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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4016
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Have you ever found out any information about the "green preserva

Resolved Question:

Have you ever found out any information about the "green preservation partnership" that is sold by Pathfinder at http://www.tax-saving-professionals.com/. They wanted me to pay over $38,000 to set it up for me. They guaranteed me a $38,000 tax savings every year. Basically I would pay into the partnership $78,876 and get a tax credit of $318,622 Which appears to be 4 times contribution based on my tax bracket of $631,000 I would end up saving $38,014 EVERY YEAR. Seems pretty easy if I could find the IRS form and the partnerships to contribute to

 

Maybe this will help

Robert Diamond

Projected Savings From Green Preservation Partnership

2013

Before

After

Net

GPP

GPP

Effect

Projected AGI

631,004

631,004

-

Projected Itemized Deductions

(3,120)

(318,622)

(315,502)

Projected Personal Exemptions

-

-

-

Projected Taxable Income

627,884

312,382

(315,502)

Projected Year One Tax Savings

196,289

79,400

(116,889)

Marginal Tax Rate

39.0%

33.0%

-6.0%

Effective Tax Rate

31.3%

25.4%

-5.8%

Potential GPP Funding

78,876

Net Year One Federal Tax Savings

(38,014)

Net Year One State Tax Savings

-

Tax Effect of $1 GPP Investment

(1.48)

Total Net Tax Savings

(38,014)

Submitted: 9 months ago.
Category: Tax
Expert:  Stephen G. replied 9 months ago.

Stephen G. :

Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.

Stephen G. :

I've looked over their website, including supporting & detail pages and there's a lot of fluff & promises, but no detail or specifics. Basically, there's no way that you can invest in something and realize more in tax savings than you put into the program.

Stephen G. :

It doesn't make any sense economically; a long time ago, before the IRS changed the regulations, if you were obligated for non-recourse debt, you could claim tax deductions in excess of your investments; those rules do not apply anymore.

Stephen G. :

Poor service - What do you mean - we haven't discussed anything yet?

Customer:

Not much help. I was looking for the IRS info that supported this deduction

Stephen G. :

Your link goes to the website only; there are no specific investments listed there; you must be able to access additional information as a "member" of the site.

Stephen G. :

You won't find it as it doesn't exist.

Stephen G. :

Can't they provide the information as part of what they are selling? If not, that should tell you something.

Stephen G. :

I'm sorry to provide "bad news", but this is only one of hundreds of similar sites that offer basically the same thing in one form or another.

Stephen G. :

What are you supposedly investing in?

Stephen G. :

That's the first question.

Customer:

Not much of an answer - please cancel all of my payments as well as any future payments. I DO NOT want to sign up for any type of subscription from just answer. They provided me with the attachment I had previously sent with quite a few agreements

Stephen G. :

The "Green Preservation Partnership", in & of itself, tells us anything.

Stephen G. :

Well, I never saw any attachments.

Stephen G. :

Sorry, but I don't handle the money here; I just respond to questions; you don't need to rate me as giving poor service to get all your money back; we have an unconditional money back guarantee;

Customer:

I was supposedly investing in a land partnership where the developers guaranteed that they would not build or leave some green property and the IRS gave tax deductions. I would contribute to the green partnership to get the 4 times contribution tax deduction. In my bracket the deduction is more than the contribution, hence tax saving

Stephen G. :

I can notify customer service to contact you; we don't get any information about fees, etc. I have no idea what you paid.

Customer:

I changed my rating - Just didn't get answer

Stephen G. :

I don't see any change in your rating?

Customer:

Please let customer service know that I do not want any subscription. You have Good service

Stephen G. :

What you are being promised does not exist.

Customer:

OK thanks

Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4016
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 8 other Tax Specialists are ready to help you
Expert:  Lane replied 9 months ago.

Yes, the foundation underpinnings of the law They cite is valid.

Pathfinder uses, as their foundation for strategies, A U.S. Supreme court case (which cites further statute from the U.S. code , see below)


This U.S Supreme court case affirmed an overturning the Tax commissioners assessment of tax deficiency.




On Writ of Certiorari to the United States Circuit Court of Appeals for the Second Circuit.Petition by Guy T. Helvering Commissioner of Internal Revenue, opposed by Evelyn F. Gregory, taxpayer, to review an order of the Board of Tax Appeals expunging a deficiency in income taxes.Order of Board of Tax Appeals was reversed, and deficiency assessed (69 F. (2d) 809), and the taxpayer brings certiorari.Judgment of the Circuit Court of Appeals affirmed.

Gregory v. Helvering, 293 U.S. 465 (1935)




The first two major points of law were the following:

Taxpayer can decrease amount of his taxes or altogether avoid them by means which law permits.

Gregory v. Helvering, 293 U.S. 465 (1935)


AND


Transfer of some of assets of corporation owned wholly by taxpayer to new corporation owned wholly by taxpayer and created solely for purpose of receiving and transferring assets to taxpayer as liquidating dividend, after which new corporation was dissolved, held not “reorganization” within statute exempting from tax, gain arising out of transfer of assets by one corporation to another corporation pursuant to plan of reorganization. Revenue Act 1928, § 112(g), (i) (1), 26 U.S.C.A., § 112.




Whether or not this Partnership can withstand challenge, as to the particulars of the law they cite cannot be guaranteed here.

Given that this is a supreme court ruling, you can be fairly certain that a challenge will only come when the facts of your case, this partnership, cannot be generalized to the facts in the underpinning case.




I would ask the following questions of them:

(1) IS this partnership structured in a way that absolutely mirrors the fact pattern in the Gregory Case?

(2) If not, how is it different?

(3) Why would I trust that this legal underpinning will apply in the same way?




Hope this helps

Lane

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