Increase in Income Tax has Californians moving to Florida

California millionaires are heading across the country to Florida to escape the new increase in taxes. Those who make over $1 million per year will be faced with a 51.9 percent federal-state combined income tax.

At 13.3 percent, California’s state income tax is higher than any other state and the steepest it has been since World War II. Income tax

As a result, many of California’s millionaires are following the trend of celebrities like Tiger Woods and Phil Mickelson and moving to Florida, where there is no personal income tax. For someone who makes $1 million per year, that’s a savings of $133,000 annually!

“What we like to point out to people is that there are states with absolutely no personal income tax,” David Kline, a vice president of the California Taxpayers Association told the New York Times. “So if you moved from California to Florida, and you are in a high-income bracket, you are automatically giving yourself a 13.3 percent raise.”

If you are interested in moving to Florida, Boyer Law Firm can help. Our expertise in business law can help you start a company or foreign qualify your existing company in Florida. We can also help you with residential and commercial purchases and leases.  For more information, contact us today.

*Image courtesy of Stockfreeimages.com

Source: New York Times

 

Short Sales for Non-Delinquent Borrowers in Florida and Across the U.S.

Starting TODAY, for the first time ever, borrowers, in Florida and across the U.S., who have never missed a mortgage payment will be able to short sell their houses if they can demonstrate a hardship, such as loss of employment or the death of a spouse.

This new rule will allow for underwater homeowners to get rid of their mortgage and also take advantage of the Mortgage Forgiveness Debt Relief Act of 2007, which is expected to expire at the end of the year.

Previously, only delinquent borrowers have been eligible for short sales.

There is a downside. The average person suffers a 150 point credit score loss after a short sale. This will be no different for non-delinquent homeowners because there is no special coding that differentiates them from those who went months without paying their mortgages.

Photo courtesy of stockfreeimages.comThe Federal Housing Finance Agency (FHFA) is currently in discussions with the credit industry to determine if and how this new law will affect credit scoring, but no solution has been found as of yet.

If you are considering a short sale, you should consult an attorney to discuss your options. There are many things changing in the housing market, and it is important to have all of the facts before making a decision.

Source: Inman News

EB-5 Program Allows Residency for Foreign Investors

The EB-5 Immigrant Investor program, enacted in 1990, is a way for foreign investors to help boost the American economy and, in the process, gain residency in Florida or in other states across the U.S.

Foreign investors can obtain an EB-5 visa if they invest $1,000,000, or $500,000 in high unemployment areas, that leads to the creation or preservation of at least 10 jobs. These investors and their families receive a two year visa that allows them to live and work in the U.S., and if the investment is successful, they can eventually receive permanent U.S. residency.

Jupiter, FL, has used this program to construct an outdoor amphitheater, marina slips, and an entertainment hub,  San Bernardino, CA, has used it to redevelop its downtown theatre district, Jay, Vermont used it to help finance luxury condos, an ice hockey rink, and a waterpark at its popular Jay Peak Resort, and Philadelphia has used the program to expand a hospital complex and improve a school for disabled children.

Along with the benefits of the program, there are also risks. Some investors have failed to maintain or create theImage courtesy of StockFreeImages.com required jobs, or failed to otherwise comply with the program, and faced deportation. Others have lost their investment, but have still secured their green cards.

Despite the risks, many foreign investors are still taking the chance. The EB-5 program is one of the fastest ways for wealthy foreign investors who lack the family ties or special skill required for a traditional U.S. visa to establish a permanent U.S. residency.

Sources: LA Times, WCAX.com

What is a Trust and Why it is Important?

A trust is an arrangement wherein one person (the trustee) manages and holds legal title to property owned by another (the settlor or grantor) for the benefit of a third party or parties (the beneficiary).

There are many different kinds of trusts, such as a testamentary trust which is a trust created by a person’s will and that takes effect after his or her death. One of the reasons a person may want to create a testamentary trust is that it permits him or her to control how trust property is given to the beneficiary.

There are other types of trusts that may be beneficial to your situation that is why it is important to speak to your attorney regarding these matters. Please contact us if you are interested in setting up a will or trust for your future needs.

Auto insurance fraud ring busted in Miami

This article is from the The Miami Herald. It underlines why we pay so much in car insurance. Based on other indicators and study, about 10 to 15% of the car insurance premiums paid by Floridians are marked up to compensate for fraudulent payments.

“When the owner of a West Miami-Dade medical clinic schemed to bill insurance companies for staged auto accidents, she did not know that an undercover witness was secretly recording her, authorities say.

“Bring me good stuff,” Elsa Terrero, of New Horizon Practice, told a cooperating witness, according to an arrest warrant released Wednesday. “I control all the clinics in this building … you will get paid.”

Terrero was one of 25 people — including three doctors — charged Wednesday in a crackdown on “personal injury protection” fraud in Miami-Dade that officials say costs insurances companies millions of dollars each year, and ultimately raises rates for consumers. Terrero’s scam cost insurance companies nearly $800,000, though the amount is likely much more, officials said.

This is not a clinic. This is a fraud mill,” Florida’s Chief Financial Officer Jeff Atwater said at a press conference Wednesday.

Many people see the insurance fraud as a victimless crime. It is not,” said Miami-Dade State Attorney Katherine Fernandez Rundle.

The ring was cracked by detectives from the state’s Department of Financial Services fraud division, and Miami-Dade prosecutors. PIP insurance pays for up to $10,000 in medical bills and lost wages, and Florida ranks as one of the top states in the country for staged auto accident fraud.

Terrero, 40, is charged with racketeering, grand theft, organized scheme to defraud and a slew of other felonies. The others face similar charges.

The undercover investigation began in November 2009 when a man named Martin Triana, secretly working with detectives, agreed to stage an auto accident at a red light in Liberty City, according to an arrest warrant.

Triana later went to the clinic, 7171 Coral Way, where he signed 25 blank therapy forms, which would later be submitted to insurance companies, and was later X-rayed by an unlicensed technician. Later visits resulted in no treatment, the warrant said.

The clinic later billed State Farm insurance for 40 therapy sessions. The clinic also billed the company for three visits with Dr. Gerald Amado, who never examined Triana; the doctor was arrested Wednesday.

Triana later recruited a man named Miguel Hernandez, who was actually an undercover detective using a fake identity. Hernandez played along in another bogus accident, the warrant said, and the result was that clinic billed Imperial Fire & Casualty Insurance Company for $20,225.24.