6 months to go
until the largest tax hikes in history!
Steinbrenner's
2010 Death may have saved his family about $600M by dying in
2010! (See Death tax increase below). But you don't have to
die to take advantage of two key strategies that you can
implement now...
You can just
sit back and take it, or, use the two best tools you have.
Your Voting tool, and your wealth creating tool! Your wealth
creating tool, setting up your own small business (Like the
BYA Boat As A Business™ program--allows you to get back
taxes already paid, and reduce them in the future--more
below!)
In just six months,
the largest tax hikes in the history of America will
take effect. They will hit families and small businesses in
three great waves on January 1, 2011:
First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts
for investors, small business owners, and families. These
will all expire on January 1, 2011:
(Get a boat this year and you can
qualify for up to $250,000 in deductions this year!
WARNING!
Your boat must be in service this year
to qualify--only a few left that can be. Call
Eric 410-263-2311 X222 or come to one of our seminars-click
here.)
Personal income tax rates will rise. The top
income tax rate will rise from 35 to 39.6 percent (this is
also the rate at which two-thirds of small business profits
are taxed). The lowest rate will rise from 10 to 15 percent.
All the rates in between will also rise. Itemized deductions
and personal exemptions will again phase out, which has the
same mathematical effect as higher marginal tax rates. The
full list of marginal rate hikes is below:
- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%
(The depreciation from our Boat As A
Business™ program will keep you in a much lower tax
bracket and some of your hard earned money will go into
equity in your new boat instead of to the government--all
legitimately--call 410-263-2311 and ask how to reduce your
tax bracket with a boat!)
Higher taxes on marriage and family. The
“marriage penalty” (narrower tax brackets for married
couples) will return from the first dollar of income. The
child tax credit will be cut in half from $1000 to $500 per
child. The standard deduction will no longer be doubled for
married couples relative to the single level. The dependent
care and adoption tax credits will be cut.
The return of the Death Tax. This year,
there is no death tax. For those dying on or after January 1
2011, there is a 55 percent top death tax rate on estates
over $1 million. A person leaving behind two homes and a
retirement account could easily pass along a death tax bill
to their loved ones.
Higher tax rates on savers and investors.
The capital gains tax will rise from 15 percent this year to
20 percent in 2011. The dividends tax will rise from 15
percent this year to 39.6 percent in 2011. These rates will
rise another 3.8 percent in 2013.
Second Wave: Obamacare
There are over
twenty new or higher taxes in Obamacare. Several will
first go into effect on January 1, 2011. They include:
The “Medicine Cabinet Tax” Thanks to
Obamacare, Americans will no longer be able to use health
savings account (HSA), flexible spending account (FSA), or
health reimbursement (HRA) pre-tax dollars to purchase
non-prescription, over-the-counter medicines (except
insulin).
The “Special Needs Kids Tax” This provision
of Obamacare imposes a cap on flexible spending accounts
(FSAs) of $2500 (Currently, there is no federal government
limit). There is one group of FSA owners for whom this new
cap will be particularly cruel and onerous: parents of
special needs children. There are thousands of families with
special needs children in the United States and many of them
use FSAs to pay for special needs education. Tuition rates
at one leading school that teaches special needs children in
Washington, D.C. (National
Child Research Center) can easily exceed $14,000 per
year. Under tax rules, FSA dollars can be used to pay for
this type of special needs education.
The HSA Withdrawal Tax Hike. This provision
of Obamacare increases the additional tax on non-medical
early withdrawals from an HSA from 10 to 20 percent,
disadvantaging them relative to IRAs and other
tax-advantaged accounts, which remain at 10 percent.
Third Wave: The Alternative Minimum Tax and Employer Tax
Hikes
When Americans prepare to file their tax returns in January
of 2011, they’ll be in for a nasty surprise—the AMT won’t be
held harmless, and many tax relief provisions will have
expired. The major items include:
The AMT will ensnare over 28 million families, up from 4
million last year. According to the
left-leaning
Tax Policy Center, Congress’ failure to index the AMT
will lead to an explosion of AMT taxpaying families—rising
from 4 million last year to 28.5 million. These families
will have to calculate their tax burdens twice, and pay
taxes at the higher level. The AMT was created in 1969 to
ensnare a handful of taxpayers.
(Note: The BAB program depreciation,
etc. show as "above the line" and reduce the likely hood of
falling into AMT, or at least reduce AMT)
Small business expensing will be slashed and 50% expensing
will disappear. Small businesses can
normally expense (rather than slowly-deduct, or
“depreciate”) equipment purchases up to $250,000. This will
be cut all the way down to $25,000. Larger businesses can
expense half of their purchases of equipment. In January of
2011, all of it will have to be “depreciated.”
Taxes will be raised on all types of businesses.
There are literally scores of tax hikes on business that
will take place. The biggest is the loss of the “research
and experimentation tax credit,” but
there are many, many others. Combining high marginal tax
rates with the loss of this tax relief will cost jobs.
Tax Benefits for Education and Teaching Reduced.
The deduction for tuition and fees will not
be available. Tax credits for education will be limited.
Teachers will no longer be able to deduct classroom
expenses. Coverdell Education Savings Accounts will be cut.
Employer-provided educational assistance is curtailed. The
student loan interest deduction will be disallowed for
hundreds of thousands of families.
Charitable Contributions from IRAs no longer allowed.
Under current law, a retired person with an IRA can
contribute up to $100,000 per year directly to a charity
from their IRA. This contribution also counts toward an
annual “required minimum distribution.” This ability will no
longer be there.
Find out more about how our Boat As A
Business™ Program can convert taxes you would have
paid, or even have already paid--into equity in a boat.
Visit:
Our Boat As A Business™
page here.
Find out about
up coming seminars here.
Just Call
410-263-2311 and tell us you want to know more about our
Boat As A Business™ plan.
See a
short video here.
Or, take our 10 second
poll...
Click Here
After you take the poll--see others answers: "People
choose our Boat-As-A-Business program for a number of reasons. Which do
you think is most popular?"
ANSWERS
These are possibly the 5 best sentences you'll ever read:
1. You
cannot legislate the poor into prosperity, by legislating
the wealth out of prosperity.
2. What one person receives without
working for, another person must work for without receiving.
3, The government cannot give to anybody
anything that the government does not first take from
somebody else.
4. When half of the people get the idea
that they do not have to work because the other half is
going to take care of them, and when the other half gets the
idea that it does no good to work, because somebody else is
going to get what they work for, that my dear friend, is the
beginning of the end of any nation.
5. You cannot multiply wealth by dividing it.
Change things. Use your Voting tool, and your wealth
creating tool! Your wealth creating tool, setting up your
own small business (Like the BYA Boat As A Business™
program--allows you to get back taxes already paid, and
reduce them in the future).
Our Boat As A Business™
page here.
Find out about
up coming seminars here.
Just Call
410-263-2311 and tell us you want to know more about our
Boat As A Business™ plan.
BONUS...
The Boats...
Going Green. The larger manufacturers,
like Jeanneau and Fountaine Pajot, are using enclosed
molds and less volatile resins to reduce emissions. In
fact, Jeanneaus prisma process results in up to a 90%
reductions in harmful emissions. There is a huge
commitment to environmental protection including the use
of sustainable and synthetic exotic woods and adhering
to ISO 14004 standards which include strong
environmental protections. Engines are also more
efficient with greatly reduced emissions.
Better design. We recently sold a Jeanneau 54
to a world renowned celebrity who said, "I had been
chartering Hinkleys in Maine and I loved their quality,
but when it came to owning my own boat, these 10-20 year
old designs just couldn't match modern designs. I chose
the Jeanneau because of its state of the art design and
technology and because of the exceptional room that the
design team has put into both the cockpit and interior.
Let's face it, I am just not going to have time to cross
oceans (my captain can do that), what I'll really be
doing is getting away for a few days here and there and
for that, I want to be able to maximize my comfort and
entertain my friends.
Safety. In the old days (up to about 10
years ago) cruising designs followed racing designs
which followed non-sensical racing rules. Then the
Fastnet race happened. These racing designs turned over
and stayed that way! They were as stable upside down, as
right side up. Many lives were lost and lessons were
learned. New boats are better...
New designs, from proven manufacturers,
are designed without regard to racing rules. They're
more comfortable with symmetrical waterlines so that
when heeled, they stay balanced. A less tiring boat to
run, is a safer boat. Catamarans are unsinkable
Monohulls have watertight compartments. All have a much
higher strength to weight ration than their
predecessors. Bottom line, they are more comfortable and
safer!
Modern electronics allow even the
newbie to know exactly where he is and to plan a safe
cruise. Today's modern chart plotter is linked to
weather, (digital)radar, forward looking sonar and even
cameras and TV's. Need to stay in touch? Satellite
communication, or air cards can offer coastwise or
offshore web and internet two way communication.
Cruising enjoyment. Putting everything
together, adding modern solar cells and wind generators,
more efficient folding/feathering, self pitching props,
more efficient sails and engines, washer dryers, dive
compressors and the rest-now we can go further more
comfortably and with the highest degree of safety
imaginable. In many cases the boats of yesteryear and
even 7-10 years ago-just don't match up.
Who said you can't take it with you?
See some more ideas on our custom page at:
www.bayacht.com/custom.htm
What if you want to go, but just don't have the
time-yet? Our Boat-As-A-Business plan may offer just the
alternative you could use. By setting your boat up as a
business, you divert tax dollars you're already paying,
into equity in a boat. Not only can you build equity
quicker, but when time is short, your boat is
professionally managed so it's always clean and ready
for you to take off without spending time fix'n and
scrub'n.
Use our BAB plan to make the most of your time, and the
most of your money. At the very least, you don't have to
feel like the meters running while you're stuck in the
office on some last minute project. More information:
www.bayacht.com
See all of our boats, power and sail, monohull and
catamarans, hybrid houseboats:
www.bayacht.com/new.htm
Charters and sailing school information:
www.letsgocruising.com
