Archive for January, 2009

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Future Prices Factored Into Stocks

Friday, January 9th, 2009

I’ve read a lot of grousing over the years about people who wonder why certain news doesn’t crash a stock’s price into the dirt or launch the value rocketing into the stars.  The answer is that people tend to forget that the information may already have been leaked or released and that is factored into the future prices of the stocks.   At this stage in the current recession/depression, most companies (I should qualify that and say most large, multinational companies) have already factored their sales losses, their anticipated earning and what they think they might make for the next year based on their current orders.

The questions that we, as investors should always ask ourselves are:

1.  Do we feel that the company will make money (or not make money if you are looking for a firm to short)?  Shorts, by the way, are pretty dangerous right now and I would advise people to really do their own due diligence before making any decisions.  I think for right now, the markets have hit a plateau and stocks and funds will hover.

2.  Are the fundamentals of the company good and do you trust the information that you are reading and hearing about?  The fundamentals may look good on paper or on the Internet but if you think management has been playing footloose and fancy free with their money and opinions, steer clear.

3.  How are you at trying to second guess how people think?  Despite items one and two, for the short term, if you want to make money and run, you need to think like the masses might.  That being said, there is always the risk of unknown news and events that can either help you or hurt you.  An earthquake can damage a factory for a firm that you own and drive down prices but futures for oil might go up if a refinery near by gets smashed.

Everybody is saving money now or sidelining it.  The way to make money in an environment like this is to pay attention.  You will see a lot of misdirection in the form of bad blogging, bad news and stupid information reporting where people are screaming doom all over the place.  It is bad, as I am constantly saying, but for the immediate future, people are aware of this and:

1.  Governments are taking action.

2.   People are trying to save money where they can.

3.   People are out of work.  They still need to eat, drink, sleep and keep clean.

4.  Other people are working.  They also are eating, sleeping, drinking, etc.

Items 3 and 4 mean that there are still people willing to pay money for things that they want.  In tough times, they will turn to things to help them escape, like movies, etc, and I think that with all the cash that is being infused into the economy, the stock markets will take off – at least for a bit.

Will there be a test of the market bottom?  Maybe.  Depends on how fast President Elect Obama and Congress get their economic stimulus programs, their infrastructure programs and how fast we can get businesses running and employing people.  I am thinking that the next market bottom or test for it will not be as bad as the one we had in October.

 

zoltar

 

 If  a company has several billion dollars in cash and they are making several billion income each quarter and write off 1 billion (as in the case of Intel, that I own), I am not worried that they will be broke like a bank which has had a run and billions in bad loans.  Keep that in mind when you hear people screaming how some of these companies are doomed.

In the meantime, if you are comfortable doing your own research and investing, this might be a good time to look at getting into stocks.  As long as you remember that the stock price reflects what people think the future version of the company is worth,  and as long as the bad news you hear isn’t really relevant, you should be able to invest and take things in stride.

If you still are uncertain about the future, you may want to stay in cash and consult a fortune telling machine.

 Good luck and be safe.

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.

 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

Future Prices Factored Into Stocks

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Business and Stock Market Swings

Thursday, January 8th, 2009

Today was an interesting day for the stock market because people freaked out.  Sure, they freak out alot these days but what was another indicator that there may be problems (among many things) was that Intel ended up writing off about a billion dollars.  Considering that other companies have written off several times that amount of money (and some have written off several times less), I don’t get it.

The company (and I own shares and have covered calls and puts on them so they pretty much wash) is stable.  It still is doing a billion dollars in profits.  The stock market price swings are do to fear and as I have stated before, people trying to predict the future.  My reminder is this – if you are uncomfortable with stocks, get out of the market.  If you are interested in trying to predict the future, this is a tough time since nobody has any idea as to the direction of the markets.

Personally, my own thought is that it will go sideways for awhile.  It will have some big swings both up and down.  Is this good?  If you are in a cash position, it doesn’t matter.  If you are trying to do short term trading you may have a problem and you might want to look into options to mitigate any potential swings that can wipe you out.  Try settling for less profit for less risk.

We are definitely in a period where things will get weird but they can also get better.  The may be weird first and for a longer time but I am optimistic.  There are too many people trying to get things on track now and there will be over compensation in supply destruction and firing people.  That will change.  Now is a good time to get in the training that you wanted to do on the job that you really wanted.

Business will still go on as long as people have money or services or goods to trade with each other.  Let the spending in the markets continue!

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.

 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

 

Any horror stories you want to share?  Drop me a line!

Kim Isaac Greenblatt

Business and Stock Market Swings

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The Business of Movie Making

Wednesday, January 7th, 2009

An interesting footnote to the economy is that despite the strikes, the high cost of making motion pictures and the Internet cutting into entertainment, movies are going bigger than ever.  I’ve noticed that despite the cash bleed of film production outside of Los Angeles to Canada, Europe, Asia and even other states in this country, there are a lot of movies that have been saving studios.

 

moviemakin

 

The mega-blockbuster doesn’t appear to be dead and with the recession/depression we are in, it has been my observation that people will pay to go to the movies.  Sure they can watch and rent on DVD, streaming video, etc but there is still the social aspect of leaving the house to get away from the things that surround them (kids, bills, leaky faucets, etc) and escape to worlds of space ships, bat mobiles and romance.

Studios are cycliing again between boom and bust and a lot of them are just catching up on their cycle of layoffs.  For people in the entertainment division, bad economic cycles are nothing new to them.  The gotcha this time around is that people who work in the entertainment business are now finding that they are in competition with people laid off from other sectors in the part time filler jobs that they try to get to hang on until the next project materializes.

It may be some time for some of the projects to materialize as well depending on how the strike situations get handled.  I would love to see a business model where the studios take a movie and just directly start showing it from the Internet.  Forget about theatrical releases.  I would love to see what kind of sales or rentals, similar to pay-per-view would be generated from taking a hit like a Star Trek movie or a James Bond film and just go straight to a streaming format.  That would be a great metric as to what people would be willing to pay for and how accurate my statement above is about people wanting to go out for their entertainment.

In most major US cities, a first run movie, if seen in the evening is about $10-13 a ticket (US currency) and popcorn and drinks can add another $15-20.  A date for two easily can be $50 just to get into the door and I don’t think that includes parking if you need to pay for it, even if you get a discount for seeing the movie.  A movie rental is a few dollars and you can watch the movie in your underwear though that may or may not make it harder for you to get a date that night.

In good movie making, the producers, writers and directors have to have something that is entertaining enough that people will want to give up two hours (or 90 minutes) of their time and cough up $4 – 13 for.   Studios these days aren’t taking chances with experimental stuff unless it has proved through the Internet or something viral that it will get millions of butts into the seats at the theaters.  Fantasy and super heroic movies do well in times of economic depression.  We should expect the trend to continue for that.  Movies that look to be bootlegged will be released in Asia and Europe first to try and make some money before the cold reality of the marketplace kicks in.  There are people who have a price point of free that don’t want to spend anything for a product.  I wonder if that means that they will work for free for their entire lives.

If you have a decent, low cost documentary, you might have a market for it if you have a nice twist as to the topic that you are covering.  Everything else is being milked to death in the reality tv shows on cable.

Overall, my take on the business of movie making is that it hasn’t really changed during the current economy.   The delivery systems and business models for making a buck may be in flux, but they have been that way since the introduction of VHS tape decades ago and television even earlier than that.  If something is entertaining and people want it, they will find a way to pay for it and see it.

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.

 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

The Business of Movie Making

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New Washer Dryer Economics

Tuesday, January 6th, 2009

Today, as part of our New Year, new approach to doing things (which hopefully will be better than last years for all of us), we will start the talk about business, money and economics with a washer and a dryer.  Before I hear the jokes and jeering about “cleaning up” our “laundering” cash, I want to point out how my recent purchase of the machines reflects on our economy.

 

lowendwasher

 

I ordered a few days ago a new washer and dryer.  It wasn’t as simple looking as the one pictured here.  I had to get with the units two podiums for the machines to rest on so that Sharren and I won’t break our backs.  After all,  the new machines are front loaders and they are big.  I was able to order them from Sears and they matched prices with Best Buy.  There are rebates to be mailed in and so far so good.   Like most Americans, I looked for bargains and figured after the holidays that this would be the ideal time to check things out.  The upside was making me feel pretty good about myself and my decision to get the goods now.

The downside was the sticker shock.  Yes, our previous washer and dryer were over 6 years old but the motors sounded like they were twenty years old.  That is funny because our fridge is about 20 years old and that is still running great though I want to get around in half a year’s time to replace it with a more energy efficient model.  To get a nice washer and dryer that are energy efficient, manage water correctly and efficiently, dry quickly, etc has run me almost three thousand dollars.  I had to swallow hard when I made the purchase but the hope is that the machines will save me money, energy and time over at least 7 years.  I broke down and got the warranty on the machines only because I have experience with the electronics in machines these days and even though there aren’t any moving parts, fuses, bulbs and sensors blow.  I also didn’t buy the top of the line models which would have set me back another $800 or so for a slightly faster rpm cycle machine and an LCD monitor (something else to break or get scratched).  Thanks to my friend, Debbie, for going along and helping me do the legwork and research in getting the new machines which was almost as hard as looking to buy a new automobile.

In the current economic environment, as people have machinery break down, the first thing they will do is try to fix the machine.  I am all for that.  In the case of my washer and dryer, it wouldn’t have been cost efficient.  The same holds true for automobiles.  On a used car, at what point do you decide, okay, I don’t want to spend three thousand dollars to repair the engine and I will put that money towards a new car.  The plus side is you will get a new car, generally no major repairs for about five years, etc.  The downside is that you are now a little deeper in debt trying to pay off the balance on that new car.  My answer is that sometimes you need to bite the bullet and buy what you need.  Trust me, I wasn’t thrilled with the idea and have scrambled as to where the money is coming from in the budget to cover the unexpected expense.

What price can I put on Sharren and I having to wait hours for clothes to dry or washing things?  Do we want to spend our entire weekends just washing clothes?  Those of you with kids (or wardrobe animals) know what I am talking about.  To be able to have clothes ready in an hour or two is a modern industrial society miracle. 

People know that and that is why they pay for the higher end machines, new machines and last year’s models if they go on sale to replace their old machines.  That tells me that despite the bad news, doom and gloom, people are basically people (like the old song) and if they need to replace something, they will go ahead and do it.  Yes, people will do without but at a certain point, if you are trying to take care of your family and can save time by having a washing machine and dryer that work and can get the laundry done while you are changing diapers, going grocery shopping, mowing the lawn, cooking, etc, it is worth the expense.

Most of the machinery is not made in America any more.  Ah.  So my suggestion is that we seriously look into getting back on track on producing products here in the United States.  America needs to get back on track with manufacturing, creating goods as well as services inside the country.  In the long run it will be a win-win situation for everybody.

The machines will be delivered later today, so by the time you are reading this,  the should be installed.  I will write more about the perils of buying new machinery later on if something comes up with them.

 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.

 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

New Washer Dryer Economics

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Business Impact-Tax Law Changes For 2009 Part 3 I Think

Monday, January 5th, 2009

Here is the third and final business impact post on the 2009 tax law changes.  The laws look to be in for the most part and what I covered in my previous two posts here and here should hold true.  For more detailed information, you may want to check out the IRS website.  For my thoughts on what is notable or what to concern yourself for your filing for this year, please read on.

 

irsbldg1

 

In some respects, in keeping with the new Administration that is coming in, there will be relief for people who don’t have a lot of money, were nailed in a natural disaster, clobbered by losing a home and other situations that made 2008 a rough time for everybody.  If you owe taxes because of loan forgiveness, credit card debt forgiveness that is taxable, you didn’t live in your primary residence a long enough time to get an allowance, etc, ask your tax professional to help you try to dig up any other legal credits or see what relief packages might apply to your specific situation.

If you end up owing taxes when all is said and done, take the time to work out a payment plan with the IRS and/or your respective state agencies.  They are willing to work with you and despite what pundits say, they are human beings and a lot of them are going through the same problems that you or I might have experienced.

The level for due diligence has been raised for the tax professional.  That means that items that might have been allowed to go through as an expense or under certain circumstances may be questioned and your tax professional may recommend that you don’t take the expense, etc because under the new laws, the IRS doesn’t want to see anything that has less than a fifty-fifty shot of being accepted as a legitimate business expense, etc.  If you have the documentation, the substantiation from IRS rulings and know your tax law, go for it. 

Education credits have been extended, make sure you research and check with your tax person if you are taking them correctly.  If you are doing your own taxes, make sure that you research your situation and understand completely what you are filing out in the software before you submit anything.  In fact, I would at this point wait till all software updates are finalized before filing.  That may mean a few weeks for the Fed software and maybe longer for State software, depending on what other incentive rebates may be thrown into the mix once our President Elect gets sworn in.

I am also taking new clients if you would like me to do your taxes for you.  If you are interested, drop me an email or post something in the comment section of the blog with your name, phone number and email.

Interested in any of my books, citizen?  I have one out on taxes entitled, “Bad Tax Idea, Good Tax Idea.”  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.

 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

The latest installment on the tax law changes for 2009 in the Business Impact-Tax Law Changes For 2009 Part 3 post.

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Holmes, Can I Deduct My Mobile Home Interest At Tax Time?

Sunday, January 4th, 2009

Question from a reader:”Holmes, can I deduct my mobile home interest at tax time?”

 

0104mobile-home 

 

My answer is first, do people still call each other “Holmes” or “Homie” or “Homeboy/girl” where you come from?   If so, can I borrow that time machine and go back about ten years to the time you just teleported in from?  I am just kidding but I love being called Holmes!  Maybe you are calling me “Holmes” because I am a great detective, like Sherlock Holmes in researching tax information and making brilliant tax deductions?  Okay, okay, maybe not.  Second, to answer your question, sure, if the mobile home interest is for a mobile home and that is considered as your second home or vacation home or if it is a mobile home that has been installed on a lot (in which case it is considered your primary residence if you are living there, right?).  By the way the motor home in the picture above looks like it could use some home improvements while the wind isn’t blowing to knock the shingles off.

 

According to our friends at the Internal Revenue Service, in publication 936,   for you to take a home mortgage interest deduction, your debt must be secured by a qualified home.  This means your main home (where you sleep and ordinarily live-you only can have one main home at a time) or your second home (as in a vacation home or any place that you choose to pick and treat as your second home).  A home includes a house, condominium, cooperative (where you are sharing something in the land or building), mobile home, house trailer, boat or a similar property that has sleeping, cooking and toilet facilities.

The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment or other deductible purposes.  Otherwise, it isn’t treated as personal interest.  It is not deductible in that case.

Remember that most mobile homes are bought on a payment plan.  The high-end mobile homes, though sales may be down because of the economy, look like super yachts on wheels.  Some of the interior bedrooms, bathrooms and kitchens are done up fairly spectacularly.  Others, maybe not so much.  The interest payments on these mammoths on wheels is tax deductible in the cases that were outlined above.

 

0104houseboat

 

The same holds true for that boat that you have.  As long as it isn’t a rowboat but is big enough to have sleeping quarters, a galley (that is a kitchen), and toilet facilities and you treat it as your primary residence or second home you are good to go.  There are a lot of people who, depending on where they are in their life, their income stream and their family size, decide to live the life on the sea, lake or river and buy houseboats.

So, Holmes, you didn’t tell me in the e-mail what knid of mobile home did you buy?  If it is a self-sufficient, self-contained house on wheels, you are in like Flynn.  All the best to you, Holmes, and thanks for the question and for being a good sport about this post.

Interested in any of my books, Holmes or Holmestta?  I have one out on taxes entitled, “Bad Tax Idea, Good Tax Idea.”  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.

 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

Holmes, Can I Deduct My Mobile Home Interest At Tax Time?

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State Warrants and Other IOU Questions

Saturday, January 3rd, 2009

Question from a reader:”I read that California has issued IOUS in the past.   They are talking about doing that again.  Are they going to?  Should I leave the state?  Are we broke?”

refund-check

 

 

My answers to the statements and the questions are:  At this point, they are trying to decide what to do, you don’t have to leave the state unless you want to and yes, the state is broke though it isn’t like you will the entire city of Sacramento standing by the 405 Freeway on or off ramps begging for spare change-at least not yet anyways.

 

sparechange

 

California has issued warrants in the past.  Warrants look like checks except they have the word “warrant” printed on them.  The first image above is of Federal refund checks and State refund checks (and warrants) are not that different.  If memory serves correctly, I remember receiving a warrant back the past and at the time, I think that most banks went ahead and cashed them and treated them as if they were checks.  After all, if the State of California says they will make good on a check they will, even if it is later than sooner.  In that case, they came to a resolution relatively quickly.    That was back in July 1992.

This time around it is any one’s guess as to what the state will do.  They have 60 days as of Dec 31 from what I gather.  At the end of the time, the State of California runs out of money and is officially broke.  The commercial banks in the state haven’t made a decision yet as to what they would do if they receive warrants either.

So the bad news is that you might get an IOU.  The good news is that currently, if they don’t pony up the cash for the IOU the state has to pay you interest and as of now, the interest might go up to 5%.  According to Jacob Roper, a spokesman for the California state controller’s office, they haven’t determined what the rate of interest might be if that is the case.

Are other states faring any better or worse?  Sure.   Does it mean that you have to high tail it out of California?  Not unless you already were planning on moving in which case any warrants that would be mailed to you would follow you to your mailing address in your new state.

If you owe money in taxes, you are still required to pay it and the newspapers, Internet and blog sphere have been full of comments screaming the blues that it isn’t fair.  I have to ask them, whether or not the State of California pays you any refunds now or later has no bearing on whether we pay taxes or not.  The State of California follows that Federal government in that we are taxed on all worldwide income earned while living in California, with the usual exceptions and rules about paying taxes to other states, etc, etc. 

People forget that when they don’t have money to pay taxes they work out payment plans and agreements with government agencies themselves.  Once in a blue moon I don’t have any issues with the self-same agencies turning around and working out payment plans with us. 

Besides, the whole mess is due to mismanagement of money and running out of it.  If the subject bugs you, please write your State representatives and get on our Governor’s case.  Make sure you suggest they find other avenues of revenue generating like bonds, etc.  We don’t need cutting of services in health, education and special needs like they always seem to go after first.

This is a good time to go after our representatives since it is a new time for a new Federal administration and city elections are starting to come around again as well.  Make sure that you tell your candidates and representatives that their jobs “warrant” that they look after your money, any refunds and programs or else they won’t get the job!

Remember that normal life rules of engagement apply.  Try not to count on any refund money at this point if you can as part of your budget, even if you have planned for it already.  If you can’t change your plans, be patient because as I stated earlier, the decision hasn’t been made as to what to do.  For the record, State employees are being forced to take days off as well to cut down on costs to try to save money as well.

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.

 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

 

State Warrants and Other IOU Questions

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Ten Timely Tax Tips for Any New Year

Friday, January 2nd, 2009

So here we all are, ready to hit the New Year running and maybe we should get some of our finances in order.  To help you get yourself straightened out or to remind you of things you may have forgotten, here are ten timely tax tips for any New Year:

 

oldtax-form

 

1.  Get your receipts ready now from the previous year.  If you have already been keeping a running tally of your expenses in spreadsheets, Word documents, cell phone notes, pdfs, super!  You are ahead of the game and you definitely are on the ball.  If you haven’t, gather all your receipts and start placing them in categories so you will be able to total them easier.  It will also make things easier for you when you do your own taxes or if for your tax professional.

2.  Don’t be a martyr or a know-it-all at tax time.  If you are having problems doing the do-it-yourself software packages that are out there (and some are easier to use than others), get a tax professional to help you.  All you have to do is see if they can import what you have already loaded into the software (and in most cases they should be able to) and you both are good to go.

3.   Don’t be afraid of doing your own taxes.  If you are good with numbers, can read and are patient, anybody can do their own taxes.  As stated in item two, the “gotcha” is if it is very complicated and when you start researching items on the irs.gov website the tax law starts to sound like a foreign language.  A dead foreign language at that..  For simple returns, everybody should be able to do or at the very least understand their own taxes.

4.    Be honest.  Friends may tell you a lot of things and sometimes it is bad advice.  Take the high road and declare all your income, it is the law.  You are taxed on all income made world wide and if you learn tax law you can see the exceptions and items where you get credit for paying taxes to foreign nations etc.  

5.   Wait till you get all your bank information, stock information, etc.  Especially hold off till you get all your W-2s.  It is easy to amend a tax return (I do that all the time for clients) but it is even easier to be a little more patient, wait for all your documentation and file your return the correct way the first time.

6.   Don’t forget to pay quarterly taxes if you get one-shot payments for sales of movie scripts, books, etc.  If you hit the lottery, make sure that you have money paid so that won’t ding you at the end of the year.  A very rough rule of thumb is to put aside a third of any income for payment to Federal and any state taxing authorities.  If you owe penalties on something, expect penalties and interest to jack your payments to over one third of your income in some situations.  You will need to look at this on a case by case basis.

7.  Don’t complicate your life.  I had a client who was so busy recently trying to find expenses that the person came to the conclusion, “This is stupid.  I am looking at paying $10,000 for expenses that will save me $300 in taxes.”  I agree.  Sometimes it is just easier to relax and pay what you owe based on your income and how you earned it.

 

8.    Double and triple check all tax returns before electronically filing or mailing them in.   People get excited and they transpose numbers, they put items in the wrong categories or enter them incorrectly.  Tax software is garbage in, garbage out (GIGO) and if you don’t check you won’t know.  Take the time and check your information as to what you key in or what you say to your tax pro and if that is a match with what you were talking about.

 

9.   Listen to friends but unless they are exactly like you, watch their tax suggestions.  What works for one person or family may not work for the next couple down the block.  Each tax situation is unique and different from person to person.

 

10.    Set up you tax interview or preparation time with your tax professional early, even if the meeting is for later in the season.  It gives the tax pro time to prepare for your arrival and if they are doing their job, they will have done more legwork for you before you set foot in his or her office.

Anybody have any more suggestions?  Please post them below in comments.   Remember that I don’t post comments for articles or posts that are over 2 weeks old.   

 

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.

 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

 

Ten Timely Tax Tips for Any New Year

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Trying to get Selected for Presidential Inauguration

Thursday, January 1st, 2009

Happy New Year, everybody!  I hope everybody is off to a safe start and please be careful with your health, money, friends and family over the next year.  I sent in an essay for the Presidential Inaugural Contest to see if I can win a trip to the Inauguration.  Let me know what you think of this:

 

presidentobama

 

 

—start of essay

This inauguration is more than a change in leadership to me.  This is a change from separatism to unity.  From the path of confusion to the path of clarity.  This inauguration is the building of stepping stones.  Stepping stones that are needed for the path for rebuilding our nation.  Our country has been wounded and shaken to it’s roots because of war, natural disasters and poor economic management.  The inauguration represents to me the key that will unlock the changes that will, that must take place so America can restore it’s position as a world power, as a light for the world and for a place where people can live, eat, work, and play without worrying if they will have the money to pay the next month’s rent.
 
My daughter has Rett Syndrome and as a parent of a special needs little girl, this inauguration represents the path that President Elect Obama, my daughter and all of us need to take.  A path into the unknown with our hearts shining has beacons, illuminating the fear and clearing the way for a better, healthier, happier and wealthier tomorrow.
 
Sincerely,
Kim Isaac Greenblatt
——————–end of essay

I think there are millions if not billions of people that are applying but I figured, why not?  If I get the chance to go, I will report back my own take on our President.  I will ask business and special needs questions to the President Elect, his staff and anybody who is within earshot of me.  Wish me luck

—

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.
 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
Will I get invited to the Inaugural Reception?

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