Airlines Giving Employees Tax Cut Bonuses

L-16B said:
I’ve been told that the great republic of Tejas Is a right to work state and it’s not as risky as California or New York to have them yourself instead of an LLC. I’ve always carried umbrella policies instead but I’m looking into it right now with my personal assistant @amorris311
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Being a right to work state doesn't really have much to do with it. The liability risk is still there, and all of your personal assets are at risk if the property is own by you personally. The umbrella policy likely has many exclusions, and I personally wouldn't feel very safe with it. While there is some limited risk of a plaintiff being able to "pierce the corporate veil" if your property is in an LLC, it's pretty difficult, even with a great lawyer, so your personal assets are basically safe.

Cessnaflyer said:
Have you had experience with rolling a property with a mortgage into an LLC? I’ve heard horror stories about the holder exercising the alienation clause and don’t want to refinance again just to get one into an LLC.
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If you register the deed with the county, yeah, there's a risk that they'll call the loan. There are several ways to deal with this:

1. Just go ahead and do it anyway and when they send you the threatening letter, tell them "you can either leave me alone and I'll keep paying on time every month, or you can insist on calling the loan and I'll just refuse to pay and make you foreclose; which would you prefer?" I did this with a property I own in Ohio that had a primary residence clause in it. The loan was callable if I rented it out, which I did, and I told them to go to hell. They sent me a letter back telling me that they'd "reevaluated" the situation and would extend my time to move back in for two years. That was over a decade ago. Never heard anything about it again.

2. Quit-claim it and don't register the deed. Technically, the deed is valid as soon as it's signed, notarized, and "delivered." So you sign it in front of a notary, then send it by FedEx to your LLC's address for "delivery." The deed is now official. As far as the IRS is concerned, you're all good. Now, how well will this hold up in court if you get sued and they're trying to pierce the corporate veil? That's a very good question, and I'm not sure of a case where it's been tested.

3. Just risk it and see if they even care. Honestly, some banks don't call the loan even if the deed is registered with the county. They just let it go. My attorneys tell me that one bank that's big here in Georgia only calls them on rare occasion, even when ownership transfers in arm's length transactions on wrap-around mortgages. This is what I did when I purchased my office building.

Check with your local real estate attorney and see what he recommends, of course. This does not constitute legal advice, and I'm only licensed to practice real estate in Georgia. :)
 
ATN_Pilot said:
Being a right to work state doesn't really have much to do with it. The liability risk is still there, and all of your personal assets are at risk if the property is own by you personally. The umbrella policy likely has many exclusions, and I personally wouldn't feel very safe with it. While there is some limited risk of a plaintiff being able to "pierce the corporate veil" if your property is in an LLC, it's pretty difficult, even with a great lawyer, so your personal assets are basically safe.



If you register the deed with the county, yeah, there's a risk that they'll call the loan. There are several ways to deal with this:

1. Just go ahead and do it anyway and when they send you the threatening letter, tell them "you can either leave me alone and I'll keep paying on time every month, or you can insist on calling the loan and I'll just refuse to pay and make you foreclose; which would you prefer?" I did this with a property I own in Ohio that had a primary residence clause in it. The loan was callable if I rented it out, which I did, and I told them to go to hell. They sent me a letter back telling me that they'd "reevaluated" the situation and would extend my time to move back in for two years. That was over a decade ago. Never heard anything about it again.

2. Quit-claim it and don't register the deed. Technically, the deed is valid as soon as it's signed, notarized, and "delivered." So you sign it in front of a notary, then send it by FedEx to your LLC's address for "delivery." The deed is now official. As far as the IRS is concerned, you're all good. Now, how well will this hold up in court if you get sued and they're trying to pierce the corporate veil? That's a very good question, and I'm not sure of a case where it's been tested.

3. Just risk it and see if they even care. Honestly, some banks don't call the loan even if the deed is registered with the county. They just let it go. My attorneys tell me that one bank that's big here in Georgia only calls them on rare occasion, even when ownership transfers in arm's length transactions on wrap-around mortgages. This is what I did when I purchased my office building.

Check with your local real estate attorney and see what he recommends, of course. This does not constitute legal advice, and I'm only licensed to practice real estate in Georgia. :)
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Thanks ATN. what you talked about was my primary hesitation with the payoff....
 
Derg said:
Thank you for this. I can't tell you how many Texans chided me for living in a state with income tax when, in fact, their tax liability was exhaustively more than Arizona.

"But we don't have a state tax!"

"Whatever Hoss, and your hat looks stupid".
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Government gets our money in one way or the other !!!
 
bimmerphile said:
6800 a year in NJ... what are you in a 2br townhouse?
My parents live on a farm there and are still going to end up on the turd end of the stick
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NovemberEcho said:
My parents had a 4.5 acre hobby horse farm in sussex county and paid about 17k in prop taxes
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Well, crap! I guess I won’t complain about the $1600/yr property tax I pay for a 4100sf house on .5 acres.
 
L-16B said:
It’s all relevant. In Texas we don’t have state income tax but property taxes will get ya. I figure 3% every year of the value of the house for taxes and insurance.
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It all comes down to income levels. If you have a low income, a lower property tax and higher income tax is typically advantageous. If your income is on the higher side, you're better off living in a state with no income tax.

Best I can figure we'd save about $10k/yr living in Texas.
 
Cptnchia said:
@Cherokee_Cruiser

I guess that $1000 didn’t really buy what management wanted.

But, we gave you “free” money!

“Interviews with 10 Alaska employees, including pilots, flight attendants and maintenance staff, along with internal company documents obtained by The Seattle Times, reveal a high level of worry about the airline’s direction — concern unlikely to be much eased by the $1,000 employee bonus announced Thursday evening as a result of the corporate tax windfall delivered by President Donald Trump.”
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Relevance? You can't make everyone happy. The topic was simply in reference to companies and airlines that are giving bonuses resulting from the new Trump tax code/cuts. That's what this payout is for. If someone wants to think of it as a payout trying to placate in regards to how the merger is going, that's their perogative. Management will decide which direction the airline is headed in. I don't worry about things I can't control, and that's beyond my control so I don't bother wasting too many brain cells on it.

bimmerphile said:
6800 a year in NJ... what are you in a 2br townhouse?
My parents live on a farm there and are still going to end up on the turd end of the stick
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3bdrm/2bath/1garage brick construction type townhome.


Lawman said:
You can also do what my cousin did. He intentionally bought way more land then he actually needed, then leases out the timber rights on that property which offsets his taxes including his excess acreage fee. Paid his loans off at a substantially quicker rate.
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Or you can be like that one pilot on the forum who lives in Hawaii but owns some cheap property in Florida so claims primary residence there for tax purposes :tinfoil:


j/k
 
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I remember when I was a new hire and the Feds started cracking down on people who claimed residence in a condo they rented out in Pensacola who had kids in public school in Georgia. Our airline about shut down.
 
Derg said:
I remember when I was a new hire and the Feds started cracking down on people who claimed residence in a condo they rented out in Pensacola who had kids in public school in Georgia. Our airline about shut down.
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Oh pilots

http://www.standard.net/Police/2012/03/06/Utah-pilot-who-fled-tax-charges-is-arrested-in-N-C

https://www.justice.gov/opa/pr/form...nced-north-carolina-10-years-prison-tax-fraud

http://www.postbulletin.com/pilot-c...cle_b7441c9e-876c-5830-99b1-f2e0a4deb703.html

"
From 1998 to 2000, Matmiller claimed he was a resident of Washington state, which has no personal income tax. Meanwhile, he owned two homes in Minnesota and lived in them with his wife and children. He rented a mailbox in Washington, but the mail was forwarded to his Minnesota home.
"(Matmiller) did not simply make an honest mistake," said Hennepin County Attorney Amy Klobuchar. "Each year when he filed a fraudulent tax return, he committed a crime against the people of Minnesota by deliberately evading his taxes while enjoying the benefits of living in our state."
Matmiller was among seven Northwest pilots to be charged with tax evasion by the Hennepin County Attorney's Office.

In October, Geoffrey Hickman, 59, of Mendota Heights, was convicted of five felony counts for failing to pay Minnesota income taxes for five years, from 1996 through 2000. He falsely claimed he lived in Florida to avoid paying more than $50,000 in Minnesota income taxes."
 
Cherokee_Cruiser said:
...was convicted of five felony counts for failing to pay Minnesota income taxes for five years, from 1996 through 2000. He falsely claimed he lived in Florida to avoid paying more than $50,000 in Minnesota income taxes."
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That's enough for me to, you know, actually live in Florida. 50k buys a damn fine boat down here.
 
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