News Update: Perfect Wealth Formula Upgrades Their Marketing System

The news is in. Perfect Wealth Formula is making many people rich and it is here to stay and they just Upgraded their proven marketing system.

The Perfect Wealth Formula is not an MLM (Multi Level Marketing) or one of the 1-up or 2-up programs where people need to give up their sales and struggle to succeed. Instead Perfect Wealth Formula is a program that prides itself in its fairness to all of its members as well as in offering marketing resources that are second to none.

With a solid base at the core of it – it is no wonder that it is taking over the internet market by storm. What more – it is so precise and easy to implement that even complete internet newbies are succeeding with it and making one or more sales a day. That means $400, $900 or more pure cash profit per day. Still, that is just the beginning since the program also includes $100, $200 and even higher infinity override bonuses. We are already seeing people making thousands of dollars a month of totally Work from Home with it after less then a month of doing it – in addition to their sales profits.

People are flocking from all over the world to be part of the Perfect Wealth Formula success.

There has never been a better time to join Perfect Wealth Formula then now – for anyone interested in a surefire system that can take them towards fulfillment of their financial needs and desires. In addition, there is a huge announcement coming with the program very soon.

Perfect Wealth Formula has been developed by Jason Pearson, called by some a marketing genius with heart. What he provides with the Perfect Wealth Formula is a system of top notch original marketing teachings in the form of videos, audios, eBooks as well as direct email and phone support. This wealth of information and coaching can be easily used to successfully promote any on or off line business but it is also tightly integrated with an in-house promotion system allowing anyone to quickly and very lucratively capitalize on the tremendous value and popularity of this package itself.

There are lots of hands-on, ready to instantly apply and make-money-with information within the Perfect Wealth Formula and it step by step explains how to successfully apply today’s hottest marketing strategies in order to make profits. Many people using this system are making 1,000 percent or more return on their money spent daily.

The Perfect Wealth Formula gets 2 thumbs up when it comes to Internet Marketing knowledge.

Robert Q. Matias, MBA Internet Marketing Specialist

Source by Robert Q. Matias

How Kids Can Earn Money Fast – What Are the Easy Ways For Teenagers to Make Money?

How Kids Can Earn Money Fast

Life is tough for any teenager when he has to live with the pocket money he gets. It can get difficult as you feel dependent on the elders to get all your expenses. You have to bear with this no more!

There are many easy ways for teenagers to make money today. They can opt to work from home and even work just part time. This could earn them enough to bear their tuition fees too.

If you have access to the internet, then there are many easy ways to make money that you can consider. If you do not have the convenience, you still do not have to worry since you can explore a different set of opportunities.

The fact, which has to be accepted, is that if you are game to spend more time in front of your computer, then you can earn a lot of money in a short span of time. If this does not suit you, then consider multiple jobs that are less demanding on time and pay relatively less too.

What can you do in case you do not have a computer?

One job that every teenager has been considering since ages is babysitting. All you need is a knack to handle kids and a lot of patience. As working hours of the parents are getting longer, the need for reliable babysitters is increasing day after day and, hence, more scope for your earning. How Kids Can Earn Money Fast

What are the other offline job options that should you explore?

There are several ways for kids to earn money. The most popular opportunity is pet sitting, or taking care of the old people.

A pet sitting job would mean that you have to be ready to give them a shower and even take them for a walk when needed. If you want a job that can make you feel satisfied, then nothing like helping elders can give you this experience. How Kids Can Earn Money Fast

What are the other ways to make money online?

A home based business opportunity is indeed the best chance for you since you can do the tasks from the comfort of your home. One most explored method to make money fast is through writing for others.

All it takes is a knack with words and an interest to write. With these easy-to-master skills, you can either become a freelance writer, which can make you a decent income each month.

If you are in a hurry to make easy money, then you must think about how to make money with Google. In fact, Google AdSense program is very simple, if you are well aware of computers and enjoy your time making online advertising for your blog.

Such jobs do not involve too much effort either. On the whole, if you know what you are capable of, there is no dearth of opportunities for you to explore. How Kids Can Earn Money Fast

Source by Internet Marketing Expert

How To Setup A Profitable Blog Or Mini Site Part 1

This will be the first article of a 3 part series on the big question what makes a successful (as defined by profitability) blog or mini site. I believe there are 4 components and the series will contain 1 article on each of them.

Let’s get started.

The first key to the success of a blog or mini site is that it has to target a group of people (a niche) who are hungry for information of a specific nature. In other words, I’m talking about the selection of your niche.

The group of people that your blog or mini site targets has to be a group of people who have problems. Problems in the sense that they are looking for a solution to something, looking to improve something. Furthermore, in a great niche, that SOMETHING, is something that causes pain. Financial pain, physical pain, emotional pain, some sort of pain, for the simple reason that people who have pain are the people who will want to buy solutions to that pain, and hopefully from your website.

If that sounds a bit sick, trying to exploit people with pain, it’s not. It’s called marketing. You’ve had marketers doing it to you your whole life and you probably never even knew about it, why can’t you do it too? And what’s more, you’re actually going to provide these people with a real solution, so you’re being helpful!

Anyhow moving on.

So you’re looking for a group of people with a problem, but that’s not all.

Your next concern has to be whether there are enough of these people searching for solutions to their problems on the internet. How many is enough you ask? It’s a good question. With certain kinds of sites, all you need is 10 visitors to your site a day and you can turn a nice monthly profit. Other niches and products that you promote you might need thousands per day. It all depends on what you sell, and who to, AND how much commission you make when you sell to them.

The things you should do are look at the search volume, as indicated by a tool like Wordtracker. Here you’re simply looking at how many searches per day a particular keyphrase gets in the search engines. Then after that, you want to look at whether there are other sites or blogs that are competing in the same niche.

Contrary to what alot of people think, NO competition isn’t necessarily a good thing. NO competition could and often does mean that it’s not a profitable niche. What you actually want is SOME competition, but CRAPPY competition that you can DESTROY by making a better site, providing better content and in a better way.

The final piece of the puzzle of finding a good niche, is whether the niche has a quality product for you to promote. You need something to sell to these people, that is high quality, has great marketing material (sales letter etc, so it will convert your traffic well) and pays a decent commission.

This is of course assuming you’re looking at the affiliate marketing model of making money with your blog – which I suggest if you’re looking to retire from your job and earn a full time learn, you SHOULD be. There are other ways to make money where you might think about some different factors in your niche selection.

So if you can combine all of the above factors when selecting your niche, you’ll be giving yourself and your new blog the best possible chance of success. I hope you’ve found this valuable.

Source by Sutikno Slamet

Turnkey Investing in Detroit and Southeast Michigan – A Great Wealth Building Strategy With Excellent Cashflow Returns

When it comes to real estate investing, there are really two categories – investing for capital gains and investing for cashflow.  Capital gains investing includes strategies where properties are bought and subsequently sold for a capital gain.  Cashflow investing on the other hand involves purchasing properties and holding them to collect the cashflow they create. 

Each strategy offers benefits but if you are trying to build wealth, then investing for cashflow is the strategy you must choose.  The reason for this is because cashflow investing offers five different ways to profit from the investment.

1. Cashflow

As the term implies, cashflow investing creates a monthly Work from Home from the rent that is collected on the property.  There are expenses like taxes, insurance and property management, but if purchased right, the rental income from the property should pay these expenses and also provide a monthly cashflow.

2. Appreciation

Many investors do not think of appreciation when they invest in rental properties.  However, over time as a property appreciates it creates equity that the property owner can borrow against.

3. Depreciation

Depreciation is an expense the government allows you to take which covers the loss in value to the property due to wear and tear.  The great thing about depreciation is that it is what is called a paper loss, meaning you do not actually pay for this expense.  You are allowed to claim the expense though, and thus your taxes are lowered.  At the time of writing, the US Government allows rental property to be depreciated over 27.5 years.  For example, if you purchase a property for $27,500 you would be able to claim a $1000 depreciation deduction against the property every year for 27.5 years.

4. Interest Deduction

If you mortgage the property you are purchasing, the interest paid on this mortgage is deductible thus reducing your taxes.

5. Principle Reduction

If you mortgage the property, the rental income the property generates will pay your mortgage payment.  Your tenant is effectively paying for the property on your behalf.

Because of these profit centers, cashflow investing is a great way invest in real estate, and if you purchase multiple properties it can be a great way to build wealth.  However, setting up rental properties is not necessarily a straightforward thing to do.  To be successful, an investor must have the knowledge on all of the following: 

  • Where properties should be purchased
  • How to renovate the property to demand the highest rent
  • How to screen tenants properly
  • How to properly manage the property

Fortunately there are companies out there like Michigan Turnkey that offer real estate investors the opportunity to purchase “Turnkey” rental properties in great markets like Michigan.  As the name implies, a turnkey property requires nothing more than the investor to purchase the property and start collecting rent checks.  Finding the property, renovating, tenant placement and installation of the property management company are all taken care of by Michigan Turnkey.  The only job the investor has once they purchase the property will be to cash the monthly rent checks.

Source by Todd Brittingham

Set and Achieve High Goals: Launch Your Career onto a Higher Trajectory by Going Beyond an MBA

Today, I listened to a story about a talented student trying to choose among several different job offers. Each hiring organization offered the chance to become wealthy in 20 years but required that many years of 80-hour weeks to gain the money: The student faced four different ways to be a highly paid drone who would rarely be at home before 9 p.m. or enjoy a family life. Yuck!

Just a few hours later, I was reminded that substantial career advancement doesn’t have to be so difficult while reading career-planning notes that a former student of mine, Dr. T.A. Makoni, had sent me. His early career resembled the student in the story: Huge efforts promised big rewards down the road, but not much current advantage.

That career path became rockier after he failed a course during the third year of veterinary school. Because of the school’s rules, Dr. Makoni faced having to redo all of his courses for that year even though he passed the other courses.

He decided to step back and re-evaluate his commitment to a veterinary career, and he chose instead to become a dentist. This was certainly not an easier road because he had to start his professional studies all over again. He also faced the hurdles of needing money for this schooling and getting into a good program.

After carefully considering his choices, Dr. Makoni enlisted as an officer candidate in the Zimbabwe Army to gain a dental education. This decision presented major challenges because all of his training would be in Greece, and would be conducted in the Greek language. His first year in the army was dedicated to learning this new language far away from home. After that, he simultaneously studied dentistry and military leadership for seven years before graduating and beginning a dental internship in Greece.

Always open to new concepts, Dr. Makoni was fascinated by his wife’s MBA studies while they lived in Greece, often helping her with dissertation research. He saw that business concepts could be useful in accomplishing more in most other aspects of life.

After fourteen years in the army, Dr. Makoni retired as a captain, purchased an established dental practice in Zimbabwe, and began developing entrepreneurial opportunities. He soon found that adding a junior dentist as a partner brought increased profits without much more work.

Dr. Makoni began to appreciate that his dental practice would be more successful if he learned more about business. He enrolled in a distance MBA program based in England and soon graduated with distinction.

In the process, he learned a great deal about strategic thinking and began to apply what he had studied. His success in dentistry soon led to being elected to the National Executive Committee of the Dental Association and later to becoming the Chairman of the Practice Management Committee of the association. He also branched out by helping found a dental supply company to help reduce costs and improve materials for dentists in his country.

Dr. Makoni’s high intelligence and sound knowledge were recognized, and he was appointed as a part-time lecturer at the university where he earned an MBA and at Celebration College, a church-run school in Zimbabwe that offers Biblical and business training.

Dr. Makoni developed a bigger vision that built from the sound foundation of his success:

He would help entrepreneurs to live their dreams of providing new health care choices throughout Africa by providing financing, education, and leadership to them. He would help his church by serving in its educational ministry and providing financial support for its expansion. He would serve his family by developing financial independence from money sources so that he could spend more time with his family.

As you can see, he was beginning to realize that career success should lead to a richer life, not just a more bulging wallet. Rather than committing himself to longer hours at work and more time away from his family, Dr. Makoni chose to use his success to improve and spend more time with his family and church.

When a rocket takes off for space, the first stage engines and fuel are jettisoned after just a few seconds. But by building on the speed and momentum provided by the first-stage rocket, the payload can rapidly accelerate upwards into a higher orbit by firing a second-stage booster.

Dr. Makoni was looking for such a second-stage booster for his career. Having taken an enormous number of successful career steps up through earning an MBA, Dr. Makoni recognized that investing in earning a DBA (Doctor of Business Administration) degree could be that powerful second-stage booster that would carry him much further than excellent professional training, a good career, and an MBA degree could do.

Such breakthrough progress begins with ambitious goals. While many people would decide that they simply wanted to become more proficient in one or two areas over four years of DBA studies, Dr. Makoni set the following goals for his education so that he could gain the benefits faster:

1. Graduate in 15 or fewer months.
2. Retire from working as a dentist upon graduation while continuing to earn a living from money derived by dental partnerships and franchising.
3. Create multiple streams of investment income during the same time through investing in real estate, venture capital, and public securities.
4. Write a book on business leadership before graduation.
5. Begin doing international consulting and public speaking about business while earning his DBA.
6. Spend much more time traveling with his family after graduating.

When asked why he set such high goals, Dr. Makoni responded that these were the logical next steps of what he wanted to accomplish. With the proper mentorship and focus, he was sure these goals would be easily achievable.

How did he do? Except for his first and third goals, Dr. Makoni did better than planned.

1. Graduation followed in 16 months rather than 15.
2. A few months into his studies, he used one course assignment to develop a breakthrough business model for expanding his dental practice that allowed him to stop doing the work himself.
3. His investing on the Zimbabwe stock market grew substantially, and he began working with a real estate developer to create a larger investment base in this arena. Although he fell short of his graduation goal, he was well advanced in a program to reach that goal.
4. Before graduating, he completed one book, Nurturing Champions, that was published in 2006 and has sold well. He also wrote 10 of 14 chapters for a second book about entrepreneurial finance in Zimbabwe provisionally titled, Entrepreneurship on Trial.
5. He was asked to join the board of an entrepreneurial investment bank while still studying for his DBA.
6. A trip to Israel was his family was planned and paid for before his graduation, and the trip occurred just a few months later.

Since graduation, career progress has been substantial as well.

1. In 2007, Dr. Makoni was appointed director of Celebration College. The school is making fine progress towards being licensed as a university in Zimbabwe. Many new programs and courses have been added, and the student body is growing nicely.
2. His dental practice has been successfully expanded into Zimbabwe’s second largest city, Bulawayo. Opportunities for two further expansions are under study.
3. He helped start a new church in Bulawayo.
4. Since graduating, he has joined three more boards. In addition, he began speaking at business seminars sponsored by Celebration College where he serves as the program coordinator.

Dr. Makoni clearly made wise choices in setting high goals, getting the right help to prepare himself to achieve those goals, and working hard and intelligently to bring those goals to fruition.

With the career velocity that he has established, it’s hard to see Dr. Makoni as anyone other than a continent-changing leader in both the business and spiritual realms.

What do you want to accomplish?

What help do you need to be able to accomplish those goals?

Source by Donald Mitchell

Regenesis 2×2 Saved My Life I Now Make $4000 Monthly No Sponsoring Required!

3 weeks ago I joined a program called Regenesis 2×2, the total cost I paid to join Regenesis 2×2 was $325. Now before I saying anything else let me tell you this I was dead broke when I joined Regenesis 2×2, I put my last into this program. In other words I took a step of faith.

My first week in Regenesis 2×2 I personal sponsored 7 people in Regenesis 2×2. Each one of those people are worth $400 monthly residual income to me. So that’s $2800 in monthly residual income I earned my first week in Regenesis 2×2. Right Now i’m currectly sponsoring one person per day in Regenesis 2×2.

The great thing about Regenesis 2×2 is you never have to sponsor a single person to get paid every month starting with your first month. If you join Regenesis 2×2 and you sponsor no one in the program your still make $1200 every monthly in residual income. The bottom line is there’s no other program on the internet that’s paying there members $1200 a month in Emails.

Let me also clear something up becuase there’s alot of people saying Regenesis 2×2 is a Scam because theres no product. Well let me be the first to tell you that’s not true Regenesis 2×2 does have a product, and is 100% legal.

When you join Regenesis 2×2 your going to get 300 business opportunity seeker leads, a free website, a free capture page, a free autoresponder, 2 people placed in your matrix, and all the advertising tools your need to be success with this program. Now when you join my team your also going to get a team website built for you 100% free so your Regenesis 2×2 business can be on complete autopilot. Plus your going to get access to my team only training website where I reveal my secret marketing techniques.

Before I end this short article let me say this, if your truly looking for a way to make at least $1200 monthly without sponsoring anyone please take a closer look into Regenesis 2×2 it will truly change your life like it changed mines.

To Your Success!
John Hostick

Source by Brother John Hostick

Review of the Beauti-Control Home Based Business Opportunity

Beauti Control Cosmetics is a company that offers quality beauty products in the US and Canada at an affordable price. The cosmetics giant has built a powerful brand in the industry and has been a strong growth company for over 25 years. The company provides products such as wrinkle creams, shampoos and conditioners, makeup, along with body and hand lotions. Beauti Control also offers a chance to build a home based business for anyone that is willing to promote their products.

Beauti Contol is headquartered in Carrollton, Texas and has been written about in such publications as Business Week and Forbes. The home based business opportunity that the company provides is in direct sales and based on the multilevel marketing business model. In multilevel marketing, your goal as an independent consultant would be to build a team of consultants which would constitute you ‘downline’. You would be able to earn commissions on the amount of products that you sell, but the real money is in earning money from your team sales. This strategy is a way to earn a ‘residual’ or learn from the efforts of those that join you in business.

The company makes products for men also, and men do have the option of joining Beauti Control as a consultant. The going rate to start a home based business with Beauti Control is $125. With that startup fee you are provided with a start up kit that includes products and company literature.

If you are curious as to how you would start in building a team, your first option is to promote your products to friends, family, and other associates. This is considered the warm market approach, and it is the whole basis of the multilevel marketing/direct sales industry. Once someone in your warm market joins you in business, your next goal is to explore your new business partners personal warm contacts. And the process goes on and on until you have built an organization that provides a steady income stream.

It is extremely important that you investigate what type of sales and marketing training you will recieve before making a commitment with Beauti Control. Most direct sales companies are very weak in this area, and it would be wise to know all the facts in order make an informed decision.

This business can be extremely exciting and profitable if you understand how it operates and what it takes to succeed. But, it can also be very frustrating and sometimes disheartening if you don’t understand the pitfalls and how to avoid them.

Source by J. Elias

Buying An Existing Self-Storage Facility

Whether you’re an experienced self-storage investor or exploring the opportunities that exist in this industry, a baseline understanding of the steps to consider when acquiring a facility will aid in making smart decisions.   The entire process and step by step process could better be explained in volumes, rather than a few paragraphs – So this introductory article will attempt to serve as a framework for future considerations.  

One of the first steps is to contemplate why you are embarking on this journey to begin with.  Are you already aware of or currently in the industry and looking to grow?  Or have you heard that these properties are cash cows that provide massive amounts of developing, and decided to look further into the business.  What experience and resources do you bring to the table to successfully follow through on starting the business? Do you plan to perform the onsite or offsite management duties or will you hire a third-party management company?  Do you have the financial wherewithal and means to finance such an under taking? Will you have other investors and, if so, how will their returns requirements factor into your business model?

Next comes the task of finding a property that matches your personal investment criteria.  Are you looking for a Class A, institutional grade property, or are you more interested in buying a Class C “fixer upper” with the ability to create value?  A Brief list of the Physical aspects to consider are as follows:
    Is the property in a residential/retail setting?
    Is it conveniently located to its market – or off the beaten path?
    Does the property have good visibility on a road with a high traffic count?
    Does the site layout provide for ease of access?
    Is the Unit mix desirable, or functionally obsolete? If not, can they be changed?
    Is there a leasing office on-site?
    How’s the Curb appeal? Are the buildings, roof, paving in need of repair?
    Can the facility be expanded?
    Is there an opportunity to create value with retail, truck rental, temp control, etc?

Operational Performance:

How does the historical performance of the facility Look?
•    Review both economic and physical unit occupancies to look for trends and any cycles due to the market.  This may also uncover hidden opportunities.
•    Is the revenue trending upward, downward, or stagnant.  Has all the revenue been identified? Are there additional opportunities for untapped revenue by adding ancillary income streams?
•    Are expenses between 28-35%?  Can they be reduced? Do the reported expenses look realistic (unfortunately, in most cases, they are not!

Cap Rate and Valuation

How does this facility perform as an investment?  Does it meet your required rate of return given compared with the amount of equity and time you plan to contribute to the project?  Would you be better off in the stock market? (I’ll withhold weighing in here, as I am definitely biased towards Self Storage and Commercial Real Estate.  Most buyers (this author included) focus primarily on the trailing income and expenses to derive a current Net Operating Income and attempt to determine a value by applying cap rate in line with the market, or their desired rate of return. Other investors will look at the cost per unit, or cost per square foot, cash on cash yield, and internal rate of return.   I tend to focus on NOI and Cap rate, but it’s important to use all the information gathered to project future income and returns.

The reason we care how the property has performed in the past is to project how it will perform in the future.   Further Items to Consider when basing your investment decision are as follows:
•    Can rates and additional revenue be realistically increased and, if so, when and how often?
•    Will Property Taxes increase based on the sales price, and when?
•    What will the payroll/management costs look like under my ownership structure?
•    Are there deferred maintenance items that will need to be addressed immediately after acquisition?
•    Will the Advertising budget need to be increases or will it decrease?
•    What is the cost of my Debt capital (1st and subsequent mortgages)
•    What will be my exit strategy?  Time Frame? Projected Profit upon Sale

Market Demographics

Most Professionals in the self-storage industry believe that demand should be estimated based on available square feet per capita. Each market is different which is why it’s useful to look at current demographics to determine the drivers of demand. Some key parameters include:
•    Number of Housing units
•    Housing type—rental, single-family, multi-family
•    Household size
•    Household Median income
•    Percentage of renters vs. Home owners vs. commercial clients
•    Home and lot sizes
•    Retail activity levels

Those parameters should then be considered in the light of projected demographic trends. What is the Projected population trend over the next five years? Will there be income growth? Does the average income or net worth in the marketing area support self-storage rentals? Is the market essentially stabilized, or in a state of decline in both # of potential renters and average income level.  


When sizing up the competition, it’s important to include location but, more importantly, their management and marketing prowess. Do they cut rates dramatically to build occupancy or strive to raise rates in the market? Are the properties comparable or off the beaten path less and with less than attractive curb appeal? Are there significant barriers to entry in the market?

Barriers to Entry

Barriers could be financial such as the cost of the land, availability of sites or community attitude as reflected in zoning ordinances. A call to the local planning and zoning authority will provide information as to future competitors.

Intrinsic Value – What’s it worth to me?

This may be the most overlooked aspect of the analysis by a buyer. Unless a buyer defines expectations, how can he/she know if the property will meet them? Unfortunately, most buyers spend a great deal of time considering their entry to a specific industry or market but little time contemplating an exit. Target how long the property will be held as defined by time, occupancy, income, Return on income/equity, or other parameters. When considering a property and its viability as an investment, a buyer should strongly consider how those parameters will impact the property’s eventual sale/disposition.

Buying a self-storage facility is much more about the investor’s goals, objectives and expectations than the facility itself. The acquisition process should match the qualities of a facility to the goals and required rate of return of the buyer to find a ensure success.  

Source by Scott Meyers

Home Based Photography Business – How To Get Paid Taking Pictures

Home based photography business can be a lucrative business. You can earn as much as $40,000 per year or even more. The best thing is you don’t need fancy stuffs to get started. All you need is just a simple digital camera preferably 8 megapixels and above, adobe photoshop software, computer and an internet connection.

1. Start Taking Pictures

The first thing you need to of course start taking pictures. You can take any picture but make sure the picture that you take is professionally looking. That’s why you will need adobe photoshop, to polish your picture a little bit.

2. Identify Your Business Model

There are two types of business model for home based photography business. Those who take order for special events such as wedding or sweet 17, and those that sells their pictures for royalty income.

You can also sell your photos to online stock photography sites where you can get paid on a recurring commission each time someone buys your photos.

What is your strength and weakness? Are you a single mom or college student? Can you afford to travel for days?

Answering those questions will help you uncover your business model.

3. Promote Your Business

No matter how good your product, you need to spread the words about it. Your product will not promote itself. You, as the creator of the product, that will need to promote the product.

After you identified your business model, now you can choose how you would like to market your service.

If you choose to take order for special events, you might want to create simple website and put advertising at your local newspaper or through pay-per-click search engine such as Google Adwords.

Because you offer your service directly, you can afford to charge higher price even though the job will make you feel more tired.

Another alternative is to sell your pictures for royalty income to websites such as or Through these websites, you can earn make money online for selling your photos for royalty income.

Source by Ricky Lim

Israel: the Next Tax Haven for New Olim

Many good stories begin with an extraordinary idea – usually somebody else’s. This one is no different.

Two old friends, partners in a new-age web commerce business, stopped for a coffee at one of their favorite bistro bars in Los Angeles, after another routine meeting with a vendor.

Simon added some sugar to his latte and said, “Israel is about to provide us a once-in-a-lifetime opportunity for its 60th anniversary.”

“I prefer not to jump to conclusions before they pass the law in the Knesset,” answered Jacob.

“True, but I’m already looking forward to watching as the country with the heaviest tax burden in the world creates a new individual tax haven – all for the sake of its coming birthday.”

A recent proposal making its way to the Knesset for legislation offers a ten-year tax exemption on foreign income. If the bill passes into law without any last-minute changes, I believe it will create a unique opportunity for new immigrants and returning expatriates to live in the Holy Land for ten years without paying any taxes to the State of Israel on their income generated abroad.

The new individual tax haven our heroes from LA were talking about could theoretically be structured in the following way.*

Two shareholders, each holding a 50% interest in a US corporate entity, generating income through web commerce in the US, agree that one of them (who may be making Aliyah for personal reasons) will purchase 49% of his partner’s stake for $100,000 before leaving the US. From his residence in the Holy Land, our new immigrant continues earning income abroad by providing services to the corporation (which continues to issue him W-2 or 1099 forms). In addition, the US corporation distributes annual dividends to him.

Let’s assume the new immigrant receives an annual salary of $80,000 and an annual dividend of $20,000. In such a scenario, the entire $100,000 is tax exempt in Israel for the ten-year incentive period, since this income is generated abroad by assets in the immigrant’s possession prior to Aliyah.

On his US tax return, our dual-citizen Israeli exempts his $80,000 of earned income from taxation by using the foreign earned income exclusion. Given that the standard deduction and personal exemptions will usually exceed the $20,000 dividend income amount, the US tax liability on the dividend will be zero.

Fortunately for our heroes, the global e-trade continues to expand and corporate profits grow. After nine years and 11 months, our dual-citizen decides to sell all of his shares to his partner, or to a third party, for the amount of $1 million and to retire. The approximately $900,000 in capital gains is still tax exempt in Israel and is taxed in the US at reduced capital gains rates of 15 percent or less.

Our new Israeli could deposit a portion of the proceeds received from this sale into an American pension plan. According to current Israeli regulations, a retired immigrant pays taxes on his foreign pension income at the same rate he would have paid had he remained abroad. Because the tax brackets in the US “kick in” sooner than in Israel, usually there is no tax due in the US on pension income of approximately $20,000. The possible outcome for our hypothetical dual citizen is: no taxes due in the US or in Israel on his pension income.

Under the proposed tax incentive package, there is a real possibility for people like our hero to make Aliyah and live out their lives in a Holy Land tax haven.

But that tax haven can easily become a “honey trap” for the unprepared immigrant. While such tax exemptions are definitely an effective means of promoting immigration to Israel, they can also lead to very unpleasant surprises down the road. Eventually, the immigrant – perhaps no longer so “new” – will suddenly learn first-hand about the extent of the taxes he’s been exempted from for the previous decade. New immigrants benefiting from the proposed tax relief would do well, therefore, to plan for the “day after” in consultation with knowledgeable Israeli financial advisors.

On the national level, too, there are dangers inherent in the proposed tax exemption law. As it now stands, it opens the door to tax evasion, criminal activities and money laundering.

The current proposal includes an Israeli filing exemption for foreign generated income. Coupled with the fact that there is no general filing requirement in Israel, local tax authorities simply won’t have any reliable information about new residents utilizing the proposed exemption.

Tax authorities in Israel generally turn the spotlight on someone’s activities only if that individual opens a file with the Income Tax Authority. As a result of the proposed filing exemption, however, no files will be opened and the Income Tax Authority won’t have a clue as to the scope of income generated abroad and flowing into Israel – whether from legal business activities, in the best case scenario, or from illegal or fictitious activities, in the worst. Amendment of the proposed tax exemption to include a reporting requirement could maintain order and provide essential information to the tax authorities.

Instead of the problematic proposed tax filing relief law, I believe that increased immigration to Israel, and reduced emigration, can be more easily achieved by reducing corporate and individual tax rates for all Israelis. With tax rates and tax brackets for earned and develop made comparable with those of developed Western countries, the Holy Land will quickly become a desirable place for both global and local business activities.

* The hypothetical case described above should not be considered tax advice and is provided for discussion purposes only. For responsible financial planning, consult with a professional tax advisor.

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Source by Baruch Grossman – CPA