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Major Tax Deadlines
Keep up to date with important tax deadlines.
New law changes deduction rules for donating vehicles to charity
If you donate a used vehicle to charity, you are allowed to take a tax deduction for your generosity, but only
if you itemize deductions on your tax return. It's estimated that over 700,000 taxpayers took a deduction for donating
a used vehicle to charity in 2000.
Nine steps to consider to reduce your 2004 taxes
1. Drain your flexible spending account (FSA). FSAs allow you to set aside pretax dollars for medical expenses
and child care. After year-end, you lose any unspent dollars in the account. So squeeze in expenses to drain your
account. Tip: You can now use account dollars to pay for over-the-counter drugs.
New Business
New study recommends heeding customer complaints
A new survey of how customers felt their complaints about a product or service were handled provides important
information for your business. According to the survey, only 16% of unhappy customers were satisfied when they
complained to the company. More than half of the people surveyed refused to do business with the company again.
Smart Business
Don't let your business rely on a few major customers
Many companies have learned the hard way the importance of a diversified customer base. Imagine a company where
two or three large customers account for 70%-80% of sales. This may sound like an ideal situation - all you have
to do is keep those customers happy and your sales base is assured. But it could be a recipe for disaster.
What's New in Financial Strategies
Spam gets a partner in "spit"
Tired of spam? Then you'll be happy to hear about a recent court victory in the battle against junk e-mail.
In November a Virginia jury returned felony convictions against two individuals who sent thousands of bulk e-mails
selling stocks and software.
Credit Card Tips
Earning high interest on your money and other wise money management may well be within your grasp. A few simple
money handling techniques can help insure that you make the most of your financial lot in life.
November
Major Tax Deadlines
Keep up to date with important tax deadlines.
Another tax bill is passed
In October Congress passed a second piece of tax legislation, this one called the American Jobs Creation Act
of 2004. The law's primary purpose is the repeal of the foreign sales corporation/extraterritorial income (FSC/ETI)
tax regime.
Does selling on eBay interest the IRS?
You've set your price, uploaded a photo, and established an account so you can accept online payment. Now you're
ready to sell the antique clock you inherited from your mother's sister. If you're successful, tomorrow you might
just auction off those power tools that are cluttering up the garage.
New Business
New numbers let you compare your company's benefit costs
The Labor Department recently published the cost of employee benefits paid by businesses for the twelve months
ended June 2004. Companies with up to 49 employees paid an average of $19.37 an hour in total compensation to workers.
Smart Business
How to measure the value of your company
Most people know approximately what their homes are worth simply by keeping an eye on what other homes in their
neighborhood are selling for. Determining what your business is worth isn't quite as easy.
What's New in Financial Strategies
Insurance covers new risks
Anyone who has checked out the cost of college knows that tuition bills can be staggering. That could make a type
of insurance worth another look insurance that covers tuition if the student has to leave college unexpectedly.
"Check 21" makes changes you need to know
Check 21. Sounds like a winning chess move, but in reality it's a new law that took effect October 28, 2004.
More properly known as the Check Clearing for the 21st Century Act, the legislation may change your banking habits.
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
IRS interest rates increase
The IRS recently announced that interest rates for tax overpayments and underpayments will increase for the fourth
quarter of 2004 (October 1 through December 31, 2004).
Congress extends tax breaks
On September 23, 2004, Congress passed tax legislation to extend through 2010 the $1,000 child tax credit, marriage
penalty relief, and expanded 10% income tax bracket.
Look for tax breaks to help with college costs
Yesterday's kindergartner is today's college freshman and you have the tuition bill proving it. You're aware
of the tax breaks for education costs, such as the Hope and lifetime learning credits, the tuition and fees deduction,
and the student loan interest deduction.
New Business
Overtime rules still not settled
New overtime rules went into effect on August 23, 2004. Under the new rules, employees earning less than $23,660
annually, or $455 a week, automatically qualify for overtime pay, regardless of the job they hold or the duties
they perform. The previous threshold was an annual salary of $8,060.
Smart Business
Know the tax issues before going into business
Before you launch a new business, its a good idea to prepare for an uninvited partner the tax man. Knowing your
tax obligations in advance can save time, money, and even the life of your business. Here are a few tips:
What's New in Financial Strategies
"Use it or lose it" rule may change
Many employers offer flexible spending accounts (FSAs) that allow employees to set aside money that can be
used to pay expenses such as child care and medical bills with pre-tax dollars.
Watch out for one more credit card scam
The scam artists are still at it. One of the latest scams plays on your willingness to assist those in law enforcement.
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
You can deduct more college costs this year
If you're faced with college expenses this fall, be aware that the deduction for qualified tuition and fees increased
this year
Check out the tax breaks when you suffer a loss
Capital loss. Casualty loss. Gambling loss. Net operating loss. A loss by any name causes a financial setback
something no one likes to think about, much less experience.
New Business
Congress may extend larger expensing limit
The House passed a bill that would extend through 2007 the current $102,000 expensing limit for the purchase
of business equipment.
Smart Business
Solve your customers' problems
Have you ever wondered why some businesses succeed while others fail? One of the principal features of a successful
business is its problem-solving ability.
What's New in Financial Strategies
Medicare changes policy on obesity
In a decision that could affect health care costs for many individuals, Health and Human Services Secretary Tommy
Thompson announced that Medicare will no longer refuse to classify obesity as an illness.
A reverse mortgage
If you own your home and are age 62 or older, you could qualify for a reverse mortgage.
June
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
Dividend holding period corrected
The 2003 tax law lowered the tax rates on dividend income, but investors had to have owned the dividend-paying
stock for at least 61 days of a 120-day period surrounding the ex-dividend date.
Shift income for family tax savings
The strategy is simple in concept, and has long been a staple with high-income taxpayers: shift your high tax
bracket income to other family members who are in lower tax brackets. The family will then pay lower taxes on this
shifted income. Here are a few income-shifting strategies that you may want to consider.
New Business
Luxury vehicle depreciation limits released for 2004
The IRS has released the luxury vehicle depreciation caps for vehicles first placed in service in 2004. For
automobiles, the limits are
Smart Business
Business start-up costs require special tax treatment
According to the tax law, you are allowed to take a tax deduction for ordinary and necessary business expenses
if you are engaged in a trade or business. What about the expenses involved in investigating the potential for
a new business?
What's New in Financial Strategies
Studies show health care will be major cost in retirement
The Employee Benefits Research Institute, a Washington nonprofit organization, estimates that health care costs
for retirees will be five times higher than most individuals think they will be.
Getting hooked by a scam artist could be costly
They come by mail, by phone, and by e-mail. Sometimes you hear about them from a friend or relative. They're hot
investment tips, prizes you've won in contests that you never knew you entered, or ways to avoid paying taxes.
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
Unclaimed refunds are lost after three years
The IRS says that about two million taxpayers will lose $2.5 billion dollars in tax refunds that they failed to
claim for the year 2000. The three-year statute of limitations for filing or amending tax returns for 2000 ends
on April 15, 2004.
Don't overlook tax planning in a divorce
In the midst of a divorce, the last thing you may want to think about is taxes. But if you don't negotiate
your divorce settlement with taxes in mind, you may regret it in years to come. Here are some things to consider.
New Business
Appeals court upholds legality of Do Not Call list
Millions of consumers added their phone numbers to the national "do not call" registry after it opened
last July. However, court challenges to the registry left businesses and consumers uncertain about the enforcement
of the list.
Smart Business
What's New in Financial Strategies
U.S. Treasury announces an end to HH bonds
After August 31, 2004, Series HH savings bonds will no longer be issued, according to an announcement by the
Treasury Department. Since 1980, Series E and EE savings bonds could be exchanged for Series HH bonds, deferring
the tax on the E bonds until the HH bonds matured
You have many options for IRA investments
Do the assets in your individual retirement account complement your overall financial strategy? If not, it
may be time to take a look at what's available
March
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
Taxpayer problem identified
The Taxpayer Advocate Service, an independent organization within the IRS, said in its annual report to Congress
that the number one problem facing taxpayers is the alternative minimum tax.
Your dependents can cut your tax bill
There are many ways that you can slash your taxes by making the maximum use of your dependents. Here are a few
strategies to consider.
New Business
Popular loan program is discontinued
The Small Business Administration was forced to temporarily discontinue one of its loan programs that helped provide
capital to start-up businesses.
Smart Business
Corporate minutes have tax importance
To preserve the legal benefits of incorporation, corporations should hold regular director/ shareholder meetings.
By keeping clear and appropriate records of these meetings in the form of corporate minutes, firms can save taxes
and avoid business problems.
What's New in Financial Strategies
Car loans add to heavy debt load
It appears that cars are partly responsible for the ever-increasing debt load American households are taking on.
Consumers are making smaller down payments and stretching car loans out for longer periods
Consider the tax issues in real estate investing
Historically low interest rates have led to a boom in home buying and a corresponding leap in home prices in
many markets throughout the country. As a result, many people are considering real estate as a possible investment
alternative.
February
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
IRS cautions taxpayers about donating vehicles
It's estimated that over 4,000 charities are aggressively soliciting contributions of vehicles. Concerned that
taxpayers may be getting oversold on how much such contributions actually benefit a charity, the IRS recently issued
a consumer alert.
Military Tax Relief Act signed into law
Last November, President Bush signed the Military Family Tax Relief Act of 2003 providing a number of important
tax breaks for those in the armed forces.
New Business
Leap year creates payroll problem
If you pay your salaried employees weekly or biweekly on Thursday or Friday, you have a decision to make.
Smart Business
What's New in Financial Strategies
Take steps to make 2004 a good year
Make 2004 a better year than last by tidying up your financial and tax house. Here are some tips to get you
started.
Don't cash out the equity in your home just because it's there
With today's low interest rates, homeowners have been flocking to refinance their mortgages. But instead of
reducing their payment by the maximum amount, many have increased the size of their mortgage to tap into the home's
equity. Part of the new loan pays off the old mortgage, and the remainder is paid in cash
January
Major Tax Deadlines
Keep up to date with important tax deadlines.
What's New in Taxes
New Medicare law creates tax-favored savings accounts
On December 8, 2003, President Bush signed into law a Medicare prescription drug bill that included new
health savings accounts for taxpayers under age 65. Similar to IRAs, these new accounts can be used to build tax-sheltered
nest eggs that can pay out-of-pocket medical expenses tax-free.
How to decide what records to keep and what to toss
Deciding which records to keep and for how long can be a confusing process. A well-organized system will help
you retain important paperwork and minimize the clutter. Use legal requirements and your common sense as guidelines
for how long to hold on to records.
New Business
Congress ended 2003 with unfinished business
Though Congress did pass a Medicare law that provides prescription drug benefits to seniors, it adjourned for
2003 without passing several other pending bills that may be of interest to your business.
Smart Business
How's your business recordkeeping?
The tax law requires all businesses to keep records to support the gross income, deductions, and credits claimed
on their income tax returns.
What's New in Financial Strategies
Baby boomers get bad news
Just a few years ago there were predictions that the baby boomers would inherit trillions of dollars from their
well-to-do parents. Now it appears that these predictions failed to take into account such facts as today's longer
life expectancies, skyrocketing health care costs, and long-term care expenses that reduce the amount parents leave
to their children.
What every estate plan should include
You work hard providing for your loved ones during your life. You can also provide for them when you are gone
with a simple estate plan that legally conveys your desires to all your heirs. Here's a short list of some of the
basic documents you should consider including in your estate plan.
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