EMAIL DETAILS

Thanks, Sarah.

Here’s some language as it relates to the 2014 return.

—--

Because of a miscommunication, Hunter believed that taxes were being withheld from his Burisma Director’s Fees when in fact they were not. The period in question covered 2014 and 2015. 2015’s returns are being prepared to reflect this error and at some point 2014 will need to be amended to do the same. (Hunter and Kathleen’s accountant wanted to get 2015 filed before turning to 2014.) This is being done voluntarily and this is not a result of an IRS audit or any action on the part of the IRS.

——

Given the above, there will be money owed for 2015 as well. I need to talk to Hunter about a couple of things related to the 2015 taxes so the accountant can finalize the numbers and hopefully we will have the final numbers/draft return in the next couple of days.

If you want to discuss further feel free to call me and I can give you more background on the reason for the amendment.

Thanks,

Eric


Eric D. Schwerin
Rosemont Seneca Advisors, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
P Consider the environment before printing this email.

> On Oct 6, 2016, at 1:27 PM, SMancinelli <SMancinelli@ainbanklaw.com> wrote:
>
> Thank you, Eric and Hunter.
>
> I am going to put together a draft email to Rebekah sending her the tax returns and also sending her the narrative below (with some edits I make). I will send you all that email to you, Hunter, to review before it goes out.
>
> Eric, one question for you- can you send me a sentence or two explaining why the 2014 returns may need to be amended? I want to include that in the email I sent to Rebekah but want to make sure I phrase it correctly.
>
> Regarding the 2015 tax filings- are you anticipating a refund? If so, is that applied to next year’s returns? Given that they may not be able to file jointly next year (if they are not married)- may be better to get that refund and divide it equally? Let me know.
>
> From: Eric Schwerin [mailto:eschwerin@rosemontseneca.com]
> Sent: Wednesday, October 05, 2016 5:28 PM
> To: SMancinelli
> Cc: Hunter Biden
> Subject: Hunter and Kathleen's Income/Expenses
>
> Sarah-
>
> Want to first make sure you got the tax returns I sent yesterday. Let us know if there is some procedure we need to be aware of as it relates to the 2015 returns that will be filed on October 15th since both Hunter and Kathleen will need to sign them.
>
> Hunter also asked me to send you the below narrative on their income/expenses and ask your advice on how best to communicate this to Kathleen’s attorney.
>
> ———
> Hunter has two sources of regular ordinary income. A salary from Boies Schiller and a salary paid to him by Owasco, P.C.
>
> His Boies Schiller (approx. $212,000) goes into Hunter and Kathleen’s joint Wells Fargo Advisors account and that money directly funds Finnegan and Maisy’s tuitions at Sidwell and a couple of household autopays. There is very little left from that check each month.
>
> Putting aside the Boies salary, Owasco, P.C. receives $143,333.00 a month which includes his Directors Fees from Burisma.
>
> After you subtract Owasco, P.C. related expenses, there is $130,000 a month left that is paid out to Hunter in the form or salary or bonus.
>
> After taxes (using a 45% tax rate), that leaves approx. $71,500 a month for Hunter and Kathleen’s personal expenses.
>
> After you account for $24,000 of auto-pays (mortgage, car payments, etc) and additional monthly bills that are not on autopay ($10,000), that leaves Hunter and Kathleen with $37,500 a month for discretionary spending.
>
> For this purpose we would define discretionary spending as food, entertainment, clothes, unplanned house related expenses, spending money for the their kids, etc. Up until now, that money has gone into a joint USAA account but there has been no specific plan as to how to divide it.
>
> ————
>
> I hope the above is helpful. Let me know if you have any questions and if you need more information. I know Kathleen has a list of all the monthly expense and amounts - these numbers above are approximations but should be pretty close to accurate.
>
> Best,
>
> Eric
>
>
> Eric D. Schwerin
> Rosemont Seneca Advisors, LLC
> 1010 Wisconsin Ave., NW
> Suite 705
> Washington, DC 20007
> (202) 333-1880
> eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
> P Consider the environment before printing this email.