November Band Jam Videos

Posted on November 18, 2013 by in Band Jam

“Serve Somebody”

“Fever”

“Hide Your Love Away”

“For Your Love”

“Hey Joe”

Should You Form a Captive?

Posted on November 11, 2013 by in Blog

Risk management flow chart on a blackboard

 

One of our close network partners, Hale Stewart, is an expert on forming captives. A captive insurance company is an insurance company owned by the insured. There are many benefits to forming a captive. Please read Hale Stewart’s brochure (The link is below) to learn more about this subject.

Should you form a Captive?

 

November 2013 Band Jam!

Posted on November 8, 2013 by in Band Jam, Media

Another great Band Jam at the Studio of Gary N. Cooper, CPA!

Forensic Accounting

Posted on November 5, 2013 by in Blog

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Definition of forensic accounting:
The term forensic stems from the Latin word forum, meaning public place or court. Forensic accounting is the action of identifying, recording, settling, extracting, sorting, reporting, and verifying past financial data or other accounting activities for settling current or prospective legal disputes or using such past financial data for projecting future financial data to settle legal disputes. Concisely defined, forensic accounting is the use of accounting for legal purposes.

 

Bologna and Linequist definition:  forensic and investigative accounting.  Here’s the application of financial skills and an investigative mentality to unresolved issues conducted within the context of the rules of evidence.  As a discipline, it encompasses financial expertise, prior knowledge, and a strong knowledge in understanding a business reality and the workings of the legal system.  Its development has been primarily achieved through on the job training as well as expertise with investigating officers and legal counsel.  A definition provided by Robert G. Roche.  Robert G. Roche, a retired chief of the Criminal Investigation Division of the IRS, describes a forensic accountant as someone who can look beyond the facade, not accept the records at their face value, someone who has a mind that the documents he or she is looking at may not be what they claim to be and someone who has the expertise to go out and conduct very detailed interviews of individuals to develop the truth, especially if some are presumed to be lying.

 

Also has some unique experience in other areas of accounting. One area of focus is forensic accounting. Forensic accountants are professionals, they use a unique blend of education and experience to apply accounting, auditing, and investigative skill to uncover truth and legal opinions, and assist in investigations. Forensic accountants may be involved in both litigation support, which involves providing assistance on a given case. Primarily related to the calculation or estimation of economic damages and other related issues. And investigative accounting, which is looking into illegal activities. The term forensic stems from the Latin word forum meaning public place or court. Forensic accounting is the action of identifying, recording, settling, extracting, sorting, reporting, and verifying  financial data or other accounting activities for settling current or perspective legal disputes by using such past financial data for projecting future financial data to settle legal disputes, and define. Forensic accounting is the use of accounting for legal purposes.

 

The modern role of forensic accounting has been defined by Wayne Bremser to include the following elements:

1. Pre-trial support, writing a report of  causation, gathering facts, translating jargon, organizing data, and formulating strategy.

2. Trial support.

3. Expert witnessing.

4. Settlement support.

 

 

When dealing with civil actions involving contract speech, a forensic accountant generally must deal with three elements:

1. Proximate cause.

2. Reasonable certainty.

3. Foresee ability.

 

 

When dealing with broad issues, the forensic accountant addresses four elements:

1. Misrepresentation of material fact.

2. Misrepresentation made knowingly and with harmful intent.

3. Reliance on the misrepresentation of the victim.

4. Damage results from such reliance.

 

What makes for a good forensic accountant?

  1. Having a strong foundation in accounting.
  2. Have a thorough knowledge of auditing, internal controls, risk assessment, and fraud detection.
  3. Basic understanding of the legal environment and having very strong communication skills, both written and oral.
  4. A forensic accountant must grasp difficult concepts.
  5. A forensic accountant must look beyond the records for suspicious behavior, clues while conducting investigations.
    1. For example, a lavish lifestyle may indicate a manager or business owner is skimming money from the corporate account.
  6.  As a discipline, it encompasses financial expertise, fraud knowledge, and a strong knowledge of understanding the business reality and the workings of the legal system.
    1. Its development has been primarily achieved through on-the-job training as well as experience with investigating officers and legal counsel.

 

Gary N. Cooper CPA, CVA, CMAP just passed his certification test to be a forensic accountant.  It is one of many specialized services we offer.

 

 

How Tax Loss Harvesting & Selective Asset Placement Can Reduce Capital Gains & Tax Liability

Posted on November 4, 2013 by in Blog

There is an insightful article in Worth Magazine by Kayne Anderson Rudnick regarding the use of tax loss harvesting and selective asset placement to reduce one’s capital gains and income tax liability.

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The first part of the article discusses taking capital losses and harvesting those losses to offset future short-term capital gains. Therefore, you are able to offset long-term capital losses from past periods with short-term capital gains of future periods. Whereas long-term capital gains were taxed between 15% and 20% and short-term capital gains are taxed at ordinary tax rates.

 

The second part of the article talked about Master Limited Partnerships. It says, in addition to tax loss harvesting, certain asset classes can be more tax efficient so appealing to investors in higher tax brackets. The Master Limited Partnerships are a good example. MLPs generate 90% or more of their revenue through qualifying activities and the mainstream energy and natural resources sectors, such as managing natural gas pipelines, or storing crude oil.

While MLPs require large infrastructure investment, they provide stable income streams. Since MLPs do not produce or sell the energy they transport, and are therefore less impacted by commodity price fluctuations. Further, under the tax code, most of these distributions — typically 85% to 90% — are considered return of capital and are not taxed when received. Rather, they are deferred until shares, called units, of the MLP are sold, and effectively making them interest-free loans from the federal government.

MLPs are known for combining the best traits of corporations and partnerships. First, they had the liquidity of a publicly traded company because units may be bought and sold on exchanges like stocks. Second, they have the tax benefits of a limited ownership because those earnings are only taxed once when distributed, and not again at the entity level.

Most of our tax laws are temporary as part of the Bush tax cut.  The laws change substantially in the upcoming 3 year period with the Democrats in charge.

Great article and the Worth Magazine is full of short articles with rich material.

http://www.kayne.com/assets/pdf/WO26-KayneAndersonRudnick.pdf

Year-End Tax Planning for Businesses

Posted on November 1, 2013 by in Blog, Government, Media, Planning, Retirement, Strategy, Taxes

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Year-End Tax Planning for Businesses

Year-End Tax Planning For Individuals

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Year-End Tax Planning For Individuals

Tips for Taxpayers with Foreign Income

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Tips for Taxpayers with Foreign Income