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A federal jury in New York on Thursday convicted an investor of insider trading in the stock of a shell company ahead of its announcement in October 2021 that it would merge with Trump Media . Two co-defendants of Garelick, the brothers Michael and Gerald Shvartsman, pleaded guilty to insider trading charges on April 3. "Garelick's federal conviction is yet another stark reminder that insider trading is always a losing bet." DWAC and Trump Media completed their merger in late March. Trump Media hired a new auditor, Semple, Marchal & Cooper LLP last weekend to replace BF Borgers.
Persons: Bruce Garelick, Donald Trump, Stormy Daniels, Michael, Gerald Shvartsman, Garelick, Michael Shvartsman's, Damian Williams, Williams, DJT, Benjamin Borgers, Semple, Cooper Organizations: Manhattan Federal Court, Trump Media, Trump, Garelick, Rocket, Prosecutors, Acquisition Corporation, Trump Media & Technology Group, Manhattan U.S, Public, Securities and Exchange Commission, SEC, BF, CPA, Marchal Locations: Manhattan, New York City, New York, U.S
Trump Media hired a new auditor over the weekend, after its previous public accounting firm was accused Friday of perpetrating a massive fraud by the Securities and Exchange Commission. Trump Media said it had engaged Semple, Marchal & Cooper LLP on Saturday to replace BF Borgers. The ban required Trump Media and other public companies that had used BF Borgers to find new auditors. CNBC also requested comment from Phoenix-based Semple, Marchal, whose website said the firm in its four decades of operation it has "become a preeminent, and highly respected, certified public accounting firm." Trump Media was not yet publicly traded at the time of the alleged conduct by BF Borgers.
Persons: BF, Semple, Cooper, Donald Trump, BF Borgers, Marchal, Benjamin Borgers, Borgers Organizations: Trump Media, Securities and Exchange Commission, CPA, SEC, Marchal, BF, Company, Trump, CNBC Locations: Phoenix, Lakewood , Colorado
SEC charges Trump Media auditor correction
  + stars: | 2024-05-03 | by ( ) www.cnbc.com   time to read: 1 min
The auditor, BF Borgers CPA, and its owner, Benjamin Borgers, agreed to pay a combined $14 million in civil penalties, without admitting or denying the allegations, the SEC said. An earlier version misstated the terms.
Persons: Benjamin Borgers Organizations: BF, CPA, SEC
The auditing firm for Trump Media and the auditor's owner were charged Friday with "massive fraud" by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings, the federal regulator announced. The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, without admitting or denying the allegations, the SEC said. The agency, calling BF Borgers a "sham audit mill," said the company and its owner engaged in "deliberate and systemic failures to comply with Public Company Accounting Oversight Board ... standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023," according to a press release. BF Borgers during that same time acted as the auditor for Trump Media, which was then privately held and moving toward a planned merger with the publicly traded shell company Digital World Acquisition Corp.Trump Media and DWAC finalized that merger in late March 2024, leading to Trump Media becoming publicly traded under the DJT ticker. The SEC said the Lakewood, Colorado-based BF Borgers and its owner were charged with falsely telling clients that the auditor's work would comply with PCAOB standards, fabricating audit documents to make it seem that the work did comply with those standards, and "falsely stating in audit reports included in more than 500 public company SEC filings that the firm's audits complied with PCAOB standards," the release said.
Persons: Benjamin Borgers, BF Borgers, DWAC Organizations: Trump Media, Securities and Exchange Commission, SEC, BF, CPA, Company, Corp Locations: Lakewood , Colorado
Trump Media's stock price dropped on Friday after its auditor was accused of "massive fraud." The auditor BF Borgers did not comply with common accounting standards, the SEC said. BF Borgers CPA PC, which audited the financials of Trump Media, had "deliberate and systemic failures to comply" with public company accounting standards, the regulatory agency said. BF Borgers settled the SEC charges by paying a $12 million penalty, while Borgers, the owner, paid a separate $2 million penalty. "Trump Media looks forward to working with auditing partners in accordance with today's SEC order," a spokesperson for TMTG said.
Persons: BF, , Benjamin Borgers, BF Borgers, Borgers, Ben Borgers, Gurbir Grewal, TMTG Organizations: Trump, SEC, Service, Trump Media, Securities and Exchange Commission Locations: SEC's
A California-based Gen Xer began secretly working two remote tech jobs in 2020. He made over $1 million in 2022, which allowed him to travel and send his kids to private school. In 2022, Dave earned over $1 million across his two remote jobs, including sales commissions, according to documents viewed by Business Insider. Last, he said people shouldn't feel bad about secretly working multiple jobs. AdvertisementAre you working multiple remote jobs at the same time and willing to provide details about your pay and schedule?
Persons: Xer, , Dave, he's, who've, he'd, hasn't, jugglers, didn't Organizations: Service, Business Locations: California, America, Europe
Even the human-resources firm retained to help employees with offboarding, Tandem, quit soon after the layoffs because it never got paid. Shannon Flynn Bevers, Tandem's president and founder, said that she tried to help employees but that Johnson stopped responding. "When startups go out of business, they will pay employees their final paycheck. Johnson told employees to take a weeklong furlough and blamed the issue on a technical snafu. She also told employees they could file a claim with their state labor department or hire an employment lawyer.
Persons: Slack, Shiloh Johnson, Johnson, they'd, Benjamin Matthews, Shannon Flynn Bevers, I've, Flynn Bevers, VCs, Josh Felser, Aerin Paulo, ComplYant's, I'd, ComplYant, podcaster David Sacks, Michael Tam, Tam, Matthews, Ryan Cady, Lusely Martinez, Martinez, Cady, paychecks, wasn't, Taliah McGuire, McGuire, what's, Shiloh Luckey, Penelope, We've Organizations: Business, offboarding, . Venture, BI, Craft Ventures, ComplYant, Mucker, Slauson, — Mucker, Fika Ventures, Employees Locations: Los Angeles, Shiloh, San Francisco, Colorado, New York, TikTok
New York CNN —If you won big on bets you made for the March Madness men’s and women’s NCAA tournaments, enjoy the money. So if you made bets last year, here’s what you need to do on your 2023 tax return, which is due for most people on April 15. Your winnings also may be subject to state tax, unless you live in the dozen or so states that exempt gambling winnings. It will then be up to you on your tax return to square whether you owe more or less on your winnings. So say you won $1,000 in 2023 at the tables in Vegas, but you lost $1,500 betting on last year’s March Madness tournament.
Persons: , Mark Luscombe, Luscombe, ” Luscombe, Daniel Rahill Organizations: New, New York CNN, NCAA, American Gaming Association, IRS, Wolters Kluwer, Accounting, Wintrust Wealth Management, Illinois CPA Society Locations: New York, Vegas
Whether you're an active cryptocurrency trader or you've dabbled in the word of virtual currency, the IRS wants to know. This year, the term "digital assets" replaced "virtual currencies," which was used in previous years. The IRS defines digital assets as "a digital representation of value recorded on a cryptographically secured distributed ledger or similar technology." It names crypto, stablecoins and non-fungible tokens as examples. "If you're in the crypto space and you do any transactions, it's really hard for you to say no for that question," he tells CNBC Make It.
Persons: Shehan Chandrasekera Organizations: IRS, CNBC
Investing without owningLike real-estate investment trusts (REITs), real-estate funds provide exposure to the tangible asset class without owning and managing property. Investing directly through a private real-estate fund would take a few extra steps. The process requires an investor to identify a real-estate fund of interest. Once that's completed, funds from the retirement account are directly transferred into the real-estate fund. It's also important to read the terms of each fund; some may have added costs for repairs, expenses, and maintenance, which your IRA funds would cover.
Persons: Paul Daneshrad, Daneshrad, He's, we're, Dow, there's, Roth, that's, Gary Diamond, Fishman, Diamond, It's Organizations: Starpoint, Business, Federal, CPA
So when she heard about a particular tax strategy on a podcast about two years ago, it surprised her that she'd never come across it. Cost segregation. According to Rocket Mortgage, a cost segregation study takes about a month or two to complete. AdvertisementIt's also worth keeping in mind the rules around cost segregation from the Tax Cuts and Jobs Act of 2017. AdvertisementThen there's the cost of a cost segregation study.
Persons: Anne Curry, she's, hasn't, she'd, Curry, Bernard Reisz, you've, Reisz, It's, it's, , there's, I'm, who's Organizations: Service, Rocket Mortgage, Internal Revenue Service, Business, CPA Locations: New York City
Austin Bowlin, a CPA and partner at Real Estate Transition Solutions, is finding this out among his investor clients. "But a 1031 exchange in and of itself isn't the sole answer because now they have to figure out, 'What would I exchange into?'" If they buy another investment property, they're back where they started: actively managing a different property. And, thanks to a 2004 ruling by the IRS, DSTs are 1031 exchange eligible. That said, "most of those risks are what the owners are accustomed to, having owned and managed investment real estate.
Persons: , It's, Austin Bowlin, they're, He'll Organizations: Service, Business, CPA, Real, Delaware Statutory Trust, IRS, SEC Locations: California, Delaware, Texas, Florida, Washington, Nevada
Then, open separate business checking, business savings, and business credit card accounts to keep your personal and NIL business finances separate. To determine if you need to make quarterly estimated tax payments, consider having a CPA run a tax projection for you. Federal quarterly estimated tax payments typically include federal income taxes and self-employment taxes, which are 15.3% of your net income. State quarterly estimated tax payments vary by state, so check with your tax professional. Plan for multiple state income tax return filingsAs a student-athlete, it is likely that you will earn NIL income in multiple states.
Persons: Organizations: Student, Service, NCAA, IRS, CPA, Block
By then, he had sold his short-term rental property for a profit, but he still owned other long-term rentals. Therefore, they used the real-estate professional status and bonus depreciation to reduce their taxable income. The main one is through the short-term rental tax loophole (STR loophole). For example, Eileen pointed to Henderson, Nevada, which won't allow a short-term rental permit for a house if there is a permit for an existing short-term rental within 1,000 feet. Deductions would cancel out the taxes owed from the property's revenue, and what is left will reduce your W2 taxable income.
Persons: Michael Hyun, Joshua, Hyun, Eileen Kim, Eileen's, Michael, Brandon Ford, Eileen, Ford, Michael said, you'll Organizations: Business, CPA, IRS, Tax Relief, American Families and Workers Locations: Joshua Tree , California, New York City, San Francisco, Santa Monica , California, Henderson , Nevada, San Jose , California, Alameda County
Investors are celebrating a year of easy-to-obtain interest income, but the Tax Man will want his slice this spring. Institutions report interest income of $10 or more to their customers and the Internal Revenue Service on Form 1099-INT . For instance, you can be on the hook for an accuracy-related penalty of 20% of the underpayment of the tax. Interest income from these I bonds is subject to federal income tax, but investors don't receive it until they redeem the bond or it matures. "It might be worth it to buy the MLP and pay the tax," Kearns said.
Persons: Elizabeth Buffardi, Buffardi, you'll, Jerrod Pearce, Adam Markowitz, Brian Kearns, Kearns Organizations: Internal Revenue Service, IRS, CPA, Creative Planning, Luminary, CFP, Haddam, Advisors, MLP Locations: Oak Brook , Illinois, Overland Park , Kansas, Windermere , Florida, Evanston , Illinois
While she has some knowledge of how accounting works, Buffett writes, she wouldn't pass a CPA exam. A major asset for Bertie and investors like her: "She is sensible — very sensible — instinctively knowing that pundits should always be ignored," says Buffett. "Bertie understands the power — for good or bad — of incentives, the weaknesses of humans, the 'tells' that can be recognized when observing human behavior," Buffett writes. And so far, so good," Buffett writes. "Soon, things turned around and now that index hovers around 38,000," Buffett writes.
Persons: Warren, Berkshire Hathaway, you'll, Buffett, Bertie —, Bertie Organizations: Berkshire, YouTube, Dow Jones Locations: Berkshire, America
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewWarren Buffett on Saturday released his annual letter to Berkshire Hathaway shareholders, offering subtle investment advice to readers who may be looking to grow their wealth the way the centibillionaire has. When you find a truly wonderful business, stick with it," Buffett writes. "Patience pays, and one wonderful business can offset the many mediocre decisions that are inevitable." Advertisement"One investment rule at Berkshire has not and will not change: Never risk permanent loss of capital.
Persons: , Warren Buffett, Buffett, lauding, Bertie, Berkshire Hathaway, Coke, Patience Organizations: Service, Berkshire Hathaway, Business, Street Journal, Express, Berkshire, American Express Locations: Berkshire
Not everyone qualifies for bonus depreciation deductions by default. “Any property could qualify for accelerated and bonus depreciation,” said Brandon Ford, a CPA and finance director at C3, a real-estate investment firm. Determining the deductibleOnce you qualify for the deduction, you must determine how much you can claim from bonus depreciation. To determine what Michael could deduct, he reviewed his property tax statement, a publicly available record on the county website. In order to qualify for bonus depreciation, he ordered a cost segregation study, which is a third-party service similar to an appraisal.
Persons: Michael Hyun, Eileen, Michael, what’s, , Eileen’s, Brandon Ford, Michael said, Ford, ” Ford, Hyun, , That's Organizations: Business, Bay Area, IRS, CPA Locations: California, Bay, Alameda County
1 reason to use a business bank account. However, it is essential that you do not overlook the value of opening a business bank account — usually both a business checking account and a high-yield business savings account. Here are four things I tell my business owner clients to consider when choosing a business bank account. Ease of paying contractorsSome business bank accounts, especially online accounts, offer free invoicing and bookkeeping software/features. If you use accounting software (such as QuickBooks) to manage your business finances, accessing a business bank account that offers integration features may be desirable.
Persons: Organizations: Service
But everyday filers could still face an audit — and certain issues are more prone to IRS scrutiny, experts say. Audit rates of individual income tax returns decreased for all income levels from tax years 2010 to 2019, largely due to lower IRS funding, according to a report from the Government Accountability Office. Here are some of the biggest IRS audit red flags. Unreasonable tax breaksAnother red flag could be excessive deductions compared to what's considered normal for your income level, according to Losi. Earned income tax creditThe earned income tax credit, a tax break for low- to moderate-income workers, has historically been scrutinized "because the refundable part attracts certain bad actors," said Steber.
Persons: Ryan Losi, Mark Steber, Jackson Hewitt, Steber, what's, Losi, Erin Collins Organizations: Getty, IRS, Office, NEC, lotto, Center, filers Locations: Syracuse, U.S
What it’s really like to go to the Super Bowl
  + stars: | 2024-02-10 | by ( Harmeet Kaur | Scottie Andrew | ) edition.cnn.com   time to read: +14 min
The person who attended the Super Bowl nine timesMike Quackenbush has been to the Super Bowl nine times — but he didn’t personally pay for tickets because, technically, he was there on business. It’s a great event and I was super lucky to go all those years.”The first-time Super Bowl attendee who went during the pandemicChelsea Bear was all smiles at the 2021 Super Bowl. Lennox McLendon/AP Most rushing yards in a Super Bowl: Washington quarterback Doug Williams won the Super Bowl MVP award in 1988, but rookie running back Timmy Smith set a Super Bowl record that year with 204 rushing yards against Denver. Ezra Shaw/Getty Images Longest pass in a Super Bowl: Carolina wide receiver Muhsin Muhammad caught an 85-yard touchdown pass from Jake Delhomme during Super Bowl XXXVIII in 2004. Paul Sancya/AP First score in Super Bowl history: In the first quarter of what we know now as Super Bowl I, Green Bay Packers wide receiver Max McGee scored a touchdown on a 37-yard pass from Bart Starr.
Persons: who’ve, who’d, , he’d, Mike Quackenbush, didn’t, Quackenbush, Washington Redskins —, , he’ll, Peyton Manning’s, it’s, It’s, Bear, Chelsea Bear, Chelsea Bear’s, Chloe, ” Bear, couldn’t, Tom Brady —, I’ll, San, Judy Abad, , Steve Young, Tom DiPace, Tom Brady, Brady, John David Mercer, Jerry Rice, Lennox McLendon, Doug Williams, Timmy Smith, Bob Galbraith, Rod Martin, Jeff Roberson, Bill Belichick, Belichick, Al Bello, Baltimore's Jacoby Jones, Ezra Shaw, Muhsin Muhammad, Jake Delhomme, Brian Bahr, Willie Parker, Paul Spinelli, Pittsburgh's James Harrison, Kurt Warner, Leon Lett, Lett, Buffalo's Don Beebe, Rick Stewart, Manny Ramirez, Peyton Manning, Denver's Knowshon Moreno, Paul Sancya, Max McGee, Bart Starr, McGee, Neil Leifer, Scott Norwood, Phil Sandlin, Abad, ” Abad, Mike Ryan, Chris Jeter, Ryan, Patrick Mahomes wasn’t, “ I’d Organizations: CNN, Super, Kansas City Chiefs, San Francisco 49ers, NFL, Super Bowl, NFL Players Association, Bowls, Washington Redskins, Buffalo Bills, Chelsea, Chiefs, Tampa Bay Buccaneers, South Florida, Bucs, New England Patriots, Philadelphia, Patriots, Atlanta, USA, Cincinnati, Famer, Washington, Denver, Oakland, Raiders, Philadelphia Eagles, New, New York Giants, Ravens, San Francisco, Getty, Pittsburgh, Dallas Cowboys, Rose, Green Bay Packers, San, 49ers, Buffalo, Bills, Kansas City, Bowl, I’m Locations: Tampa, San Francisco, Diego, Francisco, New England, Carolina, Denver, Seattle, Kansas, Miami
The tax return my CPA prepared instead reported a $16,000 gain, and it took months to fix the error. I get started with tax season in January now — even with a CPA, things can go awry. They had helped me resolve an issue with a previous tax return. Content to have identified the problem, I reported my findings, expecting my CPA would simply amend the return. If I had known how day trading could complicate my return, I might have changed my approach.
Persons: , aren't Organizations: CPA, Service, GameStop
A boomer Uber driver's business had over $100,000 in earnings but only $20,000 in profits. But after Uber took its cut and his driving expenses were accounted for, his profits fell to about $20,000. The $44,000 deduction was an estimate for tax purposes, so it's possible his true vehicle expenses weren't quite that high. AdvertisementThat said, commissions and driving expenses took a significant cut out of his business's profitability. His first year driving Uber, 2016, was more eventful than he anticipated: He got caught in Hurricane Matthew while driving in Norfolk, Virginia.
Persons: boomer, , Dean Ceran, Kia Forte, Uber, he's, Ceran, it's, haven't, they're, Lisa Greene, Lewis, Greene, — Ceran Organizations: Uber, Service, BI Locations: Virginia, Hurricane, Norfolk , Virginia
Tax filing season officially started on Monday, and investors could pay the price following last year's stock market bonanza. Meanwhile, investors collected yields exceeding 5% in money market funds, certificates of deposit and high yield savings accounts. In New York, the top income tax rate is 10.9%, and it's 13.3% in California. Vanguard's New York Municipal Money Market Fund (VYFXX) has a 7-day SEC yield of 4.25% and an expense ratio of 0.16%. Fidelity offers the California Municipal Money Market Fund (FSPXX) , which has a 7-day yield of 3.54% and an expense ratio of 0.3%.
Persons: Tim Steffen, Brenna McLoughlin, you've, McLoughlin, Vanguard's, Sam Nofzinger, Steffen, it's, There's Organizations: Baird, Wealthstream Advisors, York Municipal Money Market Fund, SEC, Fidelity, Money Market Fund, Public Locations: Milwaukee, New York, California, York,
But there's a catch with conventional assets: the wash sale rule . Now, tax professionals are flagging a potential wrinkle that may arise: Even though bitcoin itself isn't subject to the wash sale rule, a spot bitcoin ETF very well may be. Property versus security Under federal tax law, the IRS deems cryptocurrency to be property . Managing limitations At its core, that means investors should avoid swapping in and out of the same spot bitcoin ETF within the 61-day limit if they had sold the position. This also raises the question of whether dumping one spot bitcoin ETF for another would be deemed substantially identical.
Persons: Stephen Turanchik, Paul Hastings, Andrew Gordon, Dan Herron, Richard LaFalce, Morgan Lewis, Turanchik Organizations: Internal, Digital, Tax, Force, American Institute of CPAs, IRS, Gordon Law Group, Elemental Wealth, Investors Locations: San Luis Obispo , California
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