lack of talent. We then went to a restaurant to have dinner and discuss business, which I documented in my tracker. I would be able to deduct 50% of the golf costs and 50% of the dinner. However, if I simply discuss business between holes 12 and 13 and document it, I can't deduct the golf expenses. The key is that the business discussion must occur either before or after the fun activity in a quiet business setting.