Tuesday, December 11, 2012

From fish to man: Research reveals how fins became legs

Dec. 10, 2012 ? Vertebrates' transition to living on land, instead of only in water, represented a major event in the history of life. Now, researchers reporting in the December issue of the Cell Press journal Developmental Cell provide new evidence that the development of hands and feet occurred through the gain of new DNA elements that activate particular genes.

"First, and foremost, this finding helps us to understand the power that the modification of gene expression has on shaping our bodies," says Dr. Jos? Luis G?mez-Skarmeta of the CSIC-Universidad Pablo de Olavide-Junta de Andaluc?a, in Seville, Spain. "Second, many genetic diseases are associated with a 'misshaping' of our organs during development. In the case of genes involved in limb formation, their abnormal function is associated with diseases such as synpolydactyly and hand-foot-genital syndrome."

In order to understand how fins may have evolved into limbs, researchers led by Dr. G?mez-Skarmeta and his colleague Dr. Fernando Casares at the same institute introduced extra Hoxd13, a gene known to play a role in distinguishing body parts, at the tip of a zebrafish embryo's fin. Surprisingly, this led to the generation of new cartilage tissue and the reduction of fin tissue -- changes that strikingly recapitulate key aspects of land-animal limb development. The researchers wondered whether novel Hoxd13 control elements may have increased Hoxd13 gene expression in the past to cause similar effects during limb evolution. They turned to a DNA control element that is known to regulate the activation of Hoxd13 in mouse embryonic limbs and that is absent in fish.

"We found that in the zebrafish, the mouse Hoxd13 control element was capable of driving gene expression in the distal fin rudiment. This result indicates that molecular machinery capable of activating this control element was also present in the last common ancestor of finned and legged animals and is proven by its remnants in zebrafish," says Dr. Casares.

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The above story is reprinted from materials provided by Cell Press, via EurekAlert!, a service of AAAS.

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Journal Reference:

  1. Renata Freitas, Carlos G?mez-Mar?n, Jonathan?Mark Wilson, Fernando Casares, Jos??Luis G?mez-Skarmeta. Hoxd13 Contribution to the Evolution of Vertebrate Appendages. Developmental Cell, 2012; 23 (6): 1219 DOI: 10.1016/j.devcel.2012.10.015

Note: If no author is given, the source is cited instead.

Disclaimer: This article is not intended to provide medical advice, diagnosis or treatment. Views expressed here do not necessarily reflect those of ScienceDaily or its staff.

Source: http://feeds.sciencedaily.com/~r/sciencedaily/top_news/top_science/~3/8ousWo2SoZo/121210124521.htm

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Market Minute: Cynthia Petitjean, CPA, ESQ. Talks About the 3.8 ...

The 3.8% tax on real estate sales as put forth in the Affordable Health Care Act goes in to effect January 1, 2013. Tampa CPA and Attorney Cynthia Petitjean talks about the tax and its implications.

Cynthia Petitjean, ESQ, CPA sits down with us on the Market Minute to discuss how the new tax on capital gains will effect real estate.

?

Eric: Welcome to another Market Minute. ?My name is Eric Odum, Principal Real Estate Broker for ROI Commercial Property Brokerage in Tampa, Florida. ?Today, we?re going to talk about the rumor of a 3.8% tax to be placed on real estate through the healthcare law recently passed under the Obama administration. We are going to clear this rumor up. We have with us Cynthia Petitjean. Cindy is a CPA and member of the Florida BAR since 1992> ?Her areas of practice are estate & tax planning, tax compliance, tax controversy representation at the state and national levels, and probate administration.

Eric: Cindy, thanks so much for joining me today.

Cindy: Thanks for having me.

Eric: This is a pretty controversial tax in the real estate world. ?There has been a lot of rumor and innuendo on how this tax will be applied. Where did this tax come from?

Cindy: On March 23, 2012 Congress and President Obama passed ?The Patient Protection and Affordable Care Act?. A portion of that act implemented a code section which assessed a 3.8% tax on certain high income tax payers effective January 1, 2013.

Eric: Who exactly are those high income earners?

Cindy: Beginning on January 1, 2013 this code section comes into effect. A high income tax payer is defined under this new law as a couple filing a joint return that is earning over $250,000, which I believe is just the gross income (the line on the bottom of the first page of your tax return). ?For married filing separately couples that threshold is $125,000. For all others head of household or single tax payers, its income above $200,000. ?This tax is not only assessed on real estate but wages and self-employment income.

Eric: Is there a number attached to the sale of the property; does it have to be a particular capital gain?

Cindy: There is a complex formula, but for the most part the 3.8% tax is going to be assessed on what is termed ?Net Investment Income?. ?Net investment income is traditionally dividends, rents, interest, capital gains which you just asked about, royalties and passive activity income.

Eric: I know this is complex, if someone wants to discuss their specific needs how can they reach you?

Cindy: I can be reached at 813-659-2020.If you prefer to email your questions I can be reached at cmp@cmp-law.com.

Eric:?This subject originally got people stirred up because there was a viral email that was being passed around that would not die. ?It said everyone is going to get taxed on the sale of their property. Now, that?s not really true. ?It is on capital gains?not the net sale amount, as the email stated. ?It really?doesn?t?seem to be affecting a large number of people or is it?

Cindy: That is a misconception of once you sell a property you will be taxed on the gain of the property. First off, there is the potential gain that an individual or a joint filling couple might recognize upon the sale of their principle residence. Briefly you can exempt up to a half million dollars of gain if you are filing a married filing jointly return or up to $250,000 of gain if you are a single tax payer on the sale of your principle residence. Let me make the point that gain is not total proceeds.

So for example, let?s say you sale your house for $350,000 you may not have a taxable gain there if your basis which is what you brought it for and what improvement you placed into it is greater than $100,000. As a single person, $100,000 base minus $350,000 gross proceeds from the sale (what you received from the buyers) equates to a $250,000 gain. Under current law that gain is excluded from income for a single tax payer, that gain will also be excluded from the 3.8% tax.

For the most part, if you are under the threshold of excluding a gain from a principle residence, you will be excluded from this tax. Also. the gain on the sale of non principle residence property ( i.e. property used in a trade or business) that?s sold and there?s a gain and the property is used in your trade or business that gain will also be exempt, because that gain is treated as trade or business income which is not subject to the tax.

Eric: What I focus is on commercial real estate, but talked has centered on residential property. I haven?t seen a lot of information in regards to commercial real estate, so I?m glad you touched on that. Let?s talk about the rules for commercial real estate and the $250,000 exclusion, as it pertains to the business side.

Cindy: Property that is used in a trade or business? if the property is sold and a gain is recognized because it?s in the bucket of a trade or business income is not considered under the 3.8% law as net investment income. That property is not going to be taxable if sold by a person in a trade or business. Let me make a point here that this tax is on the individual. ?If you?re a C corporation and you sell property that?s been held as an investment, this 3.8% tax doesn?t apply. This is what I call flow entities ? partnerships and S corporations ? it doesn?t matter what the entity, either a corporation or an LLC it?s tax classification of partnership or S corp and the implications that occur in those entities flow through to the individual. The character of the income that is recognized by the entity flows through to the individual and that is where you apply the rules of what is net investment income vs. active trader business income.

For example: S Corporation sells a piece of equipment and a gain is recognized on it. That piece of equipment, if used in the act of trade or business, is going to reflect a gain that?s going to flow through to the shareholder that is going to be active trader business income? and not going to be subject to the 3.8% tax. On the other hand, that S Corporation was holding a share of?publicly?traded stock for investment purposes and it was sold for a gain. That gain will be treated as capital gain that flows through to the individual shareholder and applying the other thresholds of high income taxpayer and other complex formulas may be taxed at the 3.8% rate.

Eric: Let?s talk about the reality of the situation. ?We?ve taken a beating in real estate. ?The values of real estate have been turned back a decade. Folks are going to probably have held this piece of real estate for a long period of time to actually have experienced the capital gains, plus the $250,000 or higher income to be subject. Is that correct?

Cindy: That?s correct. Let me also point out that this is not only on capital gains. ?This is on dividends and interest. Even as important, a capital gain that might be impacted by the 3.8% tax is rent. Rental real estate according to the internal revenue code is passive unless you?re a real estate professional and can treat those rentals as an active trader business? it?s passive. The new law requires passive income to be subject to this net investment tax. There is some confusion about whether this tax is going to apply to rent that a person materially participates. I?m getting into complex passive activity participation rules.

Eric: Yes, that seems like some individual rules. ?They can chat to you personally about this.

Cindy: There is some area of clarity in the law that we?re expecting regulations to come out, but it could potentially be a point of planning.

Eric: Let?s talk about a high income doctor who has had real estate for a long period of time. Seems like professionals will be the most affected by this tax. ?I?ve has this case within the last month. A doctor who has had his building and practice for thirty years or more thinking about how to get out. ?He?s at that retirement age, making $280,000 a year and has substantial gains on that building. He paid $100,000 for it back in 1984 and now it?s worth five times that. Sounds like this type of individual is going to be subject to this tax all away around, doesn?t it?

Cindy: Potentially. ?It depends on how the real estate is owned, whether is owned in the entity that he?s selling and actively used in the trade or business. I?m assuming that this is his office, the gain in the real estate portion of it may be subject to the 3.8% tax?..but remember this is only above certain tax payers that have a threshold. Hypothetically, if the doctor retires his income is going to drop, ?so there?s planning opportunities to look into an installment sale of that equipment or property used in the business to keep the gain low where he?doesn?t?hit the threshold. ?If he did sell the stock of the company that may be subject to the 3.8%tax, depending on the format of the entity he?s selling the stock in. Yes, it could impact the doctor, but there are certainly planning opportunities to be looked at to make the tax implications minimal as possible to this doctor on this exit strategy.

Eric: That?s a great idea, Cindy. I never thought about an installment sale. What you?re essentially saying is to pull that income stream on the sale over a number of years, where you?re actually going to be allocating only a portion of what he gets paid on this practice in the years that he?s going to be earning less than $250,000?..pushing him out of being subject to the tax. Is that correct?

Cindy: Potentially, yes. ?Once again, it depends on what the character of the income on the sale was. Hypothetically, it would be ordinary income upon the sale of the assets. You do endure the credit risks of collecting your sales price over a period of years, hoping you have a solvent buyer balancing the credit risk with the tax implications.

Eric: That sums it up from the commercial aspect. I really appreciate your time and input on this Cindy. Once again, please give folks your telephone number in case they want to chat with you for future planning.

Cindy: I can be reached at 813-659-2020 or if you prefer to email your questions I can be reached at cmp@cmp-law.com

Eric:? Great! Cindy thanks you so much for joining us. I?m Eric Odum, Principle Real Estate Broker for ROI Commercial Property Brokerage in Tampa, Florida and thank you for listening.

Cindy: Thank you Eric.

I?m going to include a link to our web page which is?www.FloridaTripleNet.com.

Join us next time for The Market Minute.

ROI Commercial Property, Inc. (ROI) is a licensed Florida Real Estate Corporation. While ROI endeavor to ensure that its content is accurate and correct, it makes no express or implied warranty, representation or understanding to its accuracy, reliability or completeness. This interview has been produced by ROI and is intended for informational purposed only. The opinions expressed by guest are the opinions of the guest and may not reflect the opinions of ROI or ROI employees or staff.

Interested in leasing or purchasing commercial real estate? Call us @ 813.514.1070
or email by clicking HERE!

Source: http://floridatriplenet.com/blog/tampa-commercial-real-estate-news-and-commentary/market-minute-cynthia-petitjean-cpa-esq-talks-about-the-3-8-tax-on-commercial-real-estate/

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AP source: HSBC to pay $1.9B to settle probe

WASHINGTON (AP) ? HSBC, the British banking giant, will pay $1.9 billion to settle a money-laundering probe by federal and state authorities in the United States, a law enforcement official said Monday.

The probe of the bank ? Europe's largest by market value ? has focused on the transfer of billions of dollars on behalf of nations like Iran, which are under international sanctions, and the transfer of money through the U.S. financial system from Mexican drug cartels.

According to the official, HSBC will pay $1.25 billion in forfeiture and pay $655 million in civil penalties. The $1.25 billion figure is the largest forfeiture ever in a case involving a bank. Under what is known as a deferred prosecution agreement, the financial institution will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act.

The official spoke on condition of anonymity because the source was not authorized to speak about the matter on the record.

Under the deferred prosecution arrangement, HSBC will admit to certain misconduct, the official said, but the details of those admissions to be made in a New York court were not immediately available late Monday. Nevertheless the deferred prosecution agreement means the bank won't be prosecuted further if it meets certain conditions, such as strengthening its internal controls to prevent money laundering. The Justice Department has used such arrangements often in cases involving large corporations, notably in settlements of foreign bribery charges.

The law enforcement official said an announcement of the agreement could come as early as Tuesday.

The London-based bank said it is cooperating with investigations but that those discussions are confidential.

In regard to HSBC and Mexico, a U.S. Senate investigative committee reported that in 2007 and 2008 HSBC Mexico sent to the United States about $7 billion in cash. The committee report said that large an amount of cash indicated illegal drug proceeds.

Money laundering by banks has become a priority target for U.S. law enforcement.

In another case Monday, a British bank, Standard Chartered, which was accused of scheming with the Iranian government to launder billions of dollars, signed an agreement with New York regulators to settle their investigation with a $340 million payment.

Since 2009, Credit Suisse, Barclays, Lloyds and ING all paid heavy settlements related to allegations that they moved money for people or companies that were on the U.S. sanctions list.

?Credit Suisse, Switzerland's second-largest bank, agreed to pay $536 million. The authorities said the bank violated U.S. economic sanctions by hiding the booming illegal business it was doing for Iranian banks.

?Barclays paid $298 million. The big British bank allegedly engaged in $500 million in illegal transactions with banks in Cuba, Iran, Libya, Sudan and Myanmar for more than a decade.

?Lloyds, another major British bank, agreed to forfeit $350 million for allegedly helping customers skirt U.S. sanctions on business transactions with Sudan, Iran and Libya.

?Big Dutch bank ING paid $619 million to settle charges that it secretly moved billions of dollars through the U.S. financial system on behalf of Cuban and Iranian customers.

Last summer, the Senate investigation concluded that HSBC's lax controls exposed it to money laundering and terrorist financing.

HSBC bank affiliates also skirted U.S. government bans against financial transactions with Iran and other countries, according to the report from the Senate Permanent Subcommittee on Investigations. And HSBC's U.S. division provided money and banking services to some banks in Saudi Arabia and Bangladesh thought to have helped fund al-Qaida and other terrorist groups, the report said.

The report also blamed U.S. regulators: It said they knew the bank had a poor system to detect problems but failed to take action.

Sen. Carl Levin, D-Mich., the committee chairman, cited instances in which HSBC had promised to fix deficiencies after being sanctioned by regulators but failed to carry through.

Levin also said the Office of the Comptroller of the Currency, the U.S. agency that oversees the biggest banks, tolerated HSBC's weak controls against money laundering for years and that agency examiners who had raised concerns were overruled by their superiors.

HSBC announced Monday that Robert Werner, a former head of the Treasury Department agencies responsible for sanctions against terrorist financing and money laundering, is taking a new position within HSBC as head of group financial crime compliance and group money-laundering reporting officer. Werner has been head of global standards assurance since August.

In January, HSBC hired Stuart Levey, a former Treasury undersecretary for terrorism and financial intelligence, as its chief legal officer. And a former policy adviser in the Obama administration, Preeta Bansal, in October became HSBC's global general counsel for litigation and regulatory affairs.

___

Associated Press writer Marcy Gordon contributed to this report.

Source: http://news.yahoo.com/ap-source-hsbc-pay-1-9b-settle-probe-222747553.html

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'Right to Work' Causes Controversy

President Obama's campaign to raise taxes on the wealthy is likely to veer off course in Michigan today, when he lands smack-dab in the middle of a battle over right-to-work legislation. It's a fight he has previously viewed from a distance in other, similar situations, to the disappointment of many Democrats.

Republican Gov. Rick Snyder is expected to sign a controversial right-to-work bill Tuesday. The bill, which was pushed through the Republican-controlled state legislature last week, would make the payment of union dues voluntary for private-sector unions and most public-sector unions (police and firefighters would be exempt).

Protesters have swarmed the state Capitol in Lansing arguing that Snyder's move ensures that he will be a one-term governor.

Before the president's visit, in which he is expected to weigh in on the controversy, the state's congressional delegation met with Snyder this morning to try and dissuade him from signing the bill, or at least draft legislation to delay a vote.

"The labor- management environment in this state has dramatically improved in recent years. ? Fracturing that growing unity and creating a contentious labor environment will not help companies come to Michigan, we told the governor," Sen. Carl Levin, the state's senior U.S. senator, told a news conference after the meeting.

"The governor listened and he told us that he would seriously, in his words, consider our concerns."

If the bill is passed and signed Tuesday, which is when the legislature reconvenes in the state, Michigan will become the 24th right-to-work state, and Snyder will likely face a political backlash in the state that gave birth to the U.S. labor movement.

Democrats argue that such a law should be put on the ballot, and decided by the voters instead of the state's lawmakers. The right-to-work bill is structured so that it cannot be recalled by a statewide ballot initiative, so if it's passed by the legislature and signed by the governor, voters will have no direct say in the matter.

There's no polling on the state's battle that meets ABC News' standards for publication, but recent history has indicated that such a law is unpopular in the Midwest.

An Ohio law that limited the collective-bargaining rights of union workers was repealed last year by a large margin in a statewide vote. And Wisconsin Gov. Scott Walker became only the third governor in history this year to be recalled after he championed similar legislation that also limited collective-bargaining rights. Walker survived the recall effort, but it was a costly fight.

President Obama distanced himself from the recall election against Walker in June. To the frustration of Democrats in Wisconsin, and nationally, the president never went to the state to campaign for Democratic nominee Tom Barrett. He later blamed his absence on his busy schedule, saying "the truth of the matter is that as president of the United States, I've got a lot of responsibilities."

Democrats and labor leaders are optimistic that they can work out a deal with Snyder, a source told ABC News this weekend.

Also Read

Source: http://news.yahoo.com/michigan-law-distracts-obama-visit-173941686--abc-news-politics.html

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Samsung vs. Apple: Why Samsung Wins a Pyrrhic Victory

Last week was defined largely by two interesting stories. One had Apple bringing some manufacturing back to the U.S., and the other revolved around the outcome of the latest trial between Apple and Samsung. It shows you how hard it is to read a judge, though. I thought Judge Lucy Koh would likely raise the award from $1.05 Samsung and Apple appear to be in a dance to the death.

Source: http://ectnews.com.feedsportal.com/c/34520/f/632000/s/26735393/l/0L0Stechnewsworld0N0Crsstory0C767990Bhtml/story01.htm

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Hillary Clinton cancels Mideast trip due to illness

By Reuters

WASHINGTON - Secretary of State Hillary Clinton has canceled her trip to Morocco this week for a meeting on the future of Syria's opposition because of a stomach virus, the State Department said on Monday.

Deputy Secretary of State Bill Burns will travel to the meeting in her place.

"Since she's still under the weather, we'll be staying put this week instead of heading to North Africa and the Middle East as originally planned," State Department spokesman Philippe Reines said in a statement.


"In her place, Deputy Secretary Burns will travel to Marrakech for the Friends of the Syrian People meeting. We will let you know when she shakes this bug and resumes a public schedule," he said.

Clinton had been due to join foreign ministers from allied nations in Morocco to discuss the 20-month old Syria crisis as rebels fighting to oust President Bashar al-Assad push forward on the battlefield and move to unify the political opposition.

The so-called Friends of Syria group is expected to focus on new moves to strengthen and legitimize the recently formed Syrian opposition coalition.

Clinton had planned to continue from Morocco to Tunisia and the United Arab Emirates.?

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Source: http://worldnews.nbcnews.com/_news/2012/12/11/15831763-hillary-clinton-cancels-mideast-trip-due-to-illness?lite

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