Carson boosts Africa as business frontier - Cincinnati.com

The U.S. State Department will host the U.S.-Africa Business Conference at Downtown?s Westin Cincinnati Hotel today and Friday. More than 500 people, including local business executives, are expected attend. The event, which is not open to the public, provides an opportunity to showcase U.S. business expertise to potential African clients and to highlight trade and investment opportunities in Africa to U.S. exporters and investors.

Johnnie Carson, the assistant secretary of state for African affairs, will attend the conference and recently discussed its goals with the Enquirer.

Talk about the business opportunities in Africa. What kinds of companies ? manufacturing, tech, marketing, for example ? have especially good opportunities in Africa and why?

In last week?s African Growth and Opportunity Act Forum address, Secretary of State Hillary Clinton called Africa the ?land of opportunity.? And she?s right. Africa has also been dubbed the ?last economic frontier.? These monikers are for good reason. The region has achieved impressive economic results over the past decade, including strong, sustained economic growth rates, growing private sector engagement, improved investment climates and increased bilateral trade.

I see this growing economic dynamism as potentially mutually beneficial to the U.S. private sector as well as these growing African economies. For Africa, U.S. companies provide access to world-class products, the best practices in management techniques, the latest technology, jobs and investment capital. For American companies, Africa provides a fast-growing consumer market, and forecasts anticipate Africa will have seven of the 10 fastest-growing economies over the next five years.

Frankly, there are opportunities across a range of sectors for U.S. companies interested in tapping into the growing African market. However, the demand is particularly great for improved infrastructure, which is what we are discussing this week.

What are the challenges of doing business in Africa if you?re a U.S. company? What are the benefits?

The greatest impediment is a lack of understanding of the continent and an appreciation for the potential that exists there. There are challenges for private sector investors. Weak and inefficient regulatory regimes, high transport costs, a lack of reliable energy and corruption are some of the reasons why U.S. companies find it difficult to operate in Africa. However, these are problems U.S. and other foreign companies face all over the world.

We recognize challenges exist in Africa, and that is why we are here in Cincinnati, to increase the understanding among American business people about Africa?s potential. U.S. diplomats engage regularly with our African partners on the need to improve their investment climates. We promote fair rules of the road, so that all companies compete in the global marketplace on an equal footing, no one helped or hindered above others by unfair government practices. Sound economic fundamentals ? open markets, transparent governments, fair regulations ? are necessary for vibrant, healthy economies and that is what we are promoting in Africa.

What has changed over the years in terms of business opportunities for U.S. companies?

For the first time in my long career working in Africa, there is a widespread sense of economic and commercial opportunity in the region. It is very encouraging to see the dialogue shift from one exclusively focused on development assistance to a broader discussion of Africa?s trade and investment potential in the global economy.

You recently traveled to Mogadishu and are the first U.S. official to do so in nearly 20 years. Why was the trip important, and what were your impressions?

I am the most senior U.S. official to travel to Mogadishu in nearly two decades. My visit to Mogadishu had three purposes: to acknowledge the progress on political and security issues in Somalia over the last three years, and especially in the last 12 months; to urge Somalia's Transitional Federal Government (TFG) and the other signatories to complete the ?Roadmap to End the Transition? by Aug. 20; and to see for myself the recent progress achieved in Somalia.

I am encouraged to see that security and stability are improving in Mogadishu, though much remains to be accomplished.

What is the goal of this week?s conference? How did Cincinnati get the opportunity to host it?

The U.S.-Africa Business Conference aims to link decision makers from African governments and businesses to potential U.S. private sector partners. Ultimately, we hope that these connections lead to business transactions. The Department of State frequently holds these discussions with our partners from Africa, but by bringing the conference to Cincinnati, we hope to expose the U.S. private sector in the Midwest region to the significant business opportunities emerging in sub-Saharan Africa.

The conference also provides an opportunity for senior African officials and African private sector representatives to learn more about potential trade opportunities in the United States.

View the original article here

Carson boosts Africa as business frontier - Cincinnati.com

The U.S. State Department will host the U.S.-Africa Business Conference at Downtown?s Westin Cincinnati Hotel today and Friday. More than 500 people, including local business executives, are expected attend. The event, which is not open to the public, provides an opportunity to showcase U.S. business expertise to potential African clients and to highlight trade and investment opportunities in Africa to U.S. exporters and investors.

Johnnie Carson, the assistant secretary of state for African affairs, will attend the conference and recently discussed its goals with the Enquirer.

Talk about the business opportunities in Africa. What kinds of companies ? manufacturing, tech, marketing, for example ? have especially good opportunities in Africa and why?

In last week?s African Growth and Opportunity Act Forum address, Secretary of State Hillary Clinton called Africa the ?land of opportunity.? And she?s right. Africa has also been dubbed the ?last economic frontier.? These monikers are for good reason. The region has achieved impressive economic results over the past decade, including strong, sustained economic growth rates, growing private sector engagement, improved investment climates and increased bilateral trade.

I see this growing economic dynamism as potentially mutually beneficial to the U.S. private sector as well as these growing African economies. For Africa, U.S. companies provide access to world-class products, the best practices in management techniques, the latest technology, jobs and investment capital. For American companies, Africa provides a fast-growing consumer market, and forecasts anticipate Africa will have seven of the 10 fastest-growing economies over the next five years.

Frankly, there are opportunities across a range of sectors for U.S. companies interested in tapping into the growing African market. However, the demand is particularly great for improved infrastructure, which is what we are discussing this week.

What are the challenges of doing business in Africa if you?re a U.S. company? What are the benefits?

The greatest impediment is a lack of understanding of the continent and an appreciation for the potential that exists there. There are challenges for private sector investors. Weak and inefficient regulatory regimes, high transport costs, a lack of reliable energy and corruption are some of the reasons why U.S. companies find it difficult to operate in Africa. However, these are problems U.S. and other foreign companies face all over the world.

We recognize challenges exist in Africa, and that is why we are here in Cincinnati, to increase the understanding among American business people about Africa?s potential. U.S. diplomats engage regularly with our African partners on the need to improve their investment climates. We promote fair rules of the road, so that all companies compete in the global marketplace on an equal footing, no one helped or hindered above others by unfair government practices. Sound economic fundamentals ? open markets, transparent governments, fair regulations ? are necessary for vibrant, healthy economies and that is what we are promoting in Africa.

What has changed over the years in terms of business opportunities for U.S. companies?

For the first time in my long career working in Africa, there is a widespread sense of economic and commercial opportunity in the region. It is very encouraging to see the dialogue shift from one exclusively focused on development assistance to a broader discussion of Africa?s trade and investment potential in the global economy.

You recently traveled to Mogadishu and are the first U.S. official to do so in nearly 20 years. Why was the trip important, and what were your impressions?

I am the most senior U.S. official to travel to Mogadishu in nearly two decades. My visit to Mogadishu had three purposes: to acknowledge the progress on political and security issues in Somalia over the last three years, and especially in the last 12 months; to urge Somalia's Transitional Federal Government (TFG) and the other signatories to complete the ?Roadmap to End the Transition? by Aug. 20; and to see for myself the recent progress achieved in Somalia.

I am encouraged to see that security and stability are improving in Mogadishu, though much remains to be accomplished.

What is the goal of this week?s conference? How did Cincinnati get the opportunity to host it?

The U.S.-Africa Business Conference aims to link decision makers from African governments and businesses to potential U.S. private sector partners. Ultimately, we hope that these connections lead to business transactions. The Department of State frequently holds these discussions with our partners from Africa, but by bringing the conference to Cincinnati, we hope to expose the U.S. private sector in the Midwest region to the significant business opportunities emerging in sub-Saharan Africa.

The conference also provides an opportunity for senior African officials and African private sector representatives to learn more about potential trade opportunities in the United States.

View the original article here

Business Wise: Strategies can keep college costs reasonable - Cincinnati.com

Our son (the oldest of our three children) will be a college freshman in the fall. We?re looking for creative ways to help pay for the rising costs of college tuition. As business owners and parents we?re trying to take advantage of all our options.

We also have a daughter that will be a high school senior in the fall and are keenly aware of the rising costs of college (we feel your pain!) The good news is that there are several tax benefits (credits and deductions) that can help offset college costs depending on your situation and income level. Since you have a family business there may be even greater opportunities to help take the sting out of skyrocketing college expenses.

As a business owner you have a unique opportunity to help pay for college if your children perform services for your organization. You get a tax deduction for reasonable compensation paid to your child and he or she will only pay taxes on their earnings to the extent they exceed $5,950 in 2012. Even if your children earn more than the excludable amount, the earnings will most likely be taxed at a rate that is lower than your tax rate. Your child can save a portion or all of these earnings to help pay for future college costs.

If your company is unincorporated (an LLC or sole proprietorship) and your children are under the age of 18, you will receive an even greater tax advantage since their wages will not be subject to Social Security (FICA) or FUTA taxes.

Hiring your children also gives you the opportunity to reinforce the importance of being financially responsible, as well as the relationship between work and money. These life lessons are critical, especially for your son that is heading off to college. If your succession plan includes bringing your children into the business, this could be a great way to start.

There are several other education tax benefits and deductions that Uncle Sam makes available to qualifying families to help offset college expenses; however, many of these are limited based on your adjusted gross income.

The American Opportunity Credit (AOC) has been extended through 2012 and can be worth as much as $2,500 per eligible student. The catch is the credit is only available during the first four years of post-secondary education for any one student. Forty percent of the credit is refundable, which means you may be able to receive up to $1,000, even if you owe no taxes. Qualified expenses include tuition and fees, course related books, supplies and equipment (not room and board). The full credit is generally available to eligible taxpayers whose modified adjusted gross income (AGI) is below $80,000 ($160,000 for married couples filing a joint return) but phases out completely when modified AGI reaches $90,000 ($180,000 for joint filers).

In 2013, the American Opportunity Credit will no longer be available unless it is extended through legislation. Instead, taxpayers can take advantage of the Hope Credit which is substantially similar to the AOC except its only available for the first
two
years of post-secondary education, is limited to $1,500, and no portion of the credit is refundable.

The Lifetime Learning Credit can save you up to $2,000 in taxes and is less restrictive than the American Opportunity Credit. The credit is equal to 20% of the first $10,000 of qualifying educational expenses for a student enrolled in eligible educational institutions. This credit is generally intended to help those who are not eligible for the American Opportunity Credit. There is no limit on the number of years you can claim the Lifetime Learning Credit. Graduate level courses as well as certain professional development and training classes can qualify. This credit, however, is also limited if your modified adjusted AGI exceeds $52,000 ($104,000 if married filing jointly).

Personal interest you pay, other than certain mortgage interest, is generally not deductible. However, if your modified AGI is less than $75,000 ($155,000 if filing a joint return), you may be able to deduct interest paid on a student loan used for higher education during the year. This deduction can reduce the amount of your income subject to tax by up to $2,500.

Depending on the ages of your two younger children, you may want to consider a state-sponsored college savings plan (often referred to as a 529 plan) to help fund the cost of their educations. Contributions to a 529 plan are not eligible for a federal tax deduction. However, certain states, including Ohio, provide state tax benefits.

The rules can be complicated so be sure that you work with a knowledgeable professional to maximize the tax savings to make decisions that are most beneficial for you and your family. You can get more information regarding the tax benefits of education expenses by referring to IRS Publication 970 at http://www.irs.gov/.

Tom Cooney and Crystal Faulkner are partners with Cooney Faulkner & Stevens, LLC, a CPA firm serving clients as a business advisor and advocate by providing innovative solutions for today?s most challenging problems. Client Focused Solutions for Businesses and Families. For additional information call 513-768-6796 or visit us at http://www.cfscpa.com/.

View the original article here

Business Wise: Strategies can keep college costs reasonable - Cincinnati.com

Our son (the oldest of our three children) will be a college freshman in the fall. We?re looking for creative ways to help pay for the rising costs of college tuition. As business owners and parents we?re trying to take advantage of all our options.

We also have a daughter that will be a high school senior in the fall and are keenly aware of the rising costs of college (we feel your pain!) The good news is that there are several tax benefits (credits and deductions) that can help offset college costs depending on your situation and income level. Since you have a family business there may be even greater opportunities to help take the sting out of skyrocketing college expenses.

As a business owner you have a unique opportunity to help pay for college if your children perform services for your organization. You get a tax deduction for reasonable compensation paid to your child and he or she will only pay taxes on their earnings to the extent they exceed $5,950 in 2012. Even if your children earn more than the excludable amount, the earnings will most likely be taxed at a rate that is lower than your tax rate. Your child can save a portion or all of these earnings to help pay for future college costs.

If your company is unincorporated (an LLC or sole proprietorship) and your children are under the age of 18, you will receive an even greater tax advantage since their wages will not be subject to Social Security (FICA) or FUTA taxes.

Hiring your children also gives you the opportunity to reinforce the importance of being financially responsible, as well as the relationship between work and money. These life lessons are critical, especially for your son that is heading off to college. If your succession plan includes bringing your children into the business, this could be a great way to start.

There are several other education tax benefits and deductions that Uncle Sam makes available to qualifying families to help offset college expenses; however, many of these are limited based on your adjusted gross income.

The American Opportunity Credit (AOC) has been extended through 2012 and can be worth as much as $2,500 per eligible student. The catch is the credit is only available during the first four years of post-secondary education for any one student. Forty percent of the credit is refundable, which means you may be able to receive up to $1,000, even if you owe no taxes. Qualified expenses include tuition and fees, course related books, supplies and equipment (not room and board). The full credit is generally available to eligible taxpayers whose modified adjusted gross income (AGI) is below $80,000 ($160,000 for married couples filing a joint return) but phases out completely when modified AGI reaches $90,000 ($180,000 for joint filers).

In 2013, the American Opportunity Credit will no longer be available unless it is extended through legislation. Instead, taxpayers can take advantage of the Hope Credit which is substantially similar to the AOC except its only available for the first
two
years of post-secondary education, is limited to $1,500, and no portion of the credit is refundable.

The Lifetime Learning Credit can save you up to $2,000 in taxes and is less restrictive than the American Opportunity Credit. The credit is equal to 20% of the first $10,000 of qualifying educational expenses for a student enrolled in eligible educational institutions. This credit is generally intended to help those who are not eligible for the American Opportunity Credit. There is no limit on the number of years you can claim the Lifetime Learning Credit. Graduate level courses as well as certain professional development and training classes can qualify. This credit, however, is also limited if your modified adjusted AGI exceeds $52,000 ($104,000 if married filing jointly).

Personal interest you pay, other than certain mortgage interest, is generally not deductible. However, if your modified AGI is less than $75,000 ($155,000 if filing a joint return), you may be able to deduct interest paid on a student loan used for higher education during the year. This deduction can reduce the amount of your income subject to tax by up to $2,500.

Depending on the ages of your two younger children, you may want to consider a state-sponsored college savings plan (often referred to as a 529 plan) to help fund the cost of their educations. Contributions to a 529 plan are not eligible for a federal tax deduction. However, certain states, including Ohio, provide state tax benefits.

The rules can be complicated so be sure that you work with a knowledgeable professional to maximize the tax savings to make decisions that are most beneficial for you and your family. You can get more information regarding the tax benefits of education expenses by referring to IRS Publication 970 at http://www.irs.gov/.

Tom Cooney and Crystal Faulkner are partners with Cooney Faulkner & Stevens, LLC, a CPA firm serving clients as a business advisor and advocate by providing innovative solutions for today?s most challenging problems. Client Focused Solutions for Businesses and Families. For additional information call 513-768-6796 or visit us at http://www.cfscpa.com/.

View the original article here