Broker Check

October 23, 2000 


            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 
In 1839, ONE VOTE elected Marcus Morton Governor of                     
In 1845, ONE VOTE brought Texas into the Union.
In 1865, ONE VOTE saved president Andrew Johnson from
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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