* Jason Dinesen of
DINESEN TAX TIMES answers my question in his follow-up post “Iowa Taxes: Filing Separately and Allocating Dependents”.
Thanks, Jason.
* What is this? Jason changes his mind and admits his error
in “Solo Practitioner Blues: Value Pricing Revisted (I Was Wrong)”.
I had joined Jason
in his earlier disdain of “value pricing” – which he had originally described
as determining a fee based on what a client thinks the work is worth – in an
earlier BUZZ installment. If this is
what value pricing is then I stand by my original comments.
Like Jason, “I still have questions, such as how one
determines that one client gets charged, say, $500 and another gets charged,
say, $400 for seemingly the same work.”
Obviously if one client is not as organized, or generates more “agita”,
the fee would be higher because more of my time was involved in doing the
work. But this has nothing to do with
the client’s perceived value.
I would be
interested in hearing more from Jason on why the turnaround.
* Kelly Phillips
Erb, FORBES.COM’s TaxGirl, teaches you how to become a NIIT Wit in “Outwitting The NIIT: 12 Ways To Avoid The New Net Investment Income Tax”.
FYI, NIIT is the
new “net investment income tax” for those who BO considers “wealthy”.
* And Kelly tells
it like it is in “Admit It: The Clintons Didn't Do Any Tax Planning You Wouldn't Do”.
She correctly
points out that criticizing the wealthy for taking advantage of legal and legitimate
tax deductions and strategies is hypocritical -
“. . . but let’s face it, when tax reduction strategies
are available, most of us seize on them. You take the mortgage income
deduction, right? You claim your dependents. You stash away tax deferred cash
in retirement plans. You write off business expenses. You do it because you
can. Just like the Clintons. And just like Apple.”
And she makes an
excellent point when she says (highlight is mine) –
“And it’s a fun message to say that the
Clintons are using a tax strategy {to reduce federal estate tax – rdf} which benefits the top 1%… It’s also
redundant: the top 1% are the only
taxpayers subject to the federal estate tax anyway. Why would any of the
99% – who aren’t subject to the tax in the first place – even consider such a
strategy? It’s pointless. But it makes a good talking point in the press,
apparently. You know, for folks who aren’t quite sure what they’re talking
about.”
If you are upset
that the wealthy are taking advantage of tax benefits the blame is not with the
wealthy. The now famous 47% of Americans,
who are anything but wealthy, are taking advantage of tax benefits to either
pay absolutely no federal income tax or to make a profit from filing a Form
1040 (refundable credits). The blame
belongs to the idiots in Congress who write tax law.
* Speaking of the
federal estate tax, Kelly’s FORBES.COM colleague Ryan Ellis says “U.S. House May Soon Kill the Death Tax” –
“. . . the 218th (and beyond) co-sponsor
signed onto H.R. 2429, the “Death Tax Repeal Act of 2013,” sponsored by
Congressman Kevin Brady (R-Tex.) This means that a majority of the entire House
of Representatives is now on record in favor of killing the death tax.”
I have never been a
fan of the federal estate tax. My only
concern with doing away with the tax concerns the step-up in basis for
inherited assets, which I am a big fan of.
* “401(k) Rollovers – Buyer Beware” warns Roger Wohlner, the CHICAGO FINANCIAL PLANNER.
Roger wants you to
“be careful when choosing an advisor for
your retirement nest egg”.
Be careful when
choosing a financial advisor or broker.
Period. Remember, as I have said here before, a broker is a
salesman who makes money based on what he sells you. I have known many extremely competent and
honest brokers over the years who have truly had their clients’ interests as
their primary motive – but there are an equal number of bad brokers out there
as well.
And don’t assume a
financial advisor or broker, however competent or honest, knows tax law. Run any advice from a financial advisor or a
broker by your tax professional before making any substantial investment.
* THE SLOTT REPORT
expands on an item referenced in a previous BUZZ installment in “Supreme Court: Inherited IRAs are NOT Retirement Accounts ... and What This Means For You”.
* Over at
CINCINATTI.COM Tom Cooney and Crystal Faulkner remind us that “Wise Ones Already Working on Taxes” and suggest some midyear tax planning moves.
* Oi vey! According to Kay Bell “20,000 Kansans Still Waiting for Their State Tax Refunds”.
TTFN
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