October 23, 2000
MAKE YOUR VOICE HEARD...
If you don`t think your vote counts, think again.
In 1645, ONE VOTE gave Oliver Cromwell control of England.
In 1649, ONE VOTE caused Charles I of England to be executed.
In 1776, ONE VOTE gave America the English language instead of
German.
In 1839, ONE VOTE elected Marcus Morton Governor of
Massachusetts.
In 1845, ONE VOTE brought Texas into the Union.
In 1865, ONE VOTE saved president Andrew Johnson from
impeachment.
In 1876, ONE VOTE gave Rutherford B. Hayes the Presidency of the
United States.
In 1876, ONE VOTE changed France from a monarchy to a Republic.
In 1923, ONE VOTE gave Adolf Hitler leadership of the Nazi Party.
In 1960, ONE VOTE changed in each precinct in Illinois would
have defeated John F. Kennedy.
Are You Listening, Al?
Why does a slight tax increase cost you $200 and a substantial tax cut saves you 30 cents? - Peg Bracken
1999 IRA Can Still be Recharacterized
The IRS has said that a taxpayer can make a recharacterization even after he has filed a timely return for the year in which a Traditional or Roth IRA contribution or conversion to a Roth IRA was made. Therefore, a 1999 contribution or conversion may be recharacterized as late as six months after the original due date for filing the 1999 tax return, i.e. by October 16, 2000.
A Large Growing Investor Class
Presidential candidates may ignore investors when they seek votes this year but they do so at their own peril according to an Investors Business Daily poll.
The new investor class is defined as those with $10,000 or more in stock market investments and they will be in the majority when they vote this election year. The poll shows that more than half of registered voters are investors 53%-42%. The numbers take on an even greater importance when it comes to voting. 60% of investors say they are likely to vote as compared with 35% of non investors. Just who is this investor class; typically, he`s a white male, married, between 45 and 54 years old with a college education and a white collar job with more than $50,000 in the stock market. The profile of the typical non-investor is female, married, age 65 or older with a high school education and a white collar job.
Among investors, 43% call themselves conservative and 42% moderates compared with 39% and 35% for non-investors. Only 13% call themselves liberal.
That adds up to a boon for the GOP both for now and a trend for the future with a rising stock market. 34% call themselves Republican while just 27% are Democrat.
In the overall poll, Bush and Gore are in a dead heat, 42.4% for each. Those without significant investments favor Gore 47% to 36% with 11% undecided. Investors say they will support George W. 47% to 40% with 10% undecided.
IRS Lists Top 10 Mistakes
1. Taxpayer identification numbers or names for exemption do not
match IRS or Social Security Administration records resulting in
disallowances of exemptions.
2. Taxpayer identification numbers or names do not match IRS or
SSA records resulting in a disallowance of all or part of a
child
tax
credit.
3. Primary Social Security number is incorrect or illegible.
4. Dependent`s last name is incorrect.
5. Earned income credit is calculated incorrectly.
6. Social Security numbers for children who qualify for earned
income credit don`t match SSA records.
7. Child tax credit is calculated incorrectly.
8. Taxable amount of Social Security benefits is calculated incorrectly.
9. Tax Refund or Balance Due is calculated incorrectly.
10.
The information reported prompted the IRS to recalculate the
tax
using
the filing status for a single person.
We Favor Gore`s Tax Plan
It is a boon for us since it makes the tax law much more complex. More accountants and more of the accountants` time will be needed to figure it out. Our fees are sure to go up.
Prepaid Rent
can be fully deducted by cash basis taxpayers. In a recent decision, a lawyer paid the office rent for the current year and the next two years. He deducted the rent for all three years in the year he made the payment. The court stated there must be a substantial business reason for the prepayment in order for the full amount to be deductible. Here, the deduction was denied because the payer could not show the prepayment was made to obtain better terms in a subsequent lease. Additionally, the payment cannot materially distort the payer`s income.
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