Welcome to the first BUZZ of 2017! We begin the New Year with a “meaty” BUZZ.
I think I join many of you when I say thank
God 2016 is over. It was truly a very
sad and horrible year, for many reasons.
Unfortunately, with Trump becoming President, 2017 has the potential to
be a lot worse. Let us hope that is not
the case.
* Want to make 2017 less taxing? Learn how to start the year off right in the
January 2017 issue of my new quarterly newsletter ROBERT D FLACH’S TAX INSIGHTS.
* Russ Fox announced “The 2016 Tax Offender of the Year” at TAXABLE TALK – and, to my surprise and disappointment, it wasn’t Trump! To find out who won, and the two runners-up,
read the post.
* Kelly Phillips Erb tells you “What to Consider Before Paying Christmas Bills With a Tax Refund Loan” at MSN MONEY.
My take – NEVER, NEVER, NEVER get a Refund Anticipation Loan (RAL) or Refund
Anticipation Check (RAC) – this is one of the few times it is appropriate
to say “never”.
Why?
As KPE points out –
“While
some states limit the amount of interest that a lender can charge, in some
instances, the annual percentage rate (APR) of an RAL can hit triple-digits.”
* More from KPE. As you probably know, there are 50 ways to
leave your lover. But did you also know
that there are “50 Perfectly Legal Ways To Get Money & Benefits Without Paying Taxes”? KPE lists them at
FORBES.COM.
* Check out the January 1, 2017 issue of
LIBERTY TIMES to see how the Republican Party, by pandering to the religious
right, has perverted true conservative philosophy, and to learn the “theme
song” of the upcoming disastrous Trump administration.
* Emily Brandon identifies “3 Little-Known Retirement Savings Tax Breaks” at US NEWS AND WORLD REPORT.
* Did you see my annual review of The Year
In Taxes 2016 last week? If not check
out Part I and Part II.
* At DON’T MESS WITH TAXES Kay Bell
provides a review of specific relief for specific states in “IRS offers tax relief to 2016's many disaster victims: Re-filing option, later deadlines still available to some in FL, GA, LA, MN, NC, SC & TN”.
* And Kay also reminded us that “4 popular homeowner, education tax breaks end{ed} Dec. 31”.
In
my opinion it is good that these, and the other expired “extenders”, were not
extended at year end, however “popular” they may have been.
Here
are the 4 expired tax benefits to which Kay refers -
(1)
Tuition and fees deduction – This option could provide a better tax benefit
than the education credits in some situations.
Yet, while providing social and other welfare benefits via the Tax Code
is bad policy, I hope that, if they are to remain there, the various education
tax benefits will be combined and consolidated in the upcoming tax reform
legislation.
(2)
Mortgage insurance premium deduction – This should have never been allowed in
the first place. There is absolutely no
reason to allow a tax deduction for life insurance premiums.
(3)
Mortgage debt relief exclusion – Individuals should not be rewarded for
inappropriate and irresponsible financial behavior.
(4)
Credit for energy-efficient home improvements – With the lifetime $500 cap this
deduction was basically ineffective.
Incentives to purchase energy-efficient products should be provided as
direct “point-of-purchase” rebates or discounts similar to the Cash for
Clunkers program of a few years back.
* Jason Dinesen lists his “Top 5 Blog Posts of 2016” at DINESEN TAX TIMES.
* Paul D Allen gives you “7 Tips to Help You Be Prepared for Your {Tax} Appointment” next year at the PIM TAX SERVICES
BLOG. Good tips all!
* I agree with Steven
J. Fromm when he recommends that “All Taxpayers, Tax and Financial Advisers
Need To Read This” post from his PHILADELPHIA ESTATE AND TAX ATTORNEY BLOG
– “IRS Warns & Updates Taxpayers of Numerous Tax Scams Nationwide”.
* Thinking about using a “box” to prepare
your tax return? Before you do find out
“How Tax-Savvy Are You? Find Out Here” with this post from Selena Maranjian at
FOX BUSINESS.
Selena makes two very good points in the
post -
“Clearly,
the more you know about taxes, the more you can save. A little time spent
reading up on available credits and deductions, for example, can really pay off.”
And –
"Another
smart move for many taxpayers -- at least those with non-simple situations
(such as multiple jobs, homes, and life changes) -- is hiring a tax pro to
prepare your return and help you strategize. Yes, it will cost some money --
possibly a few hundred dollars for a good pro -- but you may well reap much
more than that in tax savings and a bigger refund. A good tax pro will be up on
the latest tax-law changes and will know far more about the tax code than you
do. Don't just hire anyone, though. Ask around for recommendations. Consider
hiring an "Enrolled Agent," a tax pro licensed by the IRS who is
authorized to represent you before the IRS if need be.”
You can learn more about taxes by
subscribing to my THE WANDERING TAX PRO blog posts (enter your email address in
the box at the top of the right hand margin) and by reading my tax reports and
publications (click here to learn about them).
There is one suggestion from Selena that I very strongly disagree with –
“Using
tax-prep software can also be helpful.”
It
most certainly will not, especially if you don’t have sufficient knowledge of
the Tax Code. Remember – garbage-in,
garbage-out!
Avoid a “box” – spend the few additional
bucks for a good tax pro!
The Last Word –
Is there any doubt that Putin and Russia
wanted Trump to be the next President and did whatever it could to make this
happen?
I do doubt that this was done with the
express knowledge and cooperation of Trump or his campaign.
Why would Putin want Trump in the White
House? Putin is well aware that Trump is
the ultimate narcissist, and that all his thoughts, words, and actions are
motivated and guided by this narcissism - as, I would expect, are most world
leaders. He, and they, know that Trump
has no political beliefs, convictions, philosophy, or agenda. Trump’s only belief, conviction, philosophy,
and agenda is Trump is great and Trump is good and to promote Trump.
As a classic extreme narcissist it is easy
to “play” Trump, which Putin intends to do to his advantage. As long as you kiss Trump’s ring, and his
arse, to his face and in public he will love and support you and do whatever
you want. He would not want to endanger
the public ring and arse kissing. It is
only those who publicly challenge, question, or criticize Trump that will be
attacked by Trump’s irrational, and proven and personally acknowledged,
vindictiveness.
Hopefully the real Republican leaders in
Congress also know how to “play” Trump and will so do.
TTFN
NO tax software
package, or online filing service, is a substitute for knowledge of the Tax
Code, and NO tax software package, or online filing service, is a substitute
for a competent, experienced tax professional.
Do you need to find a qualified and competent tax
professional?
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