The French Riviera is one of the most popular waterways in the world for high net worth individuals. Luxurious yachts dot the docks up and down these waterways, as some of the world’ wealthiest enjoy spending time basking in the sun. However, all is not perfect in this exotic location.
It appears the French government is putting the tax clamp down on yacht owners, and the wealthy are looking for other places to dock. According to reports, many yacht owners are fleeing the Riviera and heading for more tax-friendly docks in Spain and Italy.
According to several government officials in the region, the port of Saint-Tropez has already lost nearly a third of its business since the year began. Elsewhere, Toulon is hurting even worse, having lost 40 percent of its business in 2017.
So if you’re looking for a good place to dock your luxurious yacht on the Riviera, you might want to check in with Italy or Spain, instead.
Trying to keep your taxes as low as possible is no crime. In fact, when done correctly, often with the help of a professional, you can keep much more of your hard earned money than you might have expected. The key is doing it legally, which is called avoidance.
Avoiding taxes is the act of minimizing your taxes by using means approved by the IRS, such as tax deductions, taking tax credits and setting up tax deferral plans. Businesses can also use tax avoidance measures, like leaving income in other countries in order to avoid being taxed on it in the U.S. These are all perfectly legal ways of to avoid paying higher taxes.
Essentially, if you knowingly report inaccurate numbers or fail to report your income, period, that is tax evasion and if the IRS catches you there will be consequences.
So, when you’re filing taxes you should definitely take every measure possible to avoid paying taxes. just make sure you don’t cross the line and become guilty of evasion.
If you invest in real estate then you might be aware of a little tax-friendly trick known as a like-kind exchange. This tax-saving tip can save real estate investors a lot of money every time they sell a property. Under normal circumstances if you sell a property and make a gain you have to pay taxes on the gain, even if you use the money to purchase another property.
However, if you sell one property and use the proceeds to acquire another property, under Section 1031 of the IRS Code, then you can delay the tax bill by using a like-kind exchange. This has been a priceless move for thousands of real estate investors for many years. That’s the good news.
If you invest in real estate and are looking to replace one or more properties with different properties then now is a good time to meet with a professional tax advisor that can help you with this process. You will learn whether or not your properties qualify for this tax break and how you can get the most out of a like-kind exchange.
Have you taken a ride on New York’s Subway system recently? If you have then you might have noticed that it’s in need of some work. Like many other forms of infrastructure, the Subway is getting old and worn down from years of use and lack of upgrades and repairs.
Of course, this is a problem that the mayor of New York would like to fix. So how does Mayor Bill De Blasio plan to do this? As you might have guessed he wants to raise taxes. However, he’s not looking for everyone to help foot the bill. He wants the state’s wealthiest individuals to pay a little more to help improve the system for everyone else.
According to the recently announced proposal, the mayor wants to increase the tax rate on anyone that makes more than $500k from 3.876 percent to 4.41 percent. His plan would also assist in the funding of half-price subway and bus rides for as many as 800k of the area’s lowest income individuals.
Is it starting to feel like the process to simply put up a new stop sign in the Nation’s Capitol would take an act of Congress? These days nothing is simple in Washington and when it comes to tax reform the battle will be anything but easy.
The battle over many long-standing tax incentives and breaks is also a big sticking point. Additionally, Obamacare is still unfinished business and it is looming over the current administration. Some lawmakers, including the president, are still focused on resolving that matter first.
Access to high-quality education is much easier and the cost of tuition to attend the best universities and colleges is also less expensive in Canada. Thus, according to the OECD, Canadians generally enjoy a higher quality of life, in large part because of the services they receive from taxes.
While Hurricane Harvey continues to devastate the Gulf Coast, Texans can expect to receive a little extra relief this upcoming tax year from Uncle Sam. Taxpayers in the federally declared disaster area have the option of claiming disaster-related casualty losses for either the year that the event occurred or the year prior. This means that those whose homes were affected by wind or flood damage can deduct the damages from either this year or the last year’s tax returns. In many cases, amending last year’s returns results in an immediate tax refund which can be then used to live on or begin repairs. However, the option of amending last year’s return may not be for everyone since the IRS does have two rules that must be followed for casualty claims. The first is that the amount of damage claimed must first be deducted by $100. Then the total casualty losses must be reduced by 10% of your adjusted gross income.If you qualify for writing off a loss the process is fairly simple. First, you will need the proper forms. These are the long Form 1040, Form 4684 to determine and report your casualty loss and Schedule A to itemize your loss deduction. If you are planning on amending your 2016 return you will need to use Form 1040X instead of the long Form 1040. You will then need to determine how the damages incurred have affected your property’s fair market value. This is done through determining how much your property is worth immediately prior to the disaster and comparing it to what it is worth immediately after the disaster. The latter part of this will need to be through a professional appraiser. The difference between these two amounts is your loss from casualty. You can then utilize Form 4684 to determine the deductible amount of your casualty loss.
If you have insurance on your property you must first file a claim to use the damage as a casualty loss. Any money that you receive from the insurance company must then be deducted from the casualty loss amount. All insurance payments must be used to repair, or replace your property or any excess could be counted as a taxable gain to you.
Throughout all of this remember to keep documentation of everything! While the IRS may give disaster victims some leeway, they do require that casualty losses be substantiated and supported. This will also be of great value to you if you ever get audited in the future.
Consult with your tax advisor to determine which option would be best for you and your family.
For more on how to claim your casualty losses (click here).