January 2010

U.S. Virgin Islands Governor John P. deJongh recently appointed two BoltNagi attorneys to serve on territorial governmental boards. Managing Attorney Tom Bolt has been appointed as a member of the Interagency Council on Homelessness and Laura C. Nagi, Chair of the firm’s Family Law and Children’s Issues Practice Group as a member of the State Advisory Group of the Law Enforcement Planning Commission.Continue Reading VI Governor Appoints BoltNagi Attorneys

The first "opportunity for solution" that you have in preparing a U.S. Virgin Islands Individual Income Tax return is that your tax preparation software doesn’t have a state module for the U.S. Virgin Islands. This is not a problem. A U.S. Virgin Islands income tax return is prepared using the same Form 1040 U.S. Individual Income Tax Return that is used throughout the United States. The major difference is the tax is paid to the U.S. Virgin Islands Treasury rather than the United States Treasury. This entry will cover some minor differences and practical tips which you may want to pass on to your tax preparer.Continue Reading Preparing an Individual Income Tax Return with U.S. Virgin Islands Income

Investors sometimes make investments in real estate that turn out badly.  There is an old saying in the Virgin Islands that "the man that makes a small amount of money in the Virgin Islands is one that started with a large amount of money!"  Many may blame their loss on the "real estate cycle" when actually there were mistakes that could have been avoided by better planning and analysis.

Based on over 35 years experience in real estate, I have identified several costly mistakes.  Here are a few:

Misjudged Demand. 

Developers have faced costly setbacks by assuming that customers existed without undertaking adequate market analysis.  For example, a mixed-use retail/office development designed to attact EDC businesses and upscale shoppers just when the Territory’s EDC Program had a setback from additional federal regulation and upscale shoppers took it on the chin in the current economy.Continue Reading Costly Mistakes In Real Estate

Congress failed to address pressing estate and generation-skipping transfer tax matters before it adjourned in December. Consequently, as of January 1, 2010, the provisions of 2001 federal tax legislation (the “2001 Act”) will cause the federal estate and federal generation-skipping transfer (GST) taxes to be repealed for one year, starting on January 1, 2010.    

For 2009, there was a $3.5 million exemption for each tax and a 45 percent top tax rate for each tax. Under the 2001 Act, the federal estate and GST taxes will come back into effect on Jan. 1, 2011, but with only a $1 million exemption for estate tax, a $1.1 million exemption for GST tax (indexed for inflation), and a top rate of (generally) 55 percent for each tax.Continue Reading Federal Estate and Generation-Skipping Tax Repeal in 2010

At the beginning of 2009, employers, insurers and COBRA administrators revised their procedures and notices to implement the COBRA subsidy provided under the American Recovery and Reinvestment Act of 2009 (“ARRA”). These provisions allowed certain eligible individuals to elect COBRA coverage and pay only 35% of the COBRA premium for up to 9 months. Subject to certain exceptions, employers then collect the other 65% of the premium from the federal government through a credit claimed on the employer’s payroll tax return. This COBRA subsidy was a temporary measure that was to be available only to individuals who were involuntarily terminated from employment and were entitled to elect COBRA coverage on or prior to December 31, 2009. On December 19, 2009, President Obama signed the Department of Defense Appropriations Act, 2010, which includes an amendment extending the COBRA subsidy (the “Subsidy Amendment”). Continue Reading Congress Provides for COBRA Extension

BoltNagi, PC is the new name for the prominent St. Thomas law and lobbying firm previously known as Tom Bolt & Associates, PC. with the addition of Ravinder S. Nagi as a shareholder in the firm.  The 20 year old law firm serves clients in all aspects of business law, including banking, corporate, real estate, tax, trusts and estate planning, labor and employment law and civil litigation.   The firm also maintains an active family law and government relations practice.

Tom Bolt, founder and Managing Partner of BoltNagi, PC, said, "We are very proud to have Ravi Nagi’s name join ours.  The change reflects the overall growth of the firm – growth that’s in large measure due to the outstanding contributions of Ravinder Nagi."

Continue Reading Law Firm Announces Name Change to BoltNagi, PC