Libman Tax - June 2019

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LI BMAN 'S AWESOME LETTER

LIBMAN TAX STRATEGIES

JUNE 2019

Do You Know What Time It Is? A Mid-Year Evaluation With Your Favorite Tax Strategist

Hello, everyone! I’m back from the annual mental break I take following tax season. While my mind still feels a little broken, I’m back to being a functional member of society. I’m a human again — or at least, I’m trying to be. Even though I’m still getting back into the swing of the allegedly “normal” life I live for nine months of the year, I still want to use this time to impart some important tax wisdom. We’re in the month of June, which means summer has officially started. As you brainstorm awesome ways to keep your kids (who are fresh out of school and probably already bored out of their minds) busy during the summer break, I encourage you to make an appointment with me for a mid-year evaluation of your tax planning. I know many of you just saw me a few months ago, but personal and financial events — such as sending a child off to college, retiring, or getting married — happen throughout the year, and they all can have a big impact on your taxes. If you wait until the end of this year or even next spring to factor those changes into your tax planning, you might have waited too long. We can also evaluate your profit to income ratio for this year. This information will determine which changes, if any, you need to make be as successful and profitable as possible in 2019. “I know many of you just saw me a few months ago, but personal and financial events — such as sending a child off to college, retiring — or getting married, happen throughout the year, and they all can have a big impact on your taxes.”

During past mid-year evaluations, several of my clients discovered that they needed to add new marketing channels to increase their revenue, decrease expenses, or entirely overhaul their operations process. Changes like these can be made with a mid-year evaluation. Other clients find that they are headed in the right direction during their mid-year evaluation; no changes are needed, and they can continue through the rest of the year with some peace of mind.

All in all, while taxes might be the last thing on your mind as you start planning those awesome summer vacations, you’ll live out the rest of your year with a little less hassle

if you pay me a visit now. Give me a call at 626.280.6865. I know it will suck a little, but I promise that your future self will thank you!

-Adam Libman

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WHY SENIORS ARE FLOCKINGTO HOME-SHARING PLATFORMS An Opportunity for Easy Money and Social Engagement

Home-sharing allows them to tap into these resources. According to Priceonomics, U.S. Airbnb hosts bring in a monthly average of $924.

But home-sharing can do more than boost your income. By opening a room in your home to travelers, you’ll encounter all kinds of people you might never otherwise meet, prompting dynamic social interactions and meaningful connections. The rating systems on Airbnb and similar platforms almost entirely prevent would-be troublemakers from entering your property, and users report that when a rare negative experience does occur, the company typically has your back. It’s a great way to stay socially engaged while staving off loneliness. Best of all, running a modestly successful Airbnb usually doesn’t take much work. It simply requires you to set up a neat, welcoming space, keep in contact with your guests, and ensure the check-in and check- out processes are as straightforward as possible. In fact, senior hosts seem to have a leg up on their younger counterparts, as elderly hosts earn the most consistently positive ratings across the globe. Airbnb and The Freebird Club won’t make you rich, but they’re relatively low-effort enterprises that come with some massive benefits. If you’re looking for a little busywork, some extra cash, and a little social interaction in your retirement, hosting may be your best bet!

The freedom of retirement certainly comes with its perks, but challenges of post-work living exist as well. Chief among them, for most elderly folks, are fears of social isolation and financial insolvency, as having coworkers and a regular income are not as common in retirement. Perhaps this is why so many retirees are flocking to home-sharing platforms like Airbnb or its seniors-only cousin, The Freebird Club. Airbnb reported last year that the 60-plus age bracket is its fastest- growing demographic worldwide, with the number of senior hosts as much as doubling every year. Home-sharing platforms can be a tremendous boon to a tight retirement budget. It’s an especially attractive option to elderly folks who find themselves rich in assets but struggling with liquid finances.

Some Pretty Cool Clients!

Claude and Audrey

Having spent the greater part of my life helping manage people’s financial affairs, I’ve learned the importance of maintaining professionalism in certain work environments — I’ll admit, I usually learn best through my own misfortune. But while I do take my job seriously, I love having awesome clients who make the day go by a little faster by making me laugh. Claude Johnson and his super special someone Audrey are the best examples. Claude and Audrey have been clients of mine and my dad’s for over 30 years. During that time, I’ve dubbed them the funniest couple I know. I’m not exaggerating; I actually make sure I use the restroom before I meet with them because they make me laugh so hard. (Sorry if that’s too much information!) Sometimes we joke that we spend so much time laughing during our appointments that I don’t get any work done. Lately, this claim seems like more than a joke. Their daughter, Sarah, joins them from time to time, as she is also one of my clients. Let me tell you, the funny bone certainly runs in the family.

Claude and Audrey are retired now, but they still make a point to stay active in the community by participating and funding several amazing charities. They are the type of people you meet and immediately want to go out and grab a burger and a beer with. I look forward to seeing them every year. Thank you, Claude and Audrey, for making my job fun and for making my ribs hurt from all the giggles. You two are awesome!

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Making Beauty Out of Pain

BLT Dogs

HEATHER MORROW AND HER AWESOME BUSINESS, POTTERY DAILY

Inspired by FoodNetwork.com

Is a hot dog a sandwich or not? We’re not here to weigh in on the ever-contentious debate, but when you combine a hot dog with a BLT, it definitely becomes more sandwich-like — and way more delicious.

INGREDIENTS

4 strips bacon

1 head romaine lettuce, shredded 1 large tomato, seeded and diced Salt and pepper, to taste

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4 hot dogs (ideally Boar’s Head Beef Frankfurters, but any all-beef variety will do)

4 hot dog buns

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1 tbsp mayonnaise

DIRECTIONS

It’s a common societal belief that great art comes from great pain: Van Gogh painted “The Starry Night” while in emotional torment; Lennon and McCartney forged their creative partnership following the death of their respective mothers; Milton penned “Paradise Lost” after losing his wife, his daughter, and his eyesight. I’ve always been fascinated by artists’ ability to take their negative experiences and use creative outlets to work through them in a healthy way. But perhaps none have impressed me more than my client Heather Morrow. After her first husband tragically passed away from cancer, Heather sought out her creative soul to help her feel more tethered and grounded. She started by painting and then joined a wheel-throwing class, finding that she had a deep connection to the process. Her business grew out of her passion for pottery. Pottery Daily is a company she created to share her adventures, sell her masterpieces, and teach others how to ignite their own love for the craft. Heather also used these experiences to author a book on overcoming loss. While taking her grief and molding it into something beautiful, Heather still maintained her career as a corporate trainer for one of the top law firms in the world. So, she has her own business centered around a hobby that brings her joy and peace, and she also has a job at which she (pardon my language) kicks ass. I seriously encourage anyone and everyone to go to Heather’s website PotteryDaily.com to see her artwork. It’s truly beautiful!

1. Heat a skillet to medium and fry bacon until rendered and crisp. Transfer to a paper towel to drain.

2. Fry hot dogs in bacon drippings, creating a crust, and cook until warmed through.

3. Using a dry skillet or oven, toast buns.

4. Spread mayonnaise on buns, place hot dog and bacon inside, and top with tomatoes and lettuce. Serve. TAKE A BREAK

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'Influence' A Road Map to Closing Deals Business majors and longtime entrepreneurs will be very familiar with this work. And in an age when many shiny new theories on leadership and personal development come out every year, it’s refreshing to revisit a classic that has stood the test of time. Thirty-five years after its original publication, “Influence: The Psychology of Persuasion” should still be required reading for marketers, small-business owners, and anyone else looking to improve their negotiation skills. Written by Dr. Robert Cialdini, “Influence” explores why people say yes. A professor of business and psychology, Dr. Cialdini is uniquely qualified to tackle this question, combining scientific data with practical applications. “Influence” is still a subject of praise, with marketing research groups and journals of psychology lauding the book as a “proverbial gold mine.” You don’t have to get too far into “Influence” to see why. Even if most of your clients are located in other parts of the globe, the place your business calls home is a huge part of your identity. When a company makes a point to get involved locally, it’s doing more than making new connections and getting its brand out there — it’s also making a positive impact on the place it calls home. Most companies experience a slowdown in the summer. Here are some strategies to take advantage of that lull and create a plan for your business to get involved in the community and be a good neighbor. SUPPORT A LOCAL CHARITY Every town boasts its share of charities and nonprofits looking to make a difference. Find a cause you believe in, then help out. This could mean donating a portion of your revenue to a local women’s shelter, volunteering as a company at the soup kitchen, or sponsoring a gala that raises money for a children’s hospital. Supporting charities demonstrates your values and attracts the kinds of customers who share them. JOIN A PARADE This sounds unconventional, but sometimes it pays to think outside the box. Most towns put on a Fourth of July parade in the summer, so why not join in? Building a float could be a great Make a Positive Impact 3 Strategies for Genuine Community Involvement Dr. Cialdini lays out six “universal principles” of the human psyche. These include “Reciprocity,” our tendency to want to return perceived kindness or concessions; “Commitment and Consistency,” our tendency to cling to past decisions; and “Scarcity,” our tendency to assign value to things based on their rarity. While these may sound like

surface level business concepts, the way Dr. Cialdini uses these principles as a launching point gives “Influence” value. With each principle, the author dives into examples of how these psychological elements can be used by you or against you in any negotiation. Take “Commitment

and Consistency” for example. If you are able to get a person to agree with you on several small points, you lay the groundwork for them to agree with you in the future. Conversely, you can be more alert when people try to use this tactic on you. One of the most powerful results of reading “Influence” is that it helps you recognize behaviors you yourself were unaware of. Indeed, that’s the whole underlying thesis of Dr. Cialdini’s work: As social creatures, we all have habitual behaviors geared towards finding common ground with others. Once you are aware of these behaviors, you’ll begin to see conversations and negotiations in a whole new light.

team-building exercise, and a lot of people will turn up and see your mobile advertisement in the parade. Being in the parade shows that you’re part of the community, and when you top it all off by tossing candy to the kids, you’ll really make an impact. WORK WITH LOCAL SCHOOLS Your company could donate school supplies or even sponsor a program. Art and music programs are often the first to suffer from budget cuts, so support from a local business could make a huge difference. Donate art supplies to the classroom, sponsor high school theater productions, or offer scholarships to help young musicians pay for new instruments. Keep the arts alive by helping the kids in your community do what they love. These suggestions require time and resources to pull off, but making the effort can transform your company from just another business in a sea of many to a pillar in your community.

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Did You Hear About the Fake Heiress Who Swindled N.Y.’s Elite? Fake It Till You Make It

In 2016, Beyoncé, one of the most famous singer/songwriters in all of history, dropped her sixth studio album “Lemonade,” a collection of songs that many of her listeners agree is her best work yet. One of the tracks from that album, “Formation,” features the lyrics, “I see it, I want it/I stunt, yellow bone it/I dream it, I work hard/I grind till I own it.” While Beyoncé’s anthem about one’s identity and the value of hard work set the tone for listeners at the time of its release, it failed to reach one particular New York dweller, then 25-year-old Anna Sorokin. After a jury found her guilty of second-degree grand larceny, theft of services, and first-degree attempted grand larceny, the world came to know Ms. Sorokin by her given name. But prior to her arrest, she was known by members in the upper echelon of Manhattan society by another name: Anna Delvey. Anna grew up in a middle-class family from Russia. She left home for an internship in Paris and then relocated to New York in 2014. Fascinated by the “lifestyles of the rich and famous,” Anna elbowed her way into Manhattan's bustling social scene armed with a new identity. She was Anna Delvey, a wealthy German heiress with a trust fund worth 60 million euros.

With her goal of opening a members-only art club on Park Avenue — a 40 million dollar project — Anna forged financial statements and

requested loans from hedge funds and banks. She even created a fictional accountant and financial advisor with fake email addresses that were traced back to her own personal email. While Anna failed in this goal, she did manage to convince a City National Bank executive to give her a line of credit for $100,000, which she squandered on five-star hotels, expensive clothing, and $100 tips doled out to room service. After three years and hundreds of unpaid hotel and restaurant bills, Anna was arrested after racking up and spending $275,000 from her unsuspecting rich friends, acquaintances, and financial institutions. While Anna is facing up to 15 years in prison for her second-degree grand larceny charge, her story continues through the making of a Netflix series about her swindling antics directed by Grey’s Anatomy creator Shonda Rhimes. All of this goes to show that if New York is the city of dreams, Anna was right where she needed to be.

SUDOKU

Here at Adam Libman Tax Strategies, our Diamond Club is invitation only and reserved for our top clients. If you have questions about the privileges that come with being a Diamond Client or want more information, make sure you give Adam a call! Diamond Clients Have You Heard About Our Diamond Club?

• Randy Gleckman * • Jay & Laine Zuckerman * • Ken Ma & Juliana Tu • Max Keylor • Lynn Adkins * • Ms. X

*Founding Members of the Diamond Club

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EnjoyYour Family Time By Taking a Break From Your Phone Setting some time aside to be with family is important, but it can be difficult when everyone is always on their cellphones. Constant cellphone use has become a global problem, and the habit is hard to break because we rely on mobile devices heavily for work, school, and keeping in contact with friends and family. Luckily, there are plenty of apps that can reduce how often you’re on your phone and minimize distractions. SIEMPO After you install Siempo on your phone, it will ask which apps are likely to distract you. Once you select them, the app will move those apps away from the home screen and place the important ones, such as the messaging, contacts, email, and calendar apps, on the first screen. You can also designate times for specific apps to be used throughout the day. STAY FOCUSED Stay Focused is like Siempo, but there are some significant differences. You can set times to access certain apps and put the most distracting ones on lock. Stay Focused also has a “strict mode” that prevents you from uninstalling it, so be sure to think carefully before activating the lockdown because you won’t have access to those specific apps until the timer runs out.

FOREST In the time that Forest takes control of your device for a set time limit, the app starts growing a tree. Once the tree is fully grown, your time

is up, and it joins the other trees that were grown during other breaks. If you pick up your phone and try to access an app, Forest will send you a notification asking you if you want to kill your baby tree by giving up. Who says guilt isn’t a good motivator? BESIDES APPS Aside from using these apps, silencing your phone and putting it in another room, leaving it in your car if you’re out at dinner, or keeping it in your purse or back pocket during a social event can also reduce your screen time. Having your phone out of sight and out of reach will keep the temptation of pulling it out at bay. Spending time with your family is crucial, and with these apps and tips, you’ll enjoy each other’s company without too many screen distractions.

Thanks for Joining the Summer Team!

Make Your Seasonal Employees Feel Welcome

Ah, summer. The sun is shining, days are longer, and college kids are coming home. That last part might not sound as appealing to some, but if you’re searching for great employees to help with your summer rush, these broke yet suddenly free college kids can give your business the seasonal support it needs. An essential part of hiring effective seasonal workers is to make them feel like they are part of the team. Follow these tips to create your A-team this summer. BE HONEST If you don’t plan to keep your seasonal employees after the summer rush slows down this fall, make sure that detail is made clear to your summertime workers. Nothing is more demoralizing to a person than to find out an opportunity they were looking forward to never actually existed. This will only sour your relationships with seasonal workers, and they will let others know about their experiences, making it harder to hire next summer.

trained, and it’s no different when it comes to your seasonal employees. Because they are quickly thrown into the hullabaloo, it’s important to make sure your seasonal employees are well-equipped to handle their duties from day one. Host an orientation day, be clear about employee responsibilities, and teach them about your brand and values. The best part about training seasonal employees the right way the first time is that the employees who want to return the following season will already be up to speed. INCLUDE THEM If you have an employee shoutout wall or annual camping trip, make your seasonal employees part of the team by including them in the fun side of the company. Additionally, some seasonal employees may thrive in a mentorship system. Set up a mentor and mentee group between your seasonal and permanent employees or create a special group for them. As long as you prepare them well and make every effort to include them, you will find your seasonal employees thriving in their short tenure.

TRAIN, TRAIN, TRAIN Studies have shown that employees are happier and more productive when they are properly

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Does Your Business Need Legal Representation? My Client and Friend Mitch Kaufman Can Help!

No matter how great they are as individuals, lawyers often have negative reputations. And while there are definitely some bad eggs in every vocational field, all the ones I’ve been able to work with as clients have been caring, respectful, and knowledgeable. But perhaps the one

me much-needed advice and was always extremely thorough. To this day, I still tell people he was the only person who could lovingly knock some sense into my thick head. (My wife can probably vouch for me on that!) While I’ve always admired Mitch’s capacity for composure in high-pressure situations, I can’t help but commend his ability to simultaneously give both his clients and his family members the attention they deserve. He analyzes and navigates employers’ and employees’ interpersonal relationships in the courtroom and then goes home and maintains great familial relationships with his wife and two children. While most people merely try to have a great work-life balance, Mitch is one of the few people I know who seems to do it all. If you’re a business owner and have any legal questions, I highly recommend giving Mitch a call.

who always seems to shatter any unfavorable ideas people might have about lawyers with his calm and collected demeanor is Mitchell Kaufman of Kaufman McAndrew LLP. With over 25 years of legal experience, Mitch represents and counsels businesses on a wide range of employment law and business matters, including individual and class-action wage and hour lawsuits, wage and hour audits, U.S. Immigration and Customs Enforcement audits, employment investigations, wrongful termination, discrimination, retaliation, harassment claims, trade secrets, and shareholder disputes. While he has been a client of my dad’s and mine for nearly three decades, I’ve also had him take me on as a client a time or two. He gave

These prizes are absolutely real, and they are our FREE gifts to you. For more information about this program, please visit AdamLibman.com/prizes. Our Prize Giveaway Program Gift Cards, Tablets, andVacations!

Here at Libman Tax Strategies, our mutual relationship with you is what makes our business function at its highest level. I am honored that so many customers trust us enough to recommend our services to others. We can’t possibly express how much these referrals mean to us, but with our new referral PRIZE GIVEAWAY PROGRAM, we hope we are at least coming close! PRIZE NO. 1: If you like reading our newsletter and think someone you know might enjoy it too, we’d love to add them to our mailing list. Send us their name and address, and we’ll send them a newsletter. To thank you for your referral, we’ll give you a $5 gift card to Starbucks! PRIZE NO. 2: If you get a friend, family member, colleague, or even a stranger in the grocery store to use our services, we will give you a FREE Amazon tablet! Easy as that! PRIZE NO. 3: After we give you the FREE Amazon tablet as a thank-you for your referral, we will enter your name in a quarterly drawing for a romantic weekend getaway to Palm Springs!

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150 N. Santa Anita Avenue, Suite 740 Arcadia, CA 91006 424.253.0200 www.AdamLibman.com

LIBMAN TAX STRATEGIES

INSIDE THIS ISSUE P1 It’s Time for a Mid-Year EvaluationWith Your Favorite Tax Strategist P2 Why Seniors Are Flocking to Home-Sharing Platforms Client Spotlight: Claude and Audrey P3 DidYou Hear About the Fake Heiress Who Swindled N.Y.’s Elite? Our Diamond Club P4 Take a Break FromYour Smartphone Happy Seasonal Employees P5 Kaufman McAndrew LLP in the Spotlight! Check Out Our Free Prizes! P6 Book Review: 'Influence' and the Psychology of Yes Become a Pillar inYour Community P7 June’s Best Business: Heather Morrow’s Pottery Daily BLT Dogs P8 Maria's Corner

Maria's Corner

Help Me Come UpWith Kid-Friendly Ideas!

In May 1972, singer Alice Cooper released an iconic anthem that still fills the ears of students all across the nation this time of year. The title track of his fifth album, “School’s Out” put the lyric “School’s out for summer” on repeat. Here at my house, my kids couldn’t be happier that Cooper’s song has finally become a reality. I stand in my house and watch as they fling their backpacks to the ground and run to jump in the pool or play video games. Amid their whooping and hollering for summer vacation, my panic starts to set in. Don’t get me wrong; I love spending time with my boys. But I think any mom will admit that having four sons all under the age of 11 at home all day with no distractions can be pretty overwhelming. In fact, it’s usually complete mayhem in our house from June to August. The boys have a lot of energy to expend, so Adam and I are frequently trying to find fun and productive ways to keep them occupied.

One thing we are all looking forward to is a family camping trip up the California coast. Adam keeps trying to convince me to go to Cabo or Hawaii instead, but camping feels a little more practical this year — albeit quite a bit messier. If you have any other ideas for original and fun activities the boys and I can do this summer break, be sure to shoot Adam an email at Adam@AdamLibman.com. I need all the help I can get!

-Maria Libman

8 • www.AdamLibman.com • Pay Less Taxes by Implementing Tax Reduction Strategies

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