Friday, June 27, 2014


98% of the adults in this country are decent, hardworking, honest Americans.  It’s the other lousy 2% that get all the publicity.  But then, we elected them! 
Lily Tomlin

* JK LASSER takes us for a stroll down memory lane in “Tax Rules of Yore: Tax Breaks You Can’t Use Now But …”, discussing tax law that is no more.

While I do miss Income Averaging (it allowed tax preparers to literally pull a rabbit out of our hat), I am truly glad that the new home buyer credit and the deferral on home sales (replaced by Section 121 exclusion) are gone, and that there is no longer a need for a Maximum Tax.

* Miranda Marquit tackles the question “Should You Pay Off Your Student Loans Early?” at the MONEYSMARTLIFE blog.

She makes some good points, with which I agree.  For example, pay down higher-interest debts, such as credit cards, first.

* “Hobby vs. Business: Hobby or Real Business? What are the Tax Laws?” Jean Murray explains the difference at ABOUT.COM.

* Joe Cicchinelli and Jared Trexler from THE SLOTT REPORT provide a “Reminder: Qualified Charitable Distributions From IRAs Have NOT Been Reinstated”.  

Many advisors and the public have asked us about the status of Qualified Charitable Distributions (QCDs) for 2014. QCDs, also known as charitable IRA rollovers, expired after December 31, 2013. While it was widely expected that {the idiots in – rdf} Congress would reinstate them, as of today they have not yet been reinstated for 2014.”  
The word is that the “extenders” will not be extended until the end of the year, after the November elections.  So those who want to benefit from QCDs might want to put off taking their RMD until year-end.

* ACCOUNTING TODAY reports on a recent study that suggests “Tax Season Sign-up Could Boost ObamaCare Enrollment”.

What this seems to imply is that individuals should sign up for health insurance when they had their taxes prepared.

Thanks, but no thanks.  Tax preparers have enough to deal with during the “season”.  We are already expected to be social workers by verifying that taxpayers qualify for federal welfare (the Earned Income Credit).  We do not need any more unrelated work.  The administration of ObamaCare is not the job of the tax preparer, and should not be the job of the IRS.

Government social programs, no matter how good they may be, or the distribution of the benefits thereof, should never be administered through the Tax Code!  

* THE CHICAGO FINANCIAL PLANNER, aka Roger Wohlner, takes us through “401(k) Loans by the Numbers”.


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