Tracy Coenen talks about the taxability of alimony versus child support, including a brief discussion of the IRS rules. These rules are still in effect for 2017 activity, but may differ based on possible changes to the tax code for 2018 and thereafter.
Now is the time when everyone scrambles to get their tax situation in order. There are some tax moves you should make BEFORE the end of the year, so act now.
I was interviewed in 2008 on CNBC about year-end tax planning. The advice is still relevant today, and each one of these tips still applies. These are some really great things you should do before December 31.
Tracy walks through the process of calculating a business interruption insurance claim, also called a business income loss. When a company is unable to operate for a period of time due to a covered loss (a fire, for example), its insurance policy may provide coverage that pays for lost profits while the business is closed. Tracy explains how to calculate net income plus continuing expenses in cases such as this.
In divorce cases, forensic accountants can use the “net worth method of proof” to calculate income. This is used to search for hidden or unreported income. Rather than simply taking a spouse’s word for it that his or her income is X, we can do an analysis like this to try to verify the claimed income.
This method of proof is one part of a lifestyle analysis, in which we are analyzing the party’s lifestyle and determining if that lifestyle matches the income that is being reported. This video explains the process of completing the net worth analysis.
Don’t let your Facebook friends fool you: They’re not making money in the multi-level marketing company they keep pitching to you. And you won’t either. Multi-level marketing is not a business. More than 99% of participants in multi-level marketing (MLM) lose money. Companies like Mary Kay Cosmetics promote the “income opportunity,” but when the vast majority of MLM distributors say they lost money, the story changes to “they didn’t really want to make money,” or “they just did it for fun,” or “they didn’t try hard enough.”
The truth is that MLM is not a “business opportunity.” Almost everyone who participates is guaranteed to lose money. You can follow all the instructions, talk to everyone you know, invest money in the scam, and you will still lose money. Why? Because MLM is nothing but a pyramid scheme in which all the people at the bottom of the pyramid will lose money.
This video was published in 2016, but the information is still very relevant. It features victims of the Herbalife “business opportunity.” They put lots of money, time, and effort into their “businesses” and ended up losers.
The fact remains that all multi-level marketing companies are abusive systems which take money from the participants, offering them the (false) opportunity to earn money, knowing that they are virtually guaranteed to lose money.