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Q: In a nutshell, what is the RaPower3 deal?
A: RaPower3 has solar energy systems one can purchase. Benefits include tax credit and depreciation benefits that give a short term impressive return.
Q: Who owns the technology?
A: International Automated Systems (IAUS).They give RaPower3 the right to sell their energy systems.
Q: Are there any patents?
A: About 26 patents and 15 patent pendings covering a number of IAUS technologies. IAUS has both national and international patents.
Q: How can RaPower3 claim to be the emerging leader in energy?
A: Three areas of energy production must be prevalent to make that claim. First, you must have an installation cost lower than any other form of energy, whether it’s coal or renewable energy. Second, your cost of operation must be lower than other forms of energy. Third, you must have the capability of mass production.RaPower3 through IAUS seems to have achieved an advantage in all three areas better than anyone. However, we say emerging as we are still in the process of beginning our mass production in our manufacturing plant.
Q: What are the breakthrough technologies?
A: The solar panels, the turbine, the heat exchanger, the dual-axis tracking system, the wind resistant solar panels with frames, the concentrator, and the circuit board.
Q: Can you define all the different watt terms?
A: A thousand watts = one kilowatt. A thousand kilowatts = one megawatt. A thousand megawatts = one gigawatt. In the United States, one megawatt of energy would roughly meet the needs of a town of one thousand people. The terms of cost per kilowatt hour is different. For example, if we sign an agreement to get ten cents per kilowatt hour (Kwh).This means for every hour that we produce one kilowatt, we would get ten cents. Therefore, if we were able to produce energy at the rate of 200 hours a month, then we would receive $20 per month per kilowatt or $20,000 per megawatt or $2M per month for a 100 megawatt project.
Q: Then what are the British Thermal Units mentioned in the RaPower3 contract?
A: The British thermal unit (symbol Btu or sometimes BTU) is a traditional unit of energy equal to about 1055 joules. It is approximately the amount of energy needed to heat 1 pound (0.454 kg) of water from 39°F to 40°F (3.8°C to 4.4°C). The unit is most often used in the power and steam generation industries. And, so it is with RaPower3. The solar panels will heat the water to a very hot temperature creating steam which makes the turbine turn. BTUs can be mathematically converted to kilowatts. This conversion equation is important in maintaining RaPower’s agreement with purchasers.
Q: What are the breakthrough technologies?
A: There are eight breakthrough technologies that should propel RaPower3 to the forefront of our nation’s energy needs.
- The Solar Lenses: These highly patented solar lenses are made of plastic and can be inexpensively mass produced. This Concentrated Solar Power (CSP) system is the only technology that uses the highly advantageous refractive approach rather that a reflective approach.
- The Turbines: These highly patented turbines can be inexpensively mass-produced. They are the turbines that are scalable. This means projects can be built using many small turbines rather that one large one or several large turbines. Finally, our turbines are more efficient and can work with a lower grade of steam with a further advantage of being water tolerant.
- The Dual-Axis Tracking System: Tracks the sun both horizontally and vertically creating greater efficiency. One laptop computer can regulate tracking the sun precisely with a thousand or more towers at the same time.
- The Framing of the Solar Lenses: Able to withstand winds up to 90MPH. Far more than our competition.
- The Concentrators: This boosts temperatures into the 2,500 degree range which is necessary in mass-producing inexpensive zinc batteries.
- The Heat Exchangers: This highly patented technology reduces the size of current heat exchangers on the market by one thousand times thus reducing the cost exponentially.
- The Biomass Burner: This patented technology burns any kind of biomass, waste or garbage with zero emissions. Our system is far more efficient and less costly than out competitors.
- The Circuit: This highly patented and guarded technology efficiently and smoothly regulates different voltages from AC to DC back to AC. Our circuit can be mass-produced and will have multiple remarkable life-changing uses with a variety of industries.
Q: What is the significance of these combined technologies?
A: We have the answer to our nation’s energy needs and this answer is available in 2012. Our answer includes all three essential dynamics for changing the energy equation. First, we have the lowest installation costs of any energy source. Second, we have the lowest cost of operation of any energy source. Third, we can mass- produce every component in practically limitless quantities. In a nutshell, our combined technologies have the potential of significantly changing the energy requirements of transportation, homes and businesses.
Q: What are the tax forms used for the solar energy tax credits?
A: You can access the solar energy tax forms 3468 and 3800 by going to irs.gov. In the upper right hand corner there is a search engine; just put in the form number. After the above forms are filled out correctly, then the tax credit number goes on line 53 of your 1040 form. Tax form examples can be found on rapower3.com
Q: What are the tax forms used for the depreciation?
A: IRS Form 4562 and Schedule C. The depreciation from 4562 becomes a Net Operating Loss (NOL) on Schedule C and then that figure goes on line 12 on your 1040 form.
Q: How are the tax credits and depreciation calculated?
A: The purchase price per system is $3,500 so you simply take 30% of that which = $1,050 tax credit per system. For depreciation, take half the tax credit: $525 and subtract that from the purchase price: $2,975 depreciation per system.
Q: What are the depreciation requirements?
A: To be depreciable, the property must meet all of the following requirements: (Our RaPower3 energy systems easily meet these four requirements) 1. It must be property you own; 2. It must be used in your business or income-producing activity; 3. It must have a determinable useful life; 4. It must be expected to last more than one year after being placed in service.
Q: When can I start claiming my depreciation?
A: A taxpayer can start claiming depreciation of an asset as soon as his or her property is placed in service. Property is placed in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. This does not mean you have to be using the property; just that it is ready and available for its specific use. The Placed-In-Service letter that you will receive after you purchase your systems verifies this.
If the equipment is ready and available for ANY income producing activity, including leasing it out for advertising purposes, the owner may start claiming depreciation on the asset. Purchasers of RaPower3 Solar Energy equipment in 2011 qualify for the 100% bonus depreciation for 2011 and those that purchase in 2012 qualify for the 50% bonus depreciation for the 2012 tax year as the above standards have been met.
Q: I know I have to materially participate in my solar energy business to be considered non-passive so I can claim the depreciation. Do I have spend 500 hours a year to be considered active because I really can’t do that?
A: Here are the guidelines taken from irs.gov website: If the taxpayer and/or the spouse meets any of the following, he materially participates and income is non-passive and should not be on Form 8582, triggering passive losses:
- Did taxpayer work more than 500 hours a year in business?
- Did taxpayer do most of the work?
- Did taxpayer work 100 hours and no one worked more?
- Did taxpayer work 100-500 hours in several passive activities, the sum of which exceed 500 hours?
- Did taxpayer materially participate in the activity any 5 of the prior 10 years?
- If the business is a personal service activity, did he materially participate in any 3 prior years?
Almost all of our RaPower3 Team Members work by themselves in their solar energy business. They have no employees and therefore, they do all or most of the work involving their solar energy business. So these team members usually don’t spend 500 hours on their business, but qualify anyway under guideline #2 because they do most of the work.
Q: Will my systems I purchased be Placed In Service?
A: Yes. You will get a Placed In Service letter e-mailed to you around February 1st 2013 stating that fact. It is suggested you make a copy of the letter and give it to your CPA so it’s on file for his/her records.
Q: How and when did all these amazing tax benefits come about?
A: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included provisions that allow businesses to elect a 100 percent depreciation through 2011 and a 50 percent bonus depreciation through 2012. On October 3, 2008, the House of Representatives passed H.R. 1424, the Emergency Economic Stabilization Act of 2008 by a vote of 263-171. Soon after, President Bush signed the bill into law. The U.S. Senate passed its own version of the bill on Oct. 1, 2008. In the bill are a number of provisions supporting energy efficiency and renewable energy, including all of the solar incentives advocated by SEIA (Solar Energy Industries Association).
This package includes an 8-year extension of the 30% commercial solar investment tax credit, completely eliminates the monetary cap for residential solar electric installations, and allows utilities and alternative minimum tax (AMT) filers to take the credit. Therefore, RaPower3 will offer our Tax Benefit program through the purchasing of solar energy systems until the end of the year 2016.
Q: Going Back Two Years on Depreciation: I was wondering about question I had with carry back for a client. I know that you can only go back one year for a tax credit but with depreciation, I thought you can go back 2 years. So if my client is filing this year, they can zero out their taxes for this year(2011) and go back and get 2010 & 2009 federal taxes. Is this right? I was told you could not do this.
A: You can go back two years with depreciation/net operating loss but it gets complicated as to the best strategy on buying the correct number of systems. Each tax payer would vary. Therefore, it is best to work with an accountant on this issue.
The dilemma is that you would need to purchase a large number of systems to get everything back from two years prior. In fact, so large a number that it would not make sense to purchase that many systems based on most people''s tax liability.
Bottom line: For most, you can get everything back in 2011 and 2010 but only a little bit in 2009 if you want to go the trouble of amending that year.
Q: How do I do my taxes to get all the RaPower3 tax benefits?
A: First, all the tax forms needed for your tax benefits are on our website rapower3.com under TAX BENEFITS. This will allow you to do your own taxes at no cost if you so desire. Also, COSTCO has the Turbo Tax software for sale. $50 for the Deluxe package, $70 for the Premium package and $80 for the Home and Office package. All three versions will work for the RaPower3 Tax Benefits. You cannot go to irs.gov and have a free tax service help you. They don't have the software for that. Then, of course, you can use a CPA or licensed tax preparer. It cost more, but it will be done correctly and they have a habit of finding things to save you money that you didn't think of, plus they would be with you in the unlikely event of an audit. Our RaPower accountants are Bryan Bolander: bryan@vcb-cpa.com and John Howell: rockingh@wf.net
Q: People electronically sign their contracts and agreements. Is this legally OK.
A: Yes. It is now done all the time in the United States.
Q: Why so many contracts and agreements?
A: All are necessary to put the whole RaPower3 package together.
Q: How so?
A: For example, The Equipment Purchase Agreement has important connections with the Operations and Maintenance Agreement. The Bonus Contract is important for our RaPower3 members in qualifying for the depreciation benefit.
Q: How can I get a copy of my Contracts and Agreements?
A: Easy. Just Log-in to our member area. Look to the left hand greenish column. There are two places to get this info that you may also print. First, look for contracts and click. There you will see a list of some of your documents. Just click to see or print. Second, look down further and click View Personal Purchases. This page shows a list of your Personal Purchases. On the left, you will see a small box with a + in it. Click it. This will bring up a lot of info: Your Equipment Purchase Contract, your Operations and Maintenance Agreement. You can even print out your invoice; something your CPA might wish to have.
Q: I don’t like Network Marketing (Multilevel Marketing). What do I have to do?
A: Nothing. Absolutely nothing. It’s just one component of RaPower3. Your participation is completely voluntary.
Q: What’s the cost?
A: There is no cost. There is no administration start-up fee like other network marketing companies and also no monthly funds taken out of your account like other companies. We have retained all of the good of network marketing business plans and none of the bad.
Q: What do you mean none of the bad?
A: Ninety-eight to ninety-nine percent of people who get into network marketing lose money because of the administration fee and having monthly funds withdrawn automatically from their checking account. Most people are unskilled in selling the products that are often times overpriced and, in addition, to being rejected over and over. Discouragement and loss of money leads to quitting with a bad taste. No one ever loses money with RaPower3. No one quits because everyone makes money. There’s never any pressure.
Q: OK. What’s the good part?
A: You work at your own pace. But the commissions are ten percent on the sales, ten percent on the rental income plus the bonus. It can mount up to a life-changing amount. You can sell to as many people as you want. We call that going wide. You can go six levels deep. This means you can make commissions when your clients sell systems.
Q: Can you give me an example?
A: Yes. Many people have purchased 100 systems or more. One hundred systems require a down payment of $105,000. That means a $10,500 commission. This also means the client will earn $15,000 a year in rental income. That means another $1,500 a year in commissions from the rental. The bonus would be at a maximum of $100,000.
Q: Who would buy 100 systems?
A: One in five households should purchase 100 systems. When you speak in terms of being able to go back one to two years and forward until 2016, you really don’t have to make that big of an income to justify a one hundred system purchase. You pay $10,500 upfront and eventually, your IRS refunds will be about &160,000. Do the math. What’s even better this program is the federal government’s program. RaPower3 just uses what was passed by congress and signed into law by two presidents to help make our country go green.
Q: Why do I need a Sponsor Name?
A: First, your sponsor will receive a commission when you purchase systems. Second, your sponsor can answer questions now and in the future. If not, then his or her sponsor.
Q: How can I look at the contracts and agreements before I sign-up?
A: Go to rapower3.com and click the Purchase/Join button. There you can see some of the documents, but the Equipment Purchase Contract and Maintenance Agreement needs to be e-mailed to you. So, just sign up for that service.
Q: When did RaPower3 start?
A: 2010
Q: When did International Automated Systems (IAUS) start?
A: Over 20 years ago.
Q: Who owns the patents? And how many are there?
A: The patents are controlled by IAUS and the inventor Neldon Johnson. There are some fifty patents covering a wide range of its breakthrough technologies.
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