Soundings (7/24/07)
Visiting Rotarians: Larry Farr, Ann Jones, Marty Haines, Michael Brassil, Sam Dobbins
Guests: Ron Manwaring, Erica Bosman, Rita Spitzer
Announcements
Eddie on the Crab Feed: July 26th. 1 pm to go pick-up pots on the boat if interested, and/or dinner 4-6 pm at the dock. Please sign up, or let him know by Email.
Steve Brummel on "Brewers by the Bay": Sunday August 5th, 2-6 pm at Depot Market Square, tickets $25 bucks each. Need assistance/volunteers. Take a poster to advertise!
Orphalee thanks to Tim McEvoy for taking over last week;
Lance Calloway tired bucks for US Adult Soccer tournament past weekend; a successful but wet event;
Jane Carten announced she's preggers!
Steve Spitzer happy bucks for trip with wife to celebrate their 30th wedding anniversary touring Tuscany, Italy;
Scot Swanson's team took first place at the big soccer tournament this past weekend!
Denise Bosman for Yakima tennis tournament with daughter
Frank Chmelik for trip to Scotland and England with family; saw part of the Wimbledon tennis tournament;
Robin Schmidt happy bucks kayaking on Saturday.
Sergeant at Arms by Robin Schmidt
Fines for bright shirts, Steve Spitzer, Rotary trivia, all those without perfect attendence.
Program
Cy Lindberg introduced Todd Packard, financial planner at Moss Adams.
Todd talked about the concept of "Funvesting" (managing your investment in enjoyable assets). How do you manage them tax-wise, how do you protect them, how do you transition them?
Vacation homes Taxation: Discussed the three types of vacation homes - Masters' home, secondary home, and rental home. Protection: Insurance, and with a legal structure such as an LLC (which will protect the asset liability wise, and also if its in a foreign country). Capital gains exemption doesn't apply beyond two years. Transitioning the vacation home to your children: How will they pay for it? Avoid the family feud with careful planning.
Boats You can write off expenses if it is considered a second home. LLC structure can provide good protection. Transition boats: Can donate the boat for tax write-off.
Aircraft Good tax savings within first 5 years.
Collectables There are some strategies for lessening tax impact, such as forming LLC, then leasing back.
How does this fit in with overall investment strategy? Funvesting has more than monetary importance; it contributes to happiness and enjoyment. It is also a diversification away from primary assets (typically your business).
Can you use some assets as business write-off? Yes. Fractional ownership is very popular way to share the expenses and benefits.
Moss Adams will be sponsoring a few upcoming invitation-only events - Todd can get us a few tickets if there is interest. August on aircraft, September on boats, November on art.
Respectfully Submitted,
Stowe Talbot