Administrative Professionals Week Quotes

As with all social service projects, a lexicon of terms accumulated around the Housing First movement. Permanent Supportive Housing (PSH) described the movement’s general aim and means, and a model program conducted in the 1990s in New York had shown that housing for chronically homeless people could indeed be long-lasting and beneficial, provided they received adequate support. This trial—The Consumer Preference Supported Housing Model (CPSH)—had involved 242 people who suffered from either mental illness or substance abuse or both. The model had housed them, via various grants and public subsidies, in apartments situated in “affordable locations throughout the city’s low-income neighborhoods.” And they had been supported by Assertive Community Treatment (ACT) teams, somewhat modified from the general prototype, but substantial. These included nurses, social workers, drug counselors, administrative assistants, and “peer counselors,” who directed the support services with the advice and consent of the tenants. Each team had access to psychiatrists and other professionals, and each stood ready to help the tenants every night and day of the week. After five years, 88 percent remained housed—a remarkable result.

And then there’s Mississippi. A 389-page audit released in 2020 found that money overseen by the Mississippi Department of Human Services (DHS) and intended for the state’s poorest families was used to hire an evangelical worship singer who performed at rallies and church concerts; to purchase a Nissan Armada, Chevrolet Silverado, and Ford F-250 for the head of a local nonprofit and two of her family members; and even to pay the former NFL quarterback Brett Favre $1.1 million for speeches he never gave. (Favre later returned the money.) There’s more. DHS contractors squandered TANF dollars on college football tickets, a private school, a twelve-week fitness camp that state legislators could attend free of charge ($1.3 million), and a donation to the University of Southern Mississippi for a wellness center ($5 million). Welfare funds also went to a ministry run by former professional wrestler Ted DiBiase—the Million Dollar Man and the author of the memoir Every Man Has His Price—for speeches and wrestling events. DiBiase’s price was $2.1 million. Brett DiBiase, the Million Dollar Man’s son, was serving as deputy administrator for Mississippi’s Department of Human Services at the time. He and five others have been indicted on fraud and embezzlement charges.[15]

There’s more. DHS contractors squandered TANF dollars on college football tickets, a private school, a twelve-week fitness camp that state legislators could attend free of charge ($1.3 million), and a donation to the University of Southern Mississippi for a wellness center ($5 million). Welfare funds also went to a ministry run by former professional wrestler Ted DiBiase—the Million Dollar Man and the author of the memoir Every Man Has His Price—for speeches and wrestling events. DiBiase’s price was $2.1 million. Brett DiBiase, the Million Dollar Man’s son, was serving as deputy administrator for Mississippi’s Department of Human Services at the time. He and five others have been indicted on fraud and embezzlement charges.

Case #6 Sandy and Bob Bob is a successful dentist in his community. In the 15 years since he established his own practice, he has established a reliable base of patients and has built a thriving business in a great location. A couple years ago, he brought his wife, Sandy, a business expert with an MBA, on board to help him oversee the business end of the dental practice. She had recently left her job at a financial services firm, and Bob knew that Sandy’s business acumen would be helpful in getting his administrative house in order. She brought on new employees, developed effective new processes, and enhanced the office’s marketing efforts. Within a few months, Sandy’s improvements had managed to make the dental practice a well-oiled machine. Now she could turn her attention to their real estate portfolio. Bob and Sandy owned three small apartment buildings around town, as well as one small commercial center that was home to a nail salon, a chiropractor’s office, a coffee house and a wine shop. Fortunately, Bob’s dental practice was a success and their investments earned a nice passive income for them. Unfortunately, because Bob earned on average $250,000 per year, the couple couldn’t use passive loss, which in their case came to about $100,000, from their investments to offset his high earned income. Eventually, they would be earning sheltered profits—when the mortgages on their properties were paid off and the rentals made pure profit, or if they were to sell a property. When those things eventually happened, they could use their losses to shelter those profits. But until that time, the losses were going unused. Sandy made an appointment with their CPA to discuss the situation and see how they might improve their tax situation. The CPA asked, “What about becoming a real estate professional?” He explained to Sandy that if she spent 750 hours per year, or about 15 hours a week, on the couple’s real estate investments, she would be considered a real estate professional by the IRS. This would enable the couple to write off 100 percent of their passive losses against Bob’s high income, which would bring his taxable income down to $100,000. This $100,000 deduction brought Bob and Sandy into a lower tax bracket, saving them roughly $31,000 in taxes. Sandy already devoted a large percentage of her time to overseeing their investments, and when she saw the tax advantages, her decision became clear: She would file the Section 469(c)(7) and become a real estate professional.

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