Lisa Castle, CFP® has been showing horses her entire life and was recently featured in the Paint and Quarter Horse Connection magazine. Click on the picture to go to the digital version of the magazine. Her article runs on pages 94-97.
It’s always good to know the personal side of our employees!
In case you missed Mike on “Ask the Financial Planner”, click on the picture below to watch the complete show through WCMUBroadcasting’s YouTube Channel.
Our very own Mike Harter will be hosting Ask the Financial Planner on the CMU Public Broadcasting channel on March 28th at 7:30 p.m. If you would like to participate by asking questions, you can do so by one of the following ways:
Viewers can call in from 7:30-8:00 p.m. during the live program at 800-727-9268
Send a question on Facebook @Ask The Specialist
Tweet the production crew at @WCMU_AskThe
Visit the CMU Public Broadcasting website for more information!!
Written by: Jeremy Shafer
As February winds down, we will be treated to yet another spectacle from the nation’s capital. This one goes by the name Sequester.
To quote Yogi Berra, “It’s like déjà vu, all over again.”
A few things seem important to remember as the debate heats up:
Simpson and Bowles’ updated plan is worth reading, though it’s unlikely to be the basis for a bill in the house or senate.
Whether we get this plan, a new plan, or sequester, the end result we all hope for is a stable path for American prosperity. That will require some uncomfortable adjustments. Here’s hoping we make sensible progress in the next seven days.
Tune in to My104.3 tomorrow morning between 8 and 9 to listen to our very own Keith Frame talk tax with Tina Sawyer.
The IRS announced a simplified safe harbor method that individuals may use to compute the home office deduction. The safe harbor is an alternative to the calculation and allocation of actual expenses otherwise required under IRC Sec. 280A . The new optional deduction is limited to $1,500 per year based on a rate of $5 multiplied by the square footage of the home used for business purposes (up to 300 square feet). Under the safe harbor, (1) no depreciation or Section 179 deduction for the portion of the home used in a business is allowed for the year, (2) disallowed amounts carried over from a prior tax year where the taxpayer calculated and substantiated actual expenses may not be deducted in a year in which the safe harbor was used, (3) taxpayers may elect the method from year to year, and (4) all requirements of Section 280A must continue to be satisfied in determining eligibility to claim a deduction. In 2010, approximately 3.4 million taxpayers claimed home office deductions. This procedure is effective for tax years beginning after 12/31/12.
Source: Five Minute Preview from RIA
Remember, you can deduct the IRS’ standard mileage rate instead of claiming actual expenses when using your car for business, medical, moving or charitable purposes.The IRS standard mileage rate for business, medical, or moving deduction purposes is going up a penny in 2013. The new rates are:
will not be taxes on reimbursements up to the 56.5 cents per mile business mile standard rate.
JK Lasser’s Monthly Tax Letter, December 2012
Written by: Tina Powell, CPA
We keep hearing the phrase as the media tries to not only alert us, but scare us. But do we really know what it means, what it means to us?
The “Tax Cliff” is December 31st. The last day of the year, the day when tax laws and provisions that are in place now will expire. Laws change every day right? So why the big hub bub? Well, it’s because most of the provisions expiring are the ones that are beneficial to the middle class. Here is a list of the ones that I think will affect most of our clients:
Payroll tax reduction: The lower 4.2% rate for employee’s portion of the Social Security payroll tax will expire and revert back to 6.2%.
Estate, gift and GST tax: Currently the tax rate is 35% for these taxes and an exemption for the first $5.12 million. This tax will go back to the rates in effect in 2000. The top tax rate will be 55% and the exemption amount will be a mere $1 million. That’s right we’re going back 12 years on this one.
Marriage penalty relief: The 15% tax bracket will decrease and the standard deduction for married taxpayers will decrease.
Earned income tax credit: The starting and ending points for the credit will decrease. Which means fewer will qualify for the credit. This credit is for low income individuals typically with children, so who really loses here? That’s right, the kids.
$1,000 child tax credit: This will revert to $500. The kids lose again!
Discharge of indebtedness on a principal residence: This will no longer be excluded from gross income. That’s right, you get foreclosed on and the debt forgiven may be taxable income to you.
There are many other provisions that will expire on December 31st, I just tried to hit on the ones that I know will affect most people. Congress scrambled around in 2010 and extended most of these same provisions, will they do it again? Let’s hope so. But when will they stop passing laws at the last minute and really figure this out? When will they learn that the problem is the overspending?
The President has been clear, he wants to raise taxes. He continues to say that he wants the wealthy to pay more, but the above provisions are not affecting only the wealthy. If Congress doesn’t extend these provisions, it is a tax increase that the President didn’t even have to fight for, but one that we all have to pay for.
Dear Clients, Colleagues and Friends:
I just returned from the Schwab Impact Conference in Chicago. This annual conference of over 3,000 RIA attendees is known for its powerful speakers and thought provoking topics. This year’s conference continued that trend.
The most impactful and moving messages were delivered by former Secretary of Defense Robert Gates, as well as co-chairmen of the Simpson-Bowles National Commission on Fiscal Responsibility and Reform, Alan Simpson and Erskine Bowles
As you have seen post-election, the financial markets are very concerned about the fast approaching fiscal cliff. And they should be. If these provisions go into play, the impact on our country will be dire. We spend more money on interest for our debt than we spend on the Departments of Commerce, Education, Energy, Homeland Security, Interior, Justice and State combined. Politicians have been kicking the can to December 31, 2012. Unfortunately, the “can” cannot be kicked any further.
Both Robert Gates and Former Chairman of the Joint Chiefs of Staff Admiral Mike Mullen agree that our national debt is our biggest national security threat.
Together, we must face the challenges of tax and spending reform. This is not politics or ideology, it is simple math. We are at the tipping point where our fiscal health is not just endangering our future, it is endangering our present.
Regardless of your political affiliation, we must insist that politicians put the country first – not their political agenda. We have less than 40 days until the end of the year. Congress is only scheduled to be in session for 12 of them. Please add your voice to the growing chorus demanding a responsible solution.
Please visit www.fixthedebt.org to sign the petition or contact your representative directly.
