Here’s an informative story by Susan Voyles over at the Reno Gazette Journal as to why tax bills will continue to rise even as values go down, particularly in hard-hit areas such as Spanish Springs, Stead and the North Valleys. read

As a corporate and real estate attorney, I often work with
clients in developing tax efficient ways to pull money out of their businesses
and protect their wealth from creditors. In many instances this involves the
implementation of wealth and asset protection strategies. As an introduction to
the topic, I thought I would start with the basic question of what is asset
protection, and why you should be concerned with it?

An asset protection guru would probably tell you that asset
protection revolves around protecting your clients from future creditors who
can sue them typically for negligence.

My definition of asset protection is different and is quite
a bit broader. My definition is: “Asset protection is protecting your wealth from anyone or
anything that can take your money.” Who does this include that you may have not thought of
before?

• The US and State Government through income taxes

• The US and State Government through estate taxes
• The stock market when it declines
• Medical expenses like the inevitable long term care
  expenses everyone will have in retirement
• The US and State Government through capital gains taxes

Think about it, who is your number one guaranteed creditor
every year? The US Government. When the stock market in 2000-2002 tanked, did you lose money? Is
that more likely to happen in any given year than a lawsuit? When a family
member pays $4,500 a month to stay in a nursing home, does that expense
decrease your family’s wealth? Same question for estate taxes and capital gains
taxes.

Essentially, part of my job involves exploring with clients
simple and legal ways for helping to lower their income taxes, invest in the
stock market where they could receive gains without fear of losing principal in
down markets, mitigate their long term care costs, and defer or avoid capital
gains taxes when selling an appreciated asset.

I also provide a different outlook on the subject. Unlike
insurance or financial services salesmen, I am not trying to sell you anything
other than my legal and business planning expertise. In future postings, I plan
to address ways to protect your house and other important assets, as well as
strategies for tax efficient strategies for investing in real estate and for
extracting money from your business.

A little background about myself… Like Diane, I am a Silicon Valley refugee. A native of Los
Altos, I practiced law in Silicon Valley for 14 years before moving
to Reno 6 ½
years ago. I moved for many of the same reasons—but primarily my wife Tammy and
I wanted to raise a family in a wholesome outdoor lifestyle environment. So far
it is working. We now have 6 year-old twins who are in kindergarten.

Mark Smallhouse
New Venture Attorneys
9190 Double Diamond Pkwy, Suite
120
Reno, NV 89521
(775) 825-5700 (Voice)
(866) 808-6662 (Fax)
mark@newventureattorneys.com
www.newventureattorneys.com

Circular 230 disclaimer: To ensure compliance with
requirements imposed by the IRS, we inform you that any U.S. federal tax advice
contained in this communication (including any attachments) is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding
penalties under the Internal Revenue Code or (ii) promoting, marketing or
recommending to another party any transaction or matter addressed herein.

In an effort to keep the blog fresh and interesting, I wanted to add another ongoing contributor, this time with a legal perspective on real estate. I’d like to introduce readers to Mark Smallhouse, a local Reno attorney. Below is his bio. I highly recommend him, too, as he has done some fabulous work for us. Watch for his upcoming postings. Welcome aboard, Mark!

Mr. Smallhouse holds a JD from the University of Arizona from which he graduated with high distinction. He began his legal career with McCutchen, Dole, Brown & Enersen a highly respected San Francisco-based national law firm. At McCutchen, Doyle, his practice was focused on representing regional and national technology clients in corporate, taxation, commercial finance and real estate matters. Later Mr. Smallhouse was the founder of Legal Compliance Software, a Silicon Valley software development company producing legal compliance and form automation software distributed by Matthew Bender & Company, a large legal publisher. Thereafter, Mr. Smallhouse was a partner in a Los Altos, California law firm counseling clients on business and tax planning. and commercial real estate matters. Several years ago, Mr. Smallhouse recently relocated from Silicon Valley to pursue outdoor interests, including ski racing at which he competes at a masters level.