October 20, 2009 Corruption Is Nonpartisan New Jersey Governor Corzine has asked the White House to look into the actions of the US Attorney’s office in New Jersey to see if the recent sting called Bid Rig III, which resulted in the indictments against 44 including 29 Democratic public officials, was politically motivated since his opponent, Chris Christie, a Republican, served as U.S. Attorney from 2002 until December when he resigned to run against Corzine. Corzine has conveniently overlooked 2005’s Bid Rig II which resulted in the arrest of 15 current and former Monmouth County officials, most of whom were Republican. A thief is a thief, and a bribe paid to public officials is nondeductible for tax purposes. Best quote, “The further you get away from New Jersey, they can’t conceive that there’s a state where they allow this kind of stuff to go on”, said Bob Ingle, co-author of the book The Soprano State. Of course, there is Illinois! IRS Comes to Youtube & iTunes In a taxpayer friendly move, the 2009 tax provisions in the American Recovery and Reinvestment Act can be found at http://www.youtube.com/irsvideos in English, Spanish, American Sign Language and other languages and at an iTunes pod cast site. The sites will focus on the tax credits for purchasing a new home, the sales or excise tax deduction on new car purchases and the expanded credits for education and energy conservation. Will 4 Years of Tuition Be Enough? Only 55% of incoming college freshmen will graduate from college within 6 years. Maybe you should increase your monthly 529 contributions. American Enterprise Institute $100,000 How long does it take an athlete to earn $100,000? Alex Rodriguez 6 pitches Ben Roethlisberger 4 snaps Tiger Woods 11 holes LeBron James 21 minutes Roger Federer 28 games Tony Stewart 125 laps Norm Duke 2360 frames Do you think Obama will regulate their compensation? Wall Street Journal 8/25/09 Solar Heating Subsidy If you get a subsidy from a utility for a solar heating system, you cannot base your solar heating credit on the full cost. You can get a Federal credit for the cost less the rebate from the utility. Kiplinger Tax Letter 7/24/09 Chinese Drywall If you have problems with Chinese drywall (generally for homes in the Southeast built in 2006 and 2007) the decline in the home’s value is eligible for casualty loss treatment. The federal government must first verify the drywall emits fumes that can cause health problems and corrode pipes and air conditioning soils. Although the stench can render a home uninhabitable, the IRS says the temporary living costs are not allowed to be claimed as part of the casualty loss. Kiplinger Tax Letter 7/24/09 New Jersey is #50 New Jersey ranked dead last for the fourth consecutive year as the most business unfriendly environment. It ranked 50th in property taxes, 47th in income taxes, 41st in corporation taxes, 38th in sales taxes and 25th in unemployment insurance taxed. It has the highest per capita tax burden in the U.S., 9.4% higher than Connecticut, the runner up. New York was 32nd, Pennsylvania 33rd, Connecticut 35th, and Delaware 21st. For those of us who thought the tax climate could not get much worse than under McGreevey; Corzine and the legislature proved us wrong. Of the top 10 property taxes by county, New Jersey had 7 spots, with New York reserving 3 for Westchester, Nassau and Putnam counties. Asbury Park Press 9/27/09 ROTH Headstart Upper bracket filers can get a head start this year on creating a ROTH by setting up a regular IRA during 2009 and making non-deductible contributions to it. In 2010 they can convert it to a ROTH-IRA paying tax only on any earnings. If you have any questions as to how this law or other tax matters may pertain to you, please call us. If you want to read more, visit the AOHL Newsletter Archives at www.lisch.com Remember, We’re Here For You!!