Reigning In the PRC Tax Collectors

As I’ve mentioned before, the PRC tax collectors make their IRS equivalents seem like pussycats in comparison.  The California Franchise Tax Board actually trains IRS employees on techniques for squeezing more money out of people.  The FTB has often acted with impunity all over the world in pursuit of tax money.  In a recent court case where the FTB was hot on the trail of someone in Nevada, the victim has been given the green light to pursue the tax collectors for damages for their abusive tactics.  This is very good news for the protection of our rights and has been reported in:

Sacramento Bee

San Francisco Chronicle

Los Angeles Times

How the NY Slimes has been lying about the Bush tax cut.

Optimism about chances of the tax cut making it through.

It looks like the Wall Street Journal is having some problems getting the story straight on the Bush team’s fight for the tax cut. 

How to Shield Your Wallet From Your Parents’ Woes – This is an interesting article on how to structure things for the best financial and tax advantages.  It mentions a strategy that I have been using with clients for the past 25+ years; having the kids buy their parents’ home and rent it back to them.  Even now, with the replacement of the once in a lifetime exclusion for sellers over 55 with the $250,000 per person tax free gain for anyone, this technique still makes a lot of sense.  It allows the kids to have a high cost basis on the home, claim deductions for depreciation and any other expenses paid for the home.  It also allows a deduction for travel costs to go check on the property.  There are also a lot of estate planning opportunities with the financing of the sale and annual gifting to reduce the balance of the carryback note.

GOP senators should support tax cuts 

And their voters should definitely hold them accountable if they turn their backs on this opportunity to reduce the tax burden and increase tax fairness. If they have any brains, the GOP Senators will remember how Bush 41 was punished in 1992 for backing down on his “no new taxes” pledge. GOP voters do seem to have longer memories than their counterparts in the JackAss Party and are more willing to punish their elected rulers for straying from the party line.