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I can't imagine what the debate is all about here, a street car can only, and for ever, go to the same place it was originally designed to go. When the tracks are laid down, it's over. No matter how hard you try, the street car will always wind up taking the same route every day until it falls apart. But a bus can go anywhere it's needed day in and day out including other cities. And when it becomes outdated, it can be sold for other uses. Can you sell a street car so the new owner can go camping in it?
What a concept. Who knew?
The Streetcar Fantasy
Source: Randal O'Toole, "The Streetcar Fantasy," Heartland Institute, November 2012.
December 6, 2012
There are many myths surrounding the benefits a city can expect from streetcar lines. In reality, streetcars are an outdated mode of transportation that is unlikely to bring in any economic development, says Randal O'Toole, a senior fellow with the Cato Institute.
•Streetcars only travel about 8 miles per hour.
•Furthermore, they have fewer seats than buses, which leaves many riders standing.
•As far as safety concerns, streetcars weigh over 60,000 pounds and gaps in the street create dangerous conditions for cyclists.
•Additionally, streetcars are limited in transportation destinations, which require massive investment to expand streetcar lines.
•However, it costs around $30 million per mile of rail line.
Advocates of the streetcar argue that operating costs are cheaper than buses. This is because a streetcar can move just as many people as a single bus driver can. However, according to the National Transit Database, the cost of operating one streetcar mile is three to four times higher than operating one bus mile. More importantly, the streetcar does not carry enough people each trip to make up for the costs. Indeed, it costs a lot to maintain streetcars -- $1 of maintenance for every $2 spent on operations.
Advocates also argue that the overall economic benefits derived from streetcars through development outweigh the other costs associated with operations and maintenance. However, in nearly every city that claimed economic development as a result of streetcars, many developers and businesses were offered lavish subsidies to promote the local economy. Take, for example, the experience of Portland, Oregon:
•Officials claimed that the streetcar generated billions of dollars of economic development.
•The streetcar served two neighborhoods of roughly equal size. One neighborhood received millions of dollars in subsidies for economic development while the other did not.
•Predictably, the first neighborhood attracted as much as 75 times the investment the second neighborhood did, proving that it was the subsidies, not the streetcars, which were essential to economic development.
Lastly, proponents argue that streetcars will reduce dependence on automobiles and improve overall environmental conditions. But Portland, known as the most successful streetcar line in the nation, has seen a decline in Portland-area transit commuting because of the high costs of streetcars and cutbacks in bus services. Additionally, streetcars consume more energy than automobiles do. The average car, for example, consumes about 3,450 British thermal units (BTUs) per passenger mile whereas streetcars consume an average of 7,000 BTUs.
7 Aralık 2012 Cuma
FHA Housing Authority Collapsing : Another Progressive Victory
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Let's see, what did chicken little say about the nut that fell on it's head, 'the sky is falling' right? Well, the Federal Housing Administration, and others in the Obama administration, believes that the sky is not falling even though the entire universe is collapsing on their collective heads.
And why are they denying there is a problem, easy, it's the progressive socialist agenda in full flower, ignore the problem and it will go away. Really, it's not about a successful program or a losing one, it's all about the ideology. The progressive agenda in this case dictates, pay attention to acquiring new voters by sustaining, insuring mortgages that everyone knows will fail. Who cares anyway, not the voter that went to the poles this November?
It's a win win situation for the progressive, no matter what actually happens, press conferences that said 'nothing to see here' were used for the last decade about Fannie and Freddie are being used today for the same reasons, the progressive knows the taxpayer will step up to the plate and pay the bill all the while the voter base of dependents grows.
It doesn't matter that there isn't any money any more, remember it's always about the agenda, the politics, the control and the getting and keeping power over others.
Federal Housing Administration: the Next Housing Bailout
Source: Joe Gyourko, "FHA, the Next Housing Bailout: Update and Evaluation," American Enterprise
December 6, 2012
The Federal Housing Administration (FHA) recently released its 2012 fiscal year actuarial review of the single family mortgage insurance fund and concluded it was insolvent. It is likely that the FHA will be the next government bailout for the housing industry, says Joe Gyourko, the Martin Bucksbaum professor of Real Estate, Finance and Business & Public Policy at the Wharton School of Business.
•The value of the fund is measured by looking at the difference between the expected revenues of the insurance program and expected costs associated with the defaults of underlying mortgages.
•This year, the value was reported to be negative $13.48 billion.
•As a result, it would need $50 billion to $100 billion for the program to be solvent.
Even more troubling is that a recent Federal Reserve policy that keeps interest rates lower for a longer period by FHA's actuarial reviewer will result in greater losses for the FHA mortgage insurance portfolio.
Critics of the program long argued that important risks were being undervalued. Even with improvements to the model used to predict default and claims, it does not capture all the risks.
Currently, potential liabilities are 41 times the total capital reserves. No major entity operates, or should operate, with its core capital reserves so highly leveraged (a measure of the concentration of debt usage for private companies).
For the past several years, the FHA has expected future insurance proceeds to cover past losses, only to be disappointed. The FHA argues that it will grow out of insolvency based on estimates of net worth of the next seven years of mortgage insurance that the FHA is expected to write. However, it is based on mortgages that have not been taken out by borrowers yet.
And why are they denying there is a problem, easy, it's the progressive socialist agenda in full flower, ignore the problem and it will go away. Really, it's not about a successful program or a losing one, it's all about the ideology. The progressive agenda in this case dictates, pay attention to acquiring new voters by sustaining, insuring mortgages that everyone knows will fail. Who cares anyway, not the voter that went to the poles this November?
It's a win win situation for the progressive, no matter what actually happens, press conferences that said 'nothing to see here' were used for the last decade about Fannie and Freddie are being used today for the same reasons, the progressive knows the taxpayer will step up to the plate and pay the bill all the while the voter base of dependents grows.
It doesn't matter that there isn't any money any more, remember it's always about the agenda, the politics, the control and the getting and keeping power over others.
Federal Housing Administration: the Next Housing Bailout
Source: Joe Gyourko, "FHA, the Next Housing Bailout: Update and Evaluation," American Enterprise
December 6, 2012
The Federal Housing Administration (FHA) recently released its 2012 fiscal year actuarial review of the single family mortgage insurance fund and concluded it was insolvent. It is likely that the FHA will be the next government bailout for the housing industry, says Joe Gyourko, the Martin Bucksbaum professor of Real Estate, Finance and Business & Public Policy at the Wharton School of Business.
•The value of the fund is measured by looking at the difference between the expected revenues of the insurance program and expected costs associated with the defaults of underlying mortgages.
•This year, the value was reported to be negative $13.48 billion.
•As a result, it would need $50 billion to $100 billion for the program to be solvent.
Even more troubling is that a recent Federal Reserve policy that keeps interest rates lower for a longer period by FHA's actuarial reviewer will result in greater losses for the FHA mortgage insurance portfolio.
Critics of the program long argued that important risks were being undervalued. Even with improvements to the model used to predict default and claims, it does not capture all the risks.
Currently, potential liabilities are 41 times the total capital reserves. No major entity operates, or should operate, with its core capital reserves so highly leveraged (a measure of the concentration of debt usage for private companies).
For the past several years, the FHA has expected future insurance proceeds to cover past losses, only to be disappointed. The FHA argues that it will grow out of insolvency based on estimates of net worth of the next seven years of mortgage insurance that the FHA is expected to write. However, it is based on mortgages that have not been taken out by borrowers yet.
HealthCare Out Comes Not Dependent on Income
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This is interesting in that the life styles of the lower income groups have not changed all that much but yet their life span has increased while the upper income groups haven't change all that much.
What to infer from this is health care for the lower income groups has proven to be effective even without federal intervention. Corporate health insurance and the individual enjoying a longer life span indicates income is not a absolute when deciding health care needs or outcomes.
An Alternative Perspective on Health Inequality
Source: Benjamin Ho and Sita N. Slavov, "An Alternative Perspective on Health Inequality," Economics Bulletin, November 19, 2012.
December 6, 2012
Many academics tend to look at income inequality as a way to measure overall social welfare. However, other new studies show that lower income groups have seen a dramatic rise in other measures of well-being, such as leisure time and consumption, say Benjamin Ho, of Vassar College, and Sita N. Slavov, of the American Enterprise Institute.
More importantly, lower income groups have seen a decline in health inequality. Whereas previous research has traditionally looked at the difference in health status between people of different socioeconomic classes, a new study adds to existing research by looking at health inequality of people within the same socioeconomic class.
The main measure of health status that the study uses is the realized length-of-life. Some critics argue that health inequality should be measured in terms of the underlying distribution of health risks, rather than inequality in realized health. However, because research of income inequality does not distinguish between realized income and the underlying income generating process, measurements of health equality should also not have to make those types of distinctions.
•The research finds that people with the lowest income -- those in the 10th percentile of income -- have increased their lifespan by eight years.
•This gain in longevity is worth around $483,344.
•However, people in the 90th percentile have improved their lifespan by only two years.
•This gain is worth around $56,880.
The rising health equality has been able to offset the growing income inequality.
•For example, between 1975 and 2010 the top 10 percent of households gained an average income increase of $42,819.
•However, the bottom 10 percent of households gained only $614 in income.
What to infer from this is health care for the lower income groups has proven to be effective even without federal intervention. Corporate health insurance and the individual enjoying a longer life span indicates income is not a absolute when deciding health care needs or outcomes.
An Alternative Perspective on Health Inequality
Source: Benjamin Ho and Sita N. Slavov, "An Alternative Perspective on Health Inequality," Economics Bulletin, November 19, 2012.
December 6, 2012
Many academics tend to look at income inequality as a way to measure overall social welfare. However, other new studies show that lower income groups have seen a dramatic rise in other measures of well-being, such as leisure time and consumption, say Benjamin Ho, of Vassar College, and Sita N. Slavov, of the American Enterprise Institute.
More importantly, lower income groups have seen a decline in health inequality. Whereas previous research has traditionally looked at the difference in health status between people of different socioeconomic classes, a new study adds to existing research by looking at health inequality of people within the same socioeconomic class.
The main measure of health status that the study uses is the realized length-of-life. Some critics argue that health inequality should be measured in terms of the underlying distribution of health risks, rather than inequality in realized health. However, because research of income inequality does not distinguish between realized income and the underlying income generating process, measurements of health equality should also not have to make those types of distinctions.
•The research finds that people with the lowest income -- those in the 10th percentile of income -- have increased their lifespan by eight years.
•This gain in longevity is worth around $483,344.
•However, people in the 90th percentile have improved their lifespan by only two years.
•This gain is worth around $56,880.
The rising health equality has been able to offset the growing income inequality.
•For example, between 1975 and 2010 the top 10 percent of households gained an average income increase of $42,819.
•However, the bottom 10 percent of households gained only $614 in income.
Get ready for the new year with January's Tax Due Date Reminders!
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The staff at Holdsworth & Co. joins you in saying goodbye to 2011 and ringing in a healthy and prosperous 2012!
Thanks for visiting our recently launched blogsite. As we begin the new year, we want to help keep you on course with a list of tax due date reminders for January. We're happy to answer any of your questions and are just a phone call away.
The staff at Holdsworth & Co. joins you in saying goodbye to 2011 and ringing in a healthy and prosperous 2012!
Thanks for visiting our recently launched blogsite. As we begin the new year, we want to help keep you on course with a list of tax due date reminders for January. We're happy to answer any of your questions and are just a phone call away.
| January 10 | Employees - who work for tips. If you received $20 or more in tips during December, report them to your employer. You can use Form 4070, Employee's Report of Tips to Employer. |
| January 17 | Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in December 2011.Individuals - Make a payment of your estimated tax for 2011 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES. This is the final installment date for 2011 estimated tax. However, you do not have to make this payment if you file your 2011 return (Form 1040) and pay any tax due by January 31, 2012.Employers - Nonpayroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in December 2011.Farmers and Fishermen - Pay your estimated tax for 2011 using Form 1040-ES. You have until April 17 to file your 2011 income tax return (Form 1040). If you do not pay your estimated tax by January 17, you must file your 2011 return and pay any tax due by March 1, 2012, to avoid an estimated tax penalty. |
| January 31 | Employers - Give your employees their copies of Form W-2 for 2011 by January 31, 2012. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee of the posting by January 31.Businesses - Give annual information statements to recipients of 1099 payments made during 2011.Employers - Federal unemployment tax. File Form 940 for 2011. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you already deposited the tax for the year in full and on time, you have until February 10 to file the return.Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2011. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until February 10 to file the return.Employers - Nonpayroll taxes. File Form 945 to report income tax withheld for 2011 on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.Individuals - who must make estimated tax payments. If you did not pay your last installment of estimated tax by January 17, you may choose (but are not required) to file your income tax return (Form 1040) for 2011. Filing your return and paying any tax due by January 31 prevents any penalty for late payment of last installment.Payers of Gambling Winnings - If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W-2G.Certain Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2011. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more from 2011 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. |
Discover Your Pot o' Gold...in Your Tax Deductible Vacation!
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Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
 |
| Dublin, Ireland |
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.
Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.
Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.
Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.
Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.
Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.
Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.
Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.
Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.
Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.
Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.
Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.
Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
30 Kasım 2012 Cuma
Education by Progressive Agenda in Texas : Take From Others
To contact us Click HERE
I don't understand how this works - taking all increased revenues but leaving all increased overhead, more students from increased energy workers families, but not more land owners to pay property taxes is leveling the playing field? What wrong with local government having to make decisions with the resources that they have rather then taking from others?
I would have believed this would happen in most liberal socialist progressive states but not Texas. Goodness.
Funding Rules Test Schools
Source: Ana Campoy, "Funding Rules Test Schools," Wall Street Journal, November 20, 2012.
November 28, 2012
The Karnes, Texas, school district has long been among the poorest in the state -- and it remains so, local officials say, even though an oil boom has sent property values surging eightfold in the past two years, says the Wall Street Journal.
•That jump in value has changed the town's designation to "property wealthy" from "property poor," under Texas' school-funding formula.
•That means the town can't keep most of this year's projected property tax of $20 million -- up from $6.5 million last year -- and must instead share the bounty with other districts.
The property-tax windfall in the Eagle Ford Shale is mostly generated from collections on the oil and gas itself, which, like land, is taxable. For the most part, property taxes on oil and gas are paid by the companies extracting it, rather than by the ranchers and farmers that often live in these communities. But school officials say funding rules prevent them from making suddenly affordable improvements -- or even from dealing with rising costs, such as schooling for the children of oilfield workers.
•In Texas, about 55 percent of funding for school districts comes from local sources, mostly property taxes, according to the state comptroller.
•As oil and gas production climbs rapidly in Eagle Ford Shale and other oil-and-gas-producing areas, property-tax collections are soaring.
•As a result, 23 school districts, including Karnes City's, this year switched to "property wealthy," according to a preliminary list from the Texas Education Agency.
•The designation is based on several factors, including property values, and districts that cross into the "property wealthy" category often end up with roughly the same amount of money per student as they had when they were "property poor."
Opponents of the system, intended to equalize school funding, say the way it assigns resources doesn't reflect communities' needs.
Backers of the school-funding formula, which is widely dubbed "Robin Hood," say it is necessary to even out income differences in rich and poor communities.
I would have believed this would happen in most liberal socialist progressive states but not Texas. Goodness.
Funding Rules Test Schools
Source: Ana Campoy, "Funding Rules Test Schools," Wall Street Journal, November 20, 2012.
November 28, 2012
The Karnes, Texas, school district has long been among the poorest in the state -- and it remains so, local officials say, even though an oil boom has sent property values surging eightfold in the past two years, says the Wall Street Journal.
•That jump in value has changed the town's designation to "property wealthy" from "property poor," under Texas' school-funding formula.
•That means the town can't keep most of this year's projected property tax of $20 million -- up from $6.5 million last year -- and must instead share the bounty with other districts.
The property-tax windfall in the Eagle Ford Shale is mostly generated from collections on the oil and gas itself, which, like land, is taxable. For the most part, property taxes on oil and gas are paid by the companies extracting it, rather than by the ranchers and farmers that often live in these communities. But school officials say funding rules prevent them from making suddenly affordable improvements -- or even from dealing with rising costs, such as schooling for the children of oilfield workers.
•In Texas, about 55 percent of funding for school districts comes from local sources, mostly property taxes, according to the state comptroller.
•As oil and gas production climbs rapidly in Eagle Ford Shale and other oil-and-gas-producing areas, property-tax collections are soaring.
•As a result, 23 school districts, including Karnes City's, this year switched to "property wealthy," according to a preliminary list from the Texas Education Agency.
•The designation is based on several factors, including property values, and districts that cross into the "property wealthy" category often end up with roughly the same amount of money per student as they had when they were "property poor."
Opponents of the system, intended to equalize school funding, say the way it assigns resources doesn't reflect communities' needs.
Backers of the school-funding formula, which is widely dubbed "Robin Hood," say it is necessary to even out income differences in rich and poor communities.
EPA's New Regulation Driving UP Food and Fuel - Again!
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I believe the Environmental Protection Agency is the most dangerous entity in our country, even more so then the Justice Dept. Of course, Mr Obama is the single most dangerous individual and the greatest threat to our freedom and prosperity as he directs the EPA.
Just the fact that 40% of corn production in this country goes to Ethanol is insane. Oh, but wait, didn't just this November 51% of the population vote to continue the insanity? Is it possible that a majority of our population can't make the connection between a high food prices and gasoline and Mr Obama? After 4 years of this nightmare, the votes can't make this connection? Who voted for this, willingly? Who are these people????
The EPA vs. State Economies
Source: Marlo Lewis, "The EPA vs. State Economies," National Review Online, November 19, 2012
November 29, 2012
The renewable fuel standard (RFS) is increasing the biofuel-blending requirements. This change can give rise to numerous damaging spillovers throughout the economy, says Marlo Lewis, a senior fellow in environmental policy at the Competitive Enterprise Institute.
•This program requires refiners to blend increasing quantities of biofuel, which are mostly corn ethanol, into the nation's motor-fuel supply.
•The 2012 target is to blend 13.2 billion gallons of biofuel into gasoline.
•In 2013, the target is 13.8 billion gallons.
•This year, 40 percent of the nation's corn will be used for ethanol manufacturing.
•This alone will increase corn prices, harming state poultry, beef, pork and dairy farmers who use corn as animal feed.
Moreover, such an initiative does not follow sound economic reasoning.
•In a competitive market, very few would buy ethanol as motor fuel because the substance has one-third less energy than gasoline and does not make up the difference in price.
•At the current rate, on average, it would cost the consumer $500 a year to switch to E85, a fuel that is 85 percent ethanol.
Arkansas' experience demonstrates the damaging effects the RFS can have on a state economy. According to Arkansas governor Mike Beebe:
•Virtually all of Arkansas is suffering from severe drought conditions, and accelerating corn prices impose a severe economic impact on the state's livestock producers.
•While the drought may have triggered the price spike in corn, the fuel standard aggravates the problem -- the policy has boosted corn prices 193 percent since 2005.
•Agriculture accounts for around 25 percent of the state's economic activity.
•Indeed, the RFS will disproportionally hurt regions with extensive farming industries, while following inefficient market principles.
Just the fact that 40% of corn production in this country goes to Ethanol is insane. Oh, but wait, didn't just this November 51% of the population vote to continue the insanity? Is it possible that a majority of our population can't make the connection between a high food prices and gasoline and Mr Obama? After 4 years of this nightmare, the votes can't make this connection? Who voted for this, willingly? Who are these people????
The EPA vs. State Economies
Source: Marlo Lewis, "The EPA vs. State Economies," National Review Online, November 19, 2012
November 29, 2012
The renewable fuel standard (RFS) is increasing the biofuel-blending requirements. This change can give rise to numerous damaging spillovers throughout the economy, says Marlo Lewis, a senior fellow in environmental policy at the Competitive Enterprise Institute.
•This program requires refiners to blend increasing quantities of biofuel, which are mostly corn ethanol, into the nation's motor-fuel supply.
•The 2012 target is to blend 13.2 billion gallons of biofuel into gasoline.
•In 2013, the target is 13.8 billion gallons.
•This year, 40 percent of the nation's corn will be used for ethanol manufacturing.
•This alone will increase corn prices, harming state poultry, beef, pork and dairy farmers who use corn as animal feed.
Moreover, such an initiative does not follow sound economic reasoning.
•In a competitive market, very few would buy ethanol as motor fuel because the substance has one-third less energy than gasoline and does not make up the difference in price.
•At the current rate, on average, it would cost the consumer $500 a year to switch to E85, a fuel that is 85 percent ethanol.
Arkansas' experience demonstrates the damaging effects the RFS can have on a state economy. According to Arkansas governor Mike Beebe:
•Virtually all of Arkansas is suffering from severe drought conditions, and accelerating corn prices impose a severe economic impact on the state's livestock producers.
•While the drought may have triggered the price spike in corn, the fuel standard aggravates the problem -- the policy has boosted corn prices 193 percent since 2005.
•Agriculture accounts for around 25 percent of the state's economic activity.
•Indeed, the RFS will disproportionally hurt regions with extensive farming industries, while following inefficient market principles.
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