TaxMamas TaxQuips

Bear Stearns

Eva Rosenberg — Mon, 12 May 2008 06:21:00 -0700

Today TaxMama hears from Roland in Oxnard, CA, who tells us “I have some Bear Stearns stock. With the recent collapse of the stock, I’m in the negative by almost $2,000.00. Would it be better to sell my Bear Stearns stock now at a loss, or wait until JPMorgan completes the stock swap? Would the loss be the same, tax wise?”

Dear Roland,

That’s certainly been a disastrously managed firm.

I can tell you about the tax implications of selling now or later.
But my crystal ball simply isn’t working on the investment side, today.

If you sell your Bear Stearns stock right now, ending up with a $2,000 capital loss, you’ll be able to deduct the whole loss. After all, you’re entitled to deduct up to $3,000 worth of capital losses in excess of your gains.

What about when JP Morgan’s stock swap takes effect?

According to the upcoming June issue of the Tax Hotline, this swap doesn’t fall within the definition of a tax-free rollover. So, you will be able to recognize your loss when the exchange is completed.

In other words, you’ll get the JP Morgan stock AND a deductible loss for the difference.

So the decision about whether you want cash or JP Morgan needs to up to you.

Keep reading the Tax Hotline for further details about how this transaction is to be handled.

Shhh…don’t tell anyone. The Tax Hotline has been my secret resource practically since the beginning of my own tax practice. It kept me up to date, without my having to race down to the Santa Ana Law Library or to buy the $3,000 + full tax service subscriptions. That’s one of the reasons I am especially jazzed about being included in their June issue, talking about Tax Traps and Opportunities for Unmarried Couples.

And remember, you can find answers to all kinds of questions about Bear Stearns and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
The Tax Hotline :: The best tax publication around

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Ask Taxmama Issue 456 - Happy Mothers Day Weekend

Eva Rosenberg — Fri, 09 May 2008 07:46:00 -0700

Dear Family,

This weekend is Mothers Day.

One of the nation’s most visible mother is struggling to
break the biggest glass ceiling of all. Hillary Clinton didn’t
quite make it during this last round of primaries. And now it
seems that Barack Obama is overtaking her on the delegate count.
http://abcnews.go.com/Politics/Vote2008/story?id=4818637&page=1

Ironically, Obama is also fighting that glass ceiling, too.
If either of these candidates get elected to the U.S. Presidency,
it would be a landmark.

Waaaaay back when all this started, I predicted that if Clinton
and Obama were to team up, they’d be sure to win the White House
together. These days, the news are calling that the “Dream Team.”
Of course, neither is quite ready to concede the top spot.
So, it’s a discouraging Mothers Day for Hillary.

But, closer to home, there’s your mother, your grandmother,
your wife – or you! You know if you go out to celebrate,
the restaurants will be crowded and noisy, service will be
lousy, and the food will not be as good as it usually is.

So, why not pre-order your favorite foods from your favorite
restaurant and have a picnic at Mom’s house – or yours?
It’s cozy – the noise is your own – and it’s filled with
folks you love! (Oh yes, remember to clean up.)

Speaking of cleaning up, the State of New York plans to
do just that. They are expecting over $50 million in new revenues – if they can beat Amazon.com’s lawsuit against New York State’s
Department of Taxation and Finance. NY wants to collect sales
tax on your Internet purchases. And if they beat Amazon.com,
it will be a landmark case, affecting you. Read today’s IRS
News, where you will also find news of the Stimulus rebates
coming your way.

Today’s Money Funnies is a quiz – just how much DO you know
about your own money?
http://taxquips.com/index.php?cat=MoneyFunnies

We add a touch of Inspiration for moms, courtesy of
Rhonda Barsamian, EA
http://taxquips.com/index.php?cat=Inspiration

What other goodies do we have for you today?

TaxQuips this week helps you find your FBI file,
a new job or business, explains the rules for ‘freelance’
truckers – and an opinion on the tax implications of
selling your home that was also rented out.
http://taxquips.com/index.php?cat=TaxQuips

This week’s Job Advice recommends that you paste,
don’t attach. Good advice. I hate attachments!
Others do too.
http://www.taxquips.com/index.php?cat=JobAdviceoftheWeek

As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!

Please use the Comments link online.
http://taxquips.com/index.php?id=812

Hugs from your favorite TaxNerd,

Eva Rosenberg, EA

Your TaxMama is watching…out for you.

www.TaxMama.com
www.TaxQuips.com
www.IRSExam.com
www.TaxNerd.net
————————————————————-

TAX CALENDAR 2008
————————————————————-

06.16.2008 2nd 2008 Estimated Payment – all entities Due

06.16.2008 Personal Tax Returns Due for US Taxpayers overseas

06.16.2008 or File extensions for US Taxpayers overseas Form 4868

————————————————————-

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Zazzle – Cafe Press – Queensboro

Since it’s summer, and you’re probably going to be traveling with your family, consider getting matching T-shirts and/or hats.

(DO NOT PUT ANYONE’S NAME ON THEM – you’re just asking strangers to kidnap your children!)

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Use your art or others – and customize it

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Get volume discounts on orders of 2 or more.

Get extra discounts for yourself and friends after you order.

Stuff for summer, travel and fun

Cafe Press is the home of TaxMama’s shops
http://www.cafepress.com/taxmama

But you can upload your own art and graphics and unify your family – even your pets.
http://www.cafepress.com/

Get extra discounts for yourself and friends after you order.

WOW DEAL! Embroidery

Wouldn’t you love to get your logo or family crest, or picture or whatever, EMBROIDERED on hats and T-Shirts?

Well, it costs a heck of a lot less than you think.
And there’s always a sale!
At the Queensboro Shirt Company

(They have a lot more than shirts – and all sizes)

They do a gorgeous job.

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Money Funnies :: Money - how well do you really know it?
IRS News :: The stimulus checks are on the way - and watch out for NYS sales tax authorities
Job Advice of the Week :: Paste, don't Attach
The 100% Home-Based Business Tax Solution :: The evolving e-book and Tax MiniMiser
TaxMama's Classes :: Solving the Tax Puzzle, Part I - preliminary to the EA Exam Review
TaxMama's EA Classes :: EA Exam Review
WorldWinner.com ::

New York Taxes Internet Sales - Register Now or Else

Eva Rosenberg — Fri, 09 May 2008 07:11:00 -0700

Interestingly enough, this information came from an
Internet information newsletter, not a tax newsletter.

In brief:

NY State hit Amazon.com for sales taxes even though
Amazon does not have a physical location in the state.
http://www.webpronews.com/topnews/2008/05/06/new-york-goes-gangsta-with-tax-law

Amazon is suing, claiming the New York law is unconstitutional
based on a 1992 U.S. Supreme Court ruling that claims states
are prohibited from requiring out of state retailers to collect
sales tax unless the company has a physical presence in the state.

Watch this closely. This will be a landmark decision.
If NY wins, then two things will happen:

1) California first, then all other states, will adopt
similar laws.

2) All companies that have affiliate programs will have to
register their business in each state where they have affiliates.

(An affiliate program pays commissions to folks with Internet
sites for sales generated by their links – like Amazon.com.)

3) The businesses will have to register for a sales tax
identification number – AND that means they will also have
to file income tax returns in that state to report the income
earned from sales there. It’s going to be really, really messy.

Another interesting note regarding NY State.

The WebPro article quotes Tom Bergin, a spokesman for the state
Department of Taxation and Finance. “The legislation provides for
a limited amnesty for online sellers who register as sales tax
vendors and start collecting taxes by June 1, 2008.”

“If the seller registers and starts collecting sales tax by
June 1, the seller will not be liable for tax not collected
for sales tax quarters prior to June 1. Conversely, if you
don’t register and it is later determined that you should
have, you could be subject to tax dept audit for quarters
prior to June 1.”

This is quite a threat.

Yet, there is nothing on the New York State Department of
Taxation and Finance website to alert anyone to this need.
It’s not on the home page.
http://www.tax.state.ny.us/

It’s not on their News (recent additions) page.
http://www.tax.state.ny.us/nyshome/recent_additions/default.htm

It’s not on their Businesses page
http://www.tax.state.ny.us/sbc/

Nor can I find mention on their Sales and Use Tax Page
http://www.tax.state.ny.us/nyshome/stidx.htm

Heck, they don’t even mention this on their Abuse and Compliance page
http://www.tax.state.ny.us/enforcement/otehomepage.htm

And searching for amnesty brings up very old pages.
Nothing about sales tax.

So, if NYS wants compliance before June 1st, just how is
the business public expected to comply?

What should you do if you run an Internet business?
Use your best judgment.

Note: California and Kansas won their sales tax case against Scholastic Book Clubs, Inc. because the courts decided that teachers who took orders in the classrooms were agents of the company:

Scholastic Book Clubs, Inc., v. State Bd. of Equalization, 207 Cal. App. 3d 734, 255 Cal. Rptr. 77 (1989)

In re Tax Appeal of Scholastic Book Clubs, Inc., 260 Kan. 528, 536, 920 P.2d 947 (1996).

Are affiliates, whose sites simply link to Amazon, or your business also considered agents? Or is this just advertising?

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
IRS News :: Tax News and Links to Forms, Publications, Tax Code and more
WebProNews :: New York Goes Gangsta With Tax Law by Mike Sachoff
New York State Tax Website :: Department of Taxation and Finance
Kansas Supreme Court Opinions :: APPEAL OF FAMILY OF EAGLES, LTD

Stimulus Checks on the Way

Eva Rosenberg — Fri, 09 May 2008 07:02:00 -0700

Courtesy of IRS – IR-2008-70

WASHINGTON — As millions of Americans begin receiving their economic stimulus payments, the Internal Revenue Service released a list of the most-frequently-asked questions –– and answers –– that people now are asking.

“Many people have questions about the stimulus payments, and the IRS has the answers available on the IRS.gov Web site,” IRS Commissioner Doug Shulman said. “The stimulus payments are automatic for eligible taxpayers who filed a 2007 tax return, and taxpayers do not need to take any additional action to receive the payment.”

Stimulus payments started going out last week, and the initial round of payments will continue on a weekly basis through mid-July. In all, nearly 130 million payments will go out this year. Last week, 7.7 million payments were direct deposited, and the first mass production of paper checks begins Thursday.

Since last week millions of Americans have visited IRS.gov and called the IRS toll-free lines. The IRS reminded taxpayers the fastest way to get answers is to visit IRS.gov, which has payment schedules and other information.

Since the payments began, the IRS has been fielding a variety of questions centered on the payment schedule, factors affecting direct deposit of payments, eligibility requirements and questions about the payment amounts. The IRS today released an updated set of Frequently Asked Questions covering everything from when someone can expect the payment to whether it will be delivered electronically or on paper. A link to these Frequently Asked Questions can be found at the bottom of this page.

The most common question has been when people can expect their payments. Economic stimulus payments will be issued according to the last two-digits of the taxpayer’s Social Security number. For joint filers the payments will go out based on the last two digits of the Social Security number of the person listed first on the return. Payments will be made by either direct deposit or paper check, based generally on the option people chose when they filed their 2007 tax returns.

The payment schedule for people who filed early enough to have their tax returns processed by April 15 is linked below.

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
IRS News :: Tax News and Links to Forms, Publications, Tax Code and more
www.irs.gov :: The REAL IRS Website
IR-2008-70 :: IRS Answers to Questions About Economic Stimulus Payments;
IRS FAQs :: Economic Stimulus Payments: Most Frequently Asked Questions
IRS FAQs :: Stimulus Payment Schedule for Tax Returns Processed by April 15

Paste, Don't Attach

Eva Rosenberg — Fri, 09 May 2008 06:36:00 -0700

Cut and paste a version of your cover letter and resume in the body of the email you send to recruiters, even if they ask for an attached Word document. Recruiters receive dozens, sometimes hundreds of resumes for each open position. It takes time to double click all those documents to open them. Save them the hassle by including your documents in the email as well as attaching it. They can always open the attachment if they like what they see. If they can’t find what they need quickly, they may ignore your documents in favor of the one that’s easier to read.

Barbara Safani

You’ll find Barbara Safani at TheLadders –
where you can Search 1,424 New $100k+ Jobs This Week!

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Job Advice of the Week :: Courtesy of TheLadders.com
TaxMama's Career Bank :: Find the best employees in the financial industries
TheLadders.com :: Jobs paying $100,000 and up - Are YOU earning over $100K?

Money

Eva Rosenberg — Fri, 09 May 2008 06:20:00 -0700

On a recent “Are you Smarter than a 5th Grader?” show, they asked: In U.S. currency, how many bill with Hamilton on it would it take to equal two with Benjamin Franklin on them?

Don’t know?

Sadly, neither did I. I only know Washingtons and Jacksons.

Question 2: How many Thomas Jeffersons would it take to equal one Andrew Jackson?

Question 3: How many George Washingtons to add up to one Ulysses S. Grant?

Question 4: If you had a Washington, Lincoln, Jefferson, and Hamilton, how much money would you have?

Question 5: Who was on the $100,000 bill?
(It’s no longer being printed)

To find the answers – Click on the link below to the US Treasury Department’s FAQs on Currency.

And visit the Wikipedia page for more interesting U.S. Currency factoids.

Courtesy of Eva Rosenberg, EA

Read more Money Funnies here:
http://taxquips.com/index.php?cat=MoneyFunnies

Please remember to send us your humor. Clean jokes preferred

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Money Funnies :: Tax and Lawyer Humor and Quotes and other fun stuff
Money Funnies at TaxMama.com :: More Tax and Lawyer Humor and Quotes and other fun stuff
U.S. Treasury Department :: Frequently asked Questions about Currency
Wikipedia :: List of United States Presidents by currency appearances

Mothers and Moms

Eva Rosenberg — Fri, 09 May 2008 06:04:00 -0700

This is for the mothers who have sat up all night with sick toddlers in their arms, wiping up barf laced with Oscar Mayer wieners and cherry Kool-Aid saying, ‘Its okay honey, Mommy’s here.’

Mothers who sat in rocking chairs for hours on end soothing crying babies who could not be comforted.

This is for all the mothers who show up at work with spit-up in their hair and milk stains splattered on their blouses and diapers in their purse.

For all the mothers who run carpools, make cookies, and sew Halloween costumes. And, for all the mothers who DO NOT.

This is for the mothers who gave birth to babies they will never see and for the mothers who took those babies and gave them homes.

This is for the mothers whose priceless art collections are hanging on their refrigerator doors.

This is for all the mothers who froze their buns on metal bleachers at football or soccer games instead of watching from the warmth of their cars.

And when their kids asked, ‘Did you see me, Mom?’ they could say, ‘Of course, I wouldn’t have missed it for the world,’ and meant it.

This is for all the mothers who yell at their kids in the grocery store and swat them in despair when they stomp their feet and scream for ice cream before dinner. And for all the mothers who count to ten instead, but realize how child abuse happens.

This is for all the mothers who sat down with their children and explained all about making babies. And for all the (grand) mothers who wanted to, but just could not find the words.

This is for all the mothers who go hungry, so their children can eat.

For all the mother s who read ‘Goodnight, Moon’ twice a night for a year and then read it again one more time.

This is for all the mothers who taught their children to tie their shoelaces before they started school. And for all the mothers who opted for Velcro instead.

This is for all the mothers who teach their sons to cook and their daughters to sink a jump shot.

This is for every mother whose head turns automatically when a little voice calls ‘Mom?’ in a crowd, even though they know their own offspring are at home—or even away at college – or even have their own families.

This is for all the mothers who sent their kids to school with stomachaches, assuring them they would be just FINE once they got there, only to get calls from the school nurse an hour later asking them to please pick them up, right away.

This is for mothers whose children have gone astray, who cannot find the words to reach them.

For all the mothers who bite their lips until they bleed when their 14 year olds dye their hair green, red, or purple.

This is for the mothers of the victims of recent school shootings, and the mothers of those who did the shooting. For the mothers of the survivors, and the mothers who sat in front of their TVs in horror hugging their child who just came home from school, safely.

This is for all the mothers who taught their children to be peaceful, and now pray they come home safely from a war.

What makes a good mother anyway?

Is it patience, compassion, broad hips, the ability to nurse a baby, cook dinner, and sew a button on a shirt, all at the same time?

Is it the ache she feels when she watches her son or daughter disappear down the street, walking to school alone for the very first time?

Is it the jolt she takes from sleep to dread, from bed to crib at 2 a.m. just to put her hand on the back of her sleeping baby?

Is it the panic, years later, which comes again at 2 a.m.? when she just wants to hear their key in the door and know they are safe again in her home.

Or the need to flee from wherever she is and hug her child when she hears news of a fire, a car accident, a child dying?

It is just her heart beating and her thoughts speaking “LOVE”?

The emotions of motherhood are universal and our prayers to bless every young mother stumbling through diaper changes and sleep deprivation and for mature mothers learning to let go.

For working mothers and stay-at-home mothers.

Single mothers and married mothers.

Mothers with money, mothers without.

This is for you all. This is for all of us!

As it goes along, mothers speak encouraging words to each other to tell them every day that we love them.

Pray aloud and remember our children are gifts and blessings given with authority and qualification from God.

We never stop being a mother…

‘Home is what catches you when you fall – and we all fall.’

Courtesy of Rhonda Barsamian, EA – a mother.

Read more Money Funnies and Inspiration here:
http://taxquips.com/index.php?cat=MoneyFunnies

Please remember to send us your humor. Clean jokes preferred

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
TaxQuips :: Inspiration for Mothers Day
Money Funnies :: Tax and Lawyer Humor and Quotes and other fun stuff

Your FBI File

Eva Rosenberg — Thu, 08 May 2008 06:20:00 -0700

Today TaxMama got distracted. I started reading Al Tompkins’ interview with Tisha Thompson at WTTG-TV in Washington, D.C., who started digging into FBI files on people for her reports.

The information is hard to get and often requires dogged persistence. She says it can take as many as 56 letters to get someone’s file. Do you have anything to worry about?

I thought I’d share this with you, since the FBI is almost as fearsome an organization as IRS when it comes to being all-knowing and all-seeing.

Thompson unearthed some surprising information, like letters from J. Edgar Hoover to Vince Lombardi and his wife, when Lombardi was dying of cancer. It seems Hoover was quite a fan and often wrote letters to celebrities.

Her TV station Fox 5 News set up a permanent site covering the information Thompson found – and has yet to receive.
http://media.myfoxdc.com/fbifiles/main/index.html

You can read the files yourself. You can learn how to get copies of your own file. And you can return the site as Thompson releases the copies of files she has yet to receive. She will be providing continuing reports throughout the year.

Incidentally, there’s a link to FBI’s frequently requested files. Did you know that the files of many famous or notorious people and cases are now open to the public right on the website?

Aside from the sheer curiosity factor, what a great resource for high school and college students doing reports!

And remember, you can find answers to all kinds of questions about your FBI files and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Al's Morning Meeting :: Interview with Tisha Thompson of WTTG-TV in Washington, DC
Fox 5 News :: The FBI Files

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Out of Work

Eva Rosenberg — Wed, 07 May 2008 06:07:00 -0700

Today TaxMama hears from Andre in Houston, who tells us. “I read your article on Marketwatch with interest. I am out of work right now, about to give up looking for work, but was wondering about some of the home business opportunities you mention in your article.

Most of the “opportunities” I’ve come across are blatant scams. If you know or can recommend or suggest some or any that are legitimate, I would appreciate it.“

Sorry to see that you’re unemployed…Well, sort of. From people I’ve seen lose their jobs over the years, I’ve learned it really is a great opportunity to change the direction of your life.

Don’t look for a home business opportunity. Create one.

What do you do well? What do you best and LOVE doing?

Who can benefit from your guidance, services…or whatever?

Develop your product or service.
Find your market.
Start selling.

While there ARE many scams, some of the ‘scams’ you see out there, really are good opportunities, though. The people who sign on fail, because they expect the income to come flooding in without having to work to make it happen. Even Internet businesses require planning, dedication and time to succeed.

You’ll find some ideas here, in TaxMama’s Secrets. You don’t even need to buy the book. Just read the table of contents – (note: the book is somewhat out of the date – the concepts are not.) http://secrets.taxmama.com/toc.html

Naturally, you can always get into a recessionless industry – provide tax guidance and IRS problem resolution. As long as the US has a Legislature, there will always be a need for those who can Solve the Tax Puzzle – www.TaxPuzzle.com – bless their opportunistic souls!

And remember, you can find answers to all kinds of questions about finding jobs and starting businesses and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
MarketWatch Jobs Issue :: Lost your job? Take these steps immediately to avoid more trouble
TaxMama's Secrets :: 10 Businesses to start online without one thin dime
Solving the Tax Puzzle :: Learn to prepare tax returns and IRS Problem Resolution

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Trucking Along

Eva Rosenberg — Tue, 06 May 2008 06:15:00 -0700

Today TaxMama hears from Jim in Los Angeles, who tells us. “I run a trucking business. This will be my first year hiring contractor drivers so I want to know, at the end of the year when I give them a 1099 am I supposed to send one to the IRS with my corporate tax return?”

Hi James,

Good questions.

If your drivers really are independent contractors, as in owners-operators, yes, you’ll send them a 1099 at the end of the year. And a copy will go to IRS.

No, it won’t go with your corporate tax return. It goes with a transmittal report called a Form 1096 that needs to be filed by February 28th – or electronically, by March 31st.

If they are using your vehicles, be careful. You know what happened to FedEx, right?
http://www.reuters.com/article/hotStocksNews/idUSN2424803220071224

http://www.fedexaminer.com/FedEx/ – scroll down to misclassifying…

If they’re using your vehicles, following your schedule, and delivering on your contracts, you may need to think about putting your drivers on payroll.

And remember, you can find answers to all kinds of questions about the trucking industry and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Reuters article - Dec 2007 :: regarding IRS assessment of $319 million against FedEx
The FedExaminer :: Notes to FedEx employees about misclassification lawsuit

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