please is going to join us for all of our calls again and I am so happy to hear it.
Oh it's my pleasure Dina
while you're away just you know join the team Steena for sure. Is she is Shelby's granddaughter and she is our executive team assistant. So she does work with any of us on the executive team at Cana. Steena as ti n a trustee.
Okay, yeah.
Nice to meet you.
Nice to meet you too.
Tina, did you say there was somebody Excuse me? That was willing to do the nevermind I'll wait till my voice clears
hopefully got some water or something
No, it's just
Oh, no problem. Oh, you feel okay.
Oh, I'm fine.
So what are you going to ask? Yes,
there's somebody too. I'm so stuck. Every time I go to fill out this thing to send in for the trust. I have some issue. And I'm the guy that was going to do my investment committee for the PTC is cannot so do you have somebody to recommend for that?
Miss Chelsea. Would you like someone to be an investment committee advisor for
Chelsea yellow you tend to do doom and gloom?
I'm sorry Dr. Jabber.
Oh, no problem Chelsea. Let me know if you'd like to be an investment committee advisor for Donna
let me record
welcome everyone to another abundance group trust personal q&a call for Wednesday, May 29 2024. Hope you guys all had a nice Memorial Day weekend. Now back to work as usual. So you will see that lays MYZONE has joined our call again today. You will remember that Blaze used to work with Dave Phillips. He is now on his own and is willing to do work for any of our clients from tax work to bookkeeping work. And he will be joining us for all of our calls every week which I am also grateful for. So Blaise thank you so much for coming. Back to the calls. I really love your help.
My pleasure. And well hello to everyone who I haven't seen for a while looking forward to be a good assistant to
welcome Blace
thank you so much. Thank you.
Okay, so who's got celebrations? That's my celebration right there.
Who else
Well, I had my Go ahead.
This is Diana we had our musical chair paperwork all signed and notarized from everybody.
Yay. That's awesome. Congratulations. Though I don't see Todd here. I will celebrate for him. Todd is almost done setting up all of his divisions and decanting all of his land trusts into his divisions. It's been two years at least in the making. So I know he is very excited. One question asked in advance, sorry that
I said I'd like to advise everyone that the past year I've seen quite a bit of activity with the formations of trusts and a lot of penalties issued by the IRS. So I've been very successful in getting a lot of those penalties abated. So if anybody's having that problem, just let me know and we'll take care of
thank you and what are the penalties for Blaze? late
filing? A lot of times you don't realize that they have to file they don't file and the IRS is not very forgiving particularly with foundations.
Yeah, I can understand that but especially with foundations. Makes total sense. Okay, so there's only one question asked in advance. It comes from Susan G. And Blaze. I'm going to need your help with this one. It has to do with tax returns for PTCS. She says, I know he attached a copy of our form idiot 32. To every corporate 1120 return we file for our PTC LLC, because it operates as a C Corp. But what do we put on the 1120 as the PTC has no income and knows owns no assets? Well, my understanding is it's just a zero sum tax return.
It's a blank return.
Okay, and then she says also, if there is income paid to a manager for operating the trust business, should that be reported on line 1213 or not? at all on the 1120?
It's an expenditure
company was talking
sorry, go ahead, please. Yeah, go ahead. I
said you would normally it's part of an expenditure that was a viable expenditure for the entity so I don't have the line numbers,
say show the revenue coming in, and then the expense going out so it still stays as a zero. So that's correct. Right. In that case, when the PTC then also need to file a 1099 for the manager, absolutely. Yes.
So that was
okay, so sorry, Susan. We don't know that line numbers, but hopefully I can help you. Answer that.
They'll show you do not get the line number. Fantastic.
Thank you. That's awesome. That's the only question we had asked in advance please. else has questions that against you that there's not yet it's still early. I wouldn't think we had anything in chat yet.
Gene guarding funding a division. How do you normally the division Do you have the personal trust funded or what is the channel? Money go from the personal trust to the business trust and then to the division or does the or does the trust fund the division directly?
The personal trust funds the division directly. So it depends on your unique scenario and it can say your business just that so that each division does it differently. Yeah, if you only have a bank account for the overall business trust and not for each separate division, the money can go from the personal trust to the business Trust Bank account. But there's journal entries done to show that the real transaction went from the personal trust to the division.
Got it so that in an investment that will be managed by the business Trust, the money should go through the business trust account, correct? Or can it be directly from the personal trust to whatever investment fund is going into and just call it and just call it that it's part of the business trust? Or does it have to be strictly
really should go to the business? It really should? Go to the business trust or its division first. God and then from there, the investment good. It's made.
That keeps it clean. Yeah.
All right. Yeah. Good morning. Remember each sorry, Hang on one second. Remember, each division should be operating as a class within your QuickBooks Online. So each division has separate books. So just make sure that if you only have one bank account for the overall business trust that you're doing the journal entries properly, to track income and expenses for each division. Absolutely.
Yes.
Got it. You're
good. Okay, Raquel, go ahead.
Hi, good morning. Dr. Gina. I am working on these documents that you you're having me do for Baba Ji for the conveyance of the properties to his to his business trust that a couple of questions in regards to the section one A which is the DBA but this is an artist as information. So yours you said in the thing that a DBA is optional, right? So if you create a DBA Yeah. So if we choose not to do a DBA then we don't have to go through creating a new EIN for the division or anything like that. And they'll still be okay, right? Correct. Yeah. Okay. And the other one was on the divisional trustees. Now he has a PTC is it now I know that on the training, you're saying you just put one name in there, but given that he has a PTC does he has this board you have to put his name and the PTC as divisional trustees. Okay, just put barber G's name in there.
You can do it either way. So in the personal trust the PDC must be a trustee and it's the sole trustee in the business trust. It can be the main trustee of the business trust with the individual as a co trustee. See, okay, if Baba Ji is the manager of the PTC then there's really no need for Baba Ji to also be a co trustee. But it it really is a decision made by each person's business trust separately. One can do it one way or another can do it in another way. Okay, when you have real estate, I think it's better to have the PTC as the divisional trustee. So that on public record, it's the name of the PTC showing up not the name of the individual. Ah, okay. But it's a personal preference thing. Okay.
So because if you put in the, you know, divisional trustee as like, say Baba Ji, his name is the one that's going to show up on the records. in case somebody decides to look
correct. Yes.
Yeah, just to clarify for division or divisional trust, is that public record I thought that given that it's part of the trust, it wouldn't be public record
vision isn't. The division isn't but if the division owns real estate, and you record the deed, it's going to show the name of its owner, which is the division and interests it'll show the name of the division by its divisional trustee and the name of the trustee.
Okay, so if we put the PTC as a trustee, then he's the one who has to be put in, in a notarized form, right?
Well, whoever the manager for PTC is, whoever the manager of the PTC is, is the one signing the document in front of the notary.
Oh, got it. Okay. And if we decide to do to the beat Baba Ji in the PTC, then both of them obviously have to be in front of the notary right. As far as the way I understand it, no,
because it's an n slash or you don't have to have both of them be notarized. You can do one or the other.
Oh, okay. Let's see. There's another one is kind of a small point. So can the address of the division be in South Dakota? You know, the South Dakota mail box that you recommended that we put the information in the mail? Yeah, okay.
It can just make sure that you notify the mail service of the name of the division so that they don't return any mail that comes to it. Okay, no, that
division. Okay, so let me see. There's this section in here about initial capitalization. So what is the what is the unit because I was listening to your training is like is a unit Miko of voting? Right? Or is that given like there's only like, say we use one divisional trustee would that count as like one unit? Because my understanding of these
have nothing to do with units. Okay. So if you look at the articles of formation, let me go find them real quick.
Combined with action I put.
So there are four different kinds of units of beneficial interest within the business trust. There are Class A dash one through four in the overall business trust and then with in the divisions that are Class B, B. One B, two, B, three, if you could meet please I would appreciate it. I got it beat us one beat us to beat us three beat us for each of them have different right. So Videsh, one units are typically called full participation units, equity rights, profit share, as well as voting rights and management rights. In the business trust. You want to keep the beneficiary which is called an interest holder. They're the ones that hold the units of beneficial interest. In order to get tax mitigation benefits, that interest holder must be a personal trust. If it's an individual or an entity, then there's no tax mitigation benefits. So, if the personal trust is going to be the interest holder, it should have class B dash two units in a division or Class A dash two units in the overall business trust. In order for that income to the bit to the personal trust, to be passive in Be that as two units of beneficial interest. There are no voting rights and no management rights, but it has profit sharing an equity sharing. No. So always, always, always, if you're using your personal trust as an interest holder, it will receive Class B dash two units. So in the paragraph called initial capitalization, it's a good idea, but it's not a requirement to have units of beneficial interest equate to dollars. So let's say you have a piece of real estate that you're gonna convey to a division and that piece of real estate is worth $200,000 that basis, you might choose to have 200 units of beneficial interest that are each worth $10,000 So that 200 times no $1,000, not $10,000 200 against each valued at $1,000. That way, when the personal trust conveys to the division, it will receive 200 units of beneficial interest or a total value of $200,000 that gets added to the personal trust basis account in that division. So on these lines, I would say the initial interest holders are and then I'd have the name of the personal trust. And then I would say 200 Class B dash two units of beneficial interest and in parentheses, valued at $200,000.
Okay, so the amount of voting units is arbitrary, just as long as you have some sort of monetary equation of the unit.
So, you're only gonna give B dash one units, right if it's being given to an individual or entity that's okay receiving the income and paying taxes on it.
Yeah, but in this case is B that's two because the initial interest holder is not
giving voting rights. Right, only giving a profit share an equity share.
Okay, so how do I know how many units I created that again, an arbitrary
determinate, okay, not an arbitrary number is very much based on the value. So think of it as an LLC for a minute. If you're capitalizing an LLC and you're putting money into it dollars, then somewhere in the operating agreement, it should specify who's the member is, how much capital they contributed, and what the dollar value of that capital is. Well, we emulated that in the business trust by allowing the units of beneficial interests to come into play. So in your Articles of formation, you want to preserve on behalf of the interest holder, the value that's going to get added to the interest holders basis accounts, and you may have more than one interest. Now, in your case, you only have one, it's Baba Ji, he doesn't have any partnerships. Right. But in the event that we're partners, it's the same thing. How much is each partner going to contribute in capital to that division? The total amount is going to determine the total number of shares. And then you're going to decide based on how much capital was contributed by each what types of units each will receive and what the dollar value of those units will be. It's not arbitrary. Okay,
so let's say in this case, I say like 100 units of Class B two non voting units, valuing at X dollars, right. I have to put that in as a as a clarification in the document. Am I right? Correct. Yeah, okay. Okay, so, yeah, I'm just going through all this and I am yeah, there's one more question it's like the section three waiver of notice period per trustees intention that they can't now that wasn't one of the documents that you put in the list of things for me to do for Baba Ji. Is that even necessary? Well, it's not it's not in the articles of formation. It's separate documents this waiver of notice period per trustees intention to decant. But it was in
the canting of a land trust. Yeah, you can tell land trust into a division then you don't use that document.
Oh, I see. So a land Yeah, so a land trust basically, it's a different kind of property. But in my case, a different
kind of trust these different Okay, so we're not she doesn't have any land trusts so you don't use the waiver of notice document.
Okay. So I'm just going to erase that then of things of me for me to do. Well, you know, I'm going through all of your trainings and I'm going through each document one by one,
you might be correct, or wrong instructions, or two. sets of instructions, okay, for divisions. There's instructions for create real estate division. Okay. If you look at this one, there's six, six items on it. It does not mention the waiver of note. However, if we go up to convey properties, I'm sorry decanting of land trusts. Yeah. Then the instructions in here. Instructions create real estate division for decanting this as the waiver of notice document as number two. Don't use this set of instructions unless you're doing a decanting of a land trust to a division.
Yeah, there's that one okay. affidavit of trust operational rules. Yeah, there was a section in the instructions that you gave me on the email about creating two divisions one division is for it one is for the pro, you know, transferring properties
and the other is a property management division
of property management.
Okay, the Property Management Division, only create one of you don't create one for each piece of real estate and the Property Management Division. This is all of the rents from all of the properties. So if you have four properties, you're gonna have five divisions, one that will hold each piece of real estate, and then the fifth one is the property management division. That will get all of the rents for all four properties.
Okay, so that's division one and Division two. This is a small point, but how do you normally name these divisions? Can I just say division one and division two and just take care of that or No, it'd be a formal name. No. Okay.
How has to be a formal name? Okay, so for the ones that hold real estate, I call them by the address of the real estate 123 any street trust? Has the Street Address Park and the Property Management Division? What brand are you going to do your marketing under the real estate? Just that will tell you what the name is. Okay, so it's okay. To be the overall business trust name cannot be the same as the overall business trust there has to be different.
Okay, so it has to be a completely different name.
It could be Oh, Property Management Trust.
Okay, okay.
But it can't be old trust the business trust is old Trust has a different name.
Ah, okay.
You know, you through chance to clarify the up says there's c dash real estate, but I look in your folders and the document says, actually the previous one for division creating a division. It doesn't it seems to be a different document that's in your conveyances folder. Are you sure this conveyances
folder? Yes. depends upon where you're getting it from. If you go to the business conveyances first, then with income advances, go to the business trusts subfolder within it, it's instructions dash, create real estate division. Then there's also Instructions for creating divisions. They're different see it is two different ones so yes, and oh abundant. As instructions dash.
My problem is abundance one's trust. It's the location is different now.
It go to abundance group.com forward slash conveyances. This is the folder that it will bring you to you probably won't see abundant ones trust probably only see conveyances and business trust.
So which is correct and in my case is that Instructions for creating divisions are creating real estate division?
So a real estate division, okay, where it was created you have you have different divisions. So your property management division is just the Instructions for creating divisions. The ones that own the real estate are instructions dash create real estate division. They're different. They're different uses.
That is the license plate. Okay,
so are you clear on this?
i Yeah, I'm clear.
Hold on. Hold on. wasn't asking you recall. Somebody is talking about Tennessee license plates, whoever that is. If you could stay muted. We'd appreciate it. Joel, are you clear on the sets of instructions that I had up now? Joel McMahon.
Yeah, sorry. I had to unmute. Yeah, I need I'll need to dig deep on making sure that I'm looking in the right place. But thank you for clarifying. Oh, come back and visit the city
just go to abundance. group.com forward slash conveyances. It brings you to this folder. Then go to business trusts. And if you just stay in the main business trust folder. There are two sets of instructions. Instructions dash create real estate division Instructions for creating divisions. Now if you have a land trust only then you go up to the sub folder for decanting of land trusts. And there's a set of instructions here for the cancelling of land trusts to a division. But only is that if you're the Canton Fair not it's not relevant at all.
So in my case, with no land trust, I need never go to the decamping Land Trust folder. Right.
All right. Only stay in the business trust folder. And use one of these two sets of instructions.
Thank you for clarifying.
Yeah. Okay, who else has questions?
Oh, Dr. Gina, I have one more question. It's an regarding to the operational rules as I went through that form, and it looks like it's a generalized type of form. I mean, there was another operational rules like form that I saw that they had Alonzo
told you, as I've told you, operational rules are optional. Additional roles are a combination of two things. Most important is they aren't instructions to whoever takes over when you die for how to operate that portion of your business. In real estate investments, the only one that really should have any kind of operational goals would be the property management division. Our you operating your real estate investing business when you die. It's a combination of instructions. And some of the things that might go on in operating agreement are also pertinent to operational rules. I can't give you a template for operational rules because I don't know how you operate your business. Okay, that's up to you to decide how you operate your business. In which case then give it like an operations manual for your business. Okay, that's what it needs to be. Guys, I'm so sorry. But this is my dad. I'll be
no problem. All right. Thank you Dr. Gina. Appreciate it.
Not good when you haven't noticed calling us saying I made an appointment. I got to the house, but nobody's here talking about scaring the shit out of me. Anyway, no questions. Now that my heart's racing. Who else has questions?
There's not in chat.
Okay,
we're gonna make it a short call today. And Donna, hopefully that your private message from Chelsea
Donna did you see the message from Chelsea?
me it did Donna.
Send it to her to Chelsea just to make sure she's got it
Okay, guys, welcome. Anybody else have questions or otherwise it's gonna be a really short call today.
But you know, I have a question regarding the Friday call recording. How could I get it
done this past Friday Do you know what happened the last week's call recording Do you know is it in the accounting podcast
that again
Liang is asking about last Friday's call recording. Where would he find it?
Um, so there was a legal issue. And I talked to him about that. So I actually could not find it. So I will have again,
me
and Matt will we're gonna figure it out today and figure out why I can't find any of the Friday's calls. Actually, I cannot find the last three. So
if you want to eat on this past Friday this past Friday, I wasn't here to do what I needed you to start it remember?
Okay, maybe it was I'll look again and I will have Shelby relook. Okay, if not, I'm sure it saved on my computer, the actual computer itself. So, look for that. Look for it. Give me your email and I'll write it down and I will let you know as soon as I figure it out.
Shelby has his email address. Just write down li Yang.
Okay, got it.
Okay, thank you. Thank you. Anybody else with questions?
Do you not I can't recall the accounting questions submit. Link. Is that the same as the q&a? For personal trust link? It
is not it's got its own separate link. It's accounting questions, I believe. Am I right? Steena. I think
yeah. I have it right here to ask the questions.
For the accounting. It should be
Oh, she sent it to somebody or I sent it to them body.
When you go to cnn.com/accounting
just
abundance group.com abundance group.com forward slash accounting questions? Yes. That was right.
All right. Thank you. So
um, Joel abundance group.com forward slash accounting questions.
I put it in chat. I think we got it there. Thank you.
Okay, guys, anybody else?
came on late. Sorry. I was on a call. Do we have an updated status so we're coming to the end of the month for the updated trust. We know what that looks like.
Jackie has been working feverishly on them. There's a lot to do. So it can't tell you where you are in the stack. I know that they're already coming out. Watch for your emails. You'll see emails from ShareFile from Jackie, and a trust approval form that'll come from Congo. So you get three emails when it's ready. And if all else fails, keep checking your ShareFile folders.
Oh, okay, back in our original certified folders and we would see it there too.
Don't you only have one share file folder ever. And we upload it into your share file folder when it's ready. Okay, awesome. For those who have decanted trusts, like you can did a while ago. And you've already got your they can trust those Jackie has not started working on yet because they're finishing up the programming of the document. It that one should start coming out in the next couple of days probably starting sometime by Wednesday. I'm thinking
Wednesday next week.
But that's when it starts right she can only do so many a day. I think she does about 25 a day as long as she's not getting bombarded by emails. Gotcha Jackie did not realize what she was signing up for. I'll tell ya and I am ever so grateful for Jackie so please please please give her some love be really nice to Jackie. We cannot lose Jackie ever.
I'm not I'm not gonna have a great
rest of your week, guys. I know have a great rest your
week guys. Gina.
I will see you on Friday that Yeah.
The link is in not only anywhere. Give me an error.
Yeah, it's gotta be counting q s instead of questions. So everything
I create both links Sina abundance group.com forward slash accounting questions as well as abundance group.com forward slash accounting q s.
Yeah. The QS one definitely works. I just tested it out. Gina.
Yeah, that works. Yeah. Thank you.
Thank you. But have her have both of them go to the same place I'd really appreciate it is I will remember it. Otherwise, suppose this is the PTC one was Q n s.
Okay. Yeah, having a having the name it's much easier. Thanks, guys.
It really is. I mean, yes, you got to type a few more characters. But it's a lot easier for me to remember. Have a great rest your week. guys. See you on Friday. Thank you so much for being here. Blaze.
