Asset Protection by Joe B. Garza

Asset Protection Attorney Joe B Garza delivers free and helpful tax tips.

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This week, the Senate's Permanent Subcommittee on Investigations held a hearing to question leaders of major banks and hedge funds about an alleged tax avoidance strategy. According to the Senate's report, ...

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Taking Control of Your Business Taxes

We're more than half way through 2014: Where does your firm stand in relations to taxes?

Last week, a client of mine had an awful revelation when I finalized his tax form and disclosed he owed a lot of money to the IRS. His initial reaction was to be mad at the ambassador. Fortunately, upon careful reflection, he explained, "Well, I should have come to see you last year when my new product took off the way it did. I knew I was making a lot more money.". He's right. Any time there is a significant variance to your business's bottom line (in either red or black), it's time for a trip to your tax pro. In fact, everyone who has a small business should take advantage of the mid-year off season to sit down with a tax pro to look at their financial statements as well as potential tax liabilities. It's much easier to strategize and put a plan in place right away than to run around at year end overturning jugs of water on all the little fires that have been boiling all year. Here are some ideas to look at with your tax pro to bolster your tax predicament and ideally keep working capital in your bank account rather than in Uncle Sam's pocket:.

Open a retirement plan.

If you're at long last a few dollars on top and do not have a retirement fund, now's the time to create one. Here's the perk: it's deductible!

Consult with a bona fide financial advisor or an agent from your financial institution to discover what kind of system best suits your needs.

There are a vast range of mechanisms from Individual 401(k) plans to SEP IRAs to SIMPLE plans that may or may not call for you to involve employees in the plan.

If a plan requires employee participation, do not immediately dismiss it.

Setting up a retirement plan for your employees could be a meaningful way to give raises that don't require the extra cost of employer paid payroll taxes. Read IRS Publication 560 for more information.

Investigate your legal structure.

Take the time to examine whether or not your company is functioning optimally in its existing entity structure. You may have started out as a sole proprietorship and have grown out of it. It is particularly important to examine entity structure if your organization is now netting more than $100,000 per year.

Also keep in mind that if you incorporate, you'll probably now be required to take resources out of the business via payroll rather than simple draws.

There is a lot more documentation involved under this status, but the tax advantages and security that a corporation provides may prove more beneficial. Always go over these alternatives with your legal representative and tax pro before making a decision.

Offer employee benefits.

Staff members are our most valuable business asset and should be treated keeping that in mind. There are many employee benefits that are not taxable to either the staff member or the business. Look at IRS Publication 15-B, Guide to Fringe Benefits for more information on this subject. You will save money in payroll taxes while you develop a better working environment for your people.

Purchase furniture and equipment.

The IRS has always rewarded outlays for capital assets by providing the Section 179 Deduction. This particular deduction enables the immediate expensing of capital assets rather than depreciating them over their useful lives. Be advised however. This year, the limit for purchases decreased from $500,000 to $25,000. However, Congress will be looking at extending that ceiling probably sometime during fourth quarter. You can begin putting money aside for the purchases now. Perform estimates.

Take a close look at your budgetary statements.

Run a profit and loss and contrast it to the prior year profit and loss through the end of June. Are there notable changes? Are you foreseeing an increase or decrease in sales and/or expenses through the conclusion of the year? It's a basic matter to export your data from QuickBooks into Excel wherein you can play with the figures to determine what your year-end bottom line will be. Give that data with your tax pro to learn if you must change your estimated tax payments accordingly.

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A Warning to New Grads: Saving Is More Important Now than Ever

Perhaps you've recently graduated from school; maybe you've even landed your very first serious job, you might think that it's rather soon to start worrying about saving and investing what little money you have. Unfortunately, that couldn’t be farther from the actual truth. No matter how you approach at it, the earlier that begin putting money away for the future, the more of a financial cushion you'll have later (or for a rainy day). Additionally, learning how to manage the money you have early on will only make make things way better later in life when you are purchasing a place to live or planning to retire. Starting wise financial habits can bring life-long rewards. These small budgeting practices can help you secure your financial security and make an investment toward your future.

Save for a rainy day

When you begin considering long-term goals, be sure that you have already made a plan of action prepared that addresses your present situation. Particularly that should include taking care of any private or federal, but the key to a fiscally secure future is to anticipate financial misfortune before life gets even more frustrating. You don’t want past debt hovering above your head when you'd rather be planning a family or looking for home.

On top of paying off your student loan debt, it’s necessary that you put away an emergency savings fund. At some point in the near future, you could have unexpected expenses. Things like surgery and major vehicle repairs happen; when they do, be glad that you set finances aside to take care of it.

Visualize your long-term goals

Most people don't have their entire lives mapped out, chances are you have a little bit of feel for your biggest priorities and interests. If you plan to travel the world before you have any major adult responsibilities, your saving tendencies will look a lot different than if your goal is to go into early retirement. Articulating your goals can help you determine how much they need to save up every pay period. Some People even advise young people to set aside up to an entire third of their income, while others say to save at least 10% of their income. Whatever amount you decide fits into your budget, make sure to set aside funds for each one of your important goals (from retiring early, to traveling the world, to having your dream wedding) every month so that none of your goals are forgotten.

The best thing about practicing strong saving right away is that you won’t begin to get used to a lifestyle that becomes too expensive. It’s much easier to start modest and build your way up than it is to get rid of what you used to enjoy.

>> Joe Garza of Dallas Debunks another Bullshit Tax Shelter

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Joe B Garza Explains New Tech-Oriented Tax-Filing Protocol

Just like other laws, laws about taxes become more confusing, and transform to benefit (and disappoint) different taxpayers. In the coming year, you can expect to see multiple new additions to income tax, including inflation adjustments to dozens of tax items, new policies for same-sex families, and some punishments for {not buying health insurance either through a private vendor, or the government. One hallmark of this season's legislationtax filing season is its delay by several weeks, courtesy of the government's shutdown back in 2013. Still, this tax filing season will also be the beginning of a different kind of federal tax change — not only in terms of how we pay, but also in how we file.

2014's 'Improved' Federal IRS Tax Law

At the beginning of the year, the IRS announced the release of a “newly revised comprehensive tax guide,” also referred to as Publication 17: an initiative that will assist people file their taxes this year. The initiative touts greater interactivity and in-depth review of what it refers to as “tax-saving opportunities.” In addition to Publication 17's new features is material on the American Opportunity Tax Credit, affecting college students and their parents, as well as Earned Income Tax Credit and Child Tax Credit.

Provided by the Internal Revenue Service since the 40's, the new release of the guide will still include educational material on how to report your earnings, capital gains and losses, IRA’s and important content. However, at a whopping 292 pages, it's very unlikely that many taxpayers will make time to consume the publication in its entirety. Also, considering the increasing complexity of Federal income tax, it comes as no surprise that the IRS would reveal updates to the forms almost daily.

Fewer Face-to Face Assistive Resources

Publication 17 proves a major transition from face-to-face help resources, with many more tech-oriented tools created to help people get through tax season.

Cuts to the IRS budgets — courtesy of sequestration 2013 — mean that there are less resources available for face-to-face tax submission help. Rather than having a human being, filers will be recommended to an arsenal of online referential materials, including more than 13k volunteer partner sites, and resources on IRS.gov - like the IRS 'Free File' program. Even simple help requests are now taken care of with online resources or through one of the IRS' various hotlines. With such online assimilation becoming so important, it's rational that the government would begin to offer more of its info online.

A Larger Emphasis on the Web

While some people will certainly be frustrated by less assistance in the form of interaction with a representative, others will be relieved to learn that they can handle more tax-related problems online than ever before. Now, taxpayers are able to look at and complete their tax transcripts on the web. Additionally, the IRS will also continue to give out Employee Identification Numbers through IRS.gov. Finally, to avoid dealing with taxpayer questions concerning the whereabouts of tax refunds over the telephone, the IRS will now handle all similar questions online as well.

More by Attorney Joe Garza

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What's Hurting Bitcoin? Joe B Garza Explains

Financial headlines just wouldn't be the same these days without Bitcoin updates, the digital currency that has experienced quite a few spikes in value since its start 5 years ago. Now, however, we might be witnessing the demise of the currency's glory days could very well be approaching. The October Silkroad takedown may not have been powerful enough to halt the currency over the long-run, however, recent signs from China is surely not good for the once-regulation-free currency. The NYT has been reporting that “If Bitcoin is a bubble, as its critics contend, it is showing signs of deflating.”

Within the last few days, BTC China—the largest Bitcoin exchange in existence—announced that it would no longer recognize deposits of Bitcoin. This was issued just a few short weeks following their ban on large businesses who accepted large enterprises from trading in Bitcoins. Even several European countries who are starting to hinder Bitcoin, although on a slightly smaller scale. The country of Norway has just followed Germany in its move to impose a capital gains tax on citizens’ assets in Bitcoin.

Though some people may despair at the end of Bitcoin’s glory days, it's clear that for many financial professionals, Bitcoin's risks have outweighed its benefits. Surely, it is completely uninsured, but it's one that's been considered understandably easy to steal. Even this month, about $100m. in was scraped from transactions on an Internet market for illegal drugs called "Sheep Market". Also, people making dubious purchases haven’t been the only people who have suffered. Arouht the end of October, the Chinese trading platform for Bitcoin trading platform, GBL, went away without notice, along with roughly $4M of its customers' money.

Experts say, what makes Bitcoin so great for thieves is that one's ownership of a Bitcoin is solely dependent upon possession to a “private cryptographic key to unlock a specific address,”. So, if another person gets a hold of your passkey, then they can go and do anything they want with your investment. It’s not even that hard to get a hold of keys since many companies store their users' private keys on the Internet. Also, although digital currency can be publicly traced online, laundering this money is now very easy due to anonymous financial called "tumblers".

So, could this currency continue to fluorish if investigators discover a way to make them easier to monitor traceable? It couldn’t hurt, but with a huge part in the Bitcoin machine missing (China) and new governments cracking down on Bitcoin, the possibility are rapidly decreasing for it to succeed. Not surprisingly, analysts have long predicted that Bitcoin is currently in a dubious bubble that may burst at any moment.

More by Joe Garza

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Best Investments in 2014 - Stock Market News | Invest-Smart

Invest Smart compiles the list of 2014's most promising stock options - a list which features not only some of the most historically strong companies, but some new ones.

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New from Tax Trends Weekly

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If you have been reading the news lately, then you would well know that many global companies are now in the hot seat as the IRS further scrutinizes their global practices in reducing tax liability. This gambit is set to change with newer rules being enacted by the Global Summit and the IRS…

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If you have been reading the news lately, then you would well know that many global companies are now in the hot seat as the IRS further scrutinizes their global practices in reducing tax liability. This gambit is set to change with newer rules being enacted by the Global Summit and the IRS...

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If you have been reading the news lately, then you would well know that many global companies are now in the hot seat as the IRS further scrutinizes their global practices in reducing tax liability. This gambit is set to change with newer rules being enacted by the Global Summit and the IRS...

[joebgarza]

Spotlight on Special Court after NSA Behavior Exposed

The Guardian and Washington Post published articles in very early June 2013 revealing details of the domestic surveillance tasks of the National Security Agency (NSA). A month afterward, the New York Times ran two more stories talking about the Foreign Intelligence Surveillance Court (FISC), the court that rules on NSA warrant requests.

The FISC was created by the Foreign Intelligence Surveillance Act of 1978. The 11 judges making up the court are designated by the Chief Justice of the United States Supreme Court, presently John Roberts. A single judge of the FISC oversees each request from the NSA. The rulings of the FISC judges might be appealed to an appeals court, however this seldom occurs since the FISC often grants the government's request for a warrant; according to the New York Times, in 2012 the FISC authorized 1,788 of the 1,789 government requests for surveillance orders, with the government withdrawing the other request. In its very early years, the FISC mainly issued warrants relating to wiretapping, however, as technology (and how it has been used by terrorists) has become more sophisticated, the scope of the court's reach has grown.

While national security hazards certainly need to be taken seriously, the activities of the FISC conflict with the traditional American legal system - specifically the Fourth Amendment, which provides that "The right of the individuals to be protected in their persons, effects, homes, and papers, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issye, but upon possible cause ..." In its rulings, the FISC regularly takes care of Fourth Amendment precedent, which establishes the case law in that location. According to the New York Times, there is an issue that the FISC is becoming "nearly a parallel Supreme Court" in this area of jurisprudence.

The large majority of the FISC's rulings are not disclosed to the public, so opportunity for public dispute on the rulings is restricted. The only party arguing prior to the FISC is the government, a departure from the adversarial system that the American legal system is based on. The judges of the FISC are selected by one person without the consent of Congress or any other governing body, which can create an ideolocically homogenous array of viewpoints.

While the 9/11 attacks of 2001 and the 2013 leakages about the NSA have illuminated some of the questions concerning the FISC, it is still defined by an absence of transparency. The line between ensuring security and preserving civil liberty is likely to blur as data-mining becomes more widespread, and the FISC might soon become a hot-button issue in future political campaigns.

For more information on the NSA, this article on The Capital Press features an great article on the matter.

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Chevron Remains in Heated Legal Struggle - Joe Garza

Recently, the Wall Street Journal reported on the multi-billion dollar case involving Chevron, its recently-acquired company Texaco, and Ecuadorean courts. Texaco was allegedly responsible for damage to the foreign country's environment, and upon being bought by Chevron, left its new owners with the brunt of the legal backlash. After losing roughly $18 billion in the Ecuadorean courts, Chevron has understandably taken every measure possible to prevent the case from being brought onto American soil.

The case has been dragged out for far longer than Chevron had hoped, and the corporation's legal team has been in a constant struggle to keep the litigation at arm's length: Chevron has been vigilant at overcoming US laws that insist on honoring overseas court decisions, assuming there was no apparent abuse of fraud involved. Of course, large corporations constantly fending off vicious litigation isn't uncommon, but Chevron's handling of the litigation is what makes this case rather interesting. In response to the plainiffs, Chevron has been proactive in trying to undermine the credibility of the litigating parties, particularly through an arbitration filing allowed by a US-Ecuadorean treaty. This allowed Chevron access to documents owned by plaintiffs that apparently point to collusion between the plaintiffs and the Ecuadorean court. This gave Chevron the opportunity to file a RICO suit against the counsel, plaintiffs, expert witnesses, and law firm Patton Boggs.

Despite losing a fortune to the case in Ecuador, Chevron's diligent defense tactics have certainly paid off for the corporation, with expert witnesses and even a presiding judge confirming that many of Chevron's statements are valid. But Chevron still faces pressure from Patton Boggs who is undoubtedly attempting to save face against the corruption charges and an additional contingency fee it could owe to the Ecuadorean courts: a bill that could add up to nearly $450 million.

This case - or series of cases - has caused Chevron to amass a legal team of more than 2,000 lawyers, which will come at a proportionately exorbitant pricetag. Nevertheless, the corporation's strong resistance to an unfortunate sequence of rulings and litigation could protect it in the future. Chevron's handling of the pressures surrounding Ecuador communicates its unwavering defense against legal action - one that litigators may be unwilling to go up against in the future.

More News: Court Has Tax Cow Over Bad Estate Planning

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Joe Garza Highlights Recent NCAA Football Twist on Taxes

There’s a recent football twist on taxes that ought to interest anyone who is interested in best filing their taxes in a timely manner. Johnny Manziel, a Texas A & M standout, is now in a bit of NCAA trouble over a gaff regarding his eligibility and taxation on some autographs he was commissioned for. Here’s the quick scoop in today’s Texas Tax news by Tax Attorney Joe B Garza.

It has been reported and alleged that Manziel received a recent five-figure contract to autograph memorabilia for fans. Five figures can be as much as $99,999, so that’s no fluffy or low-balled number. This remunerates negatively for the athlete in two manners. One, he could waive his NCAA eligibility, as current rules and stipulations mandate that students are not allowed to profit from being a student even if they are a sports star; only the NCAA can retain ownership and rights and royalties thus far. This is also a primary issue in a recent class action lawsuit brought against the NCAAF by its players. Part two involves whether or not Manziel has actually reported these taxes to the IRS, which would substantially increase his tax bracket for that year and could incur untold penalties and fines, if he had failed to report the income as cash on a MISC 1099 C form.

Firstly, Manziel is mandated to report this income as a self employment income, which requires that he tender both self employment tax and standard income tax. If he were able to provide documentation that the income earned during that trip had related “business expenses,” he could deduct some of the costs of the trip, and, prospectively, any associated expenses that were related to and leading up to it – like training for the trip, gym sessions, personal trainers, sports drinks, etc.; all out of pocket personal expenses that are related – he may be able to reduce his tax liability with the IRS. In theory, he could even deduct the marker or pen he used to provide autographs, provided that this expense, and any other related expense, was an out of pocket cost he incurred.

His parents may face a setback either way. Since they are likely claiming the 20-year-old as a dependent, his income could cause his parents to lose their $3,900 deduction, if he were actually claimed as a dependent. The big cause and effect clause here is the entity that tendered payment to him for the memorabilia, which could be forced to evade deductions on the sale if they are trying to protect this star athlete’s NCAA eligibility.

It’s just another stark reminder that you always want to consult with an experienced tax expert and attorney before you commit to any financial situation that could drastically impact your taxes, and in this case, your future academic eligibility to your college football program. Texas tax lawyer Joe Garza (B) contributed to this article.

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Joseph B Garza, Certified TBA Dallas Lawyer, Provides A Newcomers Guide to Becoming an Attorney in Dallas that’s Certified by the Texas State Bar Association

Becoming a Texas attorney like Joseph B Garza, Certified TBA Dallas Lawyer, is no easy undertaking by any means. There is a long list of requirements that must be met in order to realize your dream of becoming a lawyer. Hopefully this article, and the other articles provided on this site, can help you better realize your dream of practicing law in this great state.

Certification for Dallas Lawyers People who plan to become a lawyer in Based in Dallas need to meet various qualifications. For example, they must be at least 20-years-old and also have to be a citizen of the state of Texas. Moreover, applicants need to hold the co-employee Diploma, Bachelor's Diploma in Regulation, or even a certificate which is usually similar to these levels. Their education earned ought to be extracted from an institution which usually is accredited plus identified by the particular Dallas Law Modern society, in addition to gaining their legal degree or Juris Doctor (J.D.) in Law.

Rules and Specifications Individuals who desire in order to enroll in law school need to meet specific educational requirements and qualifications. Educational specifications include holding a Bachelors or Associate Diploma as well as a graduate school degree or a Juris Doctor (J.D.).

How to Become Certified by the Texas State Bar Association Individuals must register and obtain their license as soon as they have completed law school, and then apply for the Bar Exam to become certified by the Texas State Bar Association, along with learning the relative ethics and important principles associated with advocacy. The particular Institute of Regulation Practice from the particular Dallas Law Modern society provides such classes for attorneys.

Following graduation, candidates are required to take the Bar Exam to become a Texas lawyer that’s certified and licensed to practice law in the state of Texas (like Joseph B Garza, Certified TBA Dallas Lawyer). Keep in mind that pursuing a legal profession is no easy undertaking. It requires diligence, motivation, hard work, long study periods, ethics and a desire to truly make a difference in the legal system. With hard work and a strong pursuit, you can obtain your legal degree and right to practice law in the state of Texas.

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Texas Lawyer Joe B. Garza Provides the Basic Steps on How to Become Certified by the Texas State Bar Association (TBA.org)

The Texas State Bar Association is made up of persons who have the license to practice law in Texas. Every Texas lawyer is required to become a part of the Texas Bar. The association has the legal responsibility to discipline all lawyers practicing in Texas.

Here are the basic steps on how to become certified by the Texas State Bar Association… use this article by Texas Lawyer Joe B. Garza to better prepare for the bar exam: 1. The attorney should have completed the approved training course of the State Bar for guardianship ad litem. Several approved online and self-study programs are offered to those who want to become a part of State Bar of Texas. 2. When you have completed the required and approved training you should download and then print out the following documents from the Texas Bar website: MCLE Affidavit for General CLE Course and MCLE Affidavit for DVD/Videotaped Self-Study Course.  3. Completely fill out your affidavit and then have it notarized. Your notarized affidavit should then be mailed with $25 processing fee to the department of MCLE. Their address is listed on the website. Sending a faxed copy is not accepted. 4. After receiving the notarized affidavit with the $25 processing fee, you are then added to the database of attorneys. Expect to have your certificate mailed.  The certification is good for the next two years. After you have been certified for two consecutive two years, your next certificate will be good for four years. Aside from certification, one of the primary requirements to become a member of Texas State Bar Association is to maintain ethical law practice and be a good member of the State like paying your dues. The dues depend on the number of hours you have been using to practice law. It is important to become a member of the State Bar of Texas because it has several purposes that can help you throughout your practice. Some of the responsibilities of the association include: 1. Aiding the courts to carry on and improve justice administration. 2. Improving the quality of legal services provided to the public. 3. Promoting and maintaining high integrity and principles, learning, competency to do public service, and high standards of good moral. 4. Providing appropriate professional service to its members. 5. Publishing information related to law practice, law reform and science of jurisprudence. 6. Encouraging the formation of local bar associations. Once you become a certified member of the bar association, you can enjoy its advantages in terms of networking and availability of online resources. Law firms with members from the association can have access to free legal research and free class for CLE. Members can also enjoy the perks of getting discounts for several services like software, car rental, office supplies and other materials required to effectively and productively run your firm.  Aside from these benefits, any member of the bar association can become part of the Texas Lawyers Assistance Program. The program aims to aid a law student or a lawyer who might have substance abuse issues or emotional problems. There are a lot of other benefits once you become a member and it's for you to find out.

 You can check out more articles by Lawyer Joe B Garza on the TBA.org (Texas State Bar Association) here.

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Joe B. Garza Underscores How to become certified by the Texas State Bar Association

If you want to become a Texas bar attorney, there are some requirements you must meet to become certified. The process of becoming a certified attorney is not easy with some complexities of the law field.

One thing you need is thorough understanding of the Texas Bar Association. You should acquaint yourself with proper knowledge on the association before you are approved as a professional lawyer in the state.

Furthermore, you must complete your paper work timely and meet the required standards. Failure to clear your paper work in time may not give you the chance of becoming a Texas lawyer. It is good to have thorough preparations to avoid any hassles at the last minute. With quality preparations, it will be easy for you to go through the process.

If you want to become a Texas bar lawyer, you can learn more about the process of becoming certified by the Texas State Bar Association by checking out articles here: http://lawyerjoebgarza.info/post/50025970317/how-texas-lawyers-like-tba-joe-b-garza-can-help