by Eric T. Rightley

The 1031 Exchange process starts with your CPA or accountant. The discussion should include the amount of taxes owed if you sold the property outright. The adjusted basis would be determined, and based on this adjusted basis, you can determine what the “normal” capital gains tax liability would be. Also, you can determine the amount of taxes that would be due to depreciation recapture. This depreciation recapture is currently taxed at a maximum rate of 25%. The capital gains that are attributed to depreciation are taxed at a higher rate.

Likewise, your CPA or accountant will determine how much of the gain relates to normal appreciation from the natural increase in the value of the property. This appreciation is currently taxed at a maximum rate of only 15%. Your CPA will also determine if any state income tax or capital gains tax would be incurred. This …

The purpose of IBOR is to protect financial markets and to create self-sufficient investors who produce economic growth instead of government deficits. IBOR standards create transparent financial markets, regulate speculation, and protect retirement portfolios. Here’s a sampling:

Section One: Product Transparency. All investors have a right to see precisely what securities are inside any investment product by accessing real time information that includes names and cost-based allocation percentages.

Section Two: Regulation and Education.

Section Three: Protection from Speculators. Investors have a right to protection from risks added to portfolios without their control, knowledge, or permission.
Naked shorting, index fund ownership of large share positions, and all naked option transactions would be prohibited.

Section Four: Controls of Hedge Funds.

Section Five: Brokerage Account Statements. Investors have a right to account statements that: 1) help manage asset allocation targets, 2) report realized gains and losses, 3) track …

SIBORAP includes these ten specific sections: (1) Product Transparency, (2) Regulation and Education, (3) Protection from Speculators (4) Control of Hedge Funds, (5) Brokerage Account Statements, (6) Retirement Account Investments, (7) Executive Compensation, (8) Corporate Financial Statements, (9) Taxation of Investment and Retirement Income, and (10) Transactional Greed and Fear Controls.

Section Seven: Executive Compensation – continued from Part Three of the SIBORAP report.

Every dollar paid to corporate executives, directors, and employees (in any form whatsoever) in excess of two million dollars would be matched by a ten-cent per share extra dividend to all shareholders and a 10%-of-annual-pay bonus to all employees.

All golden parachutes, separate “non-qualified” retirement plans, stock option and deferred compensation programs, and others that do not benefit all employees and shareholders will be unwound over a three to five year period. Any employee who receives …

SIBORAP includes these ten specific sections: (1) Product Transparency, (2) Regulation and Education, (3) Protection from Speculators (4) Control of Hedge Funds, (5) Brokerage Account Statements, (6) Retirement Account Investments, (7) Executive Compensation, (8) Corporate Financial Statements, (9) Taxation of Investment and Retirement Income, and (10) Transactional Greed and Fear Controls.

Section Five: Brokerage Account Statements.

Investors have a right to brokerage account statements that: (1) help them monitor and manage their asset allocation, (2) report realized gains and losses for the year, (3) track both the cost of their holdings, and their net account deposits, and (4) emphasize the long-term, cyclical nature of the investment process.

Under SIBORAP, all brokerage firms would be required to maintain cost basis information on all holdings, and the ACATS system would be required to provide it in all transfer transactions. Mutual funds would be required …

SIBORAP includes these ten specific sections: (1) Product Transparency, (2) Regulation and Education, (3) Protection from Speculators (4) Control of Hedge Funds, (5) Brokerage Account Statements, (6) Retirement Account Investments, (7) Executive Compensation, (8) Corporate Financial Statements, (9) Taxation of Investment and Retirement Income, and (10) Transactional Greed and Fear Controls.

Section Two: Regulation and Education (continued from Part One of the SIBORAP report).

Security industry regulators will be charged with many responsibilities: (1) educating investors with respect to product content; (2) developing a “hierarchy-of-risk” tool that identifies the risks in all things sold to investors; and (3) preventing the spread of unregulated Internet based investment advice offered by persons of unknown qualifications.

Additionally, they will be responsible for:

(4) Preventing the development of multi-level, multi-leveraged, WMFDs; (5) requiring that all financial blogs include appropriate caveats that speak to the qualifications of …

We the securities investors of the United States, in order to form more transparent financial markets, establish effective regulations, defend against destructive speculation and manipulation, promote financial well-being, preserve working capital, and protect retirement income, do establish this Securities Investors Bill of Rights and Protections (SIBORAP).

These rights are intended to replace, amend and/or abolish all laws and regulations currently in conflict with SIBORAP, and are to be implemented by all parties to financial transactions.

Any institutional efforts to create and/or market securities and/or derivative products that do not comply with the spirit of SIBORAP will result in fines to corporate officers and directors, congressional oversight committee members, regulatory agency directors, and their financial or legal counsel.

All derivative investment products of any kind, any investment programs or specific recommendations promoted in any medium by non-professionals and professionals alike, SEC …