DINARESGURUS.BLOGSPOT.COM_______________

IMPORTANT INFORMATION

Dinar Group Signup

I was just called and asked to go and do this - FOR double security just do it - just in case its needed as they are hearing its POSSIBLE that this site may be consolidated into one giant Wells Fargo exchange group OK

I am told by a very great BROTHER IN CHRIST AND FRIEND WHO IS A FELLOW DINARIAN WHO I HAVE TRUSTED FOR YEARS to go to this site and sign up to make sure your name is on A LIST PRIOR to the release...

YES PRIOR WE NEVER NEEDED TO SIGN UP ANYWHERE BUT I AM HEARING THIS MAY HAVECHANGED AND LETS JUST GO DO THIS TO MAKE SURE YOU ARE LISTED ON A DINAR GROUP = CHOICE IS YOURS...but because of who is suggesting this I ALSO HAVE NOW DONE THIS....
Some of you may have done already this if so fine.....

1- GO TO http://www.generals64.info/ = THIS IS THE BEST COLLECTION LIST GOING PLEASE USE THIS SITE.
2- Click on Subscribe to newsletter
3- type in your email address
4- put in your zip code
5- put in your last name and first name
6- it defaults to 1000000 dinar and leave that # NO NEED TO PUT HOW MUCH DINAR YOU HAVE MORE OR LESS
7- then VERY IMPORTANT click on the first choice DINAR GROUP not the others
8- click on Subscribe
9- YOU WILL GET A REPLY EMAIL - CLICK TO CONFIRM SUBSCRIPTION IMMEDIATELY - CHECK YOUR TRASH OR SPAM WITHIN 5 MINUTES IF YOU DO NOT HAVE IT...

I am told this site will keep any info safe and that it COULD BE NEEDED IN ORDER TO EXCHANGE AT WELLS FARGO UNDER THE GROUP RATES - PLEASE JUST DO THIS FOR DOUBLE ASSURITY SO YOU CAN BE LISTED ON A GROUP LIST -

JUST SERIOUSLY CONSIDER TO DO THIS NOW NOW NOW NOW NOW....
FORWARD THIS TO YOUR FRIENDS AND FAMILY NOW.
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A list of 27 Basic Questions you should ask at your Exchange: 

THE QUESTIONS:

1. WHAT TYPE OF BANK ACCOUNTS DO YOU HAVE AVAILABLE?

2. WHAT IS THE FDIC COVERAGE ON THIS ACCOUNT?

3. CAN YOU EXPLAIN TO ME HOW THE FOLLOWING BANK ACCOUNTS OPERATE?

A. NON INTEREST BEARING ACCOUNTS

B. MULTI CURRENCY ACCOUNTS

C. MULTIPLE CURRENCY ACCOUNTS

D. BROKERAGE ACCOUNTS (THE DIFFERENT TYPES AVAILABLE)

E. INTEREST BEARING ACCOUNTS

4. WHAT AMOUNT AM I REQUIRED TO LEAVE IN EACH ACCOUNT?
5. WHAT OTHER PRODUCTS AND SERVICES WILL BE PROVIDED TO ME TODAY WITH THESE ACCOUNTS?
6. WHAT ARE THE FEES ASSOCIATED WITH THESE BANK ACCOUNTS?

7. CAN YOU ASSIST ME WITH RESERVES?

8. I NEED SOME CERTIFIED CHECKS MADE PAYABLE TO (abcd) CAN YOU ASSIST ME?

9. HOW MUCH CASH CAN I TAKE WITH ME WHEN THIS APPOINTMENT IS COMPLETED?

NOTE: LIMITED CASH AND A CERTIFIED CHECK IS WHAT WE RECOMMEND

10. IF I COME BACK TO EXCHANGE MORE WILL I HAVE THIS SAME RATE?

11. WHAT PRODUCTS & SERVICES WILL THE WEALTH MANAGEMENT TEAM PROVIDE?

12. EXPLAIN TO ME HOW THE SWEEP PROCESS WILL WORK?

13. WHAT ARE THE ADVANTAGES & DISADVANTAGES OF THESE ACCOUNTS?

14. WILL LOANS AND PERSONAL LINES OF CREDIT BE PROVIDED?

15. IS THIS ACCOUNT ACTIVE TO RECEIVE BANK WIRES NOW? (EXPLAIN THE PROCESS)

16. WHAT PRODUCTS & SERVICES WILL COME WITH THE WEALTH MANAGEMENT TEAM?

17. PLEASE GO OVER ALL OF THE DOCUMENTS WITH ME I WILL BE SIGNING?

18. TELL ME A LITTLE BIT ABOUT THE HISTORY OF THIS BANK?

19. HOW ARE MY DEPOSITS PROTECTED AGAINST BANK COLLAPSE, GOVERNMENT THEFT, AND BANK THEFT?

20. WHAT KIND OF INTEREST RATES WILL I BE LOOKING AT?

21. WHAT TYPE OF CREDIT CARDS AND DEBIT CARDS DO I QUALIFY FOR NOW?

22. WHAT ARE MY CHECKING & SAVINGS ACCOUNT OPTIONS?

23. IF I HAVE QUESTIONS TOMORROW WHO DO I  NEED TO CONTACT?

23. DO YOU HAVE A BUSINESS CARD?

24. IS THIS CURRENCY EXCHANGE TAXABLE AND WHAT IS THE RATE OF THE TAX?

25. WILL THIS TRANSACTION BE REPORTED TO FINCEN?

26. TELL ME ABOUT YOUR ONLINE BANKING (NOTE: WE DO NOT ADVISE ONLINE BANKING)

27. WHAT IS THE COST TO EXECUTE TRADES, PURCHASE STOCK, BONDS, ETC?

COMMENTS:

1. PLEASE FLAG THIS ACCOUNT FOR IT TO NOT BE IN TEST & PRODUCTION.

2. WITH MY BROKERAGE ACCOUNT I NEED TO BE SURE ALL TRADES MUST BE AUTHORIZED BY ME.

YOU SHOULD ALREADY KNOW THE ANSWERS TO ALL OF THESE QUESTIONS PRIOR TO YOUR APPOINTMENT

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DEALING WITH A BANKER BY ECOE  OOMF FORUM
DISCLAIMER: Like any other post on any Forum, this post is for informational purposes only. It is not legal, tax or investment advice. The only advice I can provide is that everyone do their own due diligence and seek advice from trustworthy licensed professionals to do with tax, legal, accounting and/or investment matters.

DEALING WITH A BANKER - The Exchange of Exotic Currencies into US Dollars - By ECOE OOMF Forum

Dear Dinar Enthusiasts,

Most everyone has heard the horror stories to do with the “Spread Fees” Banks charge to exchange (buy or sell) currencies, especially with what is known as ‘Exotic Currencies’ such as the IQD.     So let’s get right to it...

Dealing with a Banker

- How to Get “Spread Fees” Waved From Exchange of Exotic Currencies into Dollars   --  It’s no secret that Banks charge fees for services rendered...

- Like any Business it is simply one of the ways Banks make money.
When it comes to foreign currencies, Bank Personnel will always tell you “We will not charge you a fee if you have an account with us” but that isn’t exactly the entire truth, because Banks actually have two (2) levels of fees they charge for services rendered.

These 2 fees are:

1) - Fees charged to the Public who do not have an account.

2) - Fees charged to their Customers who do have an account.

Customers do not have to pay the fees that the Public pay, whereas the Public have to pay both the Public fees and Customer fees.

  Some of the fees Customers are accustom to not being charged are on services like obtaining a Bank-drafted Money Order or Cashier Check to pay someone via a method of securing funds for the recipient, free use of the Bank’s Notary to validate documents, cashing of a paycheck or government check, etc.

All of these ‘services’ have a fee to the general Public because they are not an account holder.

However, when it comes to something like exchanging currency from another Country into US Dollars, the Public is charged the Service Fee of around $15 as well as the Spread Fee on each unit of the currency exchanged.

When Bank Personnel tell you “We will not charge you a fee if you have an account with us” they are talking about that $15 service fee only.

What is a spread fee?

A spread fee is what a Bank will charge you to exchange another Country’s currency into the currency used in the Country to which you are located.

For these examples, we will use the US Dollar (USD) as the currency and USA as the Country in which you are located, and the Kuwaiti Dinar (KWD) as the foreign currency being exchanged for or into US Dollars at a US Bank.

The KWD is considered to be an “Exotic Currency” just as is the Iraqi Dinar (IQD), whereas currencies such as the Canadian Dollar (CAD) is not considered to be on the exotic list of currencies in the USA (and visa versa), the CAD is known as a “Popular Currency” and the spread fees reflect the difference on these two currency classifications greatly.

At the moment I wrote this, one CAD dollar (as listed at xe.com) was valued at $1.02015 USD, and the KWD was valued at $3.59712 USD.

Using the Wells Fargo Bank Web site currency chart at http://www.wellsfargo.com/foreignexchange (Click on “ORDER FOREIGN CURRENCY then click on the TODAY’S RATES Tab to access the rates page and charts) we can see that they will ‘sell to you’ CAD and KWD (Click on the ALL CURRENCIES Tab to see the KWD), and it is easy to calculate what the spread fees are using this page and comparing the rates to the actual value of the currencies shown at: http://www.xe.com

Again, at the moment I wrote this, one CAD dollar (as listed at xe.com) was valued at $1.02015 USD, and the KWD was valued at $3.59712 USD, and on the Wells Fargo chart these two currencies are listed at what they will sell them to you at; 1- CAD at $1.0232 USD and 1- KWD at $4.0846 USD

1- CAD at $1.0232 USD minus $1.02015 USD (actual value) = $0.00305 USD (Spread Fee)

1- KWD at $4.0846 USD minus $3.59712 USD (actual value) = $0.48748 USD (Spread Fee)

See the difference?

Wells Fargo will charge you $0.003 US-Cents (under 1/3 of a US-Cent) to buy 1-Canadian Dollar from them  --   Wells Fargo will charge you $0.49 US-Cents to buy 1-Kuwait Dinar from them.

At smaller or State Only Banks, these Spread Fees are even greater; for example, when the First Convenience Banks in Texas were buying and selling the KWD currency the spread fee they were charging was about $0.60 US-Cents to both Buy and Sell the KWD through them, and the spread fee they were charging was about $0.06 US-Cents to both Buy and Sell the CAD through them.

This is part of the reason you want to deal with the Big-4 Banks instead of the smaller or State-only banks.

The Big-4 Banks are Bank of America (BOA), J.P. Morgan Chase (Chase), Wells Fargo (WF), and Citibank (Citi).

Upon revaluation of the IQD most expect the value will be close to the KWD, so let’s start doing some math with the Wells Fargo $0.48748 US-Cent Spread Fee and for example purposes let’s say that 1- IQD revalues at $3.60 USD...

If you have 100,000 IQD, to exchange that many IQD with a spread fee of $0.48748 US-Cents per 1-IQD you would be paying $48,748.00 to Wells Fargo to change your IQD into USD - That’s $487,480.00 in Spread Fees per 1-Million IQD!

100,000 X $3.60 = $360,000.00 (Nice Profit for You!)

100,000 X $0.48748 = $48,748.00 (Nasty Bank Fees!)

You receive $311,252.00 after paying the Bank’s Spread Fees...

- This is also the number you will be taxed on.

None of this is held as secret from the public, except when or if any one given Bank Manager decides to keep it a secret from you.

It is these ‘Spread Fees’ that you can get some Banks to forgive or cancel - But only if you ask them to forgive them.

NOTE: The United States Treasury (UST) also charges a spread fee on foreign currency exchanges done at all Banks, and Banks can NOT forgive or cancel that spread fee. The UST spread fees are between 1% and 1.4% - That equals between $0.036 cents and $0.0504 cents using the $3.60 IQD example above.

At $3.60 per 1-IQD, 100,000 IQD = $360,000.00 X $0.036 (1%) = $3,600.00 (UST Spread Fees)

At $3.60 per 1-IQD, 100,000 IQD = $360,000.00 X $0.0504 (1.4%) = $5,040.00 (UST Spread Fees)

Certainly a lot nicer than paying almost $50-Grand in Bank’s Spread Fees huh?

This is where we want to save - Taxes are inevitable, so do not look to reduce the taxes, look to reduce the spread fees that banks charge. This is where you will save money, and here’s how you do it...

When I spoke with my Banker friend about the IQD about 2-weeks ago, he was completely open and honest about everything, no reservations whatsoever.

He is a Bank Manager at one of the Big-4 Banks, and he has also invested in buying IQD.

He is a really nice guy that only wants to help people and be the best at serving his Customers that he can be - He even told me that the only word that’s ever come down from their Corporate Offices is to expect phone calls about the IQD, and to simply tell the truth to the callers and Customers in that their bank does not deal in the IQD right now.

Just the same as he said that he had no problem with me sharing this information with others, this Banker showed me every phase of the banking systems that his (one of the Big-4 banks) branches implement, from showing us the US Treasury Web site page they access to see the spread fees the UST charges Banks, the currency exchange spread fee screens his tellers have ((which showed about 65 to 70 currencies that the (one of the Big-4 banks) banks do buy and sell)), right down to the book the branches are given showing pictures and information about the currencies of the world, in which the 2011 edition showed the IQD for the first time.

The Banker also said that he has got quite a kick out of all the 3-screens and all 0.0000s talk and postings out there on the forums and blogs, when in fact he showed me first hand that (one of the Big-4 banks) buys and sells the 65 to 70 currencies they list and that he has never seen anything go to all zeros, there are no green, blue, red or purple lights, and the screens do not flicker at all.

All this talk going on out there with the rates showing as all zeros is all from the First National Bank, and its subsidiary branches of the First Convenience Bank that I have an account at here in Texas, where I have the same printouts showing at the zeros, which show the zeros simply because they no longer trade those currencies.

Quite simply put, my Banker friend said “All you need to do is look at xe.com and see that all the currencies are still listed and tradable, just the same as they are in Banks” - The truth is available to everyone; banks have the same information as what Forex sites do.

All bank systems simply update to the buy/sell rates and either list the currencies they trade or not, and at no time have any currencies shown these rumored zeros.

I requested that he show us the spread fees of the Kuwaiti Dinar, and he did, with the buy rate showing a 43-cent per 1-KWD spread fee at (one of the Big-4 banks), and he then brought up a Wells Fargo page that showed their spread fee and it was 3-cents more at almost 47-cents on the KWD.

Well, now you know that my Banker friend is a Manager at one of the other Big-3 Banks, and that Wells Fargo has higher fees than the Bank he Manages, and this is what is meant by “Shop around at the banks for the best rate before you cash-in.”

The Banker confirmed everything that Bear has told me has been bang on, and has proven to me that what he and OKIE have said about the zeros being horse pucks - Folks, I saw the truth with my own eyes while my Banker friend chuckled over it all.

As I stated above, the one thing that none of us can beat on any deal made with any Bank is the UST spread fees. He explained that as the Branch Manager he is in complete control of how his branch operates - Like every other Branch Manager, he is handed the keys to the bank with the statement “Here’s the business, now it’s up to you to make money with it.”

Every single Branch Manager is able to remove the spread fees up until the UST spread fees.

The UST spread fees of a currency’s value is hard coded into their systems - The only way to possibly get rid of that fee would to do your exchange directly with the UST, of which of course none of us can or will be doing.

Every Bank Branch Manager can do this - You only need to ask.

(Do this AFTER the r/v Folks - Don’t call or bother than Banks until then)

And if they say “no” you simply tell them “Thanks very much I’ll take my business to a different Bank and Branch Manager that will, thank you.” - They will make the deal with you Folks, you just have to ask them, and with knowing all this ‘Public Information’ you are empowered to talk with any and every Branch Manager - There are no secrets to any of this and it is all just that simple.

I’ve talked with a couple people in our group who have already spoken with their Bank Branch Managers who have said that they will match any deal made at any other Bank and/or Branch.

So there you have it Folks, you can simply use the (one of the Big-4 banks) Branch you already have your account setup at... no traveling needed, no grouping together of people needed, this is all that simple and simply available to us all.

I also asked what sort of ‘perks’ were available, to which my Banker friend said these kinds of things differ from bank to bank, but through the Bank he works for, any Customer with a cash balance greater $250K receive certain ‘services’ at no cost; services like investment advice and avenues, and a ‘Concierge Service’ that the $250K and above Customers have access to via a telephone number to arrange and setup near everything and anything for the Customer... short of picking up your laundry.

Things like “I need a rental car delivered to my hotel” which a hotel will do for you as well, or if you have an event like what we are going to setup for the Dallas meeting, the Concierge Service will make the arrangements for you with the hotel, and organize all the catering and whatever you need to get the meeting done - Real simple stuff that would take you time to get done or do yourself... just like having a personal assistant of sorts.

The only thing any Banker will want to see happen with your IQD exchange is that you keep your money in their Bank Branch to excuse the spread fees and provide you with the ‘Special Customer’ services, of which is all simply based upon a hand-shake so the branch can use the balance to increase their borrowing and lending power to make money from to make up for discounting of the spread fees for you.

This is really all there is to it and how simple it all is Folks.

Empowered with the knowledge of how all this works, I went to speak with another Branch Manager at another Bank where I have an account, explained what I wanted to do with the IQD exchange when the time came and that my other Banker said he wouldn’t charge me the Bank’s spread fees, and that Bank Branch Manager said “Yes, I can match that deal.”

My Banker friend even said that any new Customers that open an account that he personally obtains, he spreads the credit for these new accounts with his Branch employees to help them reach their year end quote too, as he feels he has already maximized his new Customer quota for the year to secure his personal annual bonus.

When the time comes Folks, we can all very easily exchange IQD for USD at each of our respective local Banks and not have to pay the Bank spread fees.

Those out there paying for a monthly membership at some supposed guru Web site to gain access to be a part of a group to get rid of these spread fees at a certain bank are simply throwing their money away - Everyone can do this on their own and at zero cost and near any and every Bank to which an account is held.

That’s all... no remaining stresses or worries about how we’re each going to get the exchange done, we know the truth about all the bank screen showing zeros talk being a bunch of hogwash, and all we all need do now is relax and wait for the r/v to finally kick in.

One last point to talk about when considering doing your IQD exchange, is that some IQD Dealers out there are saying that they will cash-in the IQD for us for a fee, PLUS what the Central Bank of Iraq (CBI) is going to show as their spread fees.

We do not yet know what the CBI is going to charge in the way of spread fees to change IQD into USD, but it is my conclusion that anyone cashing in their IQD through the Dealers will have a lot more to pay than the $150.00 per 1-million IQD than what meets the eye some Dealers are offering...

We all want to maximize our ROI (Return on Investment), and to do this I for one will be going to see my Banker post r/v.

(Also keep in mind what OKIE has always said... “BANKS BANKS BANKS -- NUFF SAID”)

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While we’re at it...

- Let’s all try to clear up another bunch of fallacies we’re all hearing out there...

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There is a lot of chatter going on out there about this IRS form 8938.

It is new from the IRS and is to be used to disclose foreign assets to the IRS so they can tax you on them.

Folks, your IQD notes are not foreign assets, they are a foreign currency, but unless you have them in a foreign Country, they are quite simply a domestic asset and this form 8938 does not apply.

Now if you had opened a Bank account in Iraq and have your IQD sitting in that account, then yes your IQD is a foreign asset and you would have to file the form 8938 with the IRS.

Folks are also talking about placing their IQD into a Trust (of any kind) with hopes of reducing the amount of taxes we’re all subject to paying.

I spoke with my Odd Attorney friend (See link at bottom of post to learn more) about this, and I asked him about these ‘Trust’ accounts, to which he stated that any type of Trust can be unraveled by the IRS and that there is no way around paying the taxes the IRS says you are going to have to pay - There are no loopholes.

He also said that when someone tries to put money into a Trust or company entity like an LLC for the obvious purpose of trying to delay or reduce taxes, it only just gives reason for the IRS to put you under a microscope and treat you like you are trying to hide something.

Folks, just pay your taxes and move on...

- Do not worry about all this tax avoidance or reduction stuff, worry about protecting the assets you end up with and growing your portfolio after the fact.

Something else to consider, with the new tax year being only 7-days away, if we see the r/v happen before year end waiting to do your exchange until next year would provide extra time to be able to use the tax monies to invest and make money and/or interest back on before having to submit payment to the IRS.

THAT is how we want to go about reducing the tax hit we’re all faced with, and these Municipal Bonds my Odd Attorney friend talked about are a pretty nice way to do that it would seem.

Another point to address is that the IQD is money, it is what Banks work with, and you don’t need any sort of documents, receipts, or letters of authentication like some of these Dealers say you’ll get on their Web sites - Those things are simply a sales gimmick and as worthless as the paper they are printed on.

Do you actually think that some piece of paper with “these currency notes are real” printed on it would have a Banker say “Oh okay, they must be real notes because that mass-printed piece of paper says so...” when you go to exchange them for USD?

When I was able to buy IQD and VND at our First Convenience Bank here in Texas, the Bank gave me a receipt for the transaction, and that’s it.

These so called ‘certificates’ are trash folks - A paper-joke!

- Bankers are going to look at and check the notes, and ask what garbage can you want to throw those so called certificates in.

If you have any of these paper-jokes, don’t embarrass yourself by handing them to your Banker... toss them into a recycling bin.

The only ‘paper’ you will need is the receipts you obtained from buying the IQD currency to show your CPA your costs put forth on your investment, which is used to offset your taxes, and that’s it - The fee your CPA charges you to file your taxes is an expense and write-off too.

The entire process is really, really simple...

1) - The r/v happens, and you go to your bank.

2) - You exchange your exotic currencies for US dollars.

3) - You take your receipts to your Accountant and file your taxes.

That’s it... it is as simple as 1, 2, 3...

- So just Relax and enjoy working with and investing your windfall when the time comes.

At the very least, I hope this post helps some Folks have a more restful and stress-free holidays.

Stay flying under the radar (meaning don’t boast to anyone about having IQD), and I wish you and yours a wonderful and very Merry Christmas.

Prosperous regards,  ECOE

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DISCLAIMER: Like any other post on any Forum, this post is for informational purposes only. It is not legal, tax or investment advice. The only advice I can provide is that everyone do their own due diligence and seek advice from trustworthy, certified or licensed Professionals to do with tax, legal, accounting and/or investment matters.
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Failed Bank List

The FDIC is often appointed as receiver for failed banks. This page contains useful information for the customers and vendors of these banks. This includes information on the acquiring bank (if applicable), how your accounts and loans are affected, and how vendors can file claims against the receivership. Failed Financial Institution Contact Search displays point of contact information related to failed banks.
This list includes banks which have failed since October 1, 2000. To search for banks that failed prior to those on this page, visit this link: Failures and Assistance Transactions
Failed Bank List - CSV file (Updated on Mondays. Also opens in Excel - Excel Help)
Click arrows next to headers to sort in Ascending or Descending order.
CLICK HERE TO SEE FAILED BANK LIST NATIONWIDE
http://www.fdic.gov/bank/individual/failed/banklist.html
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F.D.I.C. NATIONWIDE FAILED BANK LIST 


FIND OUT HOW MANY BANKS IN YOUR CITY OR STATE HAVE COLLAPSED IN THE LAST 12 MONTHS.
THIS WILL GIVE YOU AN UNDERSTANDING OF WHY BASEL IS IMPORTANT
YOU CAN SORT LIST BY CITY, STATE, & COLLAPSE DATE...........
GET THE FACTS (CLICK HERE)
http://www.fdic.gov/bank/individual/failed/banklist.html

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WHAT IS F.I.N.C.E.N.?
IF YOU HAVE PURCHASED IQD, MAKE SURE YOUR DEALER IS REGISTERED WITH THE UNITED STATES DEPARTMENT OF TREASURY VIA FINCEN. MANY ARE WORRIED ABOUT IQD DEALERS. IF THEY ARE REGISTERED WITH FINCEN YOU WILL BE FINE.... YOU HEAR A LOT OF TALK ABOUT FINCEN. CLICK THE LINK BELOW TO FIND OUT WHAT FINCEN IS, WHO THEY ARE, WHAT THEY DO AND HOW FINCEN IS RELATED TO FINANCIAL INSTITUTIONS & CURRENCY DEALERS.......
FINCEN LINK (GET THE FACTS)
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WHAT ARE CDARS? (CERTIFICATE OF DEPOSITORY ACCOUNT REGISTRY SERVICE)-CLICK LINK


CLICK LINK BELOW

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LINK TO TRACK METALS PRICE IN REAL  TIME (24/7)

http://www.monex.com/liveprices
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ARE PANAMANIAN FOUNDATIONS SAFE?

Many offshore promoters are pushing Liechtenstein Foundations, Panamanian Foundations and Panamanian Interest Foundations on the very wealthy and on US citizens.

Many investors are taken in by the term “foundation” hoping and believing that it makes the structure a charitable foundation which is tax exempt and non-declarable to the IRS but nothing could be further from the truth. For a company entity to be tax exempt, it must be registered with the IRS under IRC §501(c)(3)., and this applies to both foreign and domestic entities.

Only donations to a licensed charity are deductible on personal and business tax returns. US citizens may donate monies to any charity or group around the world if they are registered with the IRS.

Offshore promoters of tax schemes lure Americans and Canadians into foundations as described stating that due to the many multiple levels of nominee directors and boards which allegedly control the Foundation’s assets, that no tax reporting is necessary. These promoters’ make the claim that, because you given up control of your assets that you are not taxed on the interest, dividends, and earnings of the foundation. Again, this is not true. The IRS maintains that you are still beneficial owner and have indirect control, which equals ownership under the U.S. tax code.
Some foreign attorneys will issue an option stating that the Foundation is not a grantor trust under the U.S. rules which on the surface appears to be true and would appear that the Foundation could be classified as something other than a grantor trust. However, such statements are intended to mislead a U.S. client into believing that there is some tax benefit to such a classification.

Mr. P. Adams, Attorney at Law and a member of the American Bar Association’s asset protection committee attend a meeting of the committee and it was the determined view that these Foundations would be treated, regardless of status, as corporate business for the benefit of a US tax payer and therefore subject to all US taxes…in other words considered “disregarded”.

Promoters claim that, “The due to their design and structure their Foundation’s achieve an entity classification as other than a trust such as a partnership, corporation or disregarded entity for U.S. tax purposes.”

Bare in mind that all U.S. citizens are taxed on worldwide income and this classification does not make any tax difference. Under all options, income to the foundation will be taxed in the U.S. as earned, transfers to the entity will be reportable events, and (most) transfers of appreciated property will be deemed sales. A dangerous area of tax liability, both criminal and civil, leading to a wide range of penalties and charges.

They go on to say, “There is the option of seeking a private letter ruling from the Internal Revenue Service confirming the proper entity classification of the Foundation.” Further they say, “It means that the IRS has not classified the Panamanian or Liechtenstein Foundations and that U.S. citizens have no certainty regarding when, what, and how to file returns for a foundation and therefore are exempt”.

Panamanian and Liechtenstein Foundations are promoted as options by competitors of offshore Asset Protection Trusts and Nevis Offshore Corporations. Panama as a country is a terrific place to operate an international business, but not to incorporate there. Due to the watchful eye of the United States Treasury Department and the Federal Bureau of Investigation, offshore asset protection promoters need take a more realistic view of the U.S. criminal and taxation system, so that Panamanian Foundations one day can become legitimate Asset Protection tools for Americans and Canadians.
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WHY CORPORATIONS AND NOT TRUSTS?

It was just announced that GE Corporation earned global profits of 14.2 Billion dollars this year- and will pay NO taxes! By using a combination of offshore accounts and aggressive tax breaks, GE managed to not only pay no taxes, but claimed a tax benefit of $3.2 billion US dollars.
I thought that since we are in tax season and many of you own corporations like General Electric except a lot less income…how do they do it and can you?
Let's say your Nevada corporation earns a net profit of about $150,000 in your first year.
First off, you can write off up to $10,000 in start-up and organization expenses and let’s assume you only claim $7,000. That takes your income down to $143,000.
You can also write off all legitimate business expenses such as your computer, cell phone, iPad, your family car primarily used for business, your trip to Florida in February, the hotel, enjoying the sunshine and the swimming pool while on your “business” trip and you managed to write off another $10,000 a year in travel expenses so that brings us down to $133,000.
Next you will pay to the IRS Medicare and Social Security taxes for yourself the employee and the employer which will come to about $19,000 and you can deduct half of that, or $9,500, from your taxable income which brings your total down to $123,500.
As a corporation you have access to some terrific tax breaks on your investments and retirement accounts such as 401(k) plan which you can load $43,100 and write it off against your taxes. That money goes straight into a sheltered investment account, as with a regular 401(k).
Why $43,100?
That's because with a Solo 401(k), you're both the employer and the employee…as the employee you get to contribute a maximum of $16,500 as with any regular 401(k) and as the employer you also get to lavish yourself with an incredibly generous company match of up to 20% of net income. Being the boss has its privileges and if you're 50 years old or over your limit as an employee it’s raised from $16,500 each to $22,000.
You can also save another $10,000 by also contributing to your individual retirement accounts, $5,000 for you and $5,000 for your spouse reducing your taxable income and if you're 50 years or over, your limit rises to $6,000 apiece.
If you contribute $43,100 to your Solo 401(k), and $10,000 into two IRAs, that brings your income for tax purposes down to just over $70,000.
Next, write off your state and local taxes which we will estimate comes to $10,000 which approximates another $10,000 mortgage interest at 5% interest on a $200,000 home loan bringing our taxable income to $50,000.
Let’s talk about health insurance. You can write off the premiums for yourself and your spouse and your kids.
If you use a qualifying high deductible health insurance plan there are a variety of rules to make sure the plan qualifies to give you another break. You can contribute $3,050 a year into a tax-sheltered “Health Savings Account” or $6,150 for a family and you can write those contributions off against your taxable income which these investments can grow sheltered tax-free. If it’s a qualified plan the withdrawals are tax-free. Let’s assume your payout is $10,000 for the premiums and $6,150 for the HSA contributions which now gets your income down to $34,000.
If you have outstanding student loans you can write off $2,500 in interest per year and you can write off $4,000 of your kid's college tuition and fees.
Then there's a personal exemption: $3,650 per person. If you're married with one child, that's $10,950.
With all of that your taxable income is just under $17,000 compared to our original income of $150,000…you owe less than $1,700 in federal income tax.
Now let’s look at tax credits which attack your tax liability dollar for dollar.
GE got write offs related to green energy but there are some for you but on a smaller scale. You can claim credits for things like installing solar panels, heat pumps and energy efficient windows in your home giving you a tax credit write off of $1,500 bringing down your taxes to $200.
Now let’s say spouse spends $1,000 on a qualifying adult education course which you can claim $200 or 20% of the cost in lifetime learning credits to a maximum is $2,000 thereby completely wiping out your remaining tax liability.
Congratulations! You've pulled a GE. You owe no federal income taxes at all.
You could have also written off a further $3,000 by selling any loss investments, a 401(k) deduction for your spouse as well.
What’s the end result?
Corporations beat trusts hands down.
You've paid no federal income tax while saving $19,000 toward your retirement through social security and Medicare and $53,000 through your 401(k) and IRAs. You've also paid for your accommodation which is the interest and property taxes on your home, covered your health care costs, written of a lot of personal expenses through your business account plus paid $4,000 toward your child's college costs and had about $2,000 left over.
Did I forget to mention your Nevada Corporation’s corporately Defined Benefits Plan which allows you a gigantic $1,200,000 million dollar tax write off while giving back to you a $600,000 tax free loan plus a whopping income of $420,000 per year or in other words a $35,000 annuity payable to you each month.
As CEO and President of your Nevada corporation… did I forget to mention your yearly tax free dividend, interest free company loan, section 179, corporate jet, limousine, company sports car, corporate resort, company motor home, boat, vacation property, time share, 300+ tax deductions, corporate 419 plan, 412(i) plan, VEBA plan and 501(c) 3 non-profit charities and Endowment Foundations you and your family own?
Bottom line…it pays to incorporate and the best place to incorporate is in tax-free Nevada