Simply Junior

In this day and age of increased criminal activity it was only a matter of time for the latest crime wave to reach real estate. I am referring to money laundering. Real Estate brokers and sales representatives must report suspicious transactions if there is reasonable grounds to suspect that the transactions are related to the commission of a money laundering offence.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires Realtors to report suspicious transactions to the Financial Transactions and Report Analysis Centre of Canada (FINTRAC). Suspicious real estate transactions come in different flavors: for example, when a Client arrives at a real estate closing with a large amount of cash (it has actually happened – twice, in both instances in Toronto), or when the Client buys a property in the name of a nominee, like an associate or a relative. Naturally not all transactions involving nominees are symptomatic of shady dealings, but some may be. Another situation that may raise eyebrows is when Clients do not want their names to appear on documents connecting them with the property they are in the process of acquiring, or when they insist on using different names or fictitious business names on documents and forms. Or when they change the name of the purchasing party at the very last minute and fail to adequately explain the reasons for the substitution.

There are, of course, explanations for changes that the parties – especially Buyers – may wish to make, and some of these explanations are absolutely legitimate. For instance, in a recent transaction where I was involved the Buyer made an offer to purchase a restaurant in New Westminster, then was advised by his own accountant that it would have been tax-proficient for him to complete the transaction in the name of his limited company. I prepared an Amendment to the Contract of Purchase and Sale, had the parties sign it and that was the end of it.

There are instances, however, when changes cannot be reasonably explained. Take a look at this one, happened right here in Vancouver a few months ago: a Buyer negotiated a purchase price through his Real Estate Agent, but then requested his own Agent as well as the Agent for the Seller to record the transaction at a lower value on all documents, as he was going to pay the difference in cash ‘under the table’. A quick report to FINTRAC by both Agents uncovered a money laundering scheme involving marijuana. A variation of this example is when a Seller agrees to sell his property for below market value requesting an additional ‘under the table’ payment. And in another recent case (again in Toronto – which is not developing a great reputation these days when it comes to money laundering in real estate), a Buyer proceeded to purchase a property by making a large down payment in cash and financed the balance through an unusual offshore banking institution.

Some of these crooks have no business sense at all. Take for instance the Tenant that proceeded to lease an apartment right here in Downtown Vancouver. The term of the Lease was one year, and the Tenant showed up at the doorsteps of the Property Management Company with all twelve monthly installments plus the half-a-month security deposit … all in CAD $20.00 cash bills. The whole CAD $15,000 in $20.00 bills, in advance … now, you tell me if this is not dumb.

When there is a grounded suspicion, the real estate professional has a duty imposed on to him to report the transaction to FINTRAC within 30 days. Once the report is finalized, moreover, the real estate professional has an obligation not to inform anyone of such reporting, including of course the Client, if this could harm or otherwise impair a criminal investigation. No legal proceedings can be brought against the Agent for making a report in good faith.

It is important to make good choices when it comes to saving for your retirement. Having a Financial Planner or Accountant review your current portfolio and your goals for the future is the first thing you should do; as they can help you determine investment vehicles that align with your risk tolerance and savings objectives.

But where do you start? Which retirement plans should you focus on? What are the differences between the various retirement plans out there?

Many Advisors would agree; that if the company you work for offers a 401(k) plan, a pension plan or a 403(b), you should take advantage of the opportunity to enroll. Typically, employers make monetary contributions towards these plans and the internal fees associated with these types of accounts are usually lower than with individual retirement plans. Because of these features, over time, it benefits you two-fold to put your money into them.

Though investing in an employer-sponsored plan has its advantages, it has some disadvantages as well. The investment options you have are usually very limited. And more often than not, you are required to name a spouse or child as your beneficiary. This being said, it is still an excellent way to save and acquire for retirement, it just shouldn’t be your only investment vehicle.

With the current trends of changing careers every 5 to 10 years, many of us will need to roll our 401(k)’s long before we actually plan to retire. Transferring or “rolling” your employer-sponsored retirement plan to a self-managed IRA may be the best option for you. Keep in mind that some companies will automatically cash out your retirement plan if the balance is under a certain amount. If this happens, they will be required to hold back 20% for taxes, and you may get hit with a 10% penalty for withdrawing the cash before 59

Tax season can be a very stressful time for many people. It can be frustrating trying to understand complex tax codes, deductions and earned income credit. Some people become so intimidated by their taxes that they simply chose to ignore them. Although this can be a tempting solution, it is never the right answer.

With a little common sense, a calculator, a few hours and a pot of coffee, you can file your own taxes from the comfort of your own home with very little stress. It is really not as difficult as you think and can actually have quite a few advantages.

The first thing you should do is decide how you will be filing your taxes. Will you file taxes online? Will you go to an accountant? Perhaps you will use the free e-file programs that are available. Filing taxes online is rapidly becoming the most common way of filing taxes. Even if you go see a tax professional, they are likely to file your taxes online because the process is quicker. In addition, those who file online typically receive a refund quicker than those who file through regular mail. Many tax preparation software packages include the option of storing your information from last tax season which allows you to quickly complete information that hasn’t changed.

There are some things to remember when filing your taxes online. First, you will want to read your W-2. Find out what each of those boxes mean and be sure to read the back of your W-2 as well before you begin. You will want to print out copies of your tax forms, even when you file them online, for your records. Most online filing services will provide you with a confirmation that the IRS has received your taxes. You will want to print that out as well.

Online tax filing programs typically will offer tax advice as you work through the programs. It is a good idea to go through the tax information that is given, even if you do not think it applies to you. You might be surprised by something you are able to deduct or an additional credit you are able to claim. That is one advantage of opting to file taxes online.

The IRS website, in addition to offering a tremendous amount of tax information, will provide you with different options you have to file taxes for free. There are different criteria for each organization that files taxes for free. You will most likely be able to find one that applies to you. There are also many tax preparers that will file your taxes online for free if you pay them to prepare your taxes for you.
Many commercial software packages allow you to file online for free as well. Once you purchase the software, you can file your federal taxes for no additional cost. Some programs will allow you to file taxes for free in your particular state. Others charge an additional fee.

Filing your taxes online can eliminate a lot of the stress from taxes. The programs have error checkers and calculators built in so you have a much smaller chance of making an error. With so many options to file for free, it is no wonder that many Americans are choosing this route to file their taxes.

More than 80 percent of taxpayers use some sort of assistance-whether it’s an accountant or a desktop program-when preparing their taxes, and increasingly more and more are turning to an online tax preparation site for help filing. With a plethora of options out there, from TurboTax to TaxAct, you might be wondering why you should turn to an online tax site. Discover the advantages below.

Pros of Using Online Tax Sites

One big perk of Internet tax software is that many companies offer taxpayers a free version of their software if they meet specific criteria-typically making within a specific income bracket. Even if you don’t qualify for free or discounted pricing on online tax software, their programs tend to be fairly affordable.

Another benefit of online tax software is that there is no installation needed. You can simply visit the site from any computer-meaning you’re not tied down to the computer you installed it on. You can access your information from anywhere, which is saved automatically for you. Also, when the program saves your information, it doesn’t require any space on your hard drive-allocating that memory for better things.

One of the biggest pros of Internet tax software is that it updates automatically. You don’t have to worry about installing any updates or downloading any extra software.

Perhaps the No. 1 bonus of these websites is their free e-filing option. With most desktop tax software you have to pay to file online. When you file your taxes electronically you can get your return quickly-sometimes as soon as one week-and directly into your bank account.

While all of this sounds great, you might be worrying about the security level of these websites. There’s no need to fret-all online tax software uses the same encryption technology as online banks, so your information is safe and secure.

What are the Cons of Online Tax Sites?

With the many pros of choosing an online tax preparation site, there are, of course, a few downsides to consider when determining which program is right for you.

If you need to file more than one federal tax return, you may run into some issues. With a downloaded program, you can file up to five returns. So, if you’re compiling a return for Junior too, it may not be that beneficial to go the online route.

Also, there are typically no fees when filing a state tax return-unlike the online service providers, which will charge you an extra fee.