You cannot change someone’s heart and you cannot change someone’s mind unless you actually talk to them. 
​

​Fast forward to autumn of 1983, as the leaves turned gold against the Rocky Mountains, I found myself at the University of Colorado in Boulder. I was a young Regan Revolutionary amid a sea of liberals. I was there to see Berke Breathed, the brilliant mind behind Bloom County. His satirical jabs at everyone from politicians to pop culture, had captured my imagination. When I heard he was lecturing on campus, I had to go.
Boulder was, and remains, well, liberal—a place where tie-dye and tofu reigned supreme. I, however, was not. I believed in the promise of smaller government, economic resurgence, and a defiant stance against the socialism. The early 1980s were a time of transformation. Ronald Reagan had swept into office in 1980, ending the malaise of the Carter years with his "Morning in America" optimism. Inflation was taming, the economy boomed with tax cuts and deregulation, and the Cold War simmered with Reagan's bold rhetoric—calling the USSR an "evil empire". Yet, beneath the surface, divisions festered: debates over nuclear arms, environmental policies, and social issues like abortion and civil rights polarized the nation. Satire thrived, with cartoonists like Garry Trudeau and Berkeley Breathed. Breathed’s Bloom County was an equal-opportunity offender, going after liberals and conservatives alike, reminding us that humor could bridge divides.
During the lecture, Breathed talked about a cartoon that playfully mocked Reagan and how the next morning, his phone rang. "Hold for the President," the voice said. Berke’s audience erupted in boos. But Breathed raised a hand. "Hold on," he said, pausing for effect. "You know what I did?" The room fell silent. "I held for the President. Because that's what you do when the President calls." He went on to recount how the conversation unfolded warmly; Reagan, ever the charmer, engaged with genuine interest. In the end, Breathed sent a signed original of the comic to the White House—a gesture of goodwill.
This moment crystallized something profound: respect for the office, regardless of who was there. Breathed, likely leaning left himself, didn't let ideology eclipse decorum. In the early '80s, such civility wasn't rare. Reagan and Tip O'Neill, the Democratic House Speaker, sparred fiercely over budgets but shared Irish jokes and bourbon after hours. The era's political battles were intense—think Iran-Contra or the air traffic controllers' strike—but they often ended with handshakes, not fisticuffs. Media was slower, less fragmented; The evening news fostered a shared reality, unlike today's echo chambers.
As a conservative Republican, I've carried this lesson forward. I've disagreed vehemently with liberal presidents from Clinton to Biden. Yet, if given the opportunity, I would answer their call. Politics should not be a litmus test for friendship; my circle spans the spectrum, bound by shared humanity rather than party lines. In our hyper-polarized present—marked by social media vitriol, and endless culture wars—we've lost this ability. Tribalism turns neighbors into enemies, institutions into battlegrounds. Young generations, bombarded by algorithms that amplify outrage, might learn from Breathed's anecdote: Satire can critique without canceling; disagreement needn't destroy dialogue.
As I grow old, I sometimes grow weary of trying to make a difference. I have searched throughout my life for ways to change hearts and minds. Sometimes I have been successful, but most times not. People are entrenched. But when I am successful, it is pure joy seeing the light come on in the other’s eyes. I have found one thing to be universally true, though: You will never change a persons heart or mind unless you actually talk to them. And usually only if you have built trust, friendship and mutual respect. You cannot build any of those by belittling, berating or bludgeoning.
Imagine if today's leaders and citizens emulated that 1984 spirit. A cartoonist ribs a president, who responds with grace and mutual respect is created, with the institution in mind. It's a reminder that America's strength lies in its institutions—free speech, the presidency, free press, civil discourse—and in respecting them, we preserve what unites us. In 2025, as we navigate AI ethics, climate crises, and global tensions, let's hold for each other. Civility isn't weakness; it's the glue holding us together. Breathed's story, born in Reagan's America, offers wisdom: Laugh, listen, and lead with respect. Who knows? It might just spark our own "morning in America”.
 

​Beware. This is an imperfect blog, full of errors.

I was thinking the other day about my taste in decorating. It occurred to me that I really enjoy walking into a room that is rather plain and earth-toned and carries a splash of color somewhere off-center. This would probably bother some people and be viewed as an imperfection. But to me it draws my eye around the room in order to appreciate other areas. We also have several pieces of furniture and accessories that have deep scratches, chew marks and cracks. Maybe those would effect the value in some eyes, but to me they represent the pets that have passed, the son that grew up to start his own family and the granddaughters that fill our lives with beauty and joy.

 In a world obsessed with perfection—flawless skin, symmetric features, picture-perfect lives, and curated feeds—it’s easy to believe that perfection is the ultimate goal. We chase the ideal, striving for seamless execution in our work, relationships, and personal endeavors. But what if the pursuit of perfection is misguided? What if the imperfect, the messy, the flawed, is where true beauty and meaning reside? The perfect is often uninteresting, a sterile ideal that lacks depth. The imperfect, on the other hand, is often where perfection lies—rich with character, authenticity, and humanity.

Consider art, where imperfection often steals the show. A perfectly symmetrical painting can feel cold, predictable, even forgettable. But a canvas with bold, uneven brushstrokes or a slightly off-kilter composition? It draws you in. It tells a story. The Japanese philosophy of wabi-sabi celebrates this very idea: finding beauty in the transient, the weathered, the incomplete. A cracked teacup, a gnarled tree branch, or a faded photograph carries a soul that a flawless replica never could. These imperfections invite us to pause, reflect, and connect with something deeper than surface-level polish.

In our personal lives, the chase for perfection can be equally stifling. We script our conversations, filter our photos, and rehearse our pitches to present a version of ourselves that’s “just right.” But it’s often the unscripted moments—the awkward laugh, the clumsy gesture, the vulnerable confession—that forge real connections. Think about the people you love most. Chances are, it’s their quirks, their little flaws, that make them unforgettable. The friend who always spills their coffee mid-story, the friend that always laughs at truly inappropriate times, the spouse that trusts you enough to be themselves (whatever that entails)—these imperfections are the threads that weave them into the fabric of your life. They’re not perfect, but they’re imperfectly, perfectly them.
​
This paradox extends to our work and creative pursuits. The pressure to produce flawless output can paralyze us, trapping us in a cycle of overthinking and procrastination. Yet, some of the most groundbreaking ideas in history were born from mistakes. Penicillin was discovered when Alexander Fleming noticed mold contaminating a petri dish. Post-it Notes came from a failed attempt at creating a strong adhesive. These “imperfections” weren’t obstacles; they were gateways to innovation. When we embrace the messy process of trial and error, we open ourselves to unexpected possibilities. A rough draft, a half-baked idea, or a prototype full of bugs might not be perfect, but it’s often the starting point for something extraordinary.

Even in nature, imperfection reigns supreme. A forest isn’t a tidy row of identical trees; it’s a chaotic tangle of roots, uneven branches, and diverse species coexisting in glorious disarray. That messiness is what makes it resilient, adaptable, and alive. Similarly, our own imperfections—our doubts, our scars, our missteps—are what make us human. They shape our stories, teach us resilience, and remind us that growth is never a straight line. To be imperfect is to be dynamic, evolving, and open to change.

So why do we fear imperfection? Perhaps it’s because we’ve been conditioned to see flaws as failures rather than opportunities. Society rewards the polished, the predictable, the “safe.” But safe is often uninteresting. Safe doesn’t challenge, inspire, or linger in our minds. Imperfection, by contrast, is bold. It’s raw. It’s real. It’s the crack in the sidewalk where a flower dares to bloom, the rough, graveled voice in a song that makes the song (and you) feel alive.

Embracing imperfection doesn’t mean settling for less; it means redefining what “more” looks like. It’s about valuing authenticity over appearances, progress over paralysis, and meaning over monotony. The perfect is often uninteresting because it leaves no room for surprise or soul. The imperfect, with all its cracks and quirks, is where perfection lies—because it’s where life happens.

Stop chasing the flawless and start celebrating the flawed. Find joy in the uneven edges, the unexpected detours, and the beautifully human moments that make us who we are. In a world that demands perfection, the most radical act is to love the imperfect—and to see it, always, as perfectly enough.

The last full week in July brings a harvest of visitors to the city we call home. It is a celebration of our western heritage that is full of pomp, circumstance and pageantry. And soooo, this is a perfect time to talk about what happens if you rent your house or another property to folks that wander into town once a year or so. 

During Cheyenne Frontier Days, many of my friends rent their houses and townhomes to visitors. And they always have questions. It can be confusing to figure out where short-term rental income from platforms like Airbnb or VRBO belongs on your return. And what about the Augusta Rule? Many folks assume it's all passive income on Schedule E, but the IRS has specific guidelines that often push these activities toward Schedule C instead. And there was that guy on social media (hint - don't listen to him or her without talking to your own CPA) that said it didn't have to be reported at all. So lets hop on the bull and take a ride.
​  
First, lets get the Augusta rule out of the way. The Augusta Rule (IRC Section 280A(g)) can be a powerful way to generate a some tax-free income every year. This is because it allows you to rent your home for up to 14 days annually without reporting the income, provided it's used as a residence. No rental expense deductions are allowed, but personal expenses like mortgage interest and property taxes may be deductible on Schedule A. If the property is owned by a company (e.g., an LLC or corporation), the rule does not apply, as it is not an individual's residence. Instead, rental income would generally be reported by the company, and deductions would depend on the entity's tax structure (e.g., Schedule C for a sole proprietorship or Form 1120 for a corporation). 

Next, if you don't qualify for the Augusta rule, lets talk about the basics: The IRS distinguishes between passive rental activities and those that rise to the level of a trade or business. Passive rentals—think longer-term rentals leases where you're mostly hands-off—go on Schedule E (Supplemental Income and Loss). Here, income is not subject to self-employment tax (that 15.3% hit for Social Security and Medicare), but losses are limited by passive activity rules under IRC Section 469. You can't use those losses to offset wages or other active income unless you meet certain income requirements, qualify as a real estate professional or have passive income to match.

Short-term rentals, however, often don't qualify as "rental activities" per Treasury Regulation §1.469-1T(e)(3)(ii). If the average customer stay is 7 days or less, it's automatically treated as a non-rental activity and reported on Schedule C (Profit or Loss from Business). The same applies if the average stay is 30 days or less and you provide "significant personal services"—things like daily cleaning, linen changes, or concierge-like amenities that go beyond basic maintenance. To calculate the average stay, divide total rented days by the number of customers. For example, 200 days rented to 50 guests equals a 4-day average, landing you on Schedule C.

On Schedule C, it's a business: You pay self-employment tax on net profits, but if you materially participate (spending at least 500 hours a year or meeting other tests), losses can offset other income without passive limitations. Deductions are broader too, including home office setups or marketing costs.
Now, about those trade-offs—it's like a cowboy at Cheyenne Frontier Days wondering which bull he will draw. In professional bull riding, you earn points based on a couple of things - some are based on how you do and some are based on how mean the bull. Simplified, the riders often face consequences based on the bull they ride: Draw a "rank" bull—one that's mean, nasty, and known for wild spins and kicks, like the spinners that can rack up high bull scores and put you in the money if you last the 8 seconds. But the risk is huge; fall off early, and you score zero, plus you might get trampled. With the milder bull, you will probably stay on, but score fewer points.
 
This mirrors Schedule C versus Schedule E. Going the Schedule C route has its benefits—full loss offsets against your salary if you're active, accelerating tax savings in a bad year. But the downside is that at some point you have to prove you are in it to make a profit. Which mostly means (you guessed it), making a profit. Then you have to pay self-employment tax and suffer additional audit risks if the IRS questions your business status or deductions. Schedule E (the safer bull) offers a smoother ride: No SE tax, simpler reporting, and losses that carry forward if not deductible in the current year. Yet, you might score fewer overall tax benefits, as those losses sit unused if you lack other passive income.

In practice, your operations dictate the schedule. To aim for Schedule E, extend average stays beyond 7 days and skip hotel-like services. But if you're in the short-term game, embracing Schedule C might be inevitable—and, with smart planning, worthwhile.
​
Ultimately, these rules aren't one-size-fits-all. Factors like mixed personal use or multiple properties complicate things—check IRS Publication 527 for details. As always, chat with your CPA to tailor this to your situation. Just remember, whichever bull you ride, make sure you know the prize.

​About 12 years ago, one of my partners, Carmen Milbury and I helped a client find and litigate a fraud perpetrated by an employee. That employee had been with the Company for more than 14 years. The damages were in the millions and we were successful in getting a judgement for almost two million dollars (though the actual amount, including the amount beyond statute) was about double that. The person who perpetrated the fraud was the owner’s friend and confidant, as well as an employee. It was horribly sad and ended also with the closing of a business that had been a vibrant part of the community and helped dozens have a livelihood.
For small business owners, your employees are often like family. You rely on their loyalty, especially those who’ve been with you for years, to keep operations running smoothly. But a sad and sobering reality, backed by the 2022 Association of Certified Fraud Examiners (ACFE) Report to the Nations, reveals a harsh truth: 45% of occupational fraud cases are committed by employees with over five years of tenure. These are the people you’re most likely to trust—yet they’re often the ones you need to watch. Trust is essential, but it should never replace vigilance when safeguarding your business.
The ACFE’s findings paint a stark picture. Long-tenured employees, with their deep knowledge of your systems, processes, and even your habits, have unique opportunities to exploit vulnerabilities. They know where the gaps are—whether it’s a loosely monitored expense account, an outdated inventory system, or a lack of oversight in financial reporting. Their familiarity breeds not just confidence but also the ability to cover their tracks. For small businesses, where resources are tight and owners often wear multiple hats, this statistic is a wake-up call. The trusted veteran who’s been with you since day one could, in rare but devastating cases, be the one quietly siphoning funds.
Why does tenure increase risk? It’s not just about opportunity. Long-term employees often feel a sense of entitlement or justification. They might believe their years of service “earn” them the right to bend rules, especially if they’re facing personal financial pressures. The ACFE report notes that fraudsters often rationalize their actions, convincing themselves they’re “borrowing” or “deserve” it. For small businesses, where every dollar counts, the impact of such betrayal can be catastrophic—think drained bank accounts, disrupted cash flow, or even bankruptcy.
So, how do you protect your business without fostering a culture of distrust? The answer lies in balancing trust with vigilance through practical, proactive measures. Start with segregation of duties. No single employee, no matter how trusted, should have unchecked control over critical functions like bookkeeping, payroll, or vendor payments. For example, the person who writes checks shouldn’t be the same one reconciling the bank statement. If your team is small, consider outsourcing key tasks or rotating responsibilities periodically to keep oversight fresh.
Next, implement regular audits. These don’t have to be costly or complex. Simple steps like reviewing financial statements monthly, spot-checking expense reports, or hiring an external accountant for an annual review can deter potential fraudsters. Technology can also be your ally. Affordable software can track inventory, flag unusual transactions, or automate expense approvals, reducing reliance on manual processes prone to manipulation. The ACFE found that businesses with anti-fraud controls, like surprise audits or tip hotlines, lose significantly less to fraud than those without.
Training is another powerful tool. Educate your team about fraud risks and the importance of ethical behavior. Make it clear that no one is above scrutiny, and create an environment where employees feel safe reporting suspicious activity. A confidential reporting system, even something as simple as an anonymous suggestion box, can uncover issues before they escalate.
These steps might feel like overkill, especially when you’re juggling the demands of running a small business. But the ACFE’s sobering statistics remind us that fraud doesn’t discriminate—it can happen to anyone, anywhere. The median loss from occupational fraud for small businesses is $150,000, a sum that could cripple most operations. By contrast, the cost of implementing basic controls is minimal, both in time and money.
Trusting your employees is the heart of a strong team, but blind trust can leave you vulnerable. The reality that long-tenured employees are among the most likely to commit fraud is a tough pill to swallow. Yet, by pairing trust with vigilance—through clear processes, regular oversight, and a culture of accountability—you can protect your small business without sacrificing the human connection that makes it special. Stay proactive, stay alert, and keep your business safe.

It has been a while, so it is good to see all of your shining faces again! This is a simple little blog-post to start the ball rolling again. I am hoping to follow up with lots of technical content as well (and maybe a few videos). But leadership is a topic I will address regularly as well. And maybe I'll throw in some personal stuff as a distraction.

Climbing the Mountain: Steve McNair’s Enduring Lesson in Leadership
In spite of being a lifelong Denver Broncos fan, I was captivated by Steve McNair’s story—not just for his on-field heroics, but for his journey from struggle to stardom, a testament to relentless work toward a dream. Leadership is a climb up a steep, metaphorical mountain, where the path tests resolve and the summit demands sacrifice. On this, the 16th anniversary of his tragic death on July 4, 2009, when McNair lost his life, his legacy endures. He reportedly once said, “I can take people to the top of the mountain, but only if they want to go there.” Though unverified, this quote encapsulates McNair’s leadership: a beacon for those willing to chase the peak, even as we mourn his untimely loss.
McNair’s college career at Alcorn State was a blueprint for leading through action. In 1994, he turned a small HBCU program into a national phenomenon, racking up 6,281 total yards and 56 touchdowns. During the whole of his collegiate career, he shattered NCAA Division I-AA records, passing for 14,496 yards and earning the Walter Payton Award in 1994. This honor and his third-place Heisman finish lifted his teammates and community, showing that leadership isn’t about commands but about carving a path others yearn to follow. From the fields of Mississippi to the NFL, McNair’s mountain was a dream that proved hard work could elevate even the overlooked to greatness. 
And he was right - you can’t force the climb. McNair’s presence—his quiet grit, his ability to rally a team—made teammates believe in the summit. In Tennessee, leading the Titans to Super Bowl XXXIV, he didn’t just throw passes; he carried hope, showing that leadership thrives when it ignites desire. His life, cut short 16 years ago, reminds us that true leaders leave echoes, inspiring long after they’re gone.
We all face our mountains—career goals, personal battles, or dreams born in struggle, like McNair’s. Leaders don’t drag others to the top; they inspire through sweat and sacrifice.
McNair’s 1999 season, battling injuries yet pushing his team forward, showed the cost of leadership. His death at 36, a wound still felt on this anniversary, sharpens the lesson: life is fleeting, but impact endures. He climbed for himself and others, from Alcorn to the NFL, never shying from the grind.
Today, as we reflect on McNair’s life and loss, his story challenges us. Are we pointing to a summit worth pursuing? Are we climbing with those we lead, sharing their burden? This is a moment to recognize that leadership is about making the path possible, then trusting others to choose it. McNair’s dream, born in struggle, carried him to the top, and his spirit still calls us to climb.
The mountain waits. McNair reminds us that leadership isn’t about reaching the top alone but about inspiring others to want the journey. On July 4, 2025, we remember not just his tragic end but the light he shone—through hard-won victories and a life that, though lost, still guides us. So, ask yourself: Are you leading to a peak worth chasing? Are you sparking the will to climb? That’s the legacy McNair left, one that lives on even now.

So here is the conundrum we find ourselves in. I am willing to listen to anybody that disagrees and I am not advocating any particular action, nor am I advocating that anybody be put in any undue danger or cause anyone else to be in danger. I am asking a question that needs to be asked.

How do we balance the need to slow/stop the virus against the need for our vital supply chains to remain operating?

The known values in the equation:
- Amazon, Walmart and all of the grocery chains are crucial. That is how people get their food.
-If the food supply is disrupted, lots of people go hungry.
-If people are hungry, social unrest becomes a very real possibility.
-No amount of cleaning can keep people safe. A casual hello to a co-worker appears to be enough to transfer the virus.
-On the flip side, shutting warehouses down would slow the spread of the virus and save people’s lives.
-Our supply chains are in the middle of a re-alignment, thus already vulnerable. We used to eat at restaurants and go to the bathroom at the restroom where we worked. Now we are doing all of that at home. This shift has caused delays already in getting our necessities (I can’t buy bread flour anywhere - didn’t know y’all were bakers).
-The realignment of our supply chain will happen - but it will take time.
-Also adding pressure to our supply chain is a reliance on a Just In Time inventory system that was promoted heavily by graduates of Ivy-league schools and gained popularity in the eighties and nineties. This eliminated much of the depth in our supplies and contributed to the difficulties we are experiencing now.

Variables in the equation:
-Time. How long before the infection rate peaks?
-Technology. How fast can we find a cure?

Unknowns - these are the riddles we are solving:
-Do we keep the warehouses and transportation systems open, even though they create an enhanced risk of transference of the virus? Or do we shut them down for 14 days? 21 days?

So, if you are the CEO of Amazon, what do you do? Remember, you will be judged forever by the decision you make.

I heard an old song today. Jungle Work by Warren Zevon. I had the album on cassette back in the early eighties and for a moment, I was taken back to 1981 and one of my foundational experiences. A foundational experience is one that helps mold and support you long after the experience has happened.

​In 1981 I was failing. I had dropped out of college and was working for a company that supplied produce to restaurants. It was certainly not where I wanted to be.

I had started lifting weights and found I was pretty good at it. Not great, but pretty good. It felt good. I would go to the gym in the evening and work out the frustrations of not being where I wanted to be.

One of the other guys that frequented the gym was Kevin - a guy that was on the University of Colorado Powerlifting Team. He was everything I wanted to be. He was completing a business degree and was successful in his events. His goal was to someday compete in the Olympics. 

I was working out on a Saturday and he was there. I had been working toward a new personal record on the bench press and that day I was going to lift 405 pounds. Certainly not a record-breaking weight, but one that I was excited to reach. I did my warm-up sets and got myself ready. Kevin helped me lift the bar off the bench and it settled into my palms. I gently took it down to my chest and started moving the bar up. I got it halfway up and stopped - I couldn't take it any further. I failed. Again. And all of a sudden every bit of frustration came bubbling over.

After Kevin helped me take the bar off of my chest and nestle it onto the stand, I put on gloves went and hit the heavy bag for about 5 minutes, trying to take the sting of the failure away.

When I finished and took the gloves off, Kevin came over and sat down. We were the same age, some body type and with the same mental abilities. Yet he was better at everything. And he was wise.

"What happened?" he asked. "I couldn't do it. It was too heavy." I replied.

"That's bull*&#*" he said (The whole conversation was much more colorful than it appears here. This IS supposed to be a family-friendly blog). 

"The bar was still going up when you stopped. That means you quit. You f*&^*&# gave up". "And next time I spot you, you had better never do that again."

I remember that clearly. In the following two weeks, I stepped back a little and built back up and then, two Saturdays later, I bench-pressed 405. Not once, but two reps. And afterward, the only reward I got from Kevin was "I'm glad you didn't give up. You could have done a third rep, by the way."

Eventually I set lifting aside in favor of family, finishing school and career. I have never hit 405 again, even though I returned to lifting in 2011 (30 years later). But the bars are different now. 

Over the years afterward, that experience stuck with me. Never stop while the bar is still raising. It taught me a valuable lesson and it gave me the ability to judge for myself whether I was quitting or whether i truly had good reasons for my temporary set-backs. It has also helped me to judge whether other people were giving their best efforts or not. 

Never quit. 

​They were the best of times, they were the worst of times. What a prophetic quote from Dickens.
 
It seems we are all reeling right now. The world as we knew it has changed. Everywhere we see layoffs, uncertainty and danger.
 
Our decision tree looks something like this:

1. Who is affected by this? Everybody.
2. How can we reach them? We can’t.
3. How can we make a difference? We can’t.
4. So what do we do? We shelter in place.

 
Baloney.
 
Let’s approach this like true leaders.
 
Ray Kroc, the founder of McDonalds, always built more restaurants in economic downturns. He knew that the times would get better and he also knew that the construction would help decrease the pain of the downturn. And the new restaurant would provide much-needed jobs within the community during a time in which they needed it. 
 
This is how a true leader thinks. 
 
For us, it is time to think outside of the boxes we call home. How do we remain connected? How do we influence the times? How do we change the world. From home?
 
Lets look at the matrix again:
 
Who around us is the most affected?
What do they need?
What is the long-term solution to that need?
What are the tools and materials I will have to obtain in order to meet that need?
Who else should be involved that has expertise in this area?
What risks are involved?
How do I quantify those risks?
Am I comfortable with those risks?
 
President George Bush went to the World Trade Center after the terrorists destroyed them and talked about how terrorists could destroy buildings but would never destroy our spirit. As leaders, we are in charge of the spirit of our state and should never let our own spirits be destroyed, much less the spirit of the people we lead.
 
This is what we need to be thinking about. Passively watching the world go by will not help our friends and neighbors.
 
Find something to build. Then build it. Find someone who needs you. And help them. They will be better for it, you will be better for it and the world will be better for it.

Today, I was thrilled to be able to speak to the Cheyenne Chamber of Commerce about what makes our firm special. Below is a video and transcript of the speech.