The Cost of Doing the Right Thing – More disappointment at the GOP’s abandonment of limited government principles.

Charitable Contributions Brave Economic Uncertainties

Follow the Rules When Inheriting an IRA

Closer Look at Deductions for Donations to Charity – The examples of overstated deductions for things such as donated vehicles sound familiar. I have often been asked about the tax benefits of donating used vehicles to charities. The questioners usually tell me they can claim a higher amount for a deduction, based on the Kelly Blue Book value, than they would be able to actually receive if they were to sell the vehicle themselves. I have to break the news to them that what they could sell the vehicle for is its true fair market value (and the legally deductible amount) and not what Kelly shows.

I have had similar experiences with people proposing to donate real estate to charities so they can deduct what some appraiser or Realtor claimed was its fair market value because if they were to actually sell the property, they could only get about half that amount. When I was doing my real estate seminars, I used to really offend appraisers when I stated that the values they come up with are nothing more than SWAGs (scientific wild ass guesses) and can’t hold a candle to what a property really sells for. Anyone who wants to claim a higher appraised value for a donation than the item would actually sell for is not going to prevail in a dispute with IRS.

This is also applicable to values used on estate tax returns. If an item has been sold between the time the decedent passed on and when the 706 is prepared, using any amount other than the actual sales price for the estate valuation is asking for trouble. IRS does audit a very high percentage of estate tax returns, especially the very large ones. I have had my share of them examined and so far, every one has been accepted as filed because I used actual sales prices for values and not the often quite different appraised values.

Artists Vie to Coin America – With more changes in the design of our currency in the works, it may become harder to know what is real and what is fake money.

This reminds me of the old joke about how to find a creative accountant. When you ask him/her what two plus two is, s/he will respond with “what would you like it to be?”

Protecting the Integrity of Our Tax System – The comment about the need for a probability of a tax pro’s position having at least a 33% chance of success is accurate. However, the idea of who is the arbiter of the odds is up for grabs. A guess as to whether or not a position has greater than a 33% chance of succeeding is as subjective as anything can be in most areas. Where it does have application is with the standard idiotic tax protestor arguments, such as taxes are voluntary, income is all tax free, or the 16th Amendment is invalid. Those are obviously well below the 33% threshold.

The issue of SE tax on LLCs is still well above those odds, so those of us who have been considering it voluntary aren’t crossing the line. While it is a controversial topic, with those who side with IRS claiming that LLC income should always be subjected to the 15.3% SE tax, those of us on the other side have several cases where IRS has accepted our method of reporting it. Until a new law is enacted mandating SE tax on LLC income, I will continue to predict that my position on this matter has a 100% chance of prevailing.

What would a joint effort by the CNBC and Bravo TV networks look like?

Why “Government Intelligence” is one of the most often encountered oxymorons. Whenever a government program has been proven to be a failure, the response is to make it bigger and spend even more money on it. It’s S.O.P. for the education system and is no different than someone driving in the wrong direction just going twice as fast. We end up blowing a lot more money and being even further off course.

Of course, they don’t do the stealing themselves. They rely on their hitmen at the IRS to do the dirty work of supplying them with plenty of money to spend on buying votes from people who have no respect for the Constitution.

Tax breaks for saving stir debate. Critics say only the wealthy benefit. – Hate the rich class warfare never goes out of style in this country.

Republicans Indulging in Pork Along With Power

Man Cashes Penny Stash For $10,060 – A drastic style of the slow and steady savings strategy; 37 buckets full. As ridiculous as it sounds, he has a lot more to show for his “investment” efforts than most people who bought overpriced dot-com stocks.

Under Bush, spending soars – Very inconsistent. On one hand, Bush recognizes the power of letting people keep and spend more of their own money. On the other hand, he is enlarging the size and scope of government beyond even what the previous administrations did.

Taxes governed by people’s will – Supposedly, Governor Arnold will raise taxes if enough people ask him to. It won’t be hard to get a majority of people to “demand” higher taxes on the heavily despised evil rich. Let’s hope that Arnold has enough sense, in spite of input from from his Marxist advisors (Warren Buffett), to see that such an approach would be more of what already created the massive outflow of tax refugees. If he has any hope of attracting people to return to the PRC, he has to reduce the punitive taxation of success and not make it worse, even if the lefty media claim that is what the people want.