The report also stated that around $39 million of that money was used o redeem shares of other Canopy investors, including $1. 6 million that went to Jeremy Blackburn and $975,000 that went to Anthony Bananas, while another 529 million obtained from investors was deposited into Canopy operating accounts.
Jeremy Blackburn and Anthony Bananas also misappropriated Canopy operating funds for their own benefit which lead to one account of wire fraud (United States of America v. Jeremy Blackburn and Anthony Bananas) What has happened to the key players since the events in this case?Anthony Bananas, Canopy’s chief technology officer, was sentenced to 160 months in prison, while Jeremy Blackburn, Canopy’s former president and chief operating officer, was sentenced to 180 months in prison. The judge also ordered that both party pay a mandatory restitution totaling (United States Of America v.
Jeremy Blackburn and Anthony Bananas). They had to pay this because they were guilty of Wire fraud and a fraud scheme that cheated investors out Of money. Jeremy Blackburn took his own life on March 19, 2012 of this year.Jeremy Blackburn death is not being investigated as a homicide as state by Lee County coroner (Chicago Tribune). No matter what issues Jeremy Blackburn faced, I have never understood the path of self destruction. I don’t grasp how you get to the point of no return; to point where someone says enough is enough. What is your determination regarding reducing the taxable amount of income for both the $300,000 fee and $25,000 expenses? According to federal law, the $300,000 is considered to be income which creates a tax liability.
There is a legal obligation to disclose a tax liability, and refusal to report it is tax evasion. The $25,000 should be reported as an ordinary expense which lowers tax liability. It you make contributions to an AIR or another furor of retirement plan before taxes, your LLC ax liability will be reduce by the amount of your contribution. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for Federal income tax purposes? Taxpayers may deduct interest on loans secured by first or second homes, but the homes must be “qualified residences”.A home is a qualified residence if it is the taxpayers principal residence or it is a second residence designated for this purpose that is used for personal purposes for more than the greater Of 14 days or 10 percent of the number of days is rented (such as a vacation home). Qualified residence interest on mortgage (debt) is deductible. (201 1 ACH Federal Taxation). If you itemize income tax deductions and fully deduct your mortgage interest, you might not want to prepay your mortgage.
By paying extra each month, you will be paying less interest overall and, as a result, your interest deductions will be reduced. In deciding whether to prepay your mortgage, you’ll have to consider the effect of lower interest deductions on your income taxes. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John’s case? A 1031 tax exchange involves exchanging like-kind property held for investment or business purposes. Property qualifying for like-kind exchange treatment must be held either for productive use in a trade or business or tort investment.However, business property may be exchanged for investment property and vice versa. Property held for personal use does not qualify for impregnation but if held for both business and personal use, the business part qualifies, (2011 ACH Federal Taxation) Because the exchange would involve property for personal use, it does not qualify for a 1031 tax-free exchange. Does Jane have a business or hobby? Why is the distinction important? Generally, an activity qualifies as a business if it is carried on With the reasonable expectation of earning a profit.
The IRS presumes that an activity is carried on for pronto if it makes a profit during at least three Of the last five tax years, including the current year -? at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses. If an activity is not for profit losses from that activity may not be used to offset other income. An activity produces a loss when related expenses exceed income. The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. It does not apply to corporations other than S corporations.Cane’s handcrafted jewelry sales qualify as a business, It is important to distinguish between a hobby and a business because tort federal income tax purposes expenses can he deducted if the activity is a business. Would Jane and John realize better tax benefits if she had a separate business for her jewelry making activities? For tax purposes the LLC (Limited Liability Companies) is treated as a conduit entity whereby its income passes through to its owners, thereby eliminating the double taxation associated with corporations other than S corporations; however, it may be taxed as a corporation.
201 1 ACH Federal Taxation).As a sole proprietorship, a separate tax return is not filed All of its operations are reported on a Schedule C (Profit or Loss From Business (Sole Proprietorship)) of germ 1040 (LIST. Individual income Tax Return). The net income or loss is included with the taxpayers other income, losses, and deductions for the year. (2011 ACH Federal Taxation). Net losses can be used to offset personal income if Jane and John create a separate business for her jewelry making activities. What tax benefits would John realize if he invested SIS,OHO in Jane jewelry making?Investment counsel fees, custodian fees, fees for clerical help, office rent, state and local transfer taxes, and similar expenses paid or incurred by individuals in connection with their investments are deductible as itemized deductions on Schedule A of Form 1040.
(2011 US. Master Tax Guide). If John invested $15,000 in Cane’s jewelry making, he would be allowed to deduct ordinary and necessary expenses that are incurred for the production of income and maintenance of property if they are reasonable in amount.
Can Jane depreciate her vehicle or jewelry making equipment?How? Yes, according to the 201 1 U. S. Master Tax Guide, taxpayers may deduct a reasonable allowance for the exhaustion, wear and tear of property used in a trade or business, or of, property held for the production of income. Depreciation is not allowable for property used solely for personal purposes, such as a residence. For purposes of the depreciation caps, a passenger automobile includes any four-wheeled vehicle manufactured primarily for use on public streets, roads, and highways that has an unloaded gross vehicle weight rating of 6,000 pounds or less. 2011 U.
S. Master Tax Guide).If a passenger automobile is used less than 100 percent for business purposes, the depreciation deduction limits are determined by multiplying the limitation amount by the percentage of business use.
In addition, if the business use percentage for any year is less than 50 percent, MACRO depreciation must be computed using the alternative MACRO teeth (straight-line method over a five-year life). (2011 US. Master Tax Guide). Should John and Jane file separate tax returns or jointly?