Options to Avoid Foreclosure

Options to Avoid Foreclosure

Options to Avoid Foreclosure

By Alan Olsen, CPA, MBA (tax)
Managing Partner
Greenstein Rogoff Olsen & Co. LLP

The divide between Republicans and Democrats on Capitol Hill appears to be spreading even wider after President Obama used his State of the Union Address to take dead aim at high net worth individuals. The president wants to raise some $320 billion over a ten-year span by going after some of the so-called biggest tax loopholes that help the wealthy save on their taxes.

Aggressive Proposals

The president’s plan consists of three major proposals that would all affect the country’s top earners, especially those in the top one percent. The president wants to raise the capital gains tax rate as well as completely kill an inheritance tax break. He also wants to go after the country’s biggest and wealthiest corporations as well. Here is a closer look at the president’s proposals:

Increase Capital Gains Rate – capital gains are where many of the country’s wealthiest people make their money. Even though the capital gains tax rate has already increased from 15 percent to 23. 8 percent since President Obama took office, he wants to increase it all the way to 28 percent on couples who make more than $500,000.
Eliminate Inheritance Tax Break – the president also wants to eliminate the so-called “Trust Fund Loophole” in order to force estates to pay capital gains taxes on securities when they are actually inherited.
Fee for Wealthiest Companies – the last proposal takes aim at corporate America. The president wants to impose a fee on the roughly top 100 companies in the country, whose assets are worth $50 billion or more.
Lofty Projections

So what exactly does president Obama want to do with the extra $320 billion in tax revenue? Republicans argue that the money will simply go to waste because it will be used for additional big spending from the democrats. The President, on the other hand, claims the proposals will help the country’s middle and lower class families. Here is the plan he laid out:

Second Earner Tax Credit – the president wants to give second earner families a credit of up to $500 for those with an annual income of up to $210,000.
Expand Tax Credit for Child Care – increase the childcare tax credit to up to $3,000 per child under the age of 5. The president claims this would assist at least 5 million families pay for childcare costs.
Education Consolidation – a plan to consolidate six separate tax-breaks on education down into two. President Obama also called for changes that would make community college free for many students.
Earned Income Credit Expansion – the president wants to make the earned income credit available to some workers even if they don’t have children, as well as to non-custodial parents.
Retirement Savings – another one of the president’s proposals would give individuals the opportunity to enroll in an Individual Retirement Account if their employer does not offer them that opportunity.
Never-Ending Debate

While the president’s plan is very aggressive, it is not likely to go anywhere on Capitol Hill, as many lawmakers from Congress were already denouncing the proposed changes even before the president made them official in his speech. So, while Republicans now control both the house and the senate, with the White House still being occupied by President Obama for two more years, it is very unlikely that any true tax reform will take place any time soon. In any case, the debate over taxing the wealthy as a means to help the middle class is certain to rage on.

 

We hope you found this article about “Options to Avoid Foreclosure” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

 

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

IRS Has Handed Out More Than $100 Billion in Refunds so far

As with every tax season there have been some mistakes that have caused problems for some taxpayers, as well as the usual battle with tax scams that pop up every year. However for the most part, the refund process has gone well to this point. In fact, at the end of February, the IRS reported…

There Is a Bright Side for Early Filers Victimized by Obamacare Gaffe

There’s been no shortage of complaints and problems with Obamacare since the nations new health care coverage law went into effect. In fact, the debate continues to rage on and another major decision from the U.S. Supreme Court is forthcoming in the months ahead. However, for the time being, Obamacare has been a problem for…

Should You Pay Estimated Taxes?

For most people tax time only comes once year. However, for anyone who has to pay estimated taxes a large tax bill could be due several times a year. Again, most people do not have to worry about paying estimated taxes, but there are several circumstances that will put you in that category. The most…

Do not Be the Victim of a Tax Scam

As the tax season continues to be in full swing we here at GROCO continue to hear of more and more tax scams making the rounds. We’ve discussed tax scams before, but it never hurts to repeat this important information, especially at this time of year when tax scammers are so prevalent. In fact, several…