Legal Law

Of death and digital assets: where do you hide your treasures?

When most of us are asked to identify our “assets,” we will easily recall those items of personal or real property that can be seen or touched; that is, our house, vehicles, jewelry, etc. With a little more reflection, we are likely to remember our bank accounts, certificates of deposit, stock portfolios, retirement plans, and 401(k) accounts as part of our assets. However, relatively few people are apt to identify their “digital assets” as property of value. “Digital assets” refer to email and Internet accounts, websites, domain names, and photos or videos stored on personal computers or “in the cloud.” However, who knows, the next great business plan or blueprint may currently reside in complete anonymity somewhere within your electronic files.

Consider for a moment that your digital assets may include property you own that has substantial financial or sentimental value. Also consider that this valuable property may remain undiscovered and forever undiscoverable if you die unexpectedly. If that happened, would your loved ones know what treasures lie buried in your laptop or shrouded in the cloud? If they do, could they access them? Now, perhaps, those hidden treasures can be found and perhaps used by those to whom you leave such generosity.

If, like me, you enjoyed childhood tales of pirates searching for buried treasure, let me suggest that we now have a kind of map to discovering buried treasure in cyberspace. I am referring to the Revised Uniform Fiduciary Access to Digital Assets Act which has been adopted by twenty (20) states including Oregon and Washington. The Act will go into effect here in Oregon on January 1, 2017. Thereafter, the personal representative you name in your will will be able to access your digital accounts after his death to the same extent as they could if you were still was alive.

The drafters of the law no doubt understood that some people might be less enthusiastic about allowing their loved ones access to their postmortem email communications. The Act allows you to leave specific instructions in your will that prohibit such disclosure. Therefore, while the Act is intended to facilitate a trustee’s ability to discover and manage digital assets, it also respects the account owner’s reasonable expectations of privacy.

For a more detailed explanation of the Law, review the preliminary note prepared by the commission that drafted the model law. We’ll be interested to watch and see if this new Act helps unlock hidden treasures.

© 10/6/2016 Hunt & Associates, PC All rights reserved.

Legal Law

Criminal defendants on trial: Police request voluntary statement

It’s 4:00 am and you’re fast asleep. Loud knocking on your front door makes you try to wake up quickly. Go see who’s there. Two very serious-looking men, dressed in shirts and ties, show their badges to the peephole in the door. They are the police. Adrenaline rushes through your circulatory system, but you open the door and ask them what’s going on. They say that they are investigating a crime in the neighborhood and ask you to go to the police station to tell them what you may know about the crime.

You think, “Aren’t they supposed to read me my rights? I’ve seen it dozens of times on TV.” You do not know what to do. You don’t want to be rude. They are the authorities. You guess that you must comply with his request. So you ask if you can get dressed first. Then, hoping to make it easy for you, you waive your rights and do what they tell you to do.

The first thing to understand is that the law does not always require the police to give you your rights when they want you to talk to them. In Miranda v. Arizona, 384 US 436, 86 S.Ct. 1602, 16 L.Ed.2d 694 (1966), the US Supreme Court decided the landmark case of when and under what circumstances the US Constitution requires police to inform a suspect about the right to remain silent and the right to consult with a lawyer before answering questions from the police.

The police are not always required to read you your rights under the miranda decision. When the police arrive at a crime scene and make an arrest but do not want to talk to the person, they will not read you your rights. If the police stop you on the street and start questioning you and you volunteer to respond, this is called a consensual encounter. They don’t need to read your miranda rights. If they ask you to voluntarily go to the station and talk to them, even if it’s recorded, they don’t need to give you your rights first under miranda.

Does it sound strange to you? Well here’s the two minute summary miranda. Basically, the miranda The decision requires that whenever there is a custodial questioning, police must first inform the person of their 5th amendment rights to silence and counsel. If they fail to read and obtain a valid waiver of those rights, the statement will be struck down by the trial court. That statement or confession will not be admitted as evidence at trial.

  • Is the person in custody?

First, the court will determine if you were in custody. That depends on a number of factors. Did the police tell you that she is under arrest? Were you handcuffed and placed in the police vehicle? Were you free to go or leave? If you were taken to the station, did you drive there freely and voluntarily? If she was speaking voluntarily, was she free to get up and leave at any time? Did the police questions focus on you as their only suspect? The answers to these and similar questions may be used to determine if you were taken into custody for the purpose of miranda. However, a suspect could clearly be in custody, but the police are not attempting to question him when he speaks and begins to confess to the crime. This is the next query under miranda.

  • Is the person being questioned?

Second, the court must determine whether he was being questioned by the police. The word “interrogate” simply means “to question.” Do the police ask the suspect questions while he is in custody? Of course, personal background issues. [i.e. name, address, date of birth, etc.] can be asked and answered without the need for miranda warnings But any questions that relate to the facts or details of the crime and the circumstances surrounding it cannot be asked or answered until the police advise you of your constitutional rights.

Now, with this basic manual in mind, let’s take a look again at the central theme of this article: “Come to the police station and talk to us.” how can you say no miranda warnings are required. The police are asking you to come voluntarily. You might say, “No. I’m not going on or leaving my property.” You could go inside and go back to bed. However, if you decide to go with them voluntarily, anything you say will be used as the basis to charge you with a crime and arrest you on the spot.

Look at it this way, you’re not in custody. He has not been charged with any crime. The police have no probable cause to arrest him. They’re looking for something to hang their hat on to arrest you. They expect you to come to their station where they are in control and will make you talk. If the government has the entire burden of proving a case against you beyond a reasonable doubt, then it must do so with evidence. [real evidence and testimony] other than his own words alone. If she chooses to speak, she does so at her own risk. You have constitutional rights. You must affirm them or lose them.

  • Remember this: Never, ever talk to the police without a lawyer!

So when they come calling you and try to shake you, just say, “No thanks!” Don’t go with them. Do not agree to leave your home and go to the police unless and until you are arrested. Always demand a lawyer. Be loud and clear. Keep demanding to speak to a lawyer until you get one. Never give a voluntary statement to the police without requiring that your lawyer be present first.

Legal Law

How to use context clues to improve reading comprehension and vocabulary

Learning to use context clues to figure out the meaning of unfamiliar words is an essential reading strategy and vocabulary builder. Identifying context clues in reading is made easier by looking up the key categories of context clues within the context of an effective step-by-step strategy. So, here is the strategy:

When you come to an unfamiliar word, apply the steps of the FP BAGS SELLING strategy in the following order until you get a good clue about the meaning of an unfamiliar word.

Prize ends.

See how the word fits into the complete sentence.

Say the word out loud.

Sometimes hearing the word will give you a clue to the meaning.

Syllables-Examine each part of the word.

Word parts can be helpful clues to meaning.

Before-Read the sentence before the unknown word.

The above sentence may hint at what the word means.

After reading the award after the unknown word.

The subsequent sentence can define, explain, or provide an example of the word.

Grammar-Determine the part of speech.

Pay attention to where the word is placed in the sentence, the ending of the word, and its grammatical relationship to other familiar words for clues to the meaning.

The context key categories:

Synonym: Sometimes an unknown word is defined by using a synonym.

Synonyms appear in apposition, in which case commas, hyphens, or parentheses are used.

The wardrobe, or closet, opened the door to a whole new world.

Antonym: Sometimes an unknown word is defined by using an antonym.

Antonym clues will often use signal words, for example, however, not, but, in contrast

Example: You signaled a looey, not a right turn.

Logic: Your own knowledge of the content and structure of the text can provide clues to the meaning.

Logical clues can lead to a logical guess about the meaning of an unknown word.

Example: He petted the canine and then made her sit down and beg for a bone.

Example: When it is part of an example list or if the unknown word itself provides an example,

either one provides good clues as to the meaning. Example tracks will often use transition words, for example, like, like, like

Example: all the adventurous, rowdy, and crazy pioneers found their way to the West.

Legal Law

The woman who became a man

In 1893 there was a major scandal in Copenhagen. The renowned superintendent of the home for rebellious or orphaned children, KANA, that is, Vilhelmine Møller, confessed to murdering one of the orphans. The unfortunate boy was 15-year-old Volmer Sjøgren and his reasons for taking his young man’s life was that they had been lovers and that unfortunately he had learned his best kept secret, that is the fact that “she” was a he or maybe a hermaphrodite.

Vilhelmine Møller’s sexual organs were deformed from birth. However, when she was arrested and taken to prison she also underwent a medical examination and it was determined that her gender was male. Even today, the case is not entirely clear, but since her organs were more male than female, she (he) now officially became a man and changed his name from Vilmelmine Møller to Frederik Vilhelm Schmidt. As for her crime, it was always almost incomprehensible that she would harm any of the children, since he had been such an outstanding and thoughtful superintendent that he also wrote articles on his advanced ideas for the education of these homeless children. .

Perhaps his good reputation as a dedicated person is the reason why his former assistant, Mrs. Mackwitz, was seen as the one who had corrupted his morals, thus being the real criminal. Blaming her didn’t change the fact that he was a murderer and was sentenced to death. This sentence was eventually changed to life imprisonment. However, already in 1905 he was released and that same year he married. It seems that since then he has led a good and in all respects normal life with his wife.

In 1906 he published a short article about his life in a magazine, “Naturen og Mennesket” (: “Nature and the human being”). He died on Christmas Eve 1936 at the ripe age of 91. One of the reasons this sad murder was such a scandal was that at the time these special children’s homes were run by private donations. All the people who were engaged in this work feared losing the public support from which the households lived, but that did not happen. The public did not lose sympathy for these marginalized youth or for the people who cared for and educated them. On the contrary, they continued to support them until 1905 when the homes became part of a special law for children and thus became state guardianship. Until then they had lived at the mercy of the public.

Legal Law

The Best Immigration Lawyer – Take Your Opportunity

Searching for the best immigration attorney is of the utmost importance if you want to be successful in your immigration application. Only a good immigration attorney will have knowledge of all the nuances and finer points of immigration law to achieve the best results for your immigration application. All aspects of the immigration application require deft management and exceptional ability, whether it is presenting documents or preparing for an interview. It is important to see that your immigration lawyer specializes in the area for which you are filing your immigration application.

Careful selection is the key

Although there are attorneys who have experience in many fields of immigration law, you should select your attorney carefully as the success of your application is entirely dependent on handling your documents and filing as directed by your attorney. Your best immigration attorney should have better experience than others in the line and should also have a better success rate to show their superiority.

It is also important to see the status and position of your best immigration lawyer before you start doing business with him. To judge a lawyer, it is very important to see where he got his formal education and where he passed his bar exam. Taking education from reputed schools makes a huge difference in the development of the mental level of the students. Then it is also important to see if your immigration law attorney has joined any well-known bar associations or is a member, executive member, or president of any bar associations. These people are better informed and more familiar with local private and administrative personalities and can easily get out of difficult situations. Your attorney must also be a member of the American Immigration Lawyers Association.

The task of selecting your lawyer becomes quite easy if you find that he/she is constantly in the news for his/her achievements, is constantly invited to August meetings and functions, and is well recognized in the lawyer fraternity. You can also be sure of the credentials of an attorney who has been appointed by a newspaper or magazine to report on immigration issues or who is publishing columns on immigration issues and high circulation magazines.

If your immigration lawyer is well known in business circles, maintains a decent office, participates in forums and discussions, is well recognized in the society and also maintains a good past performance record, then you can select him as your best immigration lawyer. But before hiring your lawyer, you should also make sure that they have a thorough knowledge and understanding of your case by asking them to clear up all your doubts and confusions regarding your immigration application. If you have some knowledge of the immigration law required in your case, it will help you make the right selection of your best immigration attorney.

Legal Law

Why an Independent Trucker Should Work With a Truck Accident Lawyer

When you work as an independent truck driver hired by a company, you need to remember that when you are involved in a truck accident, the costs are on you. They include attorney fees and insurance fees. When you have a good truck accident lawyer behind you, you can enjoy the same type of benefits that you would enjoy with insurance coverage. There are so many reasons why you should consider having a truck accident lawyer when the need arises and some of the reasons are highlighted below.

An attorney will help you resolve issues that may arise as to whether you are a regular employee or a contract worker. The fact is that lawsuits can become heavier for drivers who are mistaken for direct employees, but an attorney helps ensure that such mix-ups do not occur to avoid strong lawsuits that could favor the plaintiff.

· A truck accident lawyer is helpful in dealing with the special stipulations when it comes to large truck insurance. These are stipulations that you might not otherwise be aware of when working without the professional assistance of a good attorney, especially for serious accident injuries.

· A lawyer can help you understand your options when it comes to the lawsuit and can actually do some consulting for cases that are not so serious and therefore do not require representation by a lawyer in court. He can guide you on how to successfully handle the situation on his behalf in less serious truck accident cases.

Without a doubt, a truck accident attorney is important and you should ensure that you select the most reputable and experienced attorney if you wish to be successful in your representation. First of all, ask yourself if the case is serious enough to require a lawyer. Minor clear failure issues can be handled well even without the involvement of a lawyer. However, if it is a serious accident issue or you are not quite sure how to handle the process, here are some of the factors to be sure to consider before hiring a truck accident lawyer.

Reputation – What qualifications does the public domain lawyer have in terms of success? You can use reviews or ask among your friends to find a reputable truck accident lawyer who has the potential to represent you successfully. If you select a law firm, choose one that has an impressive reputation and has a team of trusted attorneys and lawyers working together.

Experience – Has the attorney presented any other truckers before and how successful was he/she in representing them? The more experience and success the lawyer has, the easier it will be for him to approach your case from a winning strategy and expedite the process in every possible way.

cost – Remember that you are hiring the services of a lawyer to save you some money at trial. Therefore, you should never settle for a lawyer whose fees for services are clearly exorbitant.

Legal Law

Why eat whole grains? Understanding its health benefits

Grains seem to be having a tough time lately, with some blaming gluten for major health problems and new grain-free diets popping up every year. So one can easily ask: why eat whole grains, as recommended by health authorities around the world?

However, according to Dr. Frank Hu, professor of nutrition at the Harvard TH Chan School of Public Health and author of two long-running studies, eating 70 g of whole grains a day could reduce the risk of death by 5 percent. . With each additional 1-ounce serving, the risk of dying from heart disease is reduced by 9%. The study also found that replacing refined grains and red meat with whole grains in equal amounts could increase life expectancy by 8-20%.

There is so much to explain about whole grains that I have divided this topic in two. Part 1 covers Why Eat Whole Grains, and Part 2 covers ways to eat more whole grains.

1. What are whole grains?

Grains, also called cereals, are the seeds of some herbs, which are grown for food. The following are all the beans you are likely to find in stores, though not all in whole seed form (alternate names in parentheses):

  • Amaranth
  • Barley
  • Buckwheat (or kasha)
  • Corn (hominy, popcorn, corn)
  • Darling
  • Oats (oatmeal)
  • quinoa
  • Rice
  • Rye
  • Sorghum
  • Spell
  • teff
  • Wheat (triticale, semolina, seitan, farro, kamut)
  • wild rice

whole grains vs. refined grains

A whole grain will contain the whole grain, that is:

  • Bran – the outer layer, which contains vitamins, minerals and fibers.
  • The endosperm – the main part of the grain, which can be ground into flour. Initially intended to feed the embryo, the germ, when it develops into a new plant. It contains carbohydrates, proteins, vitamins and minerals.
  • The germ: the smallest component of the grain, which is supposed to germinate if it is planted. It contains proteins, vitamins, minerals and fats.

100% whole grains will contain all 3 parts of the grain (the bran, endosperm, and germ). To obtain refined cereals, whole grains are ground to remove the bran and germ. The final result is a finer texture and lasts longer. However, the process removes many of the nutrients, particularly the fiber.

Whole grains can still be ground, rolled, crushed, or broken. As long as the entire grain is present in the final product, they are still “whole grain.”

Note – when we eat refined grains, our bodies actually use nutrients to digest these nutrient-poor foods, leaving us more nutrient-poor than before we ate them!

footnote 2 – This is why you may come across the terms “enriched grains” and “fortified grains.” “Enriched beans” means that some of the nutrients lost during the milling stage, such as vitamins, are replaced. “Fortified grains” means that some nutrients have been added that were not initially in the grain.

2. Whole grains and fibers

As you can see from the nutrition information above, one of the main nutrients that is removed during the refining process is fiber. It is the part of a plant food that the body cannot digest. As it moves through our digestive system, it absorbs water and helps the body eliminate food waste faster.

Higher consumption is linked to a lower risk of heart disease, as it helps lower blood pressure and cholesterol, and stabilizes blood sugar. It also fills you up and is an essential tool for losing weight and managing it.

There are 2 varieties of fiber: insoluble and soluble. Good sources of insoluble fiber in cereals are whole wheat and popcorn (minus added butter or sugar), but also teff, spelt, and millet. Barley and oats, as well as amaranth, contain soluble fiber. The body needs both in equal measure for optimal health.

The current recommended fiber intake ranges from 21 to 25 grams for women and 30 to 38 grams for men. However, the vast majority of us only get about half that amount per day, mainly thanks to our highly processed diet of refined grains and our low intake of high-fiber foods like fruits and vegetables.

Check out my next post on How to Eat More Whole Grains to find out how to increase your fiber intake the easy way.

3. So why eat whole grains?

The higher fiber content of whole grains is linked to lower overall mortality risk, but that’s not the only reason why eating whole grains is beneficial for our bodies. The bran and germ of cereals also contain a whole range of phytochemicals, vitamins and minerals, as well as protein, which play a beneficial role. We are going to list some of the main benefits here:

1. They slow down digestion,

… stabilizing your blood sugar and insulin levels. When eaten, refined grains immediately break down into glucose, just like pure sugar. This causes your blood sugar to spike, then plummet, later, triggering a sugar crash and cravings.

Whole grains break down slower, keeping you full longer.

2. They have been found to help control weight

…by not sending you looking for the next sugar or starch fix, three servings per day is associated with less belly fat.

3. Whole grains, therefore, help prevent type 2 diabetes

…through healthy weight management and stabilization of blood sugar levels. Those benefits kick in with just two servings per day (read my post on How to Eat More Whole Grains to find out what a serving is). This could be due to its high fiber and magnesium content, both of which are linked to better carbohydrate metabolism and insulin sensitivity.

4. Whole grains can help lower blood cholesterol,

… oats being a true champion in this category. Its higher soluble fiber content helps eliminate cholesterol, binding cholesterol and its precursors in the digestive tract and eliminating it quickly. The antioxidants found in oats also play a role.

5. They can help lower blood pressure,

…particularly whole grains that are high in soluble fiber, such as barley and oats. Its antioxidants help improve cardiovascular health and reduce inflammation.

6. Numerous studies on more than 20 types of cancer

… have found an association between eating three servings of whole grains per day and a lower risk of cancer. This is true in particular for gastrointestinal cancers and cancers of the oral cavity, such as the pharynx, esophagus and larynx.

Whole grains offer protective nutrients such as fiber, antioxidants (vitamin E and selenium in particular), and phytochemicals that may help suppress cancer cell growth, block DNA damage, and prevent the formation of carcinogens.

And if the benefits of whole grains start with just two servings per day, research has shown that health improvements increase with each additional serving, up to the 3-4 servings of whole grains recommended daily by the Dietary Guidelines for the americans.

The Take Home Message: Eat Whole Grains for Optimal Health

How to do this? There are many easy ways to identify whole grains in your foods and increase your intake. Read about them in my next article on How to Eat More Whole Grains.

Legal Law

Test resources and good study tips

Tests are a part of life, some of the most common types are SAT, ACT, GMAT, LSAT, IELTS, NCLEX and the list goes on…

It’s true that each of us has different study habits and test preparation, no matter what your approach it is highly recommended that you take advantage of some or all of the help available to you.

1. Fully accept the reasons why you need to study.

Realize and set a clear goal. How important is your preferred university? Are you taking an exam to get hired? Be honest with yourself, identify two or three reasons that can motivate you to study well and get you on track with an effective study plan.

2. Understand the test format.

Now that you have clear objectives, it’s time to focus your exam format. Getting familiar with the test format in question is the first step in preparing for the exam.

3. Sample and previous tests.

If you’re serious about performing well on your test, you’ll be doing previous tests. All standardized tests have great resources of sample and past papers. Look online for sample testing resources you can use. You can also choose to purchase a practice test to use for your review material.

4. Study using your proven techniques.

When preparing for a big test, it’s best to study in a way that’s comfortable for you and within your current schedule. This means you don’t have to study all the time; you simply need to distribute your study hours evenly and when you are most attentive.

5. Understand your test score.

It is essential that you understand how a specific test is scored. It is important to note that different types of tests will award the correct answers differently. For example, when taking the ACT test, there is no negative score. So it’s okay to guess an answer that you’re not absolutely sure about. On the SAT, however, one wrong answer can mean losing a quarter point off your overall score, which calls for a different strategy.

6. Get help if you need it.

Consider a fellow student or sign up for a review class. Read the online guide for your exam, just reach out, after all, active or passive help will directly benefit you.

Legal Law

A tour of Cape Town and the southern tip of Africa

Down there, in the southern tip of Africa, lies one of the most beautiful cities on the planet. When the sun shines, it’s awesome. A quaint town framed by the famous Table Mountain, white sand beaches, and the Pacific Ocean. Standing over 1,000 meters high, Table Mountain towers over beautiful colonial buildings. The promenade is decorated with brightly painted facades and the beautiful coastline is framed by high cliffs, making it one of the most magnificent in the world.

Stroll along the V&A waterfront and you can see street performers singing traditional African music over a coffee in one of the many cafes. This exclusive area is full of boutiques, cafes, restaurants, theaters and wine bars. Strolling through the shops makes for a pleasant afternoon and while you’re there take the ferry to Robben Island. Home to the infamous prison where Nelson Mandela was held for most of his 29 years behind bars.

The half-hour boat ride will make you think of what little hope the prisoners must have had when they were taken into solitary confinement. Surrounded by icy shark-infested waters, freedom was in sight, but escape was impossible. The guides are ex-inmates who make the experience that much more exciting as they tell personal stories of their time there. These men are true heroes. It’s amazing to hear what they managed to accomplish behind bars. They planned and schemed and somehow managed to send messages to their followers that eventually ended Apartheid.

You will see Nelson Mandela’s tiny cell in the maximum security wing, the quarry where he carved with crude tools and where secret meetings took place. How anyone was able to survive this way for years is a testament to the strength and determination of these brave men.

After spending time in Cape Town, it’s a good idea to rent a car and drive along the coast. Winding along one of the most scenic drives on the planet, Chapman’s Peak is a delight. Featured in many movies and commercials, its massive cliffs tower overhead as the path weaves its way through the blasted rock. Be prepared though, in South Africa they drive on the left side of the road.

Head to Simon’s Town to see the penguin colony that resides on its beaches. Simon’s Town is a beautiful seaside town where a seafood lunch is a must. The famous penguins sunbathe and splash in the water posing perfectly on large, smooth rocks as dozens of tourists grab their cameras.

After a morning exploring the city and the penguins, drive further south to the Cape of Good Hope. The Indian and Atlantic oceans meet here and collide with each other under the highest sea cliffs on earth. The view is impressive and you can take the tram to the top avoiding a long walk. The boardwalk winds through the grounds and you can explore the old lighthouse and keepers house, and you can gaze out over the ocean with nothing between you and Antarctica but the sea. It’s amazing to be in this truly legendary destination at the end of a vast continent.

If you’re short on time to visit South Africa, Cape Town and the surrounding area have everything you could need. Safaris, diving, world class vineyards, beaches, shopping and spectacular scenery. What else does a person need?

Legal Law

Congress Extends IC-DISC Export Subsidy: More Profits From Made-In-USA Exports

The two-year tax cut bill signed into law in December, PL 111-312, extended the 15% tax rate on qualified dividends. This also extended the benefits of IC-DISC (or DISC). Using a DISC, exporters of US-made goods get a subsidy of at least 10% of their earnings on those exports. If your business sells $1 million or more worth of US-made products for use outside the US, you need a DISC. You can make a profit regardless of whether your business manufactures or simply distributes the products. The benefit applies to partnerships, corporations and even sole proprietors.

This is good news for all exporters, who can continue to receive an export subsidy. The 15% dividend tax rate and the regular tax deduction (often at a 35% tax rate) of DISC commissions combine to reduce federal income taxes. This export subsidy is at least 10 per cent of export profits. The subsidy also applies to engineering and architectural services for construction projects outside the US, but not to most other services. To get this export subsidy, you must have a separate paper company that chooses DISC status. It must be in effect before goods are sold or construction services are billed.

DISC is NOT avant-garde, aggressive or risky. It has been around since 1971, but saw limited use from 1984 until 2003, when the tax rate on dividends changed. Congress claimed during the Bush administration that they wanted to keep DISC and the benefits for middle market exporters.

Several things are required for your business to obtain this subsidy. There must be a separate US corporation that has filed an IRS election to be treated as a DISC. It is purely a paper corporation with $2,500 capital and no other substance. This corporation must have agreements with business operating entities to earn a commission. The commission is calculated under complex IRS rules based on export sales or the net proceeds from those sales. The company gets a federal income tax deduction for this fee. The DISC does not pay taxes on your income. The DISC may defer some winnings, but must distribute the rest. The last tax payment to shareholders at the rate of 15% instead of the regular federal income tax rates on the distributed commission. This results in a federal tax rate differential of up to 20%.

Simple example: Smitty’s Plumbing Supply sells $3 million worth of Ohio-made plumbing fittings to customers in Windsor, Ontario. Smitty’s net profit margin is 8% overall, so he made $240,000 on sales in Ontario. Smitty, the owner, is in the 35% tax bracket. Without a DISC, Smitty would pay $84,000 in federal income tax on export earnings. If Smitty had a DISC, he could reduce that tax by at least $24,000.

Commission calculation in its simplest form can be done on a Post-It(tm) note, but the result may not be optimal. Various techniques can increase the profit. These include the application of the “no loss” rule, the percentage of total profit or the “marginal cost”. These techniques add to the complexity and cost of doing the calculation, but for sufficient sales volumes they can be well worth it. Optimizing these calculations in a way that the IRS will approve requires expertise. For very large transaction volumes, specialized software may be required. For many mid-market companies, these additional costs are trivial compared to the additional tax savings from DISC optimization. Consider each year whether the optimization calculations are worth it.

If you are an exporter of US-made products, DISC can probably help you, but you need help setting up a DISC and calculating the best profit. A new corporation is needed, as the DISC election must be held at the beginning of the DISC fiscal year. In addition, the DISC and the business entity must have the appropriate agreements in place, and the DISC must have an “evergreen” dividend resolution. Missing a key piece can kill your profit.

Remember, DISC savings start only when the new DISC is in place. Act now to start earning these tax benefits by calling Steve Fox.