Archive for January, 2009

Maryland Is Good To Soldiers and Musings

Saturday, January 31st, 2009

Question from a reader:”Hey, Kim, is it true that Maryland gives $15000 in breaks for taxes to soldiers?”

My answer is yes, there could be a break for you if you are in the Armed Forces.  If you were stationed in a combat zone, Maryland lets it’s native sons and daughters (well, Maryland residents) get a $15000 subtraction from their taxes. 

The subtraction modification for military pay received by military personnel stationed overseas under the Maryland State income tax to the first $15000 of military compensation paid to or incurred by any active duty military personnel.

If you are stationed in Virginia, sorry, that doesn’t count.

—–

The stock market has been trying to crawl back a little at a time, due in part to the economic stimulus trying to make it through the Senate.  It will take some time to get the money and credits through to the public.  I think the market will continue sideways at least for another quarter or two until money starts loosening into the American public and once all the layoffs start happening. 

What else is new…Here in Los Angeles, there was a city and United Way kick off to make more people aware of Earned Income Tax Credit.  I think that is great but the problem that people need to know is that the IRS is really going to scrutinize the returns with EITC and the preparers because of so much fraud.  I have talked about it before in the blog and my stand on this is if you can legitimately claim EITC, go for it.  If you try and qualify and can’t please don’t push your luck and don’t ask your tax preparer to do anything illegal.

No word yet as to what will happen after the 30 days for the California refunds or warrants question.  An interesting proposal by the Governor is that we have a booze tax to raise shortfall tax revenue and income for the state.  Surprisingly, or maybe not surprisingly if you ask or polled people who don’t drink, most people said they wouldn’t mind a booze tax.   

If you are applying for bank reund anticipation loans (also known as RALS), be aware that if you are due to get any outstanding tax rebate incentive that you didn’t get last year that you may not qualify for the RALS.  Just a reminder that if you are in the armed forces you can’t take a RAL either.  You can apply for a refund anticipation check (RAC), I believe. 

I think that is all that I have on stream of consciousness stuff.  The W-2s are out and people are coming around with 1099s so tax season is getting into gear.  Just a reminder that the combined 1099Bs don’t come out till mid February.

Stay warm, get wealthy, happy and be healthy!

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

 

Kim Greenblatt

Dealing With Unemployment, Lay Offs and Depression

Thursday, January 29th, 2009

With 75000 jobs being laid off on Monday, more layoffs on the way, and no end in sight for lay offs in general, here is a reminder to check my blog entry, No Job.  Things are pretty grim for a lot of people and as a supplement to the post and information in my book, Practical Money Making (which deals with surviving a depression/Depression and making money), here are some more tips:

 

hardtimes

 

1.  Unemployment, though extended, may be in short supply if the government agencies run out of money, even for the short term.  Sure, the government eventually will do something to help but if you are hungry now and have a family now get your application going.  If you received any kind of severance package, you probably will have to blow through that before your unemployment kicks in.  That is the way that it works, at least in California.  I suspect other states have similar programs.

2.  Take stock of everything that you have.  If you are fortunate enough to have some savings, start looking at budgeting to make money last.  If you are living hand-to-mouth and were getting by paycheck-to-paycheck you need to start thinking of other jobs you can do and maybe at a lower salary.  It isn’t pretty.  I have gone through something similar and it is just a sign of the times.  It is the destruction of supply that I’ve talked about (others as well) and companies, unsure of the future, are trying to be lean and mean.  You need to adapt a similar position if you are to survive for the next few days, months, weeks and years.  I am making it.  You can and you will, too.

 3.   You will be in a depression in a Depression.  Don’t do anything irrational.  You will make it through this.  There have been accounts of people killing themselves etc and just remember it is only money.  There have been stories where supervisors who were clueless encouraged employees to take their own lives as they were about to be laid off and that is totally irresponsible.  I’ve had some punks try to post something on my blog at times and I have blistered some of them a new place to evacuate themselves with and others I have ignored.  Ignore all the bad energy.

Seriously, ignore people’s bad energy.  You need to look after yourself and your family.  Start looking at trying to raise vegetables, food, etc at home.  Living in the Rust Belt and is it too cold?  Hydroponic gardening inside an option?  Worse case, think about moving, even temporarily to warmer climates.

Think about going multi-family in dwellings.  If you have the space for the short term and can handle the psychological ill-effects of crowding, move in with friends and relatives.  Try not to make it for a long time but if you need to do it, do what you have to do.

Talk to counselors, therapists, free socal help groups, – anything that can help you psychologically make it through this lousy time.  Start thinking about what you will do differently to protect yourself when you get out of the situation that you are in.  You will get out of it.  It may not happen over night but you will get out of it and thing will get better.

May you be at peace, be happy, get wealthier, and have wisdom.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Interested in any of my other books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed above in the link.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

Kim Isaac Greenblatt

Schedule C Impact of Prior Year Purchases

Wednesday, January 28th, 2009

I had a question from a client, “I started a business last year but had expenses only and didn’t really start making money till this year.  Can I just use the expenses starting this year and start the business this year?  My losses if applied for last year wouldn’t help me since my tax liability is already zero.”

 

businesstax

 

My answer is that if you started the business in 2008, you need to show the expenses on your 2008 1040 and on a Schedule C.  You had planned on starting the business in 2008 and you should take the expenses.  Now, if you bought the items for yourself and then officially start the business in 2009, you can show that the items were being drafted into service for business and you can start depreciation then as well, etc.

Reminders of course, you need to show that you are making money and do what you can to avoid running the business as a hobby.  When it comes to the IRS trying to determine if something is a hobby vs business, make sure that you carry yourself as a professional, watch spending and do what you can to improve your business.

Keep good records and don’t forget that you are liable for both sides of social security and self-employment tax.

I talk extensivelyabout Hobby Vs Business in my book, Good Tax Idea, Bad Tax Idea.  The IRS is scrutinizing Schedule C returns very closely because, let’s face it, people have abused them over the years.  There have been a lot of bad ideas in the form of starting a business for the purpose of losing money to just claim expenses, starting a gig to justify spending money on personal things and just plain bad advice.  The US government needs money and they will be looking to the IRS to help generate more revenue by looking at things that are abusive.

The flip side is that if you run your business professionally and are in it for making money and do make money, you will be okay.  In case you may not have read some of my other stuff on taxes, I love paying taxes on income because that shows that I am making money.  Granted, I don’t think some of the tax brackets may be fair but that is coming under scrutiny and a lot of people are hurting and out of work.  The IRS consists of human beings and they do work with people to help them.  I also like driving on paved highways, having giant hydroelectric dams that work and other public works that are built from Federal taxes.

I am not a fan of corporate Federal tax abuse but then again, neither is the IRS.  In fact, the IRS works very hard in trying to get companies to get their act together and they succeed in collecting back taxes and penalties.  Just remember that the larger companies have more resources to stonewall the IRS than the average person so it is sometimes easier to go after the little guy or gal.  So the take away from all this is that if you are in business,  run it as best as you can and don’t forget to put aside some money to pay your taxes with.

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Schedule C Impact of Prior Year Purchases

I am calling it – we are in a Depression

Tuesday, January 27th, 2009

No matter what people are calling it, it is a Depression.  When money is stuck in constipated mode in banks, business is slow, and there are millions being laid off or under utilized for jobs, we are in a Depression.

 

soupline1

 

The President and Congress have to do something.  Already farmers who can’t afford water are going to let some of their crops go and have smaller harvests.  That cuts into our food supply.  People who are out of work cannot afford to buy goods, services or pay their bills.  That will cause more companies to lay off or fold.  I have a solution.

The solution is to get the money into the hands of the average person by doing something to get more jobs going faster.  How about crash courses in skills that the government is still in need of?  The government still needs computer programmers, attornies, technicians, engineers, social scientists and linguists.

We need the space race going again and fast.  We need to get out of the Depression by uniting everybody together in a race for Mars.  We need to get large and small companies funding so they can employ people and get the national economy, and by extension, foreign economies going.

Realizing it won’t happen over night, we all still need to live over the next six months to a year till things get going.  If the President and Congress wanted to make a difference, the economic stimulus package should be $10,000 per family but even that would blow us out of the water in the long haul with inflation.  A lot of American cities will be turning into ghost towns.  Look at Detroit.  People either will need to migrate out of their cities like in the Dust Bowl days or government needs to do something to get off shore jobs back in America.

There are a lot of problems going on internationally and I would expect our Administration to address them.  The first priority though is to get an economic recovery going.  Everybody can talk and think clearly when they have a roof over their head, some clothes on their backs and food on their tables and stomachs.  If people are going to be hurting in one of those three areas they will make bad decisions and we don’t want things to drop into chaos.

I am hoping the infrastructure programs take off and lead to more programs and work.  We need to rebuild our roads, dams, etc – long time readers know that is one of my harp points.  My concern is that the execution of the plan will not be co-opted by corruption and the money not getting to employ people or by getting shoddy materials.

People, keep our politicians accountable!

On a skewed note, I was watching on 60 Minutes that they were showing studies where people who are hungry and eat less tend to live longer lives.  I am going to take a cue from that and maybe start watching what I am eating and cutting my portions down even more than I am doing now.  I walk 1.5 – 2 miles a day and I know that watching one’s diet is an important thing to take care of as well if one wants to have a profitable life.

Keep those questions and comments coming, folks.  Anything I can do to help – ask away.

Be safe, happy, healthy, wealthy and wise.

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are laid off, looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

I am calling it – we are in a Depression

Monday Economic News and CAT investing

Monday, January 26th, 2009

It is Monday morning and as I write this, I, like some other investors, are waiting the news on CAT.  The company isn’t going to go bankrupt or go away however I think there is some room for drift and drop.  My own take on the subject is well known, I have some covered calls and even more puts on the stock.  There may even be more gloom and doom economic news that will send the stock down further.  As a person who is shorting the stock, I wouldn’t mind if the stock dropped but as a professional I wish that the market would turn around.  I wish that businesses would hire more people and do it faster.  All I need is a magic lamp and I will be set.

 

magiclamp1

 

Without the benefit of magical help from a jinn (you know them as genie in English stories),  the way for me to cautiously proceed is through covered calls and puts.  I almost wrote that last sentence as “putts” and that particular golfing term isn’t too far off because of the swings in the market.  The net result after a few weeks is that there has been some movement, just generally not alot.

In the case of CAT, I think there will be a move and then a brief rally and then, barring President Obama and Congress actually getting something passed immediately that will benefit CAT, the stock will start drifting down.  Everything else has been follownig suit so I figure, why not CAT?  I have plenty of time (as of this post) to close positions on options and move on if I want to.

There may also be some bad news about something, anything on Monday and that could drive the stock down further.  Be it an earthquake somewhere (though you’d think they would need bulldozers to dig things out) or a tidal wave or just more bad economic data from anybody.  I hate to wish things from dropping down or up but it is human nature to want things to go your way and you certainly don’t need a genie to do it – though if I had one, I wouldn’t be upset either.

 

gknee

 

In any case, have a great Monday everybody!

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Monday Economic News and CAT investing

Bought A Home In 2007 Does It Qualify For New Home Cash?

Sunday, January 25th, 2009

Question from a reader:”Kim, I bought a new home in 2007, does it qualify for new home cash?”

 

building

 

My answer is: If you mean, does it qualify for the rebate that is being offered for first time new home buyers, sorry you missed it, as Secret Agent Maxwell Smart might say, “by that much”.  That much, being in this case, several months.  Here is the quote of the information from the IRS website:

The Housing and Economic Recovery Act of 2008 provides a new refundable tax credit for individuals who are qualified first-time homebuyers of a principal residence in the United States. The provision applies to a principal residence purchased by the taxpayer on or after April 9, 2008, and before July 1, 2009. Homebuyers who qualify are allowed a one-time credit against their income tax for the year of purchase. Unlike some past credits, this one must be repaid over a 15-year period. As a result, the new tax credit works like an interest free loan. You take the full credit in either 2008 or 2009, and then repay the credit amount in equal payments over 15 years, with no interest charges.

First-Time Homebuyer

A “first-time homebuyer” is any individual (and spouse if married) who had no present ownership interest in a qualifying principal residence during the 3-year period ending on the date of purchase of the principal residence for which a first-time homebuyer credit is being claimed.

Exceptions to definition of First-Time Homebuyer

The following taxpayers do not qualify for the first-time homebuyer credit:

  • A homebuyer who qualifies for the District of Columbia First-time Homebuyer Credit in the year of purchase or in any prior year
  • A homebuyer whose home was financed by the proceeds of tax-exempt mortgage revenue bonds
  • A homebuyer who is a nonresident alien
  • A homebuyer who disposes of the residence (or it ceases to be the taxpayer’s principal residence) before the close of a taxable year for which a credit otherwise would be allowable

 

 

So,  the short answer, is no, you cannot take the refundable tax credit because you didn’t buy the home in the time frame.  My next series of questions though are:

1.  Are you deducting your mortgage interest payments?

2.  Are you deducting any property tax payments that you are making?

3.  Are you amortizing any points you are paying on the house?

In the long run, the above three items amount to thousands of dollars more than the amount of the refundable credit, though that is a nice thing to get back to, if you qualify for it.  Thanks for asking the question and I hope you are enjoying your home.

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

 

Bought a Home In 2007 Does It Qualify For New Home Cash?

Casual Gambling Definition At Tax Time

Saturday, January 24th, 2009

Since I haven’t really spoken about anything on gambling in awhile, here is Kim’s take on taxes and gambling.   Regulation 1.165-10 provides that gambling losses sustained during the tax year on wagering transactions are deductible only to the extent of gains from such transactions. That means that you cannot claim losses beyond what you have wagered.  With the proliferation of casinos throughout the country, people from coast-to-coast enjoy gambling at their local casinos but for tax purposes they are still considered casual gamblers (boo). Casual gamblers may not net their gains and losses from wagering transactions, reporting only the net amount for the year. For slot machine play, though, what exactly is a transaction? Do you, as a player have to calculate basis, gain, or loss each time that you move from one slot machine to the next? Even uglier than that (and to offset this thought I have added a picture of a cute, inebriated slot player) is each bet considered a taxable event?

 

 taxclarifiaction

 

The IRS addressed this issue in a recent Chief Counsel Memorandum. An example is given of a taxpayer who went to a casino to play the slot machines ten times during the tax year, each time purchasing $100 worth of tokens. On five occasions, the taxpayer lost the entire $100 in tokens. On the other five occasions, the taxpayer redeemed tokens for $20, $70, $150, $200, and $300. Discussing the results of various court decisions, the IRS notes that attempting to trace and recompute basis after each play would be unduly burdensome and unreasonable. The fluctuating wins and losses during the taxpayers casino stay are not accessions to wealth until the taxpayer redeems her tokens to definitively calculate the amount above or below basis (the amount of the original bet) that has been realized. Thus gain or loss may be calculated over a series of separate plays or wagers.

 Applying this reasoning to the example at hand, the IRS concludes that the taxpayer has:
Three wagering gains of $50, $100, and $200 (on the days she redeemed $150, $200, and $300)  Two wagering losses of $80 and $30 (on the days she redeemed $20 and $70)  Five wagering losses of $100 each.
For the year, the taxpayer has total wagering gains of $350 and total wagering losses of $610. The $350 is reported as other income on line 21 of Form 1040. If the taxpayer chooses to itemize, $350 of the $610 loss is reported on Schedule A as a miscellaneous itemized deduction (not subject to the 2% floor). Because gambling losses are limited to gambling gains, the remaining $260 of the loss is not deductible and may not be carried forward. If the taxpayer does not itemize, no part of the loss is deductible.

In many casinos today, gamblers put cash directly into the slot machine. When play at that machine is finished, the taxpayer receives a voucher which may be used in the next machine or redeemed for cash. Although tokens are not involved, the principal is the same: How much did the taxpayer bring to the casino to bet and how much did the taxpayer redeem when he left the casino. For instance, a taxpayer who enters a casino with $100 and leaves with $300 has a wagering gain of $200, even though the taxpayer may have $1,000 in winning spins and $700 in losing spins. Conversely, if the taxpayer loses the entire $100 and leaves the casino with nothing, he has a wagering loss of $100 even though he may have had winning spins of $1,000 and losing spins of $1,100. The taxpayer does not have to keep track of all those spins, but must keep track of how much money he brings to bet and how much he leaves with.  Remember that the losses go on Schedule A for the Federal return.  When our inebriated slot playing gal sobers up and asks, please let her know what I’ve written about as well!  It looks like she is standing in front of a pachislo machine instead of a regular slot machine.  More about pachislo machines in another blog.

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Casual Gambling Definition Time

Stock Market and Form 1099B Info

Friday, January 23rd, 2009

The stock market was up on Wed and we shall hope that it will continue in that direction but there are still earnings coming out and not all of them can be as positive or awe-inspiring as IBM’s were.  I took a position in CAT and have puts and calls so I am okay with any change as long as there is a change.  On Thursday, with the market tanking a bit, I got in with a few more puts for CAT and bought some SCH and sold covered calls.   As long as there is movement in either direction on CAT, I can close out the other, opposite position and make some money.  I don’t expect to hold my CAT calls (cat calls?  like “boo and hiss”?) till expiration unless there is a clear direction down or up.  I suspect it will continue to be sideways with being up, up and then down, down.   The Block calls I will probably hold onto because it is tax season and Block will make money this quarter.  More as things develop if you are interested.

 

catskid 

 

What else is new and interesting.  Ah, yes, the Form 1099B.  Brokers issue Form 1099-B in a composite annual report that also includes Form 1099-INT, Form 1099-DIV and the usual annual summary of a client’s account activity.  This year, the composite report that includes the Form 1099B is not required to be issued to recipients until Feb 17, 2009.  The new due date for these composite super reports is generally Feb 15 however with the 15th on a weekend and the date of Feb 16th being a legal holiday (modified Lincoln’s Birthday), the government is adjusting accordingly.  In prior years, reports were due January 31.  This deadline change is only for composite reports.  Any solo Form 1099-Bs still have to be in our hands January 31.  If you are a California filer that means you will be in warrant/30 day territory when you file and you may not get your refund for the 30 days plus that I talked about in previous blogs.  Ugh.

 

Hey, New Yorkers, I haven’t forgotten about you.  Effective January 1, 2009, there is no longer a temporary stay rule as an exception for determination of residency.  Anyone who spends more than 183 days in New York during a tax year is a resident if that person maintains a permanent abode in the state.  For this definition, a “permanent abode” is a dwelling place permanently maintained (for more than 11 months) by the taxpayer, his or her spouse and it can be either owned or leased.  A day counts as a day spent in New York if any part of the day is spent in the state.  So, if you train in from New Jersey, you’ve spent the day in New York.  The rule was changed to make everybody who lives in New York state pay their fair share of taxes.  I’ll bet that there will be a lot of surprised and possibly angry newly minted New York tax paying residents now.

Stay warm, watch your money and keep those comments and posts coming.

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

 

Stock Market and Form 1099B Info

Stock Market Still Holding Pattern With Slight Drift Down

Thursday, January 22nd, 2009

A reader emailed me asking me what I thought of the direction of the stock market after the election speech and the stock market activity on Jan 21 2009.  I am sticking to my guns that the stock market is probably going to hover with some spikes and dips and if anything, at least through Spring, will have a bias slightly drifting down.

 

economymove

Why do I think that way?  Inefficient Digestion, or more to the point Inefficient Consumption.  The economy isn’t like a well-oiled, hyper tuned race car engine that burns fuel efficiently.  The race car slugs down the fuel and rockets forward.  At least these days the economy isn’t like that.  The economy is more along the lines of a land cruiser or Winnebago.  It takes time to turn the corner as it guzzles cash  and even more time to make a 180 degree turn.  Yes, there is money being pumped into business but that money needs to make it to the average person.  That person is on the other side of the curve at this point in time.  We also need more jobs created quickly to get that cash fuel to the average citizen.  The economy is going to slowly digest the money.  We hope that there will be some left over for us more schmoes who are waiting for the Winnebago to get to us so we can get back on board making money.  Okay, so it is a goofy analogy and it is all over the place but you get the gist of what I am saying.

My own opinion is that as we get good news from company earnings (like IBMs) recently we will see some slight pops but if you look at stocks a few days later (like Intel) you will see the drift of concern is still present and the stocks are going back down.  Depending on the industry, you will see a test of the bottom and in some cases you will see the value get blown out of the water.  What criteria can you judge to see how low can we go?

1.  If a company is still making money and profitable with future earnings still looking consistent, nothing short of war or a major disaster to one of the company’s buildings will keep the value of the stock too low. 

2.  If the company is heavily in debt and already in the single digits, there may be some more room to go down as we witnessed with Bank of America the other day.  Going from around $7 to $5 a share had to have been a yucky feeling to those who thought they bought in at the bottom.

I am sitting on the fence as to whether it makes sense to go long term in stocks right now.  The only reason is that like everybody else, I am waiting, waiting, waiting for something to indicate that the rise and fall of the money waves will somewhere start washing us on the shores of good news more than bad.  The media though does glom in on the bad news and you, dear reader and potential investing person, need to keep in mind that bad news sells just as much as good news.  For every headline about the economy being on the road to recovery there are more about companies laying off more people.

Earliest I think that the supply destruction might slow down?  After the earnings season in the first quarter so maybe around May might be when companies will start to show a profit on their balance sheets.  At that point, they may have lowered everybody’s expectations too low so any news will be good news.

Don’t discount the negative aspect news of war.  If things somewhere globally go haywire, that may adversely cause low stocks to go even lower.  The difference, depending on whether factories are being blown up or not, might mean that you have a great buying opportunity because the stock may bounce back in a day or in some cases right before the closing bell.   Brave sailor of finance, due your own due diligence and be careful as we sail together in the sea of holding pattern.

Keep those questions and comments coming, folks!

 Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Business and Economy As Usual

Wednesday, January 21st, 2009

I was wrong about the Inauguration day stock market results today (and by today at this point I mean yesterday as you are reading this – or even days or weeks later day).  I didn’t think that the market would react so negatively to news but when I heard it started with the Bank of Scotland having billions in losses I can see how things got off to a rough start. The question then is for those people who are shorting the market, at what point will the cash that is on the sidelines go back in to bounce things back.  I don’t think it is a vote of confidence or no-confidence, it is simply a reaction to the news about how bad things are.

More and more news is being introduced into the economy about more lay-offs.  That means that either the government is going to have to do something more aggressively to get people working or there will be a lot more hungry and homeless people walking around the streets in America.

If you are investing in this market, make sure you know your entrance and exit points and stick with them.  The rally that people were expecting didn’t come today.  Will it come after all the Inaugural Balls are over on Wed?  If you are shorting the market, you hope not.  If you are betting on the economy, you hope at least for a pop.

We’ll have to wait and see.

California Warrant News:

I think if you file your Fed and State retuns before the end of the month there is enough money to go back to you and the warrants won’t be issued till returns get filed after Feb 1 (or on Feb 1).  That means if you get your W-2s and other tax documents early, please file as soon as you can if you are expecting a refund from the Fed and the State.

No word yet as to what kind of incentive rebate the Fed is going to offer to the American people yet.  That should be forthcoming in the next few days or weeks.

Keep those questions and comments coming, folks!

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Business and Economy As Usual