Covering the week’s most noteworthy business news impacting the Filipino-American and Global Filipino community.
STARTING 2015, filer of Form 8938 who satisfies the reporting obligation by completing Part IV Excepted Specified Foreign Financial Assets, must complete the newly added checkbox on item D on Form 5471 (discussed in this column), Form 3520,3520-A, 8621, or 8865 (not discussed in this column). What is a controlled foreign corporation (CFC)? • more…
– Seniors seek relief from $80K and $28K credit cards CLIENT is 52, still young by any standard. He has got it all together. He has no credit card debt or bank debt. He doesn’t own a house but owns a mobile home that he lives in with a fair market value of $45K. He’s…
Q: MY job title is “manager.” I work at least 10 hours per day, 6 to 7 days per week. While I supervise a few employees, I mostly do the same tasks they do. I cannot hire or fire anyone. My employer insists that since I am salaried and paid double the hourly minimum wage,…
Background WHEN is your return free from IRS audit? From your point of view, statute of limitations prevents the IRS from collecting a deficiency in tax or beginning a civil or criminal case. Statute of limitations provides a date of finality after which the IRS or the taxpayer can take no further actions. We can…
ARE your debt problems keeping you up at night and causing a lot of stress in your life? Have you thought of filing bankruptcy but can’t decide whether it’s the smart thing to do? When no other means of debt relief are available, filing for bankruptcy may be the only way to get out of…
INJURIES always seem to happen when we least expect them. Picture yourself at an outdoor gathering, having fun, when suddenly a crying child runs up to you, knocked-out tooth in hand. Would you know what to do? Dental first aid saves teeth Knocking out or fracturing a tooth is especially distressing—just thinking about it can…
THE exclusion from gross income of discharged qualified principal residence indebtedness is extended for two years through December 31, 2016. It applies to discharge occurring before January 1, 2017 or subject to an arrangement entered into and evidenced in writing before January 1, 2017 code section 108(a)(1)(E) amended by the Protecting Americans from Tax Hikes…
Q: I WORK as a “team member” in the service industry in Los Angeles. Before we clock-in for our shift, we are required to attend a “huddle,” or a meeting where we discuss events during prior shifts, our assignments, etc. These “huddles” last 15 to 20 minutes every day. Should we be paid for these…
YES, you can be. Terrible, but it happens. In a landmark case, the Supreme Court held that a conviction for willfully filing a false tax return is a deportable offense under our immigration laws. It reached the same conclusion with respect to a conviction for aiding and abetting in the preparation of a false return….
PERHAPS you’ve considered filing bankruptcy but in the back of your mind, you have one or two questions that you’ve always been afraid to ask. In counseling thousands of people over the years in my practice as a bankruptcy attorney, I have found that most people have the same fears and concerns about bankruptcy. From…
“It’s not the first “prominent/wealthy family” inheritance battle waged nor will it certainly be the last, but the on-going estate litigation of Potenciano ‘Nanoy’ Ilusorio’s heirs has emerged as one of the longest, nastiest, most public, no-holds-barred litigious family feuds in Philippine history or in the annals of jurisprudence.” That is how the Ilusorio Family…
One gets rid of debt, while the other attempts to collect monies lent I GOT my senior’s week last week. Two different seniors, both over 80 came to see me for different reasons. The first was 83. He was in good health, just a little stooped. Still works full time and receives social security. Wife…
MS. Olivares worked as a dental assistant for Colton Dental Group (CDG) which is owned by dentist, Sam Dason. In May 2011, Dason told Olivares that employees from his San Bernardino office would be attending a dental convention in Las Vegas and invited her to come. After confirming that her coworker, Karen, can join her,…
DON’T let this happen to you! A client of mine said he never saw it coming. Everything he ever wanted in life, he always purchased on credit. The “pre-approved” credit cards just kept coming in the mail and he never said NO to any of them. Buy now and pay later, why not? As long…
1. YOUR legal marital status is determined as of December 31 of each year. Even if you were married for the previous 364 days if you were divorced on the 365th day of the year, you are considered unmarried for the entire year. 2. You can file single only if you receive a final decree…
WE talked about tax consequences of short sales, foreclosures, and abandonments of homes. Let us now talk about tax consequences of cancelled debt on qualified real property – including rental units. Debt forgiven from short sales, foreclosures, and abandonments creates debt relief income – taxable income, taxed at ordinary rates. Hard for property owners who…
I had a wonderful time exchanging notes with the participants of my Family Business Talk last Friday at the Holiday Inn in Makati. It was a sold out event with whole families coming in droves and occupying several tables armed with loads of questions related to governance. To those who attended, many thanks! It is…
CLIENT and husband are the only stockholders of an S corporation that has been doing well for the last 15 years. In fact, it’s still doing well and had a great year last year. What is the difference between and S corporation and a C corporation? In an S corporation, the business income is declared…
YOWAN Yang worked for ActioNet as an information technology technician. ActioNet is a contractor providing technical support to the Federal Aviation Administration (FAA). Cy Tymony was another technician who worked with Yang on the same team. Yang worked four feet away from Tymony’s cubicle. On July 24, 2012, Yang and Tymony had an argument about…
ANALOGOUS to taxpayers showing their earning statements with W2 or 1099, this year taxpayers are asked to show 1095s as their health insurance statements. Without proof of health insurance, they may have to pay a penalty. A 1095 form basically declares who is covered by a health insurance meeting the “minimum essential coverage” defined by…
IT started with a dreaded letter from the IRS. Your tax return has been selected for examination. Lately, the agent has been asking about cash transactions, safety deposit box, foreign bank accounts and even showed up with a second agent. At your doorsteps! Something is wrong. Does the agent suspect fraud? Are you being referred…
BEING in debt and doing nothing about it can have more serious consequences than you think. First of all, it can impact your financial future. Uncontrolled debt can deprive you the opportunity to put money aside for emergencies, save money for a home or college for your children, or perhaps for retirement. Every day I…
YOU must have noticed questions on Schedule E, Part I for rentals: • Were you required to file Form 1099-MISC? • If so, did you or will you file? Very simple yet it is one of the most commonly argued questions among tax professionals who prepare returns for individual owners of rental property. Here’s the…
IN my last article, I explained why it is absolute necessary to qualify for Medi-Cal and get the government to pay for nursing home care for an ailing parent or loved one. After all, how many families do you know who can afford paying $8,000-$15,000 a month for Long Term Care. However, using Medi-Cal for…
ACCORDING to the National Equal Pay Task Force, for every $1 that men earn, women earn only $0.79. This is true for nearly all industries and for most women in any pay grade. Even when female employees are making a lot of money, they are still not making as much as their male counterparts. Consider…
IF you fail to file on time or pay on time, penalties kick in. Here are 10 reasonable causes to abate (forgive) penalties for late filing or late paying: 1. Tax returns were mailed on time. A return used to be considered filed on time if it is postmarked on or before the due date. …
ARE you seriously in debt and thinking of filing bankruptcy as a last resort? Individuals who have accumulated excessive debt are often left to ponder whether they should file bankruptcy in order to get out of debt. Sometimes, these people feel that somehow, they’ve lost, failed, or that they will never have a chance to…
(Part 2 – Basics) ESTATE planning is simply how you want your assets distributed to your heirs after you die with as little time and expense as possible. This can be accomplished by setting a revocable trust. A revocable living trust allows you to establish a simple trust to pass on your assets to your…
Surely as April 15 comes along, some of you will procrastinate in filing tax returns. It can be habit forming as I see the same taxpayers come after April 15 year after year. After four decades of counseling taxpayers, I look back at so many reasons why taxpayers don’t file on time – not having…
Luis Castro-Ramirez was hired to work as a truck driver by Dependable Highway Express (DHE) in 2010. During his hiring, he told DHE that he had a disabled son who required dialysis every day and he (Ramirez) was responsible for administering the dialysis. He requested his employer that he be given driving assignments that would…
