Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
08 May 2000
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Old ways, New ways; The party's over; Downtown Blues; What do we know about money; and Will there be tax legislation this session?
1. What's Old is New (Economy) Again
Upstairs/Downtstairs/The New Commute by Kathryn Bold suggests that work/live above the store is coming back in Newport Beach, California, Downtown Los Angeles, and as we know Downtown San Diego. What was left out were the tax incentives for having such an arrangement besides paying less in gas for the commute.
Is the federal government hyping the stock market to get more revenue? Some think so. But we suspect the author has not seen IRC Section 1045, the stock market's answer to IRC Section 1031 for real estate; keep the money turning and defer, defer, and defer.
2. The days of IPO's, Stock Options, and Millionaires is Over
It is the end of April, and it appears that this month has been a killer for IPOs, from the highs of March 2000. If Mr. Altman is correct then we may be in for a few cold days, if not months. But he has faith that the Internet has changed the business world as we know it, and with that we agree. Some just do not see it coming. Home-based businesses are in [The Headline in The Drudge Report "Expert who alleged FBI fired shots at Waco found dead" caught our eye and we checked it out. It seems that someone was murdered at their home-based business corporation, and it took days to find out].
There is a light at the end of the tunnel, and it is SMART
BUSINESS for the New Economy by Ziff Davis with its first issue dated May
2000. The Editor's comments about the Digital Divide are very
thought provoking [See: Opinion--The Great Divide
There is also the recently published Home-based Businesses for Dummies by Paul and Sarah Edwards and Peter Economy, another great one from these home-based business guru's.
3. L.A. will have a Gaslamp Quarter Historic District
Notwithstanding some misguided leadership, downtown Los Angeles will have a Gaslamp Quarter Historic District, with Jazz and all. You heard that here first, but it will not be around the Staples Center in our lifetime; try Hill Street to Main Street, Second to Fifth, with anchors of the L.A. Times, the State of California, the Bunker Hill Financial/Cultural Center [60,000 daytime upscale professionals] and two Subway Stations that link Union Station to North Hollywood.
All that is needed ia about 2,000 residential units [urban home- based businesses], all within the Los Angeles Federal Empowerment Zone, and they are coming; to add to the 4,000 residential units on Bunker Hill already for a total of 6,000 units within several blocks. Then the restaurants and Jazz, then tourists, out-of- towners, and the westsiders, etc.
4. Watch out for the taxman by doing what the rich do, start your own business and incorporate!
That was the e-mail we got from a friend who watches Oprah so we checked it out. What a find, to say the least. Rich Dad, Poor Dad by Robert T. Kiyosaki and Sharon L. Lechter, C.P.A. is a winner, and a must-read for all (especially parents), including those who write books on home-based businesses. They can be found at www.cashflowtech.com. In short they make a very compelling argument for forming Yourself-Inc.Com in your home so that a liability [your home] can be turned into an asset.
5. This year it is two tax bills not one...
It is a presidential election year, and the control of the House and Senate may be at stake, thus it is the battles of battles. Thus it was interesting to see that the 2001 Fiscal Budget will have two tax reconciliation bills [H.Res 290] (Search the thomas.loc.gov site for relevant articles on July 15, 2000 and September 15, 2000.)
What is on the table? Small Business Tax Cuts, Marriage Penalty, Education Tax Incentives, Community Renewal, and the list goes on. As the authors of Rich Dad, Poor Dad make clear, government has got a taste of YOUR money and enjoys it, as does big business who gets the major share of government contracts [Fiscal 2001 Budget is close to $2T, what was it when President Reagan took office in 1981?] Who is the loser, according to Rich Dad Poor Dad, the middle class, especially the learned ones. They are the ones supporting the poor. [The book was written in 1996/7 and does not cover the Dot-Com Gold Rush which has made captial gains the big item of revenue--is that over?]
Jim Schneider, LL.M.
Taxman86
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