Gassmanlaw.com



0:04Hi, this is Alan gassman.?And I'm here with Brandon Katrin and John back and we welcome you to this webinar.?I hope everybody is healthy happy and much wiser than you were three or four weeks ago before this interesting Black Swan event that we've had in the past two or three weeks since March and I came back from vacation in Argentina and Chile.0:35It's been very interesting.?I've rented a Airbnb house about half a mile from the office so that I can be quarantined just to be safe marshes at home and I go home every night and we get along well during the day since I'm here and she's there Brandon and John or at the office.?Everything's going well at the office.?We have about two-thirds of our normal staff there and they're very being very careful.?They're very spread out.1:02Out and they're having a much better time because I'm not there with them.?So we're going to cover a lot of information today a lot of things that we normally cover when we give these webinars for professional advisors.?And I know we have a lot of clients and a lot of professional advisers on here.?This was promised to be a one-hour talk and we're going to keep it to that.1:28I've got a table of contents here on the first page that gives you an idea of what we're going to cover and if you need to find things when we're done, you've got a couple pages of table of contents some of the things we're going to cover include as you see on page for Florida stay-at-home order.?We're going to talk about IRS filing except extensions.?We're going to talk about charitable contributions.?We're going to talk about pension and Ira.1:57Bution, we're going to talk about life insurance estate planning Powers of Attorney and solvency the list goes on.?I hope you're not asleep already.2:08Page six is the article that we posted to Forbes on my Forbes blog April 5th.?It talks about the governor's order telling people to stay at home.?The big news here for me was that it said as if you're a senior citizen or somebody with one of several specified medical conditions, you had to stay at home and that if you were anybody else you should stay at home except for essential services.2:37services The governor later modified that to say that even senior citizens can leave home for essential services.2:47That means the senior citizen is either providing an essential service or is receiving an essential service and the essential service list is to our knowledge the most extensive list of anywhere in the country because Governor DeSantis not only gave his own list, but then Incorporated the Miami list and then corporated the CDC list and then later issued questions and answers which gave even more exemptions.?I think the scientific answer here is that if you follow the governor's order, you can certainly go out and get the virus anytime you want.3:28But if you want to be safe, then you'll not.3:33Obey, not only the governor's order.?But also if you can at all stay more than six feet away from other people wash anything that somebody else touched before you do and where the face mask when you are out and about in order to be safe.?This this particular face mask was given to me by a physician client who said do me a favor.?I'm going to need you over the next few weeks wear this mask when you're with anybody.4:01So it has improved my appearance, but it's also going to make things a little safer Marsha and I do not have any family members who are presently diagnosed to have the virus.?Our Law Firm does have at least three clients in the hospital with the virus two of them are Physicians.?One of them is in intensive care and is not going to be well for a long time.4:28So this virus is very very real.?I hope that you have not experienced it or have it anyone else close to you experience it you can read the Forbes blog for more information.4:42I was a little bit upset that the governor said well go ahead and go to religious events and no rules apply.?No distant see a distancing applies at a religious event.?I hope that people are very, you know, careful with Passover and Easter and not naive to be risking their health.?It's really better to stay healthy.5:06One statistic I Learned was that 80% of people who have been on a respirator for this virus have died.?So it's not maybe the worst thing is that you need the respirator.?Not that you can't get one because of that high desk.?That's right.?So I hope you're going to take this disease very seriously.?Don't be embarrassed or feel bad if you're being safer than other people.5:36Now what I was able to do was I got into an air B&B before executive order 20 - 87 the executive order 20 - 87 says that the short term rental of houses in Florida and Condominiums is not permitted.?So you could enter into a 181 de lis, if you want more space than your present home or you want to put somebody in a protected area.?You could contact an Airbnb owner.6:06You could sign a 180 day lease or a 180-day 181 De Lis and perhaps it would be okay.?If there's a cancellation Clause that either party could cancel 8 could cancel on 30 days notice.?That's just a an idea to try to stay safe now on the landlord and tenants situation residential foreclosures and residential evictions are presently not permitted in Florida.6:36People who are not paying their roads are paying their mortgages have a bigger risk.?And that is that the landlord of the mortgage company is going to call the mortgage or kick them out of the lease.?I rep we represent a lot of landlords that are quite concerned.?They don't know what the vacancy rate in their buildings are going to be after this virus, especially for commercial space a lot of bars and restaurants probably are not going to have the cash flow to reopen.7:05So we'll just see what happens here Marsha and I have been ordering a lot of takeout in one reason just to support the local restaurants that we like the hope that they'll be open when the virus claws out that these things of course are happening.7:24Now at your doctor's office, we represent a lot of positions.?I'm sure there's a few positions on this call because they don't want to have their patients or employees infected and they don't want to be infected themselves doctors have had to be very careful.?I've got as I said, I've got a couple of doctors who already have the virus and a number of other medical personnel who have at least been exposed to it.7:50So hats off to those people but doctor is now can do video calls and get paid the normal rate visit by Medicare and many care carriers or a video call.?So I had a scheduled well visit with my doctor and instead of canceling it because I didn't want to risk being exposed or exposing him or his staff.?I just set it up as a as a webinar and we used the bay care webinar system.?It was pretty easy.8:23To do but I have to admit I had to have one of my assistants figure it out.?I couldn't figure it out, but they can walk you through it on the phone.?If you have a bay care doctor or a doctor who uses video conferencing you may want to go ahead and sign up for their system and if they're slow you may want to have a Well Visit tell them how you're doing.?If you have symptoms of the virus than the majority of healthcare carriers are waving.8:53Any deductible and any copay if you go just to get yourself checked out.?So be in great shape.?I hope everybody's exercising.?There's time that you can't say.?There's not enough time to exercise anymore for most of us.?There is time to exercise.?There is the opportunity to eat properly Marsha and I are using grocery delivery.?We're not going to the grocery store.?We the grocery store we were going to had two of the employees there come positive.9:23So we're just using Delivery services or hiring people who are willing to deliver to do our shopping now page 22.?It's a good opportunity to update Powers of Attorney.?If there's the possibility that more people are going to be getting sick especially older people or people who are not in good condition.?So if you're a client of our office will be glad to send you a copy of what you have.?Now, you can look and just make sure that it does what you want it to do.9:54If you're not a client of our office or a friend of yours is not a client of our office and they executed a power of attorney after 2010 then they want to make sure it complies with the Florida laws because a lot of Powers of Attorney don't apply with the corridor don't comply with the 2010 Florida law and therefore have zero force or a fax for example, if the power of attorney was signed in 2012 and says my wife Molly will serve as my age.10:24But only if I'm incapacitated and that power of attorney will have zero force or effect or if the power of attorney says I authorize my agent to to do anything on Earth, but it doesn't specifically say to transfer my car or to sell my house.?Then you can't transfer the car and you can't sell the house because the power of attorney has to specifically authorized everything that would be done.10:50So it may be a good idea to check and make sure that you have Powers of Attorney those were the financial Powers of Attorney rules.?I just discussed now the health care power of attorney.?It is a good idea to update these as well.?You can now provide in your own health care power of attorney who would take care of your children if you have children, so the same people you appoint under your Healthcare power of attorney can also take care of your children.?Also, just so you know the health care power of attorney.11:23Rises your agent to go behind your back and go talk to your doctor or your psychoanalyst or your addiction advisor about your situation without telling you about that.11:35Unless you have special language that addresses that now in addition all almost all of our clients have pre-need Guardian designations, which say if I ever go crazy, here's who I want to be my guardian if the court ever requires a Indian and then of course if you have minor children, you should have a health care power of attorney to designate who can make non-emergency decisions for your children.?If you're not available now, the living will is a document which allows life support to be withheld and you may want a stronger Wonder a weaker one.?You may want it to require that to Physicians and the specialty of the problem that you have.12:20Look at you specifically and carefully they you may want to require a 48-hour wait before anyone could ever pull the plug or you might want it to go faster.?So there's language here on these PowerPoint slides that you can look at and consider you may want to give somebody the power to override the power of attorney.?We normally do let me mention on the health care power of attorney.12:48Most people say I'm going to give this to my wife Molly and then if she can't serve to my friend John if John can serve the Mary well, then they end up in intensive care and Mary gets there first Molly's all upset.?Mary gets there first.?Well, she can't serve unless Molly resigns.?So why wouldn't you go ahead and name for 5 people and say whoever gets there first whoever happens to be there if they're visiting me at 2:00 in the morning and I and they want to look at the medical record and ask the nurse why I haven't had my last round of medication on time.13:20Why wouldn't they be able to do that?13:21So that's just a health care power of attorney tip the do not resuscitate order is a yellow sheet of paper signed by the doctor posted on the refrigerator at home or on the hospital bed, or it says don't resuscitate me if I code or I'm not breathing or my heart stops don't to resuscitate me because I don't want all of the pain and Agony involved with What happens when you do CPR on an older frailer person and break a lot of ribs.?So just different than the health care power of attorney.?There's a lot of confusion there.?So I just wanted to mention it Florida is not a right to die state.?It can be very difficult to die in Florida.?We've had clients that would want to have died earlier.?They weren't able to so just pointing that out.?Oregon is a has much more favorable legislation and we have had clients moved to, Oregon.14:19Part for that reason.?So make sure you know where you're living will and your health care power of attorney is if you can't find it.?Let us know we'll be glad to send you an email copy.14:31And IRS notice came out.?I believe yesterday or the day before we're leaving taxpayers from a lot of things that we normally had to do right away.?For example, when we set up an S corporation when we set up an offshore trust when we set up a new parent company to own a subsidiary company.?We're supposed to file certain documents by certain periods of time and the IRS has been graceful enough to forgive and to push back both filing dates and due.15:01It's noticeably including the state tax returns and gift tax returns, which they almost never done.?So that just happened and I've got the list here.?So your CPA can take a little bit of a chill.?Maybe not be under quite as much.15:15Pressure if they know about this notice mm 20-23 which now that I think about it just came out yesterday.?So your CPA no not even know about it.?And your CPAs is really really busy helping people fill out the salary participation loans, which Brandon is going to cover in a few minutes.15:37something that happened under the federal law that I think is very pertinent and you should know this if you're an employer you already know but if you have children or loved ones who are employees if an employee of any business in the United States, Has a quarantine or isolation order and can't work because they're not able to work from home or they've been told by a healthcare provider to stay at home or they have symptoms in their out getting a diagnosis the federal government pays the employer to pay the employee for take paid time off at their regular rate up to five hundred eleven dollars a day up to 50.16:25Hundred dollars total and the employee has the right to insist that they be able to stay at home under these conditions.16:35The only exception to this would be medical offices and medical businesses were the employer determines that it would not be a good idea to have this rule apply in their office then under items for five and six which you can see by the arrow if the employee is caring for somebody else who's under one or two or is caring for a child.17:00Then they get two-thirds of their normal pay for up to 80 hours.?These are up to 80 hours now in addition to that.17:08If they are unable to work because they have a minor child at home who needs child care then after the 80 hours up here runs up.?The employee has to use their own PTO for two weeks.17:20And then after that the government ships in and gives them up to 200 a day or two thirds of their regular rate to stay at home with their children and you know, one thing we've noted here for a lot of people and I don't know that it's happened for you, but hopefully it is is that Chips have been significantly enhanced as married or unmarried couples have less complications and have more time together fewer interruptions.?There's more time on the phone or on FaceTime or video calls with children and grandchildren people aren't necessarily as busy and a lot of clients have told me that it's really their glad it happened.?Not not from an economic standpoint.?They're not glad it happened.?The people are dying.18:08But that they realize that a little bit of a simpler life a little bit more time and attention with family and certainly everybody's dog is happier.?Now my friends at HUB insurance.?Holly Kerr gave me this summary showing that a lot of health insurance plans are doing some very nice things.18:26They're waving co-pays they're waving deductibles if you have anything relating to the virus, They're also allowing people who used to have to work 30 hours a week to keep their health insurance to be furloughed and to be able to keep their health insurance.?Not all the carriers have done necessarily done this but most of the carriers and also Medicare, so I'm just giving you some of the things we've received here.?And like I said you can now do video calls with your doctors in the past.?It was very difficult for a doctor to do a video call.?They had to have a lot of special equipment and computerization.19:02Action to comply with the privacy rules and the federal government said don't worry about that page 53 simply says that medical businesses can exclude their employees from that sick pay time that I was telling you about.19:17Randall John do you want to cover the twelve hundred dollar check that I don't believe anyone in the United States has gotten yet in the $500 per child Jack for a couple of minutes.?Sure.?So most people know about this already, but every American taxpayers receiving the check of up to $1,200 and if you have a child another $500 we have the threshold here.19:45So if you make over Over seventy five thousand dollars as a single taxpayer a hundred and fifty thousand that gets reduced for every $5 for every hundred dollars.?You exceed that but one thinning strategy now that we have the tax filing deadlines extended if you would have qualified in 2018, but you don't qualify in 2019.?You might want to wait until July to file your 2019 return that way by Russell look at your 2018 return and you can still receive some benefit.20:18That's like that's a great idea.?That's a that's a great piece of information.?Thanks very much.?And the unemployment benefits have been extended to covered individuals.?Those individuals are those who have been affected pretty much any way that caused them to lose their job due to the coronavirus and these individuals can receive their regular State unemployment amount plus and other $600 a week.20:46Week so there are some individuals who will make more on unemployment than they would by working and it definitely would behoove some employers to furlough some employees try to get them to qualify for this rather than paying them if they don't have any work to be done.?So in this slide, you can see that it's $600 per week and you are paid through the state agency.21:16So right Euler State unemployment will pay you the additional amount and the states are being reimbursed for this so not supposed to cause an undue burden on the state, even though they will have to process a number of applications.?I'm not sure how they will handle that that extra amount of applications.21:38So basically a lot of employers who are slow now have furloughed their employees so that the employees can get dollars a week unemployment.?I mean $600 a week plus their own important employment benefit and then when the virus cause businesses can reopen the employers are going to be able to get a payment from the government which brand is going to talk about under what we call the PPP program and the employees can come back on the payroll.22:10John do you want to spend just a couple of minutes on the charitable deduction changes??So they were two big charitable deduction changes in relation to the cares act.?The first one is supposed to be permanent.22:23And for anyone who does not itemize their deductions, they can deduct up to 300 dollars above the line being they can benefit from from that $300 deduction, but it has to be a cash contribution to a public charity or A private operating Foundation the Donor advised fund will not work in a regular private charity will not work.?So that's something to keep in mind here.?And then the next change that is not supposed to be permanent is an increase in the amount.?You can contribute to charity from your adjusted gross income now for cash contributions to public Charities.?You can deduct up to a hundred percent of your AGI.23:08This was previously 60% for these types of contributions, but it has not changed any other AGI limitation and on this slide you can see what the AJ limitations are going to be for 2020.?The only real difference is that top left percentage that 100% everything else is the same as you can see on the next slide.?This is what it normally is now if you contribute more than a hundred percent of your AGI in 2020.23:40What's carry forward will be subject to these rates the normal rates.?You won't have that hundred percent of AGI deduction on any carryforwards.23:50So many of our clients have been wonderfully generous some of our clients have given away more than half of their net worth one client is given away really 80% of those networks and the twenty percent remaining is plenty, but not nearly As much as five times that so a lot of our clients every year form private family foundation's which then may pay their children or grandchildren or others to do work that is charitable in nature.24:27It's a good fat wholesome family activity and it's a tax deduction for putting it in and the foundation doesn't have to do much but they have to distribute about five percent of their value each year.?So it's something to consider if you have extra time with your family to see if they're interested in doing charitable work as opposed to just writing a big check to a hospital or a school.?You can set up your own Foundation that specifically helps the hospital.24:57School and the hospitals in the Schooler know how to do these.?So one thing we want to mention is when you set up your foundation, it's you can help people that you can't help your next door neighbor can't help a specific person under the Internal Revenue code Charities are four classes of people.?So even when you see someone in the newspaper that had a really bad fortune and somebody sets up a trust just for that person.?That's typically not going to qualify.25:27But certainly if you want to help provide benefits for anyone who lives in the village where your parents were raised or for graduates of your high school who would like to go to the college that you went to or something like that.?It's a very nice thing Brandon a minute on section 139 for the clients who own businesses.?Yes the section 139 allows for what they called a qualified disaster payment.25:57So made to your employee to be not included in their income as long as they're qualified disaster, which there is now Nationwide so employers can make any type of payment for reasonably necessary personal family living funeral inspects expenses incurred as a result of qualified disaster It's deductible to the employer.?It's not included in income for the employee.?So it's the night benefit year to allow for employers to really reimburse their employees for expenses that they incurred.26:27As a result of This Disaster, maybe that's her child care or medical care.?If I knew procure equipment to work from home.?Well that can be paid to your employees not pick up and drains on and the doctor bill for you.?So it's a nice.?Yeah, and you don't have to include it in your pension plan calculations.?You don't have to pay the six point two percent due to tax on it.26:49So if you are an employee of your own business and a lot of people attending this our make a list of your personal Spencer's that have gone up as the result of this and write yourself a check talk to your CPA first and then ask your employees.?You know, what have you guys been spending??I see you had a babysitter.?Let me give you a check for it.?It's not part of your salary.?It's not part of your bonus.?It's just something that we do for people who need it.27:22Okay, first very few of our clients lose money.?But if you ever do there are Internal Revenue code Provisions that prevent you from doing very much with net operating losses traditionally, you could carry them back.?If you're if you have a negative situation and the tax year which happens a lot to real estate developers every once in a while.27:46You can carry it back a couple of years and actually get a refund is if the loss occurred in a prior Here or then you have to carry Back Carry It Forward.27:56Congress eliminated the carry back in 2017, but now they've given it back to us.?They brought back to carry back if you had losses in 2018 or 19.?You can amend that 2018 or 2019 return carry that loss back to a year before and actually get a refund.?So those of you who had some losses.28:22I have a real nice advantage of those of you who have losses this year and there will be quite a few people with losses this year instead of games overall will be able to get a refund from the prior year.?So you'll get cash back for your losses, which is does help to ease the strain you're also able to take a bigger interest deduction in your business under this new law up to fifty percent of your taxable income can be an interest deduction for businesses.28:52Were 25 million businesses in Revenue business is under 25 million in Revenue did not have to worry about this rule.28:59There was an error in the prior tax law which prevented you from writing off certain improvements to buildings.?And this new act corrected that and Brandon wind specifically does it apply gesso.29:17It applies for qualified Improvement property, which is a portion of your They can buy the budget different of those numbers for different types of categories into one new category of just qualified Improvement properties.?They didn't specify the new depreciation period so it had a 30-ton your life.?Well that meant that is not eligible for any in the bonus depreciation.?So 179 deduction knows 168 a bonus depreciation.?Now, they have corrected that is said we meant to have it be 15 your life which was the previous life for all those different types of the for the property.?So now that it has that 15 year like we can take bonus depreciation on it.29:59And it's made retroactive for 2018 2019 as well.?So you had purchased qualified Improvement or met those improvements in those facts years.?You can go back and then returns take the full extent and one year if you would like to and get a refund for those arms.?Okay, so that's another place where a lot of people on this call talk to your CPA.?You may want to amend the return and get some money back.30:23Now there were some new rules that came out very recently which will enable people who were detrimentally impacted by the virus to pull up to a hundred thousand dollars out of their pension or IRA account without paying the ten percent excise tax.30:43They will still pay income tax on it, but they may be in a lower bracket this year and there's three choices if you pull this hundred out The first choice is that you pay it back within three years and it was it's like it you never took it out.?The second choice is you pay tax on it this year and the third choice is that you pay tax one third this year one-third next year one third the following year is if you received 330, I mean is if you receive 33,000 333 each year.31:17We are just we are discouraging our clients from taking this $100,000 withdrawal its credit approved money in Florida.?It's going to grow tax-deferred some of our wealthy clients may pull it out and then wait to see what happens.31:34If you have losses this year, you may be better off converting part of your regular Ira to a Roth IRA or 401k to a Roth 401 k, so think about Bout this one.?You do have the ability to withdraw it.?What bothers me the most is a lot of middle-class families are going to unwisely take out a hundred or for for two spouses 200,000.31:59Instead of mortgaging their vacation home or selling their jaguar or they're selling their boat times are slow.?You may have a big recession around the corner.?You'd be better off leaving these monies in the pension or IRA and mortgaging the the revocation home or the boat a lot of middle-class families and small business owners quite candidly are going to go down the drain and have to start over.32:25It's easier to start over when you have a couple hundred thousand in your pension is IRA account you could even put a business under your pension IRA account Brandon.?I wrote an article about that.?So I've had clients who literally have nothing with judgments against them and they've been able to start a business under the IRA creditors can't touch it.?They're able to work for the business.?So these changes sometimes when the government gives you something you don't necessarily want to take it.?Also there was a law that you can borrow up to 50,000 from a pet from a pension plan.32:58That allowed it, they move that up to a hundred thousand.?So you're going to have a lot of employees asking you where their hundred or two hundred thousand dollars is one thing that they also did was if you are a senior citizen, you're taking your annual minimum distributions from your IRA.?You don't have to take it this year.?Now, if you already took it and you took it less than 60 days ago, then you may be able to put it back.33:29Then call it a roller.?We just published an article on this yesterday will be glad to send you a copy of the article.?If you like to see whether you can do a rollover, but the bottom line is from if you have Ira minimum distributions from an IRA that you retired on or there's a hole or a rollover from your spouse.?You don't have to take that distribution this year.33:52If you borrowed money from your profit sharing plan on a five-year loan, which used to which is a black child you get skip payments for a certain period of time John what else happened in the cares act for pension plans that I haven't mentioned pretty much covered.?All of it.?The only other thing is you have the five-year rule which could become a six-year rule for some people.?So if you had an IRA payable to an estate in the person died, the plan owner died between 2015 and December 31st, 2019 instead of having to be paid out.34:33Out within five years.?It's now six years.?This does not apply for those who died in 2020.?So if there's beneficiary who would be subject to the by the room 2020, they're still going to have the five-year rule.?Okay, very good on page 84.?You don't have to take your required minimum distributions now until the calendar year after you have reached age 72 it was 70 and a half.35:03That rule was changed late last year.35:06Also, if your charitable you can continue or consider to have money if you're over 70 and a half to have money passed directly from your IRA to a charity that way you don't pay any tax on the withdrawal and and the charity gets the money and doesn't have to pay tax so it can be better than a chair and you Don't have to worry about the adjusted gross income limit.?So that's called a qualified charitable distribution.?The other change they made last year was that it used to be once you were 70 and a half.?You can no longer make Ira contributions, even though you had earned income now, you can make Ira contributions as long as you want.35:54But if you make Ira contributions after 70 and a half, they will reduce the tax deduction you the ability To put to move an IRA to charity.36:06So if you've made 15,000 of Ira contributions, since you became 70 and a half Under this law, then you would only be able to make an $85,000 transfer of Ira to charity.?And then the next year you could do the hundred that may be a little bit confusing.?But but it is explained in the PowerPoint slides and it must be true because it's in the PowerPoint slides and and when Allen says direct you can't what do you mean just you can't receive the funds at all of them contribute that you have to actually have your plans treated correctly.36:42To the charity if it comes in here name at all, then you won't qualify.?Right and certainly a lot of Charities have a lot more need this year.?By the way.?If you have a charity then your charity can file under the pi DL program for a ten thousand dollar check from the government.37:02That's what the Sarah gasps of Music Foundation is done and we're going to use that money to buy computers and organs for the children so that they can take lessons at home and also, At their school work done at home.?So that's what we're going to be doing with our $10,000 check.?You can be thinking about what you'll do with your ten thousand dollar check page 86 life insurance is a little bit harder to get right now because the carriers are not getting the records from the doctors offices that have shut down.37:33Do you like insurance rates may go up next year because of the virus but the life insurance carriers are not allowed to raise their rates without approval and that only happens once a year.?So if you don't have enough life insurance now would be the time to go ahead and file an application and get with a life insurance agent and get that life insurance written while you're healthy.?And while the insurance carriers are writing it at today's rates instead of tomorrow's.38:02raise Page 87.?If you have an estate tax issue meaning that you and your spouse are worth more than 23 million.38:13Or if the exemption goes to one half of what it is now, which is programmed to occur in 2026.?So we go it would go from 11 million 580,000 half of that in 2026.38:30You have the opportunity to sell some of your assets or part ownership of your family LLC to a trust for your spouse and descendants in exchange for a promissory note and that promissory note can have a very very low interest rate.?So I could load a million dollars to a trust for my wife and children and if it is a 15-year loan, they would only have to pay me.39:00Two point one five percent a year.?Hopefully those Investments would earn much more than that and the differential is a state tax avoidance for me.?In addition.?I can pay the income tax on the income of the trust that I sell these assets to and I don't have to pay any income tax on the note I get back.?So a lot of the people on the call have done these installment sales.?They're very popular.39:26We have a YouTube video that explains them on page 87 and you can click on that link or we can send you the link and you can watch it but it's really the very best planning arrangement we have for a state taxable clients and they end up with a logistical chart like this it page 89 which I don't have time to cover but a few of you have these and we'd love to have you come see us so we can update your chart and have you sell more assets to the family or more interest in the family all See now using this.40:04Unfortunately many people will face short life expectancies this year particularly senior citizens who are diagnosed with the virus.?So if you get that diagnosis and you are estate taxable, the bad news is you have the diagnosis.?The good news is that there is a loophole called this often campus up canceling installment note which would allow family members to owe you money, huh?40:34A note that vanishes when you die.40:37So if you have 20 million worth of assets and you sell 10 million to your family exchange for a 10 billion note that cancels when you die, and then you die the note cancels and you have no estate over 10 million.?You don't have to file an estate tax return and you just saved about three and a half million dollars in state taxes.?I'm not going to go through the nuances and the niceties of how to set these Arrangements up.41:06But I have said too many of you joshing lie or seriously, if you ever get a bad medical decision you get a bad diagnosis with a short life expectancy call your family first and me second because if we can put this in place while you have better than a 50 percent chance of living at least one year, then this can wipe out all your estate tax and we've had clients save.41:35Tens of millions of dollars in the state taxes using these short life expectancy techniques.?We put it into place if things don't go well and the client dies then all the estate tax is avoided if things go well in the client lives then we reverse the mechanism and it's like I said, it's just something worth thinking about making lemonade lemonade out of lemons.?There's a lot of technicalities that the professional advisers can read about.42:05How we've found what we think is a much better way to do it than just solve canceling installment note.42:14Page 97.?I think a lot of you on this call spent some painful time with me in 2008 through 2012.42:26Fighting with creditors negotiating with creditors coming up with plans to do what's best for a family.?Please don't think that there's not a risk of a significant recession only weeks away.42:44Whether that's a 5% risk or a 55% risk, I don't know.42:51But what I do know is that if you have a million dollar building with 750 thousand dollar mortgage on it that building could be worth $600,000 in the next two months.43:04Then the bank could be knocking on your door and asking you to put money in you might negotiate the bank down.?It depends on what assets the bank can reach.?What is your situation today from a creditor protection standpoint.?One thing we want all of our clients to know is if the Doomsday happens today?43:26Real estate isn't worth what it's worth today.?I'm in a car accident.?Somebody Sue's me.43:33What can I keep and what do I lose if I have to go into bankruptcy to get rid of a judgment?43:41The planning that you do before is a hundred times more effective than the planning that you do after remember it wasn't raining when Noah built the ark that's how it worked.?So there's a lot of things we can talk about.?There's a lot of slides here.?There's a lot of pervasive reasons.44:00If you have a company right now that is or may become insolvent unable to pay its debts.?Then you want to be very careful how you conduct yourself because you have a duty to the creditors to act reasonably and that's not logically that's based on the laws the federal law and the state law.?So we've already done a number of consults with a number of clients and bankruptcy counsel.?Just being ready.?We hope for the best but we plan for the worst.44:30Purse and a lot of clients believe it or not get their debt reduced because things are so bad and then have to pay the IRS because the reduction of debt constitutes income.44:44now that's not going to apply you can get a PPP loan from the small business administration and it's forgiven.44:54But it is going to fly in a lot of foreclosures.?So if you have leverage real estate highly leveraged real estate in an LLC and it's not taxed as an S corporation than read our slides talk to me talk to our advisors get us to send you a copy of our article on Crest cre ST, which may solve a lot of the issues.?I decided not to edit out these slides thinking that people might want to read them if they're having trouble.45:23Sleeping at night or they're tired of playing ping-pong with their significant other ping pong tables are a lot of fun still being delivered by Amazon wholesome clean, although you can bet to I have a lot of slides here on bankruptcy law.45:38I'm not going to play these I'm not going to go through these slides but I will say if you've guaranteed a lease for somebody and their company goes bankrupt you may owe the creditors the last 12 months rents paid by the Their company even though they never defaulted on their wrist because of the preferential transfer laws.?So if you have a guarantee out there or you have a business that may go under please don't just assume that everything's going to go well and assume that however, you spend the money is fine.?There's a lot of different ways to spend the money page 126, you might ask your CPA to go over our creditor protection maintenance lest.46:22They One thing that your CPA does with you once a year.?We have a lot of materials on asset protection.?If you want more information just send me an e-mail put in the re line whatever you want the information on you could put already asset protection re ping pong tables re charitable foundations, whatever you like will make sure we send that to you.46:46We're going to I'm going to mention the last slides and then we're going to spend the rest of our time on the loan program the last slides which you don't have here in which I'm going to discuss with the client this afternoon who can't get her money back from a hotel is that under Florida law if you have a legal obligation, but it comes impossible due to an act of nature to perform then you may be excused from that performance and that is called an act of God clause and there are also defenses of in practablity.47:23Is it going to be very busy??But if you have contracts and you think you're going to have to pay someone money or they're going to have to pay you money and you're not concerned.?I mean, you're not sure exactly what to do.?It's better to get advice and to do the right thing then to gas and possibly do the wrong thing.?So Brandon, let me turn it over to you.?You've got about 13 minutes, which in our firm is 3/10 of a billable hours.47:52We jokingly I say and tell us what you can tell us in this period of time about the SBA loan programs because I think even if you're not going to borrow, it's just interesting how they're put together.48:06So first before we get there, there's a couple of alternatives to the actual loan programs where if you if you want this you can apply for the loan and one of those is this employee retention credit and what this does is it gives you a refundable payroll tax credit for up to 50% of the wages that you pay to Now this is limited to ten thousand dollars per employee wages.?So you get a max credit of $5,000 per employee.?Now in order to be eligible for the credit.?You have to have your operation is their business fully or partially suspended due to a government order such as the party stay-at-home order or your grocery seats are less than 50 percent of the gross receipts as compared to the same quarter last year.?So you're looking at first quarter 2019 compared to for squirter 2020 2020 is 50% of those.48:53Gross receipts are eligible and that applies all the way up into the time where you get back to 80 percent of your gross receipts as compared to the same quarter the previous year.?So this could last for two or three quarters, but you are limited by self-knowledge for an employee.?So that is available as an option for the most part though.?The PPP loan programs going to be the better option.?You're going to get a little more doable, but I have some slides here just comparing those you also have the ability to delay the payment of your payroll taxes.49:22This is Only the 6.3% Social Security payroll tax on you can defer that and pay 50 percent in 2020 150 percent in twenty to twenty twenty-two that this does not apply.?If you even get a dollar of forgiveness of the paycheck Protection Program.?So these are just some Alternatives here, but now moving to the actual programs.?There are two programs.?We had the Eid LEL disaster loan and then the PPP loans which are the paycheck protection programs.49:53Now there's a little bit different eligibility requirements, but generally small businesses independent contractors sole Proprietors with less than 500 employees can qualify for this as a general rule now for the Eid L.?Love you have to have suffered substantial economic injury as a result of this Claire disaster to be eligible.?If you are eligible for that you can go to this website here.?We have the link that you can click on you fill out a simple application putting in your business name.50:24The owners of the company your EIN numbers and then you'll need a gross receipts from the last year your total number of employees and then cost of goods sold.?If you don't have cost of goods sold such your you know, you may be a doctor or a lawyer that's in service type industry.?We don't have cost of goods sold.?We just provide services so you can put a 0 in that box and then you can apply for the loan filling your banking information and you posted get a ten thousand dollar Grant from the government within three days.50:53Days of submitting now, we've talked to a bunch of people we filled out this some helped a lot of people with these applications.?We don't know anybody that's got $10,000.?So we're still waiting to see how that's exactly going to work.?But that is the idea.?There's limitations on what you can use the funds for their down here on the bottom left, but it's a lot.?It's a pretty liberal list of the last one there number six repayment obligations that cannot be met due to revenue losses.?That's a pretty broad category.51:23So there's not a whole lot of limitations on what you can actually use this loan for now on the other side.?We have the paycheck Protection Program and under this loan you're eligible with the uncertainty of the current economic conditions make a loan necessary to support the ongoing operations of the business.?So certainly here in Florida.?A lot of us have been impacted the USA home order.?We're not sure what clients are going to do.?We're not sure how quicker going to recover.?There's a lot of uncertainty here.51:50So I think for the most part A lot of people can qualify for this But you have to think about too.?What do I have in the bank if I have a million dollars in the bank it only cost me $200,000, you know month to support my business and my really uncertain about my ongoing conditions.?Probably not it's probably not going to last more than a month or two, hopefully, so you got to consider that as a factor, but if you are eligible, you can get two and a half times your monthly payroll cost for up to $10,000 for most people.?It's going to be two and a half times your mother.52:24We'll go through what those actually are but you're permitted to use the paycheck Protection Program 75% of those activities on payroll cost and that includes your health care benefits retirement plan contributions medical sick leave as well.?You can use it to pay mortgage interest payments not principle.?You can use it to pay your rent.?You can use it to pay interest on debt, but not principle that was incurred prior to February 15th, and then you can use it for utilities.52:51Now the paycheck Protection Program is going to be forgivable to the extent during this eight-week period after the date of the love, we use the funds towards payroll cost mortgage interest rent and utility.?So after the date of the loan, we add up all of our expenses that we use for these thoughts if we exceed the value of our loan if it's less than what we got on the loan, then we have to pay back that excess.53:17The excess is going to be able back over two years at 1% Now there's a couple of other things that could require you to pay back a portion of the loan that you did.?What is it??You get that $10,000 Grant that's going to reduce the amount that you're eligible for forgiveness for so you might have to end up paying back and thousand dollars at the end of the day and then if you reduce your number of employees during that eight week period as compared to the prior year then you can you might have to pay back a portion of the loan.?So as an example if we had 20 employees last year.53:52Get the loan and we only have 19 during this eight-week period so we have five percent less than we did the previous year.?You probably going to have to pay back by percent of the loan same thing applies.?If we have employees making less than $100,000.?We can exclude the ones over $100,000.?But if you reduce the salaries of anyone making less than $100,000 by more than 25% that's going to reduce the portion that you're allowed to be forgiven and you're going to be required.54:22The pay back some of them now there is an exception here that if you correct that reduction prior to June 30th, then you're going to be okay as long as you made the change before April 27th.?So if we let someone go before April 27th, we have the ability to bring them back by June 30th to eliminate the reduction of the number of employees the fire them after that date after the April 27th date then I don't think we have that extra room.54:52And we're going to have a portion of our loan reduce.?So we need to be thinking about those items that we were getting the loans.?Now the economic injury disaster loan that's going to come directly from USDA the paycheck Protection Program, you're applying through your bank.?A lot of banks have indicated that they are only servicing their existing business customers.?If you have an account with them, they're going to get you first they're prioritizing those types of customers and maybe not even accepting applications if you don't have a bank account.55:22So you really need to search out your bank it on their list and get these these applications submitted as soon as possible.?They came out and said that these are going to be given on a first-come first-serve basis.?So once the funds run out, they are no longer available.55:40Now as far as calculating there's really three different tests here.?That's how much can you borrow??How much can be forgiven and then what can I use the funds for once I get there??So we're determining how much to borrow that's a two and a half times your average monthly payroll cost.55:57This list here is everything that can be included salaries wages commission's similar compensation if you don't have documentation, This going to apply on their own and have their own application.?Now that the payroll costs that you get to count for this two and a half times tests are limited to a hundred thousand dollars per employee.?So you can only count that first hundred thousand dollars of wages that you paid but that $100,000 limitation only applies for these first four items.?You can include in addition to the $1,000 health care benefits retirement plan contributions.57:09And state and local taxes so you can get above and beyond that hundred thousand dollars per employee.57:14Now once we get the loan how much we can borrow for into how much can now be forgiven and that is that he meets us where you have a period after the date of the loan as you spend expenses for these items and that is going to be the amount given so we have payroll including everything including retirement plan contributions.57:37So if you are worried about maybe you can make a retirement And ripped but only those obligations that were in place prior to February 15th.?So if we're paying rent or related party, that's okay, but we can't jack up that rent to satisfy our hunger.58:29You have to have it in place before we can also make Utility payments and then again, So we have two options here as sample.?This is the ideal application as you can see it's fairly simple.?These are the two that you might need help from the CPA or you know, another advisor to get your gross revenues for the 12 months prior to 2002.1:00:11Last night vice president Pence said that it would be another week last week the treasury secretary said that it would be three days.?So, I'm sure they're trying.1:00:25Yeah, let's go back to the so we have all these you should have gotten our dear client email which provide you with the The names and click here's to see our previous webinars which include a lot of a lot more detail on all of this.1:00:50So can we go back to the front of the cover page John?1:00:58So you've got our email addresses here, you know our phone number seven two seven, four four to twelve hundred.?Let us know.?If you have any questions.?Let us know if there's anything we can do to help you beyond law.?If you need a recommendation of the CPA.?If you need a recommendation of a banker, you need the recommendation of somebody who can go shopping for you or make a delivery so you don't have to leave your house.1:01:24You need a recommendation for a doctor or anything like that.?Let us know.?We are more than glad to help.1:01:33We are replaying this webinar at 5:30.?You're welcome to watch it again.1:01:40Tell all your friends or even people you don't like about it, and then we'll also see send the link so that it can be watched on demand.?If you would like for us to present future webinars on any other topics, please let us know.?I'm also giving you greetings from Tim karate and Christopher D, Nicole.1:02:01Oh my partner's they are also doing well and working hard and taking care of their families as we all do.1:02:12Hope you have a great day.?Thanks so much for allowing us to serve you.1:02:19And once again, thank you.RE-GENERATE TRANSCRIPTSAVE EDITS ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download