November 6, 2006

It’s the Election of 1864 Again

          What do you think of Abraham Lincoln?  Most people today rate him as our greatest President.  Yet, in 1864 he was fighting for his political life, having become bogged down in an unpopular war.  General McClellan, the Democrat candidate seemed sure to win.  Many in the North wanted to cut and run by making a negotiated peace with the South.  Fortunately for Lincoln, General Sherman devastated much of the Southern infrastruture and presented Lincoln with Atlanta, Charleston and Savannah while General Grant cut the South in two by taking Vicksburg.  And, I might add, by taking lots of casualties.
          What Bush is missing today are Generals Sherman and Grant.
          How do you stand?

Sale of Home To Facilitate Adoption Qualifies for Reduced Homesale Exclusion

          A private ruling concluded that the sale of a home and the rental of a larger one to facilitate an adoption was an "unforeseen circumstance" for purposes of the IRC 121 reduced homesale exclusion rule.
          A reduced maximum homesale exclusion may apply to a taxpayer who fails to qualify for the 2 out of 5 year ownership and use rule, or who previously sold another home within the 2 year period ending on the sale date of the current home in a transaction to which the exclusion applied.  The failure to meet either rule must result  from the home being sold or exchanged due to:
               1) a change of place of employment,
               2) health,
               3) to the extent provided by regulations and other unforeseen circumstances.
          If you think you may be covered by the unforeseen circumstances exception, please call us before selling your home.  IRS Letter Ruling 20061308

Tax Exempts To Be Scrutinized

          by IRS agents in the 2006 political campaign season to see if they are engaging in political activity.  In 2004, examiners uncovered rampant violations of the rules that bar churches and charities from involvement in political campaigns.  This year, the IRS will move faster to shut down political activity, even going so far as to revoke a group’s tax exempt status if necessary.  Agents will be looking for churches that have partisan links on their websites and whose pastors are using their pulpits to endorse favorite candidates.  Kiplinger Tax Letter 3/10/06

         If you have questions about the foregoing or any other financial matters, please call us.  We are always available to see if we can help your family or friends.

          Remember, We’re Here for You!!