Arm

Instead of focusing on the transition of power this coming Friday, let’s discuss something else.

First, the domestic stock market is off to a much less volatile start in 2017, by comparison to 2016.  That’s a nice start to the year.

Last week, the Senate voted to allow a partial repeal of the Affordable Care Act, using budget reconciliation as the tool of choice.  The House will likely follow suit.  While this is an interesting way to address the issue, it’s how the ACA became law to start with.  So far, we have seen little from our elected representatives about what’s next, regarding health care financing.

For several years, identity thieves have focused on hacking or accessing tax returns, as they are a trove of personal information.  As tax season is upon us, a few suggestions to help protect yourself, and your information, including tax returns, from hacking or theft.

1.       Secure your computer by using firewalls and virus protection.

2.       Encrypt files before sending them.

3.       Use passwords which contain upper and lower case letters, numbers, and symbols.

4.       Don’t carry your SSN in hard copy.  If you are more than 16 years old, have it memorized.

5.       Monitor bank and credit card statements regularly.  We would suggestion logging on to   accounts three times a week or more, simply to review activity.

6.       Check your credit report annually.  It’s free annually at www.annualcreditreport.com.

Credit to arts-wallpapers.com

Think U.S. politics is interesting?  Try Iceland.  The small island nation of about 330,000 is a parliamentary republic run by a directly elected president and a legislative assembly.  It is home to six political parties, at last count.  The Independence Party, with 24.6% support, currently governs the country.  Other parties include the Progressive Party, the Social Democratic Alliance, the Left-Green movement, and Bright Future.  The Social Democratic Alliance came to power in 2009 in the wake of Iceland’s financial and banking crash.

The Pirate Party, though, is the one that’s fascinating, and is probably the one Edward Snowden would belong to if he were an Icelander.  The party was founded in 2012, polls at 22.4%, second only to the Independence Party, and has emerged as Iceland’s dominant political force.  The party platform endorses direct democracy, freedom of information, and civil and political rights.

What has caused quite the uproar, and spurred the Pirate Party to popularity, is that Iceland’s new Prime Minister, Bjarni Benediktsson, who took office last summer, has been implicated in the Panama Papers for having an offshore account.  It appears that not only did he not disclose this information during the campaign, he also lied about it after the information came to light.  So, the Iceland libertarians, who have coalesced around the Pirate Party, are demanding change. 

It’s so refreshing that the behavior of politicians, which most of the world accepts as normal, has created such a storm among our Viking friends.  And, I so love the warrior heart and sense of justice among the youth.    You can read more of the story, and more of Iceland news and politics, at http://icelandmonitor.mbl.is/news/politics_and_society/2017/01/12/new_iceland_pm_says_maybe_a_mistake_not_putting_the/. 

The IRS recently announced the issuance of Notice 2017-10, which is scheduled for publication on January 23, 2017.  The Notice deems certain conservation easement (CE) transactions as potential tax avoidance transactions, and further designates them as “listed transactions” that require additional reporting.

The Notice appears aimed at those CE transactions which may contain an appraisal which isn’t “qualified”, within the meaning of the IRC, or greatly inflates the value of the CE property.  The Notice requires that those who have invested in a CE project since 2010 will need to file IRS Form 8886, Reportable Transaction Disclosure Statement.  Form 8886 must be completed accurately, completely, and timely.

What is known is that many CE projects are legitimate.  What is also known is that the IRS doesn’t care for approaches to tax planning that reduce federal revenue (in this author’s opinion).  The “home office deduction” is a case in point, though our friends at the IRS finally, after consistently losing in court, conceded this deduction.

What appears to be the case is the President-elect Trump has used conservation projects as a part of his personal tax planning, for a number of years.  What we don’t know is whether this particular ruling was influenced by the administration, though sitting presidents, regardless of their political affiliation, have a long history of meddling with the IRS, to serve their personal and political agenda.

Quote of the week:

“No man ever wore a cravat as nice as his own child’s arm around his neck.”

                                                                                                                                 Patrick Taylor