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Phillip T. Crenshaw, Esq.

No Immediate Impact to Pump Prices Expected with OPEC+ Historic Global Reduction Announcement

The national gas price average has steadily declined for seven weeks, pushing the average cheaper by 61-cents to $1.86 today. During this timeframe (since late February), U.S. demand for gasoline has decreased 44% to 5 million b/d as gasoline inventories build across the country.

“We are seeing fast and furious gasoline demand destruction. The latest data reveals demand levels not seen since spring of 1968,” said Jeanette Casselano, AAA spokesperson. “Every U.S. region is seeing builds in gasoline inventories and crude storage, which is just driving pump prices even cheaper.” On Sunday, the Organization of the Petroleum Exporting Countries plus (OPEC+), led by Saudi Arabia, announced historic global crude productions cuts – nearly 10 million b/d in May and June.

“While the production cut is historic, it’s likely to not have an immediate impact on pump prices given the ongoing impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand,” added Casselano.

FUEL DEMAND DESTRUCTION REIGNS SUPREME AS PUMP PRICES PUSH CHEAPER

At $1.86, today’s national average is 6-cents less than last week, 44-cents cheaper than a month ago and nearly $1 less than a year ago.

QUICK STATS The nation’s top 10 largest weekly decreases are:

Alaska (-19 cents), Idaho (-17 cents), Wisconsin (-13 cents), Iowa (-11 cents), South Dakota (-11 cents), Arkansas (-11 cents), Wyoming (-11 cents), Minnesota (-10 cents), Utah (-10 cents) and Oregon (-9 cents).

The nation’s top 10 least expensive markets are:

Wisconsin ($1.30), Oklahoma ($1.40), Ohio ($1.46), Kentucky ($1.51), Michigan ($1.52), Arkansas ($1.53), Indiana ($1.54), Iowa ($1.55), Mississippi ($1.57) and Missouri ($1.58).

OIL MARKET DYNAMICS

At the end of Thursday’s formal trading session, WTI decreased by $2.33 to settle at $22.76 per barrel. Crude prices were volatile last week, during the run-up to OPEC’s historic agreement with its allies, including Russia. The group met to discuss g l o b a l c r u d e production cuts of up to 9.7 million b/d for May and June 2020.

Under the new production reduction agreement, OPEC and its allies expect total global oil cuts to amount to more than 20 million b/d or 20 percent of global supply. Effective May 1, the production cuts are expected to ease in June, but some restrictions will remain in place through April 2022.

Crude prices will likely remain volatile this week, as the market assesses if the production cuts are sufficient to hold back growing global crude inventories as COVID-19 continues to push down demand. Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

PAYCHECK PROTECTION PROGRAM

By Denver Burdette

My friend at a local bank told me two weeks ago that the first tranche of funds for the PPP had been exhausted. Now of course, there is the second tranche becoming available. But the big challenge remains of getting funds to those who need it most. And just how long will this Tranche last?

Covid-19 seems to have had the most negative impact on the following industries: Hospitality industry … to include hotels, bars, and restaurants Manufacturing Automobile Dealers Construction Engineering & Architecture

Among those most hardest hit, restaurants that remain open are still struggling to stay afloat.

National hotel chains that have not been ordered to close are experiencing occupancy rates of less than 5%.

But in all the tragedy that is Covid-19, there looms an opportunity for many businesses that are held in an S Corp or an LLC that own commercial property.

The CARES act passed on March 30 of this year modified a provision of the Tax Cuts and Jobs Act of 2017 that will provide major relief to business owners that qualify. In an S Corp or LLC, the profits and losses flow through to the owner(s) personal income tax return. Now with the modification of TCJA, net operating losses can now be carried back 5 years.

For businesses that have a cost segregation study completed (at no upfront cost with our firm),

About the author: Denver has been a resident of south Florida since 1973. He and his wife Karen moved to Wellington in 1994 and continue to call the western community their home. Denver has served as a member of the following groups: Talk of the Town Toastmasters (board member), Palms West Chamber of Commerce, Wellington Chamber of Commerce, Rotary Club of Wellington, LeTip business networking group (membership chair) and West Palm Beach Business Referral Club. From 1987 to 2010, Denver’s insurance agency served the insurance and financial services needs of south Florida high net worth retirees. Denver and his wife have been part time real estate investors since the early 2000’s and are still active today in purchasing as well as brokering non performing real estate loans. Vacant land is also part of their investment focus. Denver and D.H. Burdette & Associates, Inc. are independent advisors for Stryde Solutions, LLC of Fenton, Mi. He is currently 1 of 500 advisors nationwide for Stryde that focus on helping business owners increase cash flow, improve their bottom line, and ultimately increase the value of their business. Since 2004 Stryde and it’s advisors have identified over $4 billion in benefits for business clients.

can now potentially go back and recoup some or all of personal income taxes paid as far back as the 2014 tax year. Cost segregation is an engineering based study to reclassify certain components of your property for the purpose of accelerating depreciation. study completion are now receiving significant tax refunds from the IRS. Our preliminary review for some business owner clients is revealing six figure refunds just by taking advantage of this opportunity that has opened up as a result of Covid-19.

Typically commercial property owners would take depreciation on a straight line basis of 27.5 yrs to 39 yrs. depending on the property type. We know certain components aren’t going to last that long.

Granted that the PPP and EIDL programs will provide a much needed relief to those who have suffered loss of income due to the virus. But I would encourage everyone to not discount any opportunity to save that business that you’ve poured your blood, sweat and tears into over the years.

Some of those who qualify to carry net operating losses back 5 years via the results of cost segregation We are still observing social d i s t a n c i n g . However, I am still speaking with prospects daily and doing screen share p r e s e n t a t i o n s online to d e t e r m i n e their eligibility to benefit from just one of the services we offer to help business owners increase cash flow and improve profitability.

The call is free, the demonstration is free. The only cost is 15 minutes of your time to possibly save your business. All services are contingency based, our clients pay nothing upfront and our research is free of charge if we can’t provide a financial benefit.

D.H. Burdette & Associates, Inc. and affiliated companies are not authorized to provide tax advice. Our objective is to work with our clients and their tax advisors with the end goal of enhancing profitability for that business.

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CALIFORNIA’S COMMISSIONER LARA ASSUMES POWER TO REWRITE INSURANCE CONTRACTS AND EXTENDS AUTO INSURANCE COVERAGE TO DELIVERY DRIVERS FOR CALIFORNIA’S “ESSENTIAL” BUSINESSES

Commissioner’s action ensures food, medication, other essential goods can continue to be delivered during COVID-19 pandemic

automobile policy issued to a California essential business, temporary delivery drivers may be inadvertently uninsured as they carry out their job duties. Today’s action ensures that businesses can continue to provide essential goods to residents and families

LOS ANGELES, Calif. – With restaurants and businesses expanding deliveries to comply with “shelter in place” rules, Insurance Commissioner Ricardo Lara today urged insurance companies to extend auto insurance coverage for drivers who are using their personal vehicles to fulfill deliveries for California’s essential businesses during the COVID-19 pandemic. at their homes and that delivery workers are protected at all times so that they may continue their work critical to public health and safety.

“This is an unprecedented time so we must take unprecedented action to help Californians comply

Because personal automobile policies do not typically provide coverage for vehicles used for commercial purposes and some drivers may not be covered under their employer’s commercial Mr. Zalma recently published on Amazon.com with links at the Zalma Books site with the following volumes:

with public health ‘shelter in place’ orders,” said Insurance Commissioner Ricardo Lara. “Delivery drivers are performing essential services to help our seniors and families, and this action will protect them while on the roads.” Under today’s Notice, insurance companies should not deny a claim under a personal auto policy solely because the driver was providing delivery service on behalf of a California essential business impacted by the COVID-19 pandemic. The Notice applies to 16 categories of “essential critical infrastructure workers” identified by the U.S. Department of Homeland Security on March 19, including those who deliver food, medication, and other essential goods. The Department is also requesting insurance companies to extend delivery coverage for motorcycle and bicycle riders, and allow essential businesses to retroactively add drivers to their commercial automobile policies beginning on March 19, 2020.

Editor’s Note: Commissioner Lara did not expound on which legal theory or state statute gives the him the authority to unilaterally rewrite the provisions of any insurance contract.

49 victims scammed over a five-year period S AN DIEGO, Calif. — Former

life insurance agent

Christopher Dougherty, 47, pleaded guilty to three counts of securities fraud, three counts of grand theft, and a sentencing enhancement after running a $6 million Ponzi scheme that scammed 49 victims -- 31 of whom were 65 years or older at the time of the fraudulent investments. Dougherty agreed to a 12- year state prison sentence, and sentencing is set for April 24, 2020. “Dougherty ruthlessly took advantage of his clients’ trust in order to steal their life savings, causing unfathomable harm,” said Insurance Commissioner Ricardo Lara. Dougherty offered private investments in various companies he owned. One of the investment opportunities Dougherty pitched was a 100-acre “organic” cattle ranch in Alpine. While the farm was real, it did not actually generate profits for investors. Dougherty also promoted a marijuana

CALIFORNIA CONMAN CONVICTED IN $6 MILLION PONZI SCHEME

growing project on the Alpine property. Dougherty shuffled money around in classic Ponzi fashion, paying “profits” to investors with funds received from recent investors. In addition, Dougherty used investor funds for personal expenses, including home remodeling, travel, college tuition, and large cash withdrawals. The Ponzi scheme collapsed when investors began to demand their money and Dougherty could not pay it back. Investigators identified many of the investors when Dougherty filed bankruptcy in federal court in October 2018, but found additional victims when investigators began looking more closely at Dougherty’s financial records. Some of the victims met Dougherty when various San Diego and Imperial County school districts designated him as an investment advisor for employees. Dougherty leveraged a reservoir of trust he had developed with long-standing clients, convincing them to cash out established, conventional investments and move their money to his fraudulent investments.