The Tax Preparation Blog

Archive for November, 2009

Question: Is Irak the next commonwealth of USA as happened to Puerto Rico long time ago?

PR is a US commonwealth and other than people think we have ALL the privilegies of a citizen born in the states. 50 is a round number of stars on the flag but we are the ones to decide that, thats the priviliege that US gave to us.We didnt ask to be a territory but we should be treated with respect after all isnt that ONE of the reasons for which US occupied PR in the first place beside taking advantage as they are doing now with IRAK.Dont take me wrong I love USA but hate people who think PR asked for what we got. People who think we are taking from them when professionals, militaries and now TAXES are part of our contribution to this society. People should read and learn more before writing posts as the ones I’ve read under Puerto Rico!

Answer: Nope, I think the goal with Iraq, is just to make it a stable government, and help the people there. From your picture your female right? Well, if you lived in Iraq you wouldn’t have even been able to post this question… Just because your female. More than likely you wouldn’t even be able to read, as only 25% of Iraqs female population can read.

In part of course its for oil aswell. A warring nation in an area where we get over 31% of our oil from (the middle east nations). If they wage war and take over kuwait again, or whatever country it could drastically effect the WORLD ecomomy, not just the us’s.

This however, does not mean it’s only about the oil. There was the possible threat of a Womd. Also, per the amount of money Iraq has, it has one of the lowest quality of life ratings per individual of any country.

I work with someone from Iraq, I had no idea about this before I met him, but apparently slavery still exists in Iraq. He was a slave until he was 19, and managed to escape to Saudi arabia, and then move to the us. When he was 8, there government was building a another new palace. his house was in the way, and his father refused to move. There goverment offered no compensation, no lodging, no anything. Also it was where his family had lived for 3 generations, so his father refused to move. His father was killed, and dragged away, just because he refused to move.

Without an Adult male at the head of a family, his mother and he were arrested, and then forced into indentured servitude,(Slavery) but not to learn a trade or a skill…. just because she was an adult female, without a husband, and because he was a child. Though he escaped at 19, his mother is still over there, and still someones slave. He is in the process of trying to buy her freedom, and I wish him the best in this. Noone should have to worry about buying the freedom of their family, thats just not how life should be.

Puerto Rico was different, Puerto Rico, was pretty much just the “prize” from the Spanish- American war.

I can’t tell you if you would be happier if American influence was there or not, however I can tell you what would more than likely happen if all North American influence left Puerto Rico…

First, the small port drug dealings from Colombia, would double and triple, then it would move inland. Filling streets and buildings everywhere with drugs, and violence. Puerto rico, would soon be filled with all the drugs, murder, and corruption of colombia.

Shortly after the Colombian drug trade has sunk its claws in even further. While Puerto Ricans are stuggling just to stay alive, worrying if they should even send their kids to schoool or not, because of all the resent shootings… Then Cuba will step in, Promising to restore peace, and clean up the streets. They will declare martial law, and in true measure they will “clean up” anyone breaking any laws will be shot, many innocent people will die.

5-10 years down the road, Puerto Ricans as a people will look at their life, and wonder what went wrong? Where did their freedom go?

With the Us there, we are there as friends, and you get full citizenship. If Cuba comes in, what will you have? I’m not saying we should be there, it costs the US government quite a bit of money to aid Puerto Rico, and if you want the US out, I say lets leave, and I of course wish you the best in life.

Military pay gap fiction, nonpartisan CBO says

The fate of the 2011 military pay raise may rest on how much weight lawmakers give to a claim by a nonpartisan congressional office that a purported gap in military pay doesn’t exist.Instead of the 2.4 percent pay gap cited by military associations as reason for Congress to continue increasing military basic pay by slightly more than average private-sector raises, the Congressional Budget Office …

Navy Tax-Free Allowance

Question: How can online gambling lobbyists win congress over on the legalization and taxing of online gambling?

What are some of the things million dollar pro-gambling companies can do to win the support of the US government? Please list things to do in order of importance. Ask, “if I had 500 million dollars how would I spend 3 million on helping to make online gambling legal?” If Bill Frist was bought out by anti-online gambling lobbyists, how much does the buy out of Barney Frank cost to the anti-protectionist? If the US continues to laugh at the WTOs ruling on internet gambling free trade, will the US government be seen as too pompous and anti-humble thus giving the US a bad reputation in the WTO? How can lobbyists win the WTO over on handing some jail time to those US officials who are responsible for not allowing free trade? Can we send US officials to jail for the not doing what the WTO is requesting regarding free trade? Is it possible to send US officials to jail given a ten million dollar defense team filled with good lawyers? What about stoning them to death? Can God legalize this?

Answer: It’s tough, because I don’t see enough benefit for a politician to make this stance.

I mean, the vast majority of the population has, at best, a neutral view of gambling. Bill Frist passing an online gambling ban was met with disdain from online gamblers, joy from James Dobson and people of his ilk, and overwhelming apathy by most people.

However, groups such as “Focus on the Family” are much more vocal than the pro-gambling people. Anyone trying to overturn the UIGEA will probably be labled as promoters of sinful activity by these groups and the people that run against them.

I guess the best method to go about overturning this would be to target those not in the good graces of these organizations anyway, mainly northern, secular liberals. Top emphasis would be placed on the facts that:
1) Taxation could bring in lots of revenue
2) Regulation could ensure the safety of people’s money
3) The law was passed behind everyone’s back
4) The law is putting strains on the banking system that is already trying to adapt to anti-terror regulations
5) The law has been rejected by the WTO, and continued enforcement could strain relations
6) The law has so many exceptions (fantasy games, horse racing, etc.) that they aren’t really keeping with the true spirit of the law
7) The law is currently unenforceable

A big downside is that these lawmakers have a lot of other items on the agenda. The good news is that Barney Frank says he will try to get it overturned soon (link below). I have my fingers crossed.

Health Calendar for Dec. 31 to Jan. 7

If you want an item listed in this calendar, please e-mail ittwo weeks in advance to calendar@santamariatimes.com, fax it toAttn: Calendar at 928-5657, or mail it to Health Calendar, SantaMaria Times, 3200 Skyway Drive, Santa Maria, CA 93455. Include theevent time, date, address and a contact phone number.

How To Get Your Tax Questions Answered by A Tax Pro – TurboTax Live Tax Advice

The American Recovery and Reinvestment Act of 2009

If you are planning on attending an institute of higher education in the future, there is some good news for your wallet. Now that Congress has passed the American Recovery and Reinvestment Act of 2009, getting that education may bit a bit easier.

Student Loan Interest

The good news is that many folks who in the past were unable to take advantage of this tax break can now do so thanks to more relaxed rules concerning the deduction of student loan interest. You can write off up to $2,500 of annual college loan interest charges if you qualify. The bad news is that if your modified AGI is too high, the break is phased out. The 2009 phase-out range for unmarried taxpayers is between modified AGI of $60,000 and $75,000, the range is between modified AGI of $120,000 and $150,000 for joint filers.

Hope Scholarship Credit

For 2009, the Hope Scholarship credit amounts to 100% of the first $1,200 of a college student’s annual tuition and fees (no room and board costs) plus 50% of the next $1,200. So the maximum Hope credit is $1,800 per qualifying student. But here’s the rub: The Hope credit can be claimed for only two tax years for any one student. It’s unavailable after the student has logged two years’ worth of academic hours. Also, the Hope credit is allowed only when the student carries at least half of a full-time load for at least one academic period beginning in the year the credit is claimed.

Lifetime Learning Tax Credits

The Lifetime Learning credit is less restrictive. It’s mainly intended to help defray college costs after the first two years, when the Hope credit is no longer allowed. The Lifetime credit is available for an unlimited number of years and without any requirement to carry a certain course load. Graduate courses are cool. So are random classes not intended to lead to any sort of degree, such as professional training seminars and courses to update your software skills. The credit equals 20% of tuition and fees up to $10,000, for a maximum annual credit of $2,000.

Qualifying expenses for both the Hope and Lifetime credits include post-secondary tuition and fees for you, your spouse, and any other person claimed as a dependent on your tax return.

For 2009, both credits are phased out between adjusted gross income of $100,000 and $120,000 for joint filers; $50,000-$60,000 for unmarried taxpayers. You’re completely ineligible if you’re married and file separately from your spouse.

Question: Stimulus Rebate Checks… Direct Deposit or Papercheck…?

I filed my tax returns and my refund was electronically deposited, BUT, I had to file an amended return (1040x) and the difference they owed me was sent via papercheck. So, if they are going off of your tax return and how it was filed whether you will receive your stimulus by direct deposit or papercheck, does anyone know if they will base it off of my first return (which was DD) or my amended return which they sent a papercheck? I’m asking because there is a difference between receiving it in May (DD dates) and receiving it late June (paper check dates). Thanks.

Answer: It will most likely come direct deposit, like your original refund.

Thursday January 21 2010

JAN 20 — You almost could hear the bankers heave a sigh of relief when Haiti’s earthquake knocked the Financial Crisis Inquiry Commission hearings off the front pages and evening news broadcasts last week.

Select Tax, El Paso, TX

Question: How do I get started as a fully licensed California CPA w/o going down the corporate or tax preparation route?

I have my California CPA license and have audit (no tax) work experience at a public accounting firm and a corporation, but I want to go out on my own as a sole proprietor CPA and/or consultant. I don’t want to do income tax preparation nor do I want to work the regular 9-5 daily grind in a corporation. What can I do to explore my options and how do I get started getting my feet wet in the sole proprietor world?

Answer: First work a job maybe in a CPA firm or corporate work to pay the bills. You could even work as a temp but unless you have other income you will need to pay the bills. I was going to start a CPA firm once but found a job I loved instead but when I was starting I planned to try to specialize in partnerships of doctors. I had the software that I had done software support on for 10 years so was a report building expert and had formatted many partnerships and had worked in CPA firms for 17 years before that so was good at partnership returns. I live near a hospital that has many clinics around it and had planned to start with individual taxes. I got all my software when I was a tax analyst for a software company free. I placed advertising that came direct mail in Feb but they didn’t place it so said they would run it in two months which would have been to late so I just took another software job.
Most work full time in a CPA firm or software company as a software developer or software tester then run a tax practice or accounting practice evenings, weekends and tax season when tax software development and testing is done for the year. Some tell me a magnetic sign with the name and phone number got them about all the work they can handle. Some don’t advertise they are CPAs because less liability.

The year that was 2009

Worry, money and debates over future change — the themes running through the landmark moments of 2009 on the national front also echoed those a little closer to home.

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