COVID-19 tax credit - Business tax incentives

Business Tax Incentives 2023

You may not have heard of the Employee Retention Credit (ERC) until recently. If so, you're not alone! That's because businesses who applied for the Paycheck Protection Program (PPP) loan in 2020, weren't eligible to apply for the ERC. 

In 2021 though that has all changed. Now businesses who applied for the PPP loan are eligible for the Employee Retention Credit both retrospectively and in 2021, which is HUGE! This news was released in December 2020 with the passing of the

Consolidated Appropriations Act.

So, what does this all mean? What exactly is the Employee Retention Credit and how do you qualify to receive it? In this article we will break everything down for you so you have a good understanding of what it is and how you can get the most of your Employee Retention Credit!

First, what is the Employee Retention Credit?

In order to understand the Employee Retention Credit, we will take a time machine all the way back to March 2020 (don't worry we will be sure to quickly come back to present day.)

In March of 2020, the U.S. Federal Government signed a $2 trillion relief act, known at the CARES Act, that aimed at providing relief to individuals, businesses, and government organizations. As a part of the CARES Act, if your business was hit hard due to the effects of COVID-19, you were eligible to apply for one of two incentives that would help businesses keep employees on staff during the pandemic. These incentives were known as the Paycheck Protection Program (PPP) and the Employee Retention Credit (ERC).

The PPP loan was the most notable of the two and it provided forgivable loans to businesses with fewer than 500 employees. If you applied for the PPP loan, then you were barred from applying for the Employee Retention Credit. The Employee Retention Credit was not limited by the number of employees and is a refundable payroll tax credit. The credit was available to taxpayers who either had their business fully or partially suspended during a quarter in 2020 or had a drastic drop in gross receipts compared to quarters in 2019. If they qualified, they could receive a credit of up to $5,000 per employee that received a qualified wage.

Okay, that was a fun quick synopsis of where we came from. Now let's get back to the future and talk about what has changed in the present day!

New Law Extends Opportunity to Claim the Employee Retention Credit

In December of 2020, a new relief law was passed, the Consolidated Appropriations Act. This act extends the Employee Retention Credit date and also changes who is eligible for it. Originally, the ERC date was supposed to end at the end of 2020, however, it is extended through June of 2021.

In addition to the extension date, the biggest eligibility change is everybody that borrowed a PPP loan can not only apply for the ERC in 2021, but can go back and apply for it in the 2020 year. YES, this can mean a great deal for businesses! The amount you received from the PPP loan, however, will be different than the ERC. The PPP loan has to be spent primarily on payroll, where the ERC is based on wages that qualify, including healthcare costs.

So, How Do You Qualify?

In order to be eligible for the Employee Retention Credit, businesses have to prove one of the below circumstances:

1. That operations were fully or partially suspended due to government orders
2. If you are applying for the credit in 2020, you need to show a 50% or greater decline in gross receipts from the same quarter a year prior
   1. Or if you are applying for the credit in 2021, you need to show a 20% or greater decline in gross receipts from the same quarter in 2019

What Wages Qualify?  -  Check Now

If you meet one of the above criteria, then the below wages will qualify for the time frame you are applying for:

From March 13^th - December 31^st 2020, if you have less than or equal to 100 full-time employees in 2019, all wages qualify. If you have more than 100 full-time employees in 2019, only wages for employees not providing services qualify.

From January 1^st - June 30^th, 2021, if you have less than or equal to 500 full-time employees in 2019, all wages qualify. If you have greater than 500 full-time employees in 2019, only wages for employees not providing services qualify.

*To determine how many full-time employees you had in 2019, use Form 1094-C. On page 2 in column B, enter the number of full-time employees you had in each month. Add the 12 numbers up and divide it by 12. That will give you the number of full-time employees you had in 2019.

How Much Credit Can You Receive?

For credits applied for between the March 13^th - December 31^st, 2020 range, a credit can be claimed up to 50% of the first $10,000 in total qualified wages paid and healthcare costs. This is equivalent to $5,000 per employee.

For credits applied for between January 1^st - June 30^th, 2021, a credit can be claimed up to 70% of the first $10,000 in total qualified wages paid and healthcare costs per quarter. This is equivalent to $7,000 per employee for each quarter.

How Do You Receive it and How Do You Submit for it?

Okay, we just dove into A LOT of detailed information! Feel free to take a breather if you need one. *DEEP BREATH*

Now onto the final stretch!

As you were reading the above, you may already have a bunch of numbers spinning in your head trying to figure out how much credit you might be able to receive. Once you sit down and put all of the numbers together, you will report your 2020 total qualified wages and related health insurance costs on the Adjusted Quarterly Federal Tax Return, Form 941-X. For 2021, you will report your total qualified wages and health insurance costs on the quarterly employment tax return on Form 941. Note, this form is currently in draft mode and cannot be used. The final 2021 form has not been released yet.

The credit will eventually be taken from your quarterly payroll tax bill against your employee portion of FICA. If your tax credits land up exceeding your tax bill, you will receive a check from the IRS.

Have Questions on Maximizing Your Credits?

Now you know the basics and if you are eligible to receive the ERC. It's time to start the process of claiming your credits!

As you can see, figuring out the amount you are eligible for the Employee Retention Credit can be a tricky thing. If you are unsure about where to begin or have questions, work with your accountant or payroll specialist. Additionally, there are outside consultants that specialize in the maximization of tax credits. If you want to ensure you are getting the most out of your ERC, an outside specialist may be worth looking into.

Article Source: https://EzineArticles.com/expert/Terri_Roeslmeier/33236

Article Source: http://EzineArticles.com/10422824

How Erc or Ertc Can impact Your Life Today - Employee Retention Credit

 Employee retention credit — Have you got your share yet?

In the next 3 minutes you’re gonna be fully educated and able to make a full decision on if this is valuable to you as I’ve seen it be for so many others.

Hey, if I can get you a large chunk of cash that you didn’t even have to pay back — how quickly would you say YES?

Do you mind if I ask you a few questions only so I can better serve you today?

1. Were you under a mandatory shut down in the past 24 months?

2. Did you lose any revenue from 2019–2020–2021?

3. How many W2 employees do you have (2020 and/or 2021)

……if Yes, — — ->>>> Find out if you Qualify here.

The skeptics and doubters can waste more time here to see examples of those who succeeded.

Do me one favor — When you qualify, do come back here and share your results to inspire others!

Thanks

Olive Michela

ERTC Agent

employeeretentiontaxcredit.credit

For more successful stories — https://rebrand.ly/erc-casestudies

How Erc or Ertc can impact Your Life Today! | by Mediadoves | Jan, 2023 | Medium

Employee Retention Credit - erc - Alternative Investments (no-alternative-investments.ghost.io)

Apply for employee retention tax credit - ertc Today - employee retention tax credit

 There are several ways for a business based in the United States to obtain extra funding, including the following:

1. ERTC (Employee Retention Tax Credit):

IMPORTANT NOTE:

The ERTC program is very limited and may end soon. Qualifying business owners may get as much as $24,000 per qualifying W-2.

However, some businesses are not eligible. Make sure to file your claim now before this program runs out of funds and/or expires, whichever happens first. Click through here to start filing your claim

What is employee retention tax credit

The Employee Retention Credit (ERTC) is a federal tax credit available to businesses that have experienced economic hardship due to the COVID-19 pandemic. It is designed to help businesses retain their employees and provide financial assistance to those that have been negatively impacted by the pandemic.

It's important for businesses to carefully review the eligibility requirements and how to claim the ERTC, as the rules can be complex. It's also a good idea to consult with a tax professional to determine whether your business is eligible for the credit and how to claim it.

2. Small Business Administration (SBA) loans:

The SBA offers a variety of loan programs for small businesses, including 7(a) loans, 504 loans, and microloans.

3. Grants:

There are many federal and state grants available for small businesses, including grants for research and development, exporting, and renewable energy.

4. Crowdfunding:

Crowdfunding platforms like Kickstarter and Indiegogo allow businesses to raise money from a large number of people, usually in exchange for a product or service.

5. Venture capital:

Venture capital firms invest money in exchange for an ownership stake in a company. This can be a good option for businesses with high growth potential.

6. Angel investors:

Angel investors are individuals who invest their own money in small businesses in exchange for an ownership stake.

7. Business incubators:

Business incubators provide resources, including funding, to help businesses get started.

8. Federal tax credits:

There are many federal tax credits available for small businesses, including the Research and Development (R&D) tax credit and the Work Opportunity Tax Credit (WOTC).

9. State tax credits:

Many states offer tax credits for small businesses, including credits for hiring employees, investing in renewable energy, and more.

10. Business lines of credit:

A business line of credit allows a business to borrow money as needed, up to a predetermined limit.Federal Tax Credits:There are several federal tax credits available to businesses based in the United States. Some of the most common ones include:

Research and Development (R&D) Tax Credit: This credit is available to businesses that incur expenses related to the development of new products or processes, or the improvement of existing ones.

Work Opportunity Tax Credit (WOTC): This credit is available to businesses that hire individuals from certain target groups, including veterans, individuals receiving certain types of government assistance, and ex-felons.Energy-Efficient Commercial Buildings Deduction: This deduction is available to businesses that make energy-efficient improvements to their commercial buildings.

Low-Income Housing Tax Credit: This credit is available to businesses that develop or rehabilitate low-income housing.Renewable Energy Production Tax Credit: This credit is available to businesses that generate electricity from certain types of renewable energy sources, such as solar or wind.New Markets Tax Credit: This credit is available to businesses that invest in qualified low-income community projects.Employer-Provided Child Care Credit: This credit is available to businesses that provide childcare facilities or services for their employees.Disability Access Credit: This credit is available to businesses that make their facilities accessible to individuals with disabilities.It's worth noting that these are just a few of the many federal tax credits available to businesses in the United States. It's important to carefully research and compare different credits to determine which ones your business may be eligible for.

Source

https://www.noalternativeinvestments.com

Employee retention tax credit - Search results - Wikipedia

Best Practices in Gold and Precious Metals IRA Investing - Gold Investing

 A lot of people are surprised when they learn that IRA rules allow them to hold real gold bullion, gold coins and other similar forms of precious metals within their retirement accounts. But IRA rules give investors a lot of leeway as to what you can hold. You don't have to restrict yourself to stocks, mutual funds, bonds, certificates of deposit, annuities and other conventional financial products. Actually, as long as you stay out of the few prohibited investments - life insurance, and other collectibles - you can pretty much own anything you like within your IRA or other self-directed retirement account, including gold, silver, platinum and other precious metals in certain forms.

Allowable Investments

There are four precious metals in which your IRA can invest: gold, silver, platinum and palladium. However,

There are, however, some restrictions when investing in these metals.

Minimum Fineness Required:

• Gold.995+
• Silver.999+
• Platinum.9995+
• Palladium.9995+

Allowable coins include US-Minted Eagles and coins meeting minimum fineness (purity) standards, provided that they are not collectable. The primary value of the coin should come from the gold itself, and not thanks to the scarcity of and demand for the minted coin among coin collectors.

Examples of coins you can own:

Gold

• American Eagle coins (proof and non-proof)
• American Gold Buffalo coins (non-proof)
• Austrian Gold Philharmonics coins
• Canadian Maple Leaf coins
• Australian Kangaroo/Nugget coins
• Bars and rounds by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or national government mint and meeting minimum fineness requirements.

Silver

• American Eagle Coins (proof and non-proof)
• Austrian Philharmonic
• Mexican Libtertads
• Australian Kookaburras
• Canadian Silver Maple Leaf Coins

Platinum

• American Eagle Coins (proof and non-proof)
• Australian Koalas
• Isle of Man Noble Coins

Palladium

Bars and rounds by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or national government mint and meeting minimum fineness requirements.

Disallowed Coins:

There are, however, some coins you cannot own within your IRA, because they are not minted with sufficient purity. Some common examples:

• Austrian Corona and Ducat
• Belgian Franc
• British Sovereign & Britannia
• German Mark
• Columbian Peso
• Dutch Guilder
• French Franc
• Swiss Franc
• Italian Lira
• Mexican Peso and Ounza
• South African Krugerrand

Considerations when starting a Gold IRA:

Expertise

Self-direction is a specialized field within the financial services industry. It's important to work with an administrator experienced in handling these kinds of accounts. Many traditional brokerages and other financial advisory firms have very limited knowledge of the rules and regulations that specifically affect self-directed accounts.

Liquidity

Keep in mind that your depository will charge an ongoing fee for storing and securing your precious metals. Be sure to keep sufficient cash or other liquidity on hand within your IRA so that you can pay attached expenses with ease.

Valuation Procedure

The valuations used for the IRA assets are estimated bid values. Your Self-Directed IRA provider will update the value of the investments regularly. Please note that the asset value reflected on the IRA statement does not include any dealer mark-ups or commissions. Price spreads can be significantly higher for proof coins than for precious metal bullion. You should be free to work with your dealer of choice for your IRA's purchase. Not all dealers operate the same way, so be sure to talk to them about their process. Also, remember that with a self-directed IRA, you are responsible for performing any due diligence needed prior to the purchase.

https://ndtco.com/investment-opportunities/precious-metals

Article Source: https://EzineArticles.com/expert/Bill_Humphrey/152533

5 Reasons Why Gold is a Smart Investment for Any Portfolio - Gold Investing

I. Introduction

Gold as an investment asset means - Gold has been a valuable and sought-after asset for thousands of years. It has a long and interesting history. Gold has taken on a new role as an investment asset in modern times. It has become a popular choice for investors who want to diversify their portfolios and maybe protect themselves from inflation and market volatility.

A brief history of gold and its significance in financial markets

Gold has been used as a way to store wealth and as a way to buy and sell things since the beginning of time. It still has a special place in the financial world today. Gold is often thought of as a "safe haven" asset, which means that its value tends to stay the same or even go up when the economy or government is unstable. It is also very liquid, which means that it is easy to turn into cash if needed.

Gold has these qualities and is also a good diversifier, which means that it can help spread risk and lower the overall volatility of a portfolio. Gold's price can change, but it usually doesn't move in sync with other asset classes. This makes it a possible tool for investors who want to balance their portfolios.

Generally, gold has proven to be a reliable and valuable investment asset over time, and it remains a popular choice for investors who want to add variety and the possibility of growth to their portfolios.

II. Reason #1: Gold is an inflation hedge.

One of the main reasons people think gold is a good investment is that it keeps its value over time and can even go up in value during times of high inflation.

Inflation is a measure of how much prices for goods and services are going up overall. It is usually measured by how much the consumer price index (CPI) changes over time. When the rate of inflation is high, money can lose its ability to buy things, and investments made in that currency can also lose value. Gold can be a valuable asset in this situation.

Gold has kept its value for a long time, and it is not affected by the same economic forces that can change the value of other assets. Gold, for example, is not tied to any one country or government, and it is not based on how well any one industry is doing. This means that gold is less likely to be affected by economic downturns or political unrest than other assets.  This means that gold is less likely to be affected by economic downturns or political unrest than other assets.

When inflation is high, investors may flock to gold as a way to protect their purchasing power. This could cause the price of gold to rise. Even though the price of gold can change, it has a history of keeping its value over the long term. This could make it a good way to protect against inflation.

• Examples of historical periods when gold performed well due to inflation

Throughout history, there have been a number of times when gold did well because of high inflation. Some notable examples include:

The 1970s: During this decade, inflation was high in the United States. On average, the CPI rose by more than 9% per year. This was due in part to the energy crisis, which caused the price of oil to skyrocket, and to the Federal Reserve's expansionary monetary policy. During this time, the price of gold also went up a lot, and in January 1980, it hit an all-time high.

In the late 1990s and early 2000s: During this time, inflation in the United States stayed relatively low, but there were times when people worried about inflation made gold do well. For example, gold prices went up in 1998 when the Federal Reserve cut interest rates in response to the Asian financial crisis. They went up again in 2002 and 2003 when the Federal Reserve adopted an easy-money policy in response to the dot-com bust and the 9/11 attacks.

The late 2000s: The global financial crisis of 2008 led to a period of low interest rates and quantitative easing, which some investors believed could eventually lead to higher inflation. Gold prices rose significantly during this period, reaching an all-time high in 2011.

These instances demonstrate that gold has the capacity to perform well during periods of rising inflation, as investors rush to it to safeguard their buying power. While the performance of gold can vary depending on a range of factors, it has a history of retaining its value over the long-term, making it a potentially useful tool for hedging against inflation.

III. Reason # 2: Gold is a diversifier.

Gold is also thought to be a good investment because it can help spread out risk and make a portfolio more diverse. Diversification is one of the most important rules of investing. It means spreading your money across different asset classes and industries to lower the risk of your portfolio as a whole. By adding gold to your portfolio, you can potentially add a new source of returns and reduce the overall volatility of your portfolio.

Gold is a good diversifier because it tends to move differently from other asset classes. This means that it might not be as affected by the same economic or market forces. For example, when stocks don't do well, gold's value may stay the same or even go up, and vice versa. This can help even out the ups and downs of your other assets and could give you a steadier flow of returns.

Gold can also help you diversify your portfolio because it doesn't move in the same way as other types of assets. Correlation is a measure of how two assets move in relation to each other, and a low correlation means that the two assets are not likely to move in the same direction. By adding assets with low correlations to your portfolio, you might be able to lower the portfolio's overall risk. Gold doesn't move in the same way as stocks or bonds, so it could be used to diversify a portfolio.

Gold may help diversify and minimize risk by giving a fresh source of returns and balancing out the ups and downs of other assets, making it a desirable addition to any portfolio.

Comparison of gold's performance to other asset classes during times of market volatility

Gold is often thought of as a "safe haven" asset, which means that its value usually stays the same or even goes up when the market is unstable. This is because investors may flock to gold in times of uncertainty as a way to protect their wealth and lower their risk.   To show this, let's look at how gold has done compared to other asset classes when the market is volatile.

• The global financial crisis of 2008: During this time, stocks and other risky investments lost a lot of money because the housing market crashed and the world economy went into a recession. On the other hand, gold's value stayed the same and even went up as investors looked for safe investments.
• The spread of COVID-19: In 2020, the COVID-19 pandemic caused widespread market volatility as investors worried about the economic impact of the pandemic. While stocks and other risky assets suffered significant losses, gold held its value and even increased in value as investors sought out safe haven assets.
• The 2020 presidential race in the United States: The uncertainty surrounding the 2020 U.S. presidential election led to increased market volatility, with stocks as well as other risky assets experiencing significant swings. Gold, on the other hand, kept its value and even went up in price as investors looked for safe investments.

These examples show that gold can do well when the market is volatile because investors flock to it to protect their money and reduce risk. Gold's performance can change based on a number of factors, but historically, it has kept its value or even gone up during times of uncertainty. This makes it a possible tool for diversifying a portfolio.

IV. Reason #3: Gold is a safe haven asset

Gold is often seen as a "safe haven" asset, which means that it is seen as a reliable and stable investment that can hold its value or even go up in value when the economy is unstable. This is because gold is not tied to any particular country or government, and it is not dependent on the performance of any particular industry. This means that gold is less likely to be affected by economic downturns or political unrest than other assets.

When investors are worried about the economy or the stock market, they may look to gold as a way to protect their wealth and reduce risk. This can make more people want to buy gold, which can make the price go up. Gold is also highly liquid, meaning it can be easily converted to cash when needed, making it a useful tool for investors looking to protect their wealth in times of uncertainty.

On the whole, gold's status as a safe haven asset makes it a potentially useful tool for investors looking to protect their wealth and reduce risk during times of economic uncertainty. While the performance of gold can vary depending on a range of factors, it has a history of maintaining its value and even increasing in value during times of uncertainty, making it a potentially valuable addition to any portfolio.

Historical examples of when gold fared well owing to market upheaval

There have been several examples throughout history where gold has performed well due to market turmoil or economic uncertainty. Some notable examples include:

• The global financial crisis of 2008: During this time, the housing market crashed, and financial institutions were having trouble. This caused the global economy to go into a recession. Gold held its value and even increased in value as investors sought out safe haven assets.
• The COVID-19 pandemic: In 2020, the COVID-19 pandemic caused a lot of market volatility because people were worried about how it would affect the economy. As investors looked for safe investments, gold's value stayed the same and even went up.
• The 2020 presidential race in the United States: The uncertainty surrounding the 2020 U.S. presidential election led to increased market volatility, with stocks and other risky assets experiencing significant swings. As investors looked for safe investments, gold's value stayed the same and even went up.
• The 1970s: During this decade, inflation was high in the United States. On average, the CPI rose by more than 9% per year. This was due in part to the energy crisis, which caused the price of oil to skyrocket, and to the Federal Reserve's expansionary monetary policy. During this time, the price of gold also went up a lot, and in January 1980, it hit an all-time high.

All in all, these examples show that gold may do well during times of market turmoil or economic uncertainty, when investors flock to it to protect their wealth and reduce risk. Gold's performance depends on a lot of different things, but it has a history of keeping its value or even going up when times are uncertain. This makes it a potentially valuable addition to any portfolio.

V. Reason #4: Gold has long-term potential for growth

While the price of gold can fluctuate in the short-term, it has a history of strong long-term performance as an investment asset. Over the past several decades, gold has delivered solid returns for investors, and it has the potential to continue to grow in value over the long-term.

Gold's ability to keep its value over time is a big part of why it does so well in the long run. Gold is not subject to the same economic forces that can impact other assets, and it has a long history of maintaining its value despite economic and market fluctuations. This makes it a potentially useful tool for investors looking to preserve their wealth and protect against inflation.

Another factor that can contribute to gold's long-term performance is its potential for capital appreciation. Gold's price can go up over time because of many things, such as rising demand, changes in supply, and changes in the market. When the price of gold goes up, investors might get a return on their money.

Generally speaking, gold has the potential to give investors long-term growth, and it can be a valuable addition to any portfolio as a way to diversify and possibly protect against inflation. While the performance of gold can vary depending on a range of factors, it has a history of strong long-term performance, making it a potentially useful tool for investors looking to add diversity and potential growth to their portfolio.

Comparison of gold's performance to other asset classes over extended periods of time

Stocks: Stocks have usually been a good investment over the long term. For example, the S&P 500 has given an average annual return of about 9% over the past several decades. Stocks, on the other hand, can be volatile and are affected by changes in the market. This makes them a riskier investment than other asset classes.

Bonds: Bonds are considered a lower-risk investment than stocks, and they have generally delivered lower returns over the long-term. The Barclays Aggregate Bond Index, which measures the performance of the U.S. bond market, has given an average annual return of about 5% over the past several decades.

Gold: Historically, gold has been a good long-term investment, and the price of gold has gone up a lot over the past several decades. Gold's price can change in the short term, but it has a history of keeping its value over the long term. This makes it a possible tool for investors who want to keep their wealth and protect themselves from inflation.

VI. Reason #5: Gold can provide liquidity in a crisis

Liquidity is the ability to turn an asset into cash quickly and easily. Gold is considered to be very liquid because it is widely accepted and can be traded easily on financial markets around the world.

When there is a crisis or uncertainty in the economy, investors may want to sell their investments to get cash quickly. Gold can be a useful tool for this purpose because it can be easily converted to cash, either through the sale of gold coins or bars or through the use of exchange-traded funds (ETFs) or other financial instruments that track the price of gold.

In addition to providing liquidity, gold can also potentially serve as a store of value during times of crisis. Even though the price of gold can change, it has a history of keeping its value over the long term. This could make it a good way to keep your money safe in times of uncertainty.

Overall, gold's ability to provide liquidity and potentially serve as a store of value make it a potentially useful tool for investors looking to protect their wealth and access cash in times of need.

Examples of how gold has been used as a liquidity source in past crises

Some notable examples include:

1. The 2008 financial crisis around the world: During this time, many investors got cash quickly by selling their investments. Gold was a popular choice because it was easy to sell. During this time, the price of gold went up a lot because people were looking for safe investments.
2. The COVID-19 pandemic: In 2020, the COVID-19 pandemic caused widespread market volatility and economic uncertainty, leading many investors to seek out liquid assets. Gold was a popular choice due to its high liquidity, and gold prices rose significantly during this period as investors sought out safe haven assets.
3. The 2020 U.S. presidential election: The uncertainty surrounding the 2020 U.S. presidential election led to increased market volatility, and many investors looked to liquidate their investments in order to access cash quickly. Gold was a popular choice due to its high liquidity, and gold prices rose significantly during this period as investors sought out safe haven assets.

These examples show that gold can be a good way to get cash during times of crisis or economic uncertainty because it is easy to turn into cash and has a long history of keeping its value. While the performance of gold can vary depending on a range of factors, it has a history of being a reliable and liquid investment asset, making it a potentially useful tool for investors looking to protect their wealth and access cash in times of need.

VII. Conclusion

In the end, there are a few reasons why gold is a good investment for any portfolio. These include:

• Gold is a hedge against inflation: Gold has a long history of retaining its value over time, and it is not subject to the same economic forces that can impact other assets. This makes it a potentially useful tool for protecting against inflation and preserving purchasing power.
• Gold is a diversifier: Gold tends to move independently of other asset classes, and it has low correlations to other asset classes, making it a potentially useful tool for portfolio diversification and risk reduction.
• Gold is a safe haven asset: Gold is often viewed as a "safe haven" asset, meaning it is considered a reliable and stable investment that can hold its value or even increase in value during times of economic uncertainty.
• Gold has the potential to grow over the long term. Although the price of gold can change in the short term, it has a history of doing well as an investment asset over the long term, and it has the potential to do so again.
• Gold can provide liquidity in a crisis: Gold is highly liquid and can be easily converted to cash, making it a potentially useful tool for providing liquidity and preserving wealth during times of crisis or economic uncertainty.

In the end, gold is a valuable investment asset that could give investors a number of benefits. Whether you are looking to hedge against inflation, diversify your portfolio, protect your wealth during times of economic uncertainty, or seek long-term growth, gold can be a useful tool to consider.

Sources:

https://news.google.com/search?for=precious+metals&hl=en-US&gl=US&ceid=US%3Aen

https://en.wikipedia.org/wiki/Special:Search?go=Go&search=gold+investing&ns0=1

https://www.forbes.com/search/?q=gold%20investing

https://www.investopedia.com/search?q=gold+investing

https://www.noalternativeinvestments.com/

Self-directed Ira Roth | What Is a Self-Directed IRA?

 A self-directed IRA plan is simple enough: take your money and invest in practically anything you desire but direct the investment, so it isn't taxed until retirement.

This special IRA gives you more control over your financial future, offering you the freedom to invest in familiar assets you understand, and the possibilities become almost limitless. Your investments are not limited to just mutual funds or stocks and bonds.

With a self-directed IRA you can direct your contributions into non-traditional investments, like real estate, gold, promissory notes, tax liens, or private businesses. Additionally, you benefit from asset protection and a myriad of tax advantages that accompany government-sponsored retirement plans.

The Employee Retirement Income Securities Act allows you to do this, provided that you maintain a strict separation between your self-directed IRA and your personal funds. You cannot mix the assets, and cannot borrow money from your IRA. Additionally, according to IRS statutes, you must appoint a custodian to manage transactions in your IRA.

The number of people self-directing their IRA is not formally tracked, so the exact numbers are unknown. Yet, according to the Securities and Exchange Commission, it's estimated that last year about 2% of all IRAs were self-directed, and that works out to more than $100 billion. Indeed, this growth is fueled by investor's disappointment with Wall Street's instability.

The Tax Advantage of Self-Directing Your IRA

The important part of a self-directed IRA rollover refers to tax. If your retirement funds are in a deferred tax retirement account, such as a 401 k, for example, the law allows you to transfer those funds to your self-directed IRA tax free. This retains its status as a tax free rollover to your retirement funds, but allows you to transfer to a different account as a self-directed IRA.

There are essentially three types of Self-Directed IRAs:

1. Offered by a Financial Institution

The most popular IRA accounts are offered by large well known financial institutions typically the ones with large marketing budgets. The downside is that investors are limited to investments offered by that financial institution, without much flexibility.

Why do the financial institutions limit the investment options available?

They are not required nor obligated to offer specific options to their IRA investors. Accordingly, most financial institutions will restrict their investment options to only financial products. The reasoning behind this is clear, financial institutions earn their fees from the sale of their financial products, not by allowing clients to withdraw funds from their IRA accounts in order to purchase real estate from third-parties.

2. Custodian Controlled Self-Directed IRA

A custodian controlled self-directed IRA offers investors more options than what's typically offered at a financial institution. With custodian controlled accounts, an FDIC insured administrator will act as the watchdog of the IRA. Unlike financial institutions, most custodians generate their fees with the opening and maintenance of client IRA accounts. Custodian controlled IRAs are generally held with the custodian, yet at the investor's direction, the funds will be invested accordingly.

3. "Checkbook Control" Self-Directed IRA LLC

With a "checkbook control" self-directed IRA LLC, the investor has total control over the funds and does not require prior custodian approval for each investment, as in a custodian controlled self-directed IRA. Instead, all decisions are truly yours. When the investor wants to invest funds, simply write a check directly from a checkbook control self-directed IRA bank account.

Should You Consider a Traditional or Roth IRA?

When it comes to retirement planning, many people become confused on choosing among all the investment options. You have a Roth IRA, and a Traditional IRA. In many cases, rolling your money into any individual retirement account will make the most sense; like a 401k rollover, however, since there are several types of IRA's, becoming aware of the most advantageous account will help with future taxes.

The most significant difference in the Roth and Traditional IRA accounts is the way taxes are applied.

• Money is contributed to a Roth IRA on an after-tax basis. When individuals invest in a Roth IRA, the money grows tax free. This means you will be able to withdraw money without any tax deductions.

• Money invested in a Traditional IRA account consist of pre tax contributions. The tax is deferred; meaning, your contributions are deductible and when you begin making withdrawals, you begin to pay taxes on that money.

Contributions and Deductions

If you are under the age of 70.5 you can contribute up to $5,000 annually and $6,000 if you are over the age of 50, as long as the amount is less than what you have earned for the year. Individuals choosing to withdraw money before they reach the age of 59 ½ will have to pay a 10 percent penalty tax. There are special exceptions when individuals need to make a withdrawal due to special emergency situations.

Individuals can make penalty free withdrawals if they become disabled or have medical expenses. There are also exceptions if you are purchasing a new home.

Should you pay taxes now or pay later?

This all depends upon your tax bracket. If you are in a high tax bracket now, let's say 35 percent, but you anticipate being in a lower tax bracket after retirement, then it would make sense to invest in a Traditional IRA account.

Where can I open my IRA account?

Individuals can open an IRA account at a bank, brokerage firm or companies that sell annuities. But be aware that the firm you choose to hold your investment money will determine what investments are available to you.

When you consider an investment account, namely a self-directed IRA, or a Roth IRA versus a Traditional IRA account, consider your tax bracket, the flexibility, and whether you can diversify your investments.

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How to Ensure Your Investments Are Safe Under the Self-Directed IRA in Real Estate Investing - Ira self-directed Real Ete

So, what are the most important aspects you should know and understand so that when you find the perfect investment property you are ready to make the move on it without hesitation or missing the opportunity at hand!

Rules of the game!

First and foremost, you need to understand that you are not really purchasing the investment property your IRA is making the purchase. You must first transition your IRA over to a Self-Directed IRA. In order for your IRA to purchase investments you must go through an IRA Custodian. The custodian is the company that handles all of the transactions for your investments and specializes in the self-direct IRA for investment real estate they in fact disburse all the funds for you and hold the title in your IRA's name.

In order for the IRA to be treated as a retirement investment and be protected it has to have a custodian. Under the self-Directed IRA you cannot even place $1.00 of your personal funds into the deal, or you can cancel out the entire program.

Here are some of the most important mistakes people must avoid!

1. They inadvertently make personal guarantees.

You, as the individual holding the account are considered a "disqualified Person" and cannot provide a personal guarantee of IRA debt. In order to obtain checkbook control of retirement monies, you will have to invest your account into a newly formed LLC which is setup by the custodian. Let's say you personally go to the bank and setup the account and the bank person ask if you would like a credit card also, you make application and the card it approved you have just made a personal guarantee for your IRA "Bad Move"! The mere execution of that personal guarantee constitutes an "extension of credit" and, hence, is an automatic prohibited transaction even if the guarantee is never exercised.

2. The IRA owner attempts to make a contribution to the IRA by depositing it directly into the IRA/LLC checking account instead of going through the IRA custodian. In essence, if you make an annual contribution directly rather than through the IRA custodian, you are personally interacting with your IRA/LLC. That is considered a prohibited transaction.

3. The IRA owner personally enters into a contract on real property they intend to purchase with their IRA funds. Many investors wait until they find a property in order to engage the services of an IRA custodian or facilitator. Unfortunately, in doing so, they often suffer from" opportunity loss"

A. A self-directed IRA typically takes 30 days to establish.

B. they are not allowed under the prohibited transactions code to use personal assets for the benefit of the IRA.

C. For example, let's say you find a great piece of rental real estate you'd like to buy as an IRA investment. If you have not already established a self-directed IRA account, you may lose out on the deal because you don't have immediate access to your IRA funds and you cannot personally deposit your own earnest money or enter into a purchase agreement. Remember, the IRA needs to buy the property, not you.

4. They assume no UBTI "Unrelated Business Taxable Income applies to passive investments into an operating business. If generated, the IRA has to pay Unrelated Business Income Tax, and all bills pertaining to the investment, you cannot use any person funds.

5. Self-directed IRA clients use personally owned assets for the benefit of the IRA. For example, the use of a personally owned bulldozer and construction equipment to develop IRA-owned property would constitute a prohibited transaction. There are multiple layers of problems with this scenario, because you are mingling business assets and you also cannot use sweat equity it will be counted as a contribution.

6. They believe that transactions with a non-disqualified party cannot be prohibited transactions. This is a common belief that simply is not true. You, as the IRA holder, have a fiduciary responsibility to do what is in the exclusive benefit of your IRA. For example, an IRA holder could purchase rental real estate and allow a brother and their family to occupy the property. That would not necessarily be a prohibited transaction, but it does stage the potential to violate the exclusive benefit rule if the rent was not set at fair market value and the terms of the property agreement were not enforced. The problem here is as the landlord you have to evict tenants just like any other person and renting to a family member could constitute a conflict of interest.

7. The attempt by the self-directed IRA holder to take a real estate commission on property purchased/sold by the IRA. If the IRA owner is a real estate agent, they cannot receive a commission on the buying or selling of their IRA property. You cannot take personal compensation from any self-directed IRA investment.

8. The self-directed IRA enters into a de facto partnership in which it loans money to a developer, and instead of making a loan attached with interest and payments, it takes a share of the profits. Although this is allowed, it's a de facto partnership that will generate Unrelated Business Taxable Income (UBTI). This wouldn't be an issue if the IRA lent the money for an interest rate that the market bears with a monthly payment schedule established.

9. Two self-directed IRA holders engage in a quid pro quo partnership to utilize their own retirement funds. For example, say each person has $200,000 in a self-directed IRA. Each then makes a loan to the other for $200,000 to pursue personal investments. These loans are dependent on the other lending the money and could be viewed as using one's own retirement funds for personal benefit.

10. Self-directed IRA holders attempt to "disguise" active investments that can generate UBTI. Some self-directed account holders will place an ad in the newspaper to supposedly show their intent to rent an IRA investment property, but they "conveniently" can't find the right tenants, so they use this as an excuse to sell it. Even if it were true that the IRA holder originally intended to rent the property rather than turn around and sell it, the case law says that the most dominant factor is the purpose at the time of the sale, not at the time of the initial purchase. This type may make this transaction subject to UBTI.

The fact is a self-directed IRA can be exciting, secure and profitable, there are so many allowable investment opportunities, but if you are thinking about how, you could be doing this type of investing make sure you have the right people who make sure that you do not make mistakes that can be very costly in the end.

For more information about Real Estate IRA'S, you will need to have a professional who understands that workings of the program before you even start looking at real estate.

Tim Robbins, Sr an Exclusive Buyers Broker in New Jersey for almost 20 years. I have been offering Buyer the option of having their own broker working with and for their interest. The simple difference in agents is who they work for when you are making a purchase. You need to have someone on your side who will guide you through all of the intricacies on the most important purchase of your life. To find out more about how you can become an educated consumer and learn more visit [http://NJbuyersonestop.com] or call 1-800-610-3588

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Faqs related to Self-directed Ira Roth

Ira for real estate | Ira self-directed real estate

Self-directed Ira for real estate is a great way to invest your money and make some extra income in the process. By setting up an individual retirement account (IRA) specifically for real estate investments, you can save on taxes and enjoy tax-free growth of your investment.

Real estate deals typically have long terms, so it's important to keep that in mind when choosing an IRA real estate investment fund or strategy. Some funds are designed to provide stable returns over time while others focus on making frequent but smaller investments into different property types so as not to become overexposed to any one area of the market.

Whatever type of IRA real sclerosis you choose, be sure to consult with a fiduciary financial advisor who can help direct you toward the best options based on your unique circumstances and goals.