Outlaw Versus Rule of Law
Recently, court documents were uncovered from a successful civil case involving some notorious nineteenth-century defendants who were better known for avoiding the legal consequences of their acts: Jesse and Frank James.
Not surprisingly, the case against the James brothers stemmed from one of their signature activities, a bank robbery. During an attempted bank robbery by the brothers in Gallatin, Missouri, in 1869, Jesse James killed a cashier. As the brothers made their getaway, Jesse was thrown from his horse, which he left behind in favor of doubling up on Frank’s horse. Soon thereafter, the brothers happened upon the unfortunate Dr. Smoote, who was also on horseback. Jesse relieved Smoote of his horse, at gunpoint, and continued the escape.
Protection For Parodies
It is the very nature of parody to present two opposing messages: that the parody is, in fact, the genuine article that is being parodied, and that it is not the original, but is instead just a parody. When used to promote a product, the parody may transgress federal trademark law if it succeeds in the first objective but not in the second. In that case, the parody will have created customer confusion, which is a critical element for a claim of trademark infringement.
Like-Kind Exchanges
Normally, capital gains are recognized and taxable upon the sale of property. The Tax Code provides an exception to this rule for certain exchanges of property. If all requirements are met, any gain from the exchange is not taxed, and any loss cannot be deducted. Gains or losses will not be recognized until the person who received property in the exchange sells or otherwise disposes of it. The most common type of nontaxable exchange is the exchange of property for the same kind of property, or like-kind exchanges.
Lawyer’s Approval For Acceptance of Offer
When the owners of a party store received an offer to purchase not the entire property, but only their liquor license and fixtures, they accepted the offer, but on the condition that their attorney approve the deal. Before the attorney’s review of the first offer, the owners received a better offer from another potential buyer, this time for the entire property, including the license, the fixtures, the real property, and the business itself.
The second offer was for about five times as much money as the first offer. The owners also accepted this offer, but again conditioned acceptance on approval by their attorney. The owners’ attorney then reviewed both offers at the same time and, not surprisingly, approved the second, more favorable one.
Computer Fraud and Abuse Act update
The federal Computer Fraud and Abuse Act (CFAA) is most closely associated with criminal prosecutions brought by the Department of Justice. But the CFAA also provides for a civil cause of action for anyone who suffers damage or loss because of a violation of the statute. In light of the expansive reading that some courts have given to the law, victimized companies should give consideration to taking the civil route. A civil lawsuit gives the wronged party more control and may provide a quicker fix. By means of such a lawsuit, the victim can retrieve stolen data, enjoin illegal access to data, and even get compensatory damages for the theft and destruction of data.
No Mercy For Unlicensed Contractors
With the current economy and illegal immigration scene this information should be of interest to many:
Calif. Bus. & Prof. Code Section 7026 defines a “Contractor” as any person who undertakes to construct, alter, repair, add to , subtract from, improve, move, wreck or demolish any building, highway, road , parking facility, railroad, excavation or other structure, project development or improve and or to do any part thereof including the erection of scaffolding or other structures or works in connection therewith.”
Quotable
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
- Winston Churchill
Home is Where the Business Is
The advantages of operating a business from your home need to be balanced against legal considerations that may not be as apparent. Attention to these matters at the outset of starting a home-based business can help you avoid legal pitfalls and can greatly enhance your prospects for success.
Business Organization
Your business may be a glorified version of a former hobby, but, as an ongoing business, the enterprise needs to take a legal form best suited to your circumstances. Factors such as tax issues, the number of employees (if any), and avoiding personal liability will influence the decision on a business’s legal structure. The most common choices are sole proprietorship, partnership, corporation, and limited liability company.
Tax Credits for Historic Preservation
For over 25 years the federal Government has been using tax incentives to help preserve historic buildings. Originally, federal law allowed accelerated depreciation on rehabilitated buildings, but subsequent changes have made preservation and revitalization efforts even more attractive to taxpayers. Today, there is a general business credit equal to 20% of qualified rehabilitation expenses for a certified historic structure, or a 10% tax credit for the qualified rehabilitation of nonhistoric, nonresidential buildings first placed into service before 1936. Eligibility for the tax incentives is determined by the National Park Service. Tax credits are often more beneficial to taxpayers than deductions, since every dollar of a tax credit reduces the amount of income tax owed by one dollar.
Real Estate Law (Still a decent tax shelter)
Directly owning real estate is historically, currently and perhaps forever more the primary source of wealth for most people. In addition, there are still important tax breaks to be had in owing real estate.
Real Estate Investment Trusts (REITs) have recently been favorable alternatives to common stocks. However, REITs are traded in the same manner as stocks and they do not provide the full tax shelter benefits one receives from direct ownership.
