TWC is the wine swilling mayor of Two Guns Arizona who was formerly a prolific wine blogger. Some of that remains and to get right to the wine reviews without further distraction, click The Wine Commonsewer Speaks. The rest of the enchilada is an eclectic mix of commentary on culture, food, tax, and econ 101.
TWC's Theme Song:
We will not sell, share, or otherwise disclose your email address or other personal information obtained on this site to third parties unless compelled to do so by subpoena.
Your email address is not required in order to leave comments. If you provide your email address, it will not be displayed with your comment.
A note from our crack legal team at Dewey, Screwem, & Howe, LLP.....
All tax and other information appears here as a courtesy to readers and clients. Please understand that we are not rendering legal advice and that each individual should consult his or her own tax professional before acting upon any of the information contained herein.
Effective June 21, 2005, regulations issued by the Treasury Department governing written communications, including email communications, between all tax practitioners (including attorneys) and their clients that have the issue of tax as a material element of the communication must include the following disclaimer:
As required by United States Treasury Regulations, you should be aware that written information contained on this site cannot be used for the purpose of avoiding penalties under United States federal tax laws.
This site may occasionally contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of a variety of issues including but not necessarily limited to, taxation, politics, human rights, economics, and science. We believe this constitutes a 'fair use' of any such copyrighted material as is provided for under § 107 of the US Copyright Law.
In accordance with Title 17 U.S.C. Section 107, said material contained in this site is made available without profit for research or educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
« December 2007 | Main | February 2008 »
Gentle Readers,
It was brought to my attention that many who subscribe to TWC via email, newsreader, or direct feed were unable to witness the spectacle of St Hillary's encounter with a lightning bolt.
Apparently, if you want to see the Man Upstairs do the Deed you must click here.
As Ever and Forever Shall Be,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Gentle Readers,
Get outta town, that was pretty funny.
As Ever,
TWC
I'm Senator Barack Obama and you damn straight I approved this message. Especially after that crap on YouTube about coke and the male hooker in the limo.
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Good Morning Gentle Readers,
TWC is often asked if taxpayers can deduct those pesky custodial fees that are imposed on many IRA accounts. It is a frequent question and it seems that taxpayers really want to deduct those fees in a big way. The answer is a qualified Yes. Except that the CONgress has set up lots of hoops for you to jump through before you can benefit from writing off that measly $35.00.
Most importantly, if the fee is deducted directly from the account there is no deduction. You must pay it separately.
So you wrote a check to Merrill Lynch for the IRA fees, but that still doesn't buy you much because you can't deduct the expense unless you itemize your deductions on Schedule A.
Since it turns out that you have a fat mortgage and a ton of property taxes to deduct, you also want to include and deduct the IRA custodial fees. But wait! The fees are considered Other Deductions, like tax prep fees and safe deposit boxes, and are subject to a floor that is essentially two percent of your overall income.
In English, that means that when all those other deductions are added together they have to total more than two percent of your overall income (AGI) before you get one thin dime of tax savings.
Most taxpayers won't qualify.
As Ever,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Gentle Readers,
Got a few alarmed emails this AM about the post right below this one. After I re-read my cryptic dedication to a couple of different crazy chicks I've known, I added a line that might help clarify the meaning. Goes like this:
No, Babe, I won't be there to catch you when you fall, again.
Saving people from themselves is exhausting, thankless, tiresome work and the suicide ward is a vast arena of despair, more likely to induce another try for a short trip to the other side than to instill hope for a better life. The clientèle don't help much neither.
In the end, I just mean that I knew that girl Toad is singing about. Something was always wrong. Still is.
Said too much already.
Gorgeous day today, enjoy it.
As Always,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Good Morning Gentle Readers,
Hard to believe this tune is older than my boy. Hard to believe that MTV once played music videos. Thought these guys were a new band, but they've broken up. Long time back.
I knew that girl. Those girls. Pretty well. That's why I know what color they paint the walls in the Looney Bin and that the thick glass windows have embedded wire. No, Babe, I won't be there to catch you when you fall, again. Just a fading bad dream anymore.
Normal is vastly underrated.
Video here.
As Always,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Good Morning Gentle Freeze Babies:
Chinese snow storms strand 200,000 at station in new year exodus.
Driving sleet, freezing temperatures and a blanket of snow across southern China have paralysed trains and aircraft, stranding tens of millions of people trying to get home for the biggest holiday in the Chinese calendar.
Whole thing here.
As Ever,
TWC
tip of the glass to Mrs TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Good Morning Gentle Readers,
As an employer you may reimburse your employees who drive personal vehicles for business reasons up to the IRS standard rate. Anything above the standard mileage rate is required to be reported to IRS.
As an employee you may deduct up to 50.5 cents per mile of business travel that you were not reimbursed for.
In either case, to fly in an audit there must be adequate records. Employers will need an expense report from the employee documenting the miles driven. Easy enough to do with modern day planners and PDA's.
BTW, commuting is not business miles unless you are a construction worker.
2008 Standard Mileage Rates are as follows:
As Ever,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Good Morning Gentle Readers,
A perfect little twist on a familiar story.....
A philosophy professor stood quietly before his class with some items laid out on the desk in front of him.
When the class began, he picked up a very large and very empty mayonnaise jar and proceeded wordlessly to fill it with golf balls. He then asked the students if the jar was full. They agreed that it was.
The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was, though more reluctantly.
The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full. The students,having figured out the joke, responded with a unanimous Yes!
The professor then produced two glasses of wine from under the table and poured the entire contents into the jar, effectively filling the empty space between the sand. The students laughed.
As the laughter subsided, the professor said I want you to recognize that this jar represents your life. The golf balls are the important things; your family, your children, your health, your friends, and your favorite passions; things that if everything else was lost and only they remained, your life would still be full.
The pebbles are the other things that matter like your job, your house, and your car. The sand is everything else; the small stuff. If you put the sand into the jar first there is no room for the pebbles or the golf balls. The same goes for life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you. Pay attention to the things that are critical to your happiness; get the golf balls in first. Play with your children. Take time to get medical checkups. Take the love of your life out to dinner. Play another 18 holes. Do one more run down the ski slope. There will always be time to clean the house and fix the garbage disposal. Set your priorities. The rest is just sand.
One of the students raised her hand and inquired what the wine represented. The professor quietly smiled.....
I'm glad you asked. It just goes to show you that no matter how full your life may seem, there's always room for a couple of glasses of wine with a friend.
As Always,
The Wine Commonsewer
tip of the glass to Ron L
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Gentle Readers,
At one time saavy winos knew that Liberty School was a knock off. Whenever Caymus wasn't good enough to be bottled as Caymus it was sold off and bottled as Liberty School. A well-kept secret and one that gave wine drinkers the chance to sample an almost great wine for the price of ordinary.
Sadly those days are history and Liberty School is just another face in the crowd. It's not bad, but really, no better than Mondavi's 1.5 liter bottle of Woodbridge Cabernet. Ten bucks at Costco or Sams.
As Ever,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|
Gentle Readers,
IRS stats show that two thirds of all individual taxpayers claim the standard deduction rather than itemizing deductions on Schedule A.
It works like this: The government gives you a certain amount as a deduction against your taxable income simply for breathing. This so-called Standard Deduction is meant to partially equalize the tax bite on those who rent with those who own and deduct mortgage interest, property taxes, and the like. If you have more deductible expense than the standard deduction amount, then you get to deduct the excess. It is a crude but reasonably effective method.
The deduction amounts are higher in 2008. The exact amount depends on your filing status, whether you're 65 or older, blind, or if an exemption can be claimed for you by another taxpayer.
If you are over 65 add an additional $1,050 for married filers and $1,350 for single and head of household filers. Married filers older than 65 and blind add $1,050 x two, single filers older than 65 and blind and $1,350 x two.
As Ever,
TWC
Photo Credit (unless otherwise noted): ©TWC, all rights reserved
|
|