Tag Archive | "tax deductions"

Pleasures that Reduce Tax


One benefit of turning your passions into profit is that personal pleasures, especially travel, can become tax deductions rather than after-tax expenses.

farm

Painting of the covered bridge at our Blue Ridge Farm.

Here is an example of how to turn passions into profits and gain tax deductions.

An AIRBNB guest who stayed at our farm last year painted the picture above and recently posted this at her website.

This past Fall my husband and I were determined to get back up to NC and see the leaves. I found a lovely Airbnb cabin near West Jefferson, NC, about an hour north of most of our relatives, and we packed up our two teenage boys and expected an adventure.  Both boys are getting older, working on school and jobs, so we knew this may be the last time our schedules work out to take this much time off together for awhile.  I wanted a location that would keep us outdoors and unplugged and this dreamy spot gave us more than we could ask for in nature.

We arrived during the night, and discovered that the destination is 8.5 miles UP a mountain, swerving and winding up the hill.  It was daunting at night but we found the location which is one of five cabins on the 252 acre property.  The next morning as we drove down the mtn to get some groceries, we realized the beauty we had passed, from amazing barns, highland cattle grazing in the creek, fields of wild turkeys and gardens full of flowers, all on the drove up the hill!

Little Horse Creek runs through the property. and my husband caught some beautiful trout there. The property was gorgeous and contained things like over eight miles of 4 different trails to follow.  Apple trees along the creek, a stocked trout pond at the top of the mountain, and welcoming owners who are available anytime if needed.  My husband usually requires about 4-5 days before he can actually unwind and relax from work, so we could have easily added another week up there.  This property, being so high up, is much colder than our family experiences down in Winston-Salem and Mt. Airy and closes up early (by mid Oct) for the winter.  We LOVED our stay there and plan on going back as soon as it opens up again.

So far I have painted three acrylic paintings from the trip. The barn above, the view of the mountain top, which contains the owners’ home and the trout pond below it. They have an illustrious background living internationally, and their home looks very European. As I took the photo of the house, I was standing in the sunflower field, which is where we would usually find Harriet and Lucy.

farm

Harriet and Lucy.

They are two rescue horses that have lived on the land for over a decade. They roam free, love to be fed apples, and are as friendly as puppies.

farm

Our Blue Ridge Mountaintop Farmhouse

I painted Lucy the Appaloosa, because she is one of the few original species, and I was in love with her spots.  Harriet is in the background of the painting.

farm

Lucy the Appaloosa

These three images will be available on my website www.sophiedare.com under Farmhouse Original Art, and I hope will go to a home that loves this area as much as we do!

I have no idea whether this guest will take part of the cost for that visit as a tax deduction or not.  My tax preparer would if I had made a trip of this nature and created something that was income producing.  Part of that trip was a legitimate expense in the process of creating an inventory of salable art.

When we do what we love, we can go anywhere and still earn, plus reduce the taxes we pay as well.

Gary

Turn Words into Cash

Why words are better than cash.

You can turn words into cash.  Mix in a little wisdom and deliver benefits.  The value of honest word’s never deflate.  A dollar, decades ago, was worth 15 greenbacks today… or more.   Useful, wise words, even hundreds of years aged… are often worth more now.

Take these 153 year old words: “Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal.”

Has time diminished the value of these words?

Learn how to earn extra income from an events business created by travel or staying at home.  Create events where you can earn from speaking something good… or if you don’t like to talk… letting others talk (and earn) for you.

Do you crave freedom… and perhaps adventure?

Do you at least desire to get out of the rat race?

Do you want to travel…spend time…live…laugh or love in more than just one place?  Do you the places you go to be ones you choose?

Or would you rather settle down in a low stress, safe, nurturing town, abroad or in Smalltown USA?

You can write and talk your way into the lifestyle or let others talk for you.

There are few people more capable of promising this type of life than Merri and me.

For 50 years (from May 1968) we have been paid to travel and live exactly where we have wanted to be… because we write and have had an events business conducting seminars, workshops, courses and tours.

All we have had to do is write, gather groups and talk about what we do.  Sometimes we let others do all the talking!

Our writing and events business has allowed us to visit and to live almost anywhere we have chosen.

Sometimes we have incredible adventures.

gary-merri-scott-llanganatis

Here I am with Merri and an Ecuadorian Yatchak deep in the Llanganatis Jungle creating a shamanic tour.

However, when we want to stay at home we can also do so.  One does not have to travel to have an events business.

gary-scott-semainsr

Here I am (in brown shirt) speaking to a subscriber at an event that we conducted at our Florida home.

We even built a…

little-horse-creek

seminar hall on Little Horse Creek so we can stay in the mountains when we desire… and still get together with subscribers.

Here is one of the small groups at a retreat we conducted in the seminar hall.

gary-scott

However, you do not have to do this much as an owner of an events business!  Lesson Two of a course we have created called “Event – Full Business” shows how to start small and gradually build a larger events business (if that is your desire) as we have done.

We have conducted events as small as two delegates and some with over 400.

ecuador-exports

We know the events business inside and out… large and small.  Here Merri and I are speaking to over 400 + people in Quito, Ecuador.

There are innumerable fringe benefits to writing and events.  For example, almost all of our global travel has been tax deductible for all these years.

The pay has certainly not been bad either.  As you’ll see below, one time we earned  $142,260 in three days.  In another instance, we earned over $135,000 in two days.  Once our earnings exceeded $200,000 in just three days.

Yet the income has been a small part of this adventure.  The expanded horizons… the people we have met… the adventures we have shared… the tens of thousands of delegates we have enjoyed and hopefully helped… the poor we have served… the freedom we have felt… to be able to go where we desire and come home, when we desire, with more than when we left.

These facts have dramatically enriched our lives….and we hope others.

Now we would like to help improve your lifestyle as well… if… earning with a seminar, tour events business appeals to you.

We have written about and conducted seminars or events or spoken at them in… (alphabetical order)  Australia, Bahamas, Belgium, Belize, Canada, Czech Republic, Dominican Republic, England, Ecuador, Finland, Germany, Hong Kong, Hungary (before the Iron Curtain came down), Indonesia, Isle of Man, Jamaica, Malaysia, Mexico, Netherlands,  Panama, Philippines, Puerto Rico, Scotland, Singapore, Spain, Switzerland, Taiwan, Thailand and at one time or another most of the United States and more.

Then when we wanted to spend more time with my mom, children and grandkids we arrangeed events at our home.

There is a possibility that Merri and I know more about writing and conducting events from home than 99.9% of the people in the world.  Because so many have asked… we created an online correspondence course on how to create your own writing and events business.

A writing and events business not only creates unusual profit opportunity now… but when a seminar business is properly run, it can create income for a lifetime!

This course shows how Merri I and have created riches and a lifestyle beyond our wildest imagination and shares steps you can take to create a profitable and fun business conducting seminars, workshops, conferences and tours wherever and whenever you like.  (Or perhaps you want to conduct seminars online or live or with a video sent through the internet.)

This course shares how we have done this… what we did right… what we did wrong… how you can get started and what you can do much better than we have.

Lessons include:

#1: How to earn millions from seminars, courses and tours. See how we have earned as much as $200,000 for three days’ work. (Once $135,000 in two days.)

#2: How to build a seminar business. See the one day Washington-Atlanta-San Francisco system that helped our courses evolve and how to use this approach to help your teaching grow.

#3: When and when not to use other speakers. Seminars for speakers… a way to get it all out as your bank accounts gets it all in.

#4: How to use other speakers. Gain the key to the room and the people within. Why the golden pen is mightier than a glib tongue, the sword and the overloaded brain.

#5: Dealing with hotels/locations. Why the marketing does not talk to catering who will not communicate with accounting and the mess this could mean for you. How to choose…arrange and survive the hotel. Forget the $11,314 coffee bill… for swill.

#6: Scheduling seminars. Magic dates and times for marketing… how far in advance to market and seminar death dates to avoid.

#7: Creating a back end business. How Merri made $12,936 dollars at a seminar in 37 minutes by just standing still.

#8: Three types of courses…delegate driven…speaker driven…third party driven.

#9: The importance of strategic partnerships for added wealth.

#10: How to market seminars, courses & tours.

#11: List building.

#12: Alternative seminar and course location options.

#13: The benefits of both big seminars and small courses.

#14: How to survive the dreaded problems: What to do when enrollments are low. Handling the heckler, the takeover and the cell phone. When the hotel fails. Surviving speaker no shows and all of those types of things!

#15: How to enhance your other businesses with seminars.

Join The International Club.  Save $418.78. Learn How to Turn Words into Cash.

Club members start by receiving seven workshops and courses on how to earn everywhere with home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • The course “Self Fulfilled – How to Write to Self Publish & SNAP”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”
  • The course “International Business Made EZ”
  • Video Workshop by our webmaster David Cross
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”

Club members also learn ways to be be healthier and have more energy.   I have created three natural health reports about:

#1: Nutrition

#2: Purification

#3: Exercise

Each report is available for $19.95.  However you’ll receive all three FREE as club member and save $59.85.

Next, club members participate in an intensive program called the Purposeful Investing Course (Pi).  The purpose of Pi is finding value investments that increase safety and profit.  Learn Slow, Worry Free, Good Value Investing.

Stress, worry and fear are three of an investor’s worst enemies.  These destroyers of wealth can create a Behavior Gap, that causes investors to underperform in any market good or bad. The behavior gap is created by natural human responses to fear.  Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of numerous Model Portfolios, called Pifolio.

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

There are no secrets about this portfolio except that these mathematicians ignore the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout the next year with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but as a club member you receive Pi at no charge and save an additional $299.

Club members also receive Pi and the $29.95 report “Three Currency Patterns for 50% Profits or More” and the $39.99 report, “The Silver Dip 2018” FREE.

Save $418.78… when you become a club member.

Join the International Club and receive:

#1: The $299 Purposeful investing Course (Pi).   Free.

#2: The $299 “Live Well and Free Anywhere Program including SNAP”.  Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”.  Free.

#4: The $39.99 report “Silver Dip 2017”.  Free

#5: The three $19.99 reports “Shamanic Natural Health”.   All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report. Free.

#7: Plus all updates and other reports I release over the next year.

These reports, courses and programs would cost $767.78 so the  membership saves $418.78.

The International Club membership is $349. 

Join the International Club for $349 and receive all the above online now, plus all reports, course updates and Pi lessons for a year at no additional fee.

Click here to become a member $349

Click here to become a member at $89 per quarter charged automatically to your credit card

Gary

Tax Deductible Ecuador Cruise


Yesterday’s message looked at how Andean products are hot this season and how to save on Ecuador shopping and even make the trip tax deductible.

You could even make part of a Galapagos cruise to Ecuador tax deductible if you are Ecuador shopping for profit.

galapagos cruises

Haugan cruises provide discounts on Galapagos cruises specials (1) to Ecuador Living Club members.

If you are going to Ecuador for a business meeting or to take an export tour your flight, and hotel, can be tax deductible.  When you know the rules, it’s easy to deduct travel to a business meeting, even by cruise ship.  The law provides various ways to deduct cruises.  Let’s examine just one: a trip to Ecuador.

IRS Regulation 1.274-4 gives friendly rules for one-owner businesses that we can use to our benefit.  Here are some of the rules:

1)    The United States means the 50 states and the District of Columbia
2)    Transportation cost to a foreign destination for seven days or less, excluding the day of departure, is not subject to an allocation between business and personal days.

Take for example a trip to Quito for an export tour, with a Galapagos cruise included.  Quito is outside the 50 states; accordingly, it’s a foreign destination. You are subject to the foreign travel rules on your trip to the business meeting or convention in Ecuador.

You fly Miami and then onto to Quito and then onto Galapagos the Galapagos to board a cruise ship that will take a four tour of the Galapagos Islands on the Comarant, November 25 to 28. (1)

Once you arrive back in Quito on day five of your trip, you will:

1)    Check in for a two-night stay at the hotel where the Ecuador export tour is being held
2)    Attend the tour after sleeping at the hotel for the first night
3)    Depart by airplane for Miami on the day at the end of the third day on the tour

Your business tax deductions include the cost of:

1)    Travel to Miami and Galapagos
2)    Cruise ship fare in Galapagos (not to exceed tax law’s luxury boat limits that range in 2014 from a low of $566 to $680 per day, depending on the dates of travel)
3)    Food and lodging in Galapagos
4)    Airfare to Quito and Miami
5 )   Travel from Miami to home

Note that you have no personal, nondeductible expenses for this trip to Ecuador. You have to admit, tax knowledge can be fun!

Adhering the the IRS rules is vital when useing regulations of this sort.  For full details on how to learn and use tax regulation contact our tax consultant Conrad Oertweg at conrad.taxmart@verizon.net

Gary

Galapagos Cruise Specials

Ecuador Export Update

Here is a note from Roberto Ribadeneira about Export Tours to Ecuador.

ecuador export

When you join the Export Tour from Ecuador, you’ll find that Ecuador is not only a beautiful place to visit, but is a good place to do business.

On this Export Tour, there is a wide range of products in various different towns north of Quito.  Let’s have a quick look at what we do before we show you the schedule.

Upon arriving to Quito (Ecuador’s capital), we will take you to Cotacachi, where we base our tours in search for amazing products.

You will be presented with lots of amazing artisans that create unique products of great quality.  There are hundreds of different items that we will explore and numerous ideas that we will share  with you.

ecuador export

Most of the craftsman that we introduce to you are people that live in rural areas, that are hardworking and that make their products by hand. This means that the quality is outstanding but also that we have the flexibility to make small orders and/or big orders.

ecuador export

Schedule

You will arrive at Quito’s airport, which is brand new and also the most important one in Ecuador. Depending on your time of arrival, we either take you to a hotel in downtown Quito (which is about 40 minutes from the airport) or travel from there directly to Cotacachi.

Cotacachi is one hour and thirty minutes north from Quito. The road is also new and there you will see a beautiful landscape surrounded by mountains. Cotacachi is warm during the day, a little cold at night, so bringing sweaters is recommended.

We will spend three full days exploring products and towns around Imbabura’s Province. Most of the towns that we visit are small and full of kind people. Most of the workers that we visit work from home.

ecuador export

After the three day tour, we will take you back to Quito if you like to stay there, but if you would want to explore other cities, we will take you to the airport in Quito.

ecuador export

Tour Day 1:  Leave from Quito to Cotacachi at 09:00.

Starts 12:00 in Cotacachi: visit to leather town, what products you can make in leather, suppliers, manufacturers and ideas on what you can make.

Lunch break: 14:00 – 15:00.

16:00:  Go to San Antonio de Ibarra, see the wood products, manufacturers and designs that we can export from Ecuador.
18:00 ending.

ecuador export

Tour Day 2:  Starts at 10:00 after breakfast at the hotel.

Visit Otavalo for Tagua and Textiles, see manufacturers, get products to make, personal labels, volume, etc.

Meet with supplier for new products to make high-end tagua items, new products of bamboo, baby blankets, baby products, Christmas products. Products made of Alpaca, specific designs.

13:00: Lunch.

14:00: Talk to cargo agency, see packing, costs, how to ship, taxes, etc.

15:00: Visit manufacturer for handmade sweaters, shawls, and other textiles, he can make specific designs for you.

17:00: Create a website, a shopping cart, manage logistic, storage and shipping cost with FedEx or Mail Service.

ecuador export

Tour Day 3:  Starts at 10:00 after breakfast at the hotel.

Visit Otavalo Market, fair day. See all the products available, purchase items for business, talk to all the vendors, see different products, low cost textiles, low cost jewelry, ponchos, sweaters, shawls, products for under $2 a piece.

12:00:  Tagua, jewelry, what designs you can make, cost of personalized items. Jewelry store for Tagua products, which they create designs for inexpensive jewelry.

13:00:  14:00 lunch.

15:00:  see rugs, alpaca products, honey products, flowers, etc.

ecuador export

*    We change the schedule depending on what you would like to see. We found out that some people show more interest in certain products so we spend more time showing them those items. We always adjust to what will be most beneficial to you.

ecuador export

Towns to visit.

Among the towns that we will show you:
Cotacachi
Otavalo
Iluman
San Antonio de Ibarra
Ibarra
Cuicocha
Atuntaqui

ecuador export

Products to see:
Tagua
Alpaca
Textiles, such as ponchos, sweaters, shirts, table runners, table cloths, etc.
Bamboo
Wood products
Leather, such as duffle bags, purses, jackets, accessories, shoes, etc.
Jewelry at the Otavalo market, such as necklaces, earrings, bracelets, etc.
Art, paintings on different materials and styles, textiles manufactured at Atuntaqui.

ecuador export

Optional

ecuador export
If you are also interested in the flower business, we can show you a beautiful rose farm, that takes around 2-3 hours for the tour, so we recommend doing that if you are interested in that area of business. Most farms are in towns about 40 minutes north of Quito, either Cayambe or Tabacundo. It is a great experience, and you will get to see how they grow roses and the fields.

ecuador export

Extras

ecuador export

We also encourage people to bring ideas of products that you want to make and things you want to create. There may be purses that you want to design, hand made leather jackets or a certain wood carvings. There are also other ideas to explore like creating ponchos with your own University’s colors or bracelets with school’s colors.  Perhaps you want to engage in corporate products and want to have beautiful leather laptop bags with special logos, or different colors or a unique design.

ecuador export

You can talk to the manufacturers and get the pricing on items, timing of when they will be ready, and what they can do.

We will also show you how to calculate the pricing, how to do the packing and what better way to ship items from Ecuador to the USA. This way it will be easier for you to know the costs and put the right sales price for your customers.

ecuador export

All the contacts and information for everything that we see and all the manufacturers is yours. This will allow you in the future to contact them directly and work with them if you like. So you
will be able to work with the suppliers on your own if that is what you choose.

There are thousands of ideas that we can explore, and also hundreds of products that we can make. Not only you will find that working with people in Ecuador is a great experience, but also that we are able to create amazing homemade products for every need.

Once you get to see how people work and the help that everyone buying from them brings, you will get a better idea on the progress that exporting from Ecuador brings to this people. You will get beautiful products and in exchange people in Ecuador will work very hard, and also be rewarded with a better quality of life.

ecuador export

We do hope to get to see you soon on this business adventure.  Roberto

ecuador export

Individual Export Tour for one $799 or a couple $999

Please call me at 1-888-482-3850 or Email me at roberto_ribadeneira@me.com

Profits From Tax Deductible Ecuador Shopping


As the holiday season rolls around here is how to save money and make profits from tax deductible Ecuador shopping.

Andean products are hot right now.  Take for example Alpaca sweaters offered in the National Geographic catalog (1).

Screen Shot 2015-10-31 at 10.23.30 AM

This Chiquitos Alpaca Cardigan sells for $219.00.  An Inca Gold Alpaca Cardigan is also $219.

Screen Shot 2015-10-31 at 10.21.23 AM

Here is an Inca Zig-Zag Cardigan for $169 in the National Geographic catalog.

There are even higher prices at Amazon.com for Andean products.

cole Haan Alpaca coat

This Cole Haan Alpaca Belted Wool Coat is $408 to $477 at Amazon.com

Alpaca socks

These women’s alpaca socks $14.99 at Amazon.com

Men’s alpaca socks also run $14.99 a pair.

Products like this are a fraction the cost when purchased in Ecuador.  You can gain huge savings, even more than the cost of the trip, when you shop direct in Ecuador. 

Roberto Ribadeneira sent this note about these products:  Gary I have similar products to the ones that you are showing.  Here are comparable prices.

Alpaca Cardigan, 100% Alpaca, price in Ecuador $85.00.
Zig-Zag Cardigan, 100% Alpaca, price in Ecuador $85.00.
Alpaca socks, Alpaca, $3.50 each pair. 

That’s quite a savings on your shopping.

Plus your trip to Ecuador can be tax deductible if you turn your shopping into a one or two person business.

You could even throw in a tax deductible Galapagos cruise.  Believe it or not, if you have an Ecuador import or export business, travel to and your stay in Ecuador may be part or all tax deductible, even a side trip on Galapagos cruise.  We’ll explain how IRS Regulation 1.274-4 gives small family business friendly rules that we can use to our benefit.  I explain the rules about deducting a Galapagos cruise  in tomorrow’s message. Don’t miss it!

Many of us will be looking for quality gifts at good value during this season.  One way to gain both is to shop in Ecuador.

Gary

Ecuador Export Update

Here is a note from Roberto Ribadeneira about Export Tours to Ecuador.

ecuador export

When you join the Export Tour from Ecuador, you’ll find that Ecuador is not only a beautiful place to visit, but is a good place to do business.

On this Export Tour, there is a wide range of products in various different towns north of Quito.  Let’s have a quick look at what we do before we show you the schedule.

Upon arriving to Quito (Ecuador’s capital), we will take you to Cotacachi, where we base our tours in search for amazing products.

You will be presented with lots of amazing artisans that create unique products of great quality.  There are hundreds of different items that we will explore and numerous ideas that we will share  with you.

ecuador export

Most of the craftsman that we introduce to you are people that live in rural areas, that are hardworking and that make their products by hand. This means that the quality is outstanding but also that we have the flexibility to make small orders and/or big orders.

ecuador export

Schedule

You will arrive at Quito’s airport, which is brand new and also the most important one in Ecuador. Depending on your time of arrival, we either take you to a hotel in downtown Quito (which is about 40 minutes from the airport) or travel from there directly to Cotacachi.

Cotacachi is one hour and thirty minutes north from Quito. The road is also new and there you will see a beautiful landscape surrounded by mountains. Cotacachi is warm during the day, a little cold at night, so bringing sweaters is recommended.

We will spend three full days exploring products and towns around Imbabura’s Province. Most of the towns that we visit are small and full of kind people. Most of the workers that we visit work from home.

ecuador export

After the three day tour, we will take you back to Quito if you like to stay there, but if you would want to explore other cities, we will take you to the airport in Quito.

ecuador export

Tour Day 1:  Leave from Quito to Cotacachi at 09:00.

Starts 12:00 in Cotacachi: visit to leather town, what products you can make in leather, suppliers, manufacturers and ideas on what you can make.

Lunch break: 14:00 – 15:00.

16:00:  Go to San Antonio de Ibarra, see the wood products, manufacturers and designs that we can export from Ecuador.
18:00 ending.

ecuador export

Tour Day 2:  Starts at 10:00 after breakfast at the hotel.

Visit Otavalo for Tagua and Textiles, see manufacturers, get products to make, personal labels, volume, etc.

Meet with supplier for new products to make high-end tagua items, new products of bamboo, baby blankets, baby products, Christmas products. Products made of Alpaca, specific designs.

13:00: Lunch.

14:00: Talk to cargo agency, see packing, costs, how to ship, taxes, etc.

15:00: Visit manufacturer for handmade sweaters, shawls, and other textiles, he can make specific designs for you.

17:00: Create a website, a shopping cart, manage logistic, storage and shipping cost with FedEx or Mail Service.

ecuador export

Tour Day 3:  Starts at 10:00 after breakfast at the hotel.

Visit Otavalo Market, fair day. See all the products available, purchase items for business, talk to all the vendors, see different products, low cost textiles, low cost jewelry, ponchos, sweaters, shawls, products for under $2 a piece.

12:00:  Tagua, jewelry, what designs you can make, cost of personalized items. Jewelry store for Tagua products, which they create designs for inexpensive jewelry.

13:00:  14:00 lunch.

15:00:  see rugs, alpaca products, honey products, flowers, etc.

ecuador export

*    We change the schedule depending on what you would like to see. We found out that some people show more interest in certain products so we spend more time showing them those items. We always adjust to what will be most beneficial to you.

ecuador export

Towns to visit.

Among the towns that we will show you:
Cotacachi
Otavalo
Iluman
San Antonio de Ibarra
Ibarra
Cuicocha
Atuntaqui

ecuador export

Products to see:
Tagua
Alpaca
Textiles, such as ponchos, sweaters, shirts, table runners, table cloths, etc.
Bamboo
Wood products
Leather, such as duffle bags, purses, jackets, accessories, shoes, etc.
Jewelry at the Otavalo market, such as necklaces, earrings, bracelets, etc.
Art, paintings on different materials and styles, textiles manufactured at Atuntaqui.

ecuador export

Optional

ecuador export
If you are also interested in the flower business, we can show you a beautiful rose farm, that takes around 2-3 hours for the tour, so we recommend doing that if you are interested in that area of business. Most farms are in towns about 40 minutes north of Quito, either Cayambe or Tabacundo. It is a great experience, and you will get to see how they grow roses and the fields.

ecuador export

Extras

ecuador export

We also encourage people to bring ideas of products that you want to make and things you want to create. There may be purses that you want to design, hand made leather jackets or a certain wood carvings. There are also other ideas to explore like creating ponchos with your own University’s colors or bracelets with school’s colors.  Perhaps you want to engage in corporate products and want to have beautiful leather laptop bags with special logos, or different colors or a unique design.

ecuador export

You can talk to the manufacturers and get the pricing on items, timing of when they will be ready, and what they can do.

We will also show you how to calculate the pricing, how to do the packing and what better way to ship items from Ecuador to the USA. This way it will be easier for you to know the costs and put the right sales price for your customers.

ecuador export

All the contacts and information for everything that we see and all the manufacturers is yours. This will allow you in the future to contact them directly and work with them if you like. So you
will be able to work with the suppliers on your own if that is what you choose.

There are thousands of ideas that we can explore, and also hundreds of products that we can make. Not only you will find that working with people in Ecuador is a great experience, but also that we are able to create amazing homemade products for every need.

Once you get to see how people work and the help that everyone buying from them brings, you will get a better idea on the progress that exporting from Ecuador brings to this people. You will get beautiful products and in exchange people in Ecuador will work very hard, and also be rewarded with a better quality of life.

ecuador export

We do hope to get to see you soon on this business adventure.  Roberto

ecuador export

Individual Export Tour for one $799 or a couple $999

Please call me at 1-888-482-3850 or Email me at roberto_ribadeneira@me.com

(1) http://shop.nationalgeographic.com/ngs/product/clothing/women-s-clothing/sweaters/chiquitos-alpaca-cardigan?green=37BA0424-DEDA-5FDA-9951-9EBE2A56B6D1

Gain Tax Cash


Reducing taxes increases cash.

Our recent message “A ratio that can make us rich” reveals a scientific study of Warren Buffet’s investing patterns and a ratio of leverage he uses to accumulate incredible wealth.

That study also uncovered another strategy that Buffett uses to assure his wealth.  The study says: “Buffett’s company has financed part of its capital expenditure using tax deductions for accelerated depreciation of property, plant and equipment as provided for under the IRS rules.”

The research showed that Berkshire had reported $28 billion of deferred tax liabilities in the year reviewed.

The papers conclusion was: Accelerating depreciation is similar to an interest free loan in the sense that Berkshire enjoys a tax saving earlier than it otherwise would have and the dollar amount of the tax when it is paid in the  future is the same as the earlier savings since the tax liability does not accrue interest or compound.

This is why I want you to read  7 Secrets to Paying Less Tax  for the One-Owner Business by Conrad Oertwig.

The report begins:  “There is only one secret to paying less tax and that is  knowledge.

“One hard fact of life is that taxes are cash.  It’s a mistake to think of taxes as taxes.  If you want to create more net worth, you need to think of taxes as cash.

“How much tax cash are you leaving on the table?  Thousands?  Tens of thousands?

“So, let’s explore 7 secrets (great pieces of knowledge) that will enable you to pay less tax, have more cash, and build net worth. I know that’s why you are here, so let’s get started.”

To read the entire report, click here.

Gary

7 Secrets to Paying Less Tax


7 Secrets to Paying Less Tax… for the One-Owner Business

by Conrad Oertwig

There is only one secret to paying less tax: knowledge.

One hard fact of life is that taxes are cash.  It’s a mistake to think of taxes as taxes.  If you want to create more net worth, you need to think of taxes as cash.

How much tax cash are you leaving on the table?  Thousands?  Tens of thousands?

So, let’s explore 7 secrets (great pieces of knowledge) that will enable you to pay less tax, have more cash, and build net worth. I know that’s why you are here, so let’s get started.

Secret 1: Dutch-treat entertainment

Start with a question: If you go to a qualifying business entertainment, but you do not pay for your business prospect and you pay only for yourself (you go Dutch treat), can you deduct the cost of the entertainment that applies to you only?

How did you answer?

The correct answer is that Dutch-treat business entertainment is just as deductible as paying for the other person.

We find that many owners of corporations and proprietorships do not know this rule.  They miss thousands in deductions.

Example.  Henry Miller goes to a baseball game with a fellow business owner.  After the game, they go to dinner together and discuss how to find and hire a great assistant.  Mr. Miller does not pay for his fellow business owner.  He pays for himself only.  His costs of the baseball game and dinner are deductible as Dutch-treat entertainment.

You might say prove it!  I say, “Sure.”  Here’s what IRS Regulation Section 1.274-2(b)(1) has to say about this type of entertainment:

1)    The taxpayer may deduct business entertainment even though the expenditure relates to the taxpayer alone.
2)    The objective test precludes arguments that business entertainment means only entertainment of others.
3 )   Deductible business entertainment may include an activity that satisfies a personal, family, or living expense.
4 )   An individual in business may deduct the entertainment cost, including his personal benefit, as a business expense.

You can see that knowledge of the Dutch-treat entertainment deduction is worth money to one-owner and husband-and-wife owned businesses, regardless of business form: proprietorship, corporation, or LLC.

Secret 2: Second office in the home

Have you been told that because you have an office outside your home that you may not have an office in the home?  That’s wrong!

IRS publication 463 states, “You can have more than one business location, including your home, for a single trade or business.”

So far, so good: The IRS follows the tax law and says that you can have two offices for your business, one downtown and one in your home.

As a one-owner business, you want your office in the home to qualify as an administrative office.  The IRS in publication 587 says:

Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements:

1)    You use it exclusively and regularly for administrative or management activities of your trade or business.
2)    You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

Note the italics. This is an exact quote from the IRS. Also, note the word “substantial” because that gives you the strategy:  Do your administration at home and don’t do it in your downtown office.

In publication 587, the IRS goes on to say:

There are many activities that are administrative or managerial in nature.  The following are a few examples:

•    Billing customers, clients, or patients.
•    Keeping books and records.
•    Ordering supplies.
•    Setting up appointments.
•    Forwarding orders or writing reports.

You can see that knowledge shows you how you can claim the home-office deduction even when you have a downtown office.

Secret 3: Eliminate commuting

Secret 2 contained a magic word: “principal”— as in principal office.

Why is that important?

IRS publication 463 says:  If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business.

I know you are going to like this:  Step 1: Establish an office in your home that you regularly and exclusive use for administration. That’s it. This is so easy that I don’t have a Step 2.

You have done it: The proper establishment of an administrative office in the home eliminates commuting.  Now, all your trips from your home to your downtown office are deductible.  This could be huge.

John Wilson owns a $50,000 vehicle, but he has only 10% business mileage on it because he commutes from home to office.  Now, with that home-to-office mileage converted to business mileage, his business percentage jumps to 83%.

Do the math.  From a possible $5,000 depreciation deduction (10% times $50,000) to a whopping $41,500 (83% times $50,000).

I know that your vehicle may cost more or less than Mr. Wilson’s vehicle.  That’s okay.  This concept works for everyone.  Apply your newly improved business percentage to your vehicle and see the increase in deductions, not only for this year but for every year you are in business.

Knowledge is the power and the secret.

Secret 4: Charity Sporting Event

Ask yourself this: Could a $300 charitable sporting event ticket produce a bigger tax deduction than a $300 business meal with a client?

In both cases, you spend $300.

Here’s the answer and it’s a stunner: the charity sporting event produces double the deduction of the business meal.  Double!

Are you capturing your double deductions?  Do you have the following line items set out in your chart of accounts?

1)    100% business entertainment deductions
2)    Regular 50% business entertainment deductions

If not, and if you attend or participate in charitable sporting events, you are missing valuable deductions because you are giving your tax preparer only one category for entertainment. Worse yet, you might be deducting the charity events as charitable deductions. Yikes!

Example 1.  You buy two tickets to the local American Cancer Society chapter’s golf outing.  On the day of the golf outing, you collect your business colleague and the two of you have breakfast at the outing.  Over breakfast, you and the colleague discuss new ways of getting more prospects for your businesses.  This gives you a business meeting, and now the golf outing qualifies as business entertainment associated with the breakfast discussion.  With proper documentation of the cost and business discussion, the entertainment cost of this golf outing qualifies for the 100% deduction.

Example 2.  Everything is the same as in example 1—breakfast discussion and all—but you go as a spectator to a PGA TOUR event that gives 100% of its net proceeds to 501(c)(3) charities.  Your cost of the PGA TOUR event is 100% deductible.

Example 3.  Everything is the same as in example 1.  The charity sends you a note saying that the fair value of your golf, food, etc., is equal to the amount you paid and you have no charity tax deduction.  Smile.  You have no problem.  The fair value limitation does not apply to business entertainment.  Thus, like in example 1, you deduct everything.

You might ask me: Where does the law say that I can do this?  Internal Revenue Code Section 274(l)(1)(B) says that the 50% cut in a business entertainment deduction shall not apply to any ticket for any sports event.

1)    which is organized for the primary purpose of benefiting an organization which is described in section 501(c)(3) and exempt from tax under section 501(a),
2)    all of the net proceeds of which are contributed to such organization, and
3)    which utilizes volunteers for substantially all of the work performed in carrying out such event.

Events that use volunteers for substantially all the work and donate the net proceeds to charity include, among others:

•    Golf
•    Tennis
•    Skeet shoots
•    Pheasant hunts
•    Fishing tournaments
•    Bowling
•    Marathons
•    Triathlons
•    Ski tournaments

Here’s another case where tax knowledge produces cash.

Secret 5: Antiques Make the Best Business Assets

Let’s say that you have narrowed the purchase of your business desk to either an antique or a regular desk.  Each desk sells for $5,000.  Which desk gives you the best business result? Is the difference worth thinking about?

First, you should know that some relatively recent appeals court decisions allow you to depreciate and expense the desk, regardless of its antique status.  Thus, you can deduct the $5,000, antique or not, but that’s where the similarity ends.

There can be a huge difference in financial results at the time of resale.

For example, in 10 years, the antique desk might increase in value to $15,000, whereas the regular desk could decline in value to $500.  But to see the true financial results, you need to look at the after-tax numbers.

Let’s say you are in the 35% income tax bracket and the 15% capital gain bracket at the time of sale. On the $15,000 proceeds from the sale of the antique desk, your federal taxes would be:

•    $1,500 on the $10,000 capital gain part of the profits ($15,000 selling price minus $5,000 original basis times 15%);
•    $1,750 on the $5,000 of depreciation recapture ($5,000 depreciated in full, taxed at the ordinary income tax rate of 35%).

After taxes, you pocket $11,750 on this sale of your antique desk ($15,000 minus $1,500 minus $1,750).

On the sale of your regular desk, you pocket only $325 after taxes ($500 sales proceeds minus $175 in recapture taxes).

The antique desk gives you 36 times more cash ($11,750 compared with $325). Imagine an entire office full of antiques!

Tax knowledge says to you: If you can buy an antique car, clock, rug, desk, cabinet, bookcase, paperweight, conference table, chair, umbrella stand, coatrack, library table, or other asset that will function just as well as a new purchase, take the antique.

Secret 6: Use Two Vehicles for Business

In the past, your tax adviser likely told you to drive one vehicle for business and the other vehicle for personal purposes. T his old advice made it easier to claim the one car as a business car because no business mileage log was required back then.  But that’s no longer true.

Today, tax law requires you to keep a mileage log to prove business use.  That changes the game.  With today’s rules, you gain nothing by using only one car. But the new mileage log rule gives you a possible opportunity to increase your tax deductions.

First, you might ask: Will the IRS allow me to use more than one vehicle for business?

Yes!  The IRS official method for computing business use of a single vehicle is to divide business miles by total miles driven.  IRS Form 4562, which is filed by proprietorships and corporations, contains spaces for up to six vehicles. In other words, yes, the IRS recognizes that you can drive more than one vehicle.

Here are the two basics that make the two-vehicle strategy work:

1)    You drive more miles than your spouse, and
2)    Both vehicles are somewhat close in adjusted basis.

To see if you can benefit from this two-vehicle strategy, and by how much (the minimum amount, really), apply the arithmetic from the before-and-after example below to your vehicles.

Before.  You drive 2,000 personal and 28,000 business miles on your vehicle (93% business).  Your spouse drives 8,000 personal miles on vehicle 2.  Each vehicle has an adjusted basis of $24,000.  Your maximum depreciation and/or Section 179 deduction is $22,400 (93% times $24,000) on the one vehicle you currently drive for business.

After.  You switch vehicles with your spouse every week. You now have 73.7% business use of vehicle 1 and 73.7% business use of vehicle 2.  This produces $35,376 in maximum depreciation and/or Section 179 deductions (73.7% x 2 x $24,000).

You gain $12,976 in new deductions ($35,376 minus $22,400).  You did not have to drive one mile further or spend one additional penny.  You simply had to know (as you learned here) that this strategy could work for you.

Secret 7: Travel by Cruise Ship

When you know the rules, it’s easy to travel to a business meeting by cruise ship rather than by airplane or other mode of transportation.

The law provides various ways for you to deduct a cruise.  Let’s examine just one: a trip to St. Thomas in the Virgin Islands and let’s say you live in California or New York.

IRS Regulation 1.274-4 gives us two one-owner business friendly rules that we can use to our benefit:

1)    The United States means the 50 states and the District of Columbia
2)    Transportation cost to a foreign destination for seven days or less, excluding the day of departure, is not subject to an allocation between business and personal days

St. Thomas is outside the 50 states; accordingly, it’s a foreign destination. You are subject to the foreign travel rules on your trip to the business meeting or convention in St. Thomas.

You plan to fly to Miami, Florida, and then board a cruise ship that will take five days to arrive at St. Thomas.

Once you arrive at St. Thomas on day five of your trip, you will:

1)    Depart the ship
2)    Check in for a two-night stay at the hotel where the convention or meeting is being held
3)    Attend the convention or meeting after sleeping at the hotel for the first night
4)    Depart by airplane for Miami on the day after the convention or meeting

Your business tax deductions include the cost of:

1)    Travel to Miami
2)    Cruise ship fare to St. Thomas (not to exceed tax law’s luxury boat limits that range in 2014 from a low of $566 to $680 per day, depending on the dates of travel)
3)    Food and lodging in St. Thomas
4)    Airfare to Miami
5 )   Travel from Miami to home

Note that you have no personal, nondeductible expenses for this trip to St. Thomas. You have to admit, tax knowledge can be fun!

A Few Thoughts

I specialize in “nuts and bolts” tax strategies that bring tax law to life so that business taxpayers and professional tax advisers can put the law to work for them. In fact, my mission is to clarify taxes so that you take control of your money.

Frankly, plucking common sense from the tax law is time consuming and difficult work.  Yet, after more than 25 years, I still get great satisfaction when I can clarify and extract tax dollars from the tax law not only for your pockets but also to add to your net worth.  In fact I have extracted over 400 tax savings tips and would like to share the most important lessons with you so am creating a course that will share seven tax secrets each month for the next year.

October 17-18,  I will be speaking at Gary & Merri Scott’s Value Investing Seminar about tax secrets that may create cash for you.  I invite you to attend this seminar.

Get seminar details here.

If you are interested in a year long course on how to save tax, enroll for more information here. Sign up for more information here.

Sincerely,

Conrad Oertwig