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Archive for April, 2013

0Bama + Biden Tax Returns

Posted by taxguru on April 13, 2013

Copies of the 2012 tax returns for our royal families have been made public. You can download them as PDF files:

0Bama (38 pages) – Federal & Illinois returns.  Over $21,000 of AMT.

Biden (31 pages) – Federal, Delaware & Virginia returns.  Not claiming any depreciation on cottage being rented to Secret Service. Almost $6,000 of AMT.

And you can read various comments about the tax returns.

Obamas’ Tax Return Shows Lower Earnings – WSJ

The Obamas’ falling tax rate – Politico

Obama’s Tax Rate Was 18% – PJMedia

Landlord Joe Biden pocketed $26,400 in 2012 renting cottage to the Secret Service – Washington Times

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Top Ten Things You Don’t Want To Hear From Your Accountant

Posted by taxguru on April 10, 2013

Letterman’s annual batch of Tax Season jokes.

10. Take off your clothes and sit on the examining table (Harvey Tanton)

9. Good news — you earned enough to co-sign my mortgage! (Whitney Boyd)

8. My client Wesley Snipes said prison wasn’t so bad (Phil Defalco)

7. Would you like to touch my rubber thumb? (Lawrence Spielman)

6. I’m faxing over your 1099 form right now [makes faxing sound] (Gary Schatsky)

5. Care to make a tax-deductible donation to the Taliban? (Bob Manger)

4. Give me fifty bucks — I’ll make your taxes disappear (Andrew Ross)

3. Do you have someplace to stay until things blow over? (Sandra Bussell)

2. Ignore the blood stains (Richard Koenigsberg)

1. Hey, Nice W-2s (Andrew Rubin)

 

Now, with video:

 

 

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Posted by taxguru on April 9, 2013

Trust in Gold Not Bernanke as U.S. States Promote Bullion – It’s great to see that some states aren’t just bending over and allowing the corrupt Federal Reserve have all-encompassing control over our lives.

 

IRS collecting tax payer information from Facebook and Twitter –  It’s hard to feel sorry for anyone stupid enough to brag about cheating on their taxes in any public forum.

 

Financial responsibility, Obama-style – The best satire has roots in the truth, and the trust is that we have a financial terrorist in the White House.

 

 

From Argus Hamilton:

The Dawn of the Planet of the Apes begins shooting in Hollywood after Fox cast Gary Oldman and Keri Russell in the lead roles. What a story. In the movie, the apes take over everything, and in two months the budget is balanced and the national debt is paid off.

 

 NBC gave Jay Leno fifteen million dollars to bow out as host of the Tonight Show last week. This only two years after NBC gave Conan O’Brien thirty million dollars not to host the Tonight Show. For some reason, America’s farm policy has come to the coast.

 

 

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Posted by taxguru on April 9, 2013

Obama’s feeble salary ‘sacrifice – Dana Milbank looks at the pResident’s idiotic symbolic gesture of giving back a mere $20,000 a year while still earning millions of dollars and living a life of royalty.

 

 

Blowing up another bubble: Easy money helps Wall Street and threatens Main Street –  A lot of corrupt shenanigans propping up Wall Street; but that bubble will soon burst because the Fed can’t continue to create money out of thin air forever.

 

25 important things to remember as an investor – Many of these points are very true.

 

When the Government Goes Bankrupt – Andrew Napolitano looks at the growing trend of governments going broke and defaulting on their financial obligations. 

 

 

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Posted by taxguru on April 8, 2013

From Argus Hamilton:

The White House announced that the president will return five percent of his salary to the U.S. government to share the sacrifice in the sequester budget cuts. He’s paying seventeen hundred a month back to the Treasury. At this rate he’ll reimburse us for what he spent on family vacations but only if he’s president for another twenty-three years.

 

John Kerry declared he will donate five percent of his salary to charity as a sacrifice for the sequester budget cuts. He’s worth two hundred million dollars. For five percent of his Secretary of State’s salary to hurt him he would have had to marry Dionne Warwick.


 

The White House on Monday proclaimed April to be Personal Finance Responsibility Month. The Obama administration put together a website intended to teach children how to manage budgets responsibly. It looks like another case of those who cannot do, teach.


 

The White House backed banks who give home loans to people with bad credit. They threatened banks who refuse. The American Dream is now a thirty-year mortgage and a two-month payment plan, backed by the full faith and paratroopers of the U.S. government.


 

Senator Jay Rockefeller asked Carnival Cruise to reimburse the U.S. Treasury the four million dollars it cost the U.S. government for the Coast Guard to tow last month’s sewage-fouled liner back safely to port. The cruise company is complaining, but they won’t get anywhere. Even the Auto Club only tows you so many times before they start charging you.

 

From Jay Leno:

Good news: our buddy Wesley Snipes — remember he went to prison in 2010 for tax evasion — he got released earlier this week. The bad news: He’s only got 10 days to file his taxes.

 

From Dave Letterman:

The White House has now put together a website for kids. It’s a website to teach kids how to manage a budget responsibly. The website is called “Irony.gov.”

 

 

From Jimmy Fallon:

A new report found that, despite the slowing economy, going to college is still paying off. Unfortunately, still paying off is what you’ll be doing with your college loans for the rest of your life.

 

 

 

 

 

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Gift Tax Rules

Posted by taxguru on April 8, 2013

Bob Jennings recently posted this short summary of the rules for when people need to file Gift Tax returns. 

 

He did leave out a few key facts that I think people should know.

The only potential tax obligation for gifts is on the Giver (aka Donee).  This usually surprises most people who are so accustomed to paying taxes on money they received.  The recipient has no tax obligation on the receipt of the gift. 

The annual exclusion (currently $14,000 per Donor per Donee) is adjusted upwards every few years in $1,000 increments based on inflation.  It was $13,000 per year from 2009 through 2012 and just increased for 2013.

Gift Splitting between spouses allows large gifts to be considered as made half by each spouse.  That effectively increases the annual excludable gifts to $28,000 per donee (recipient).

The trickiest issue, and the one that requires the most studied consideration, has to do with the basis of transferred assets.  For non-cash assets that have increased in value, the current fair market value is used to determine the size of the gift; but the cost basis of the gift for the recipient remains the same as it was for the giver.  This effectively transfers the capital gain obligation from  the donor to the donee.  Sometimes this may be a wise move, but often it may have been better for the donor to sell the asset and just give the money.  This is a time when the advice of an experienced tax professional is critical. 

  Of course, if he had included all of these additional points, it would no longer be a short summary.

 

TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!

 

Posted in Gifting, video | Comments Off on Gift Tax Rules

Posted by taxguru on April 5, 2013

Obama Budget to Include Cuts to Programs in Hopes of Deal –  As I have always warned, making long term plans based on Social Security and Medicare is risky because our rulers in DC have no qualms about changing the terms at a moment’s notice.  No private investment or insurance company would get away with such after the fact modifications; but our rulers are like royalty and allowed to do anything they want in order to stay in power. 

 

Tens of thousands Obamacare ‘navigators’ to be hired –  What a great solution to high unemployment.  Pass legislation with thousands of pages of gibberish, add in tens of thousands of pages of inane regulations and then hire hundreds of  thousands of new government employees to try to explain the rules to the peons who are forced to use the new socialized medical system.  There are similarities in this scenario to the tax system, except for the fact that we in the practitioner community are not government employees (yet). 

 

After Taxes, Romo the Highest Paid NFL QB –  It’s not how much you gross that matters, but how much you can keep after the government rulers take their share.

 

20 Hidden taxes of Obamacare! –  And that’s just the beginning.  Dozens more are also in the works in the bowels of Washington DC.

 

New $25 Gun Tax Begins In Cook County –  Anything and everything can be taxed by our insatiable money hungry rulers.

 

Warren Buffett and Berkshire Hathaway Investors Will Voluntarily Pay “Buffett Rule” Tax –  An appropriate April Fools story from Americans For Tax Reform, as is obvious with the accompanying picture.

 

Stephen Baldwin avoids jail with guilty plea in tax case –  For some unexplained reason, he didn’t pay New York state taxes and now owes them $300,000 for 2008 –  2010.   

 

 

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Posted by taxguru on April 3, 2013

From Argus Hamilton:

President Obama named April as National Financial Responsibility Month. He wants young people to learn how to budget. In a related story, President Obama told everyone not to sweat the unemployment rate because the depression is covered under ObamaCare.

 

The White House admitted Friday that ObamaCare is causing health insurance costs to rise. They had promised that the costs would go down and you could still keep your doctor. Unfortunately your doctor has retired but you still have plenty of choices, like in Los Angeles, where you can get the drugs you need from either the Crips or the Bloods.

 

 Washington Business Monthly reported a real estate survey Monday which said that Washington D.C. is the least affordable city in America. That’s misleading. It takes a lot of money to live in Washington D.C. but most of it is borrowed from China and never paid back.

 

 The U.S. Bankruptcy Court allowed Stockton, California, to go bankrupt Monday which sparked fears of a domino effect in the Golden State. Now bond investors won’t get their money back. If the Supreme Court didn’t like our prison overcrowding before, they’re really not going to like it when the entire state is walled off into one giant debtor’s prison.

 

 The New York Times published a length study entitled Social Class in America which factored in education, income and occupations. It’s much simpler than all that. In America, you’re in the upper class if your name is on the building, you’re in the middle class if your name is on your desk, and you’re in the working class if your name is on your shirt.

 

President Obama told reporters Thursday that his NCAA tournament brackets were completely busted. The president sighed and said they may have been the worst picks he ever made. This means the President’s Council of Economic Advisors has lost the crown.

 

California lawmakers weighed a bill requiring mattress manufacturers to take back used mattresses from consumers for recycling. The companies are thrilled. After what happened in Cyprus two out of three mattresses will be stuffed with someone’s life savings.

 

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