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Home Business Deduction Tax Tips

October 19, 2011

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Jon

The at-home business has become really popular over the years. It offers people an opportunity to generate an extra source of income right from home. By taking advantage of some home business deductions, you could significantly lower your year-end income tax bill when you file your taxes.

Like any business, the home business has its expenses, but many of them you may have paid before the business was started. Things like rent or mortgage, internet or a phone line are an everyday occurrence in any home budget. The IRS draws a fine line between personal and business expenses when it comes to a home business. But some of those personal expenses may still qualify as home business deductions.

What’s Your Business Percentage?

If you qualify for the home business deductions, your first step is finding out your home business percentage. You’ll then use this percentage to figure out the business part of those normal home expenses. The IRS uses two examples to finding out your business percentage: Continue Reading…
Three Costly Roth IRA Conversion Mistakes

October 11, 2011

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Jon

Many people took full advantage of a Roth IRA conversion in 2010, thanks to the new no income limit rule and a one time tax payment change. But were those 2010 Roth conversions the best choice for the money? Is there time to go back? What should you be considering for any future Roth IRA conversion?

Certainly there are benefits to a Roth IRA conversion. The two biggest being tax-free retirement income and no minimum distribution requirements. In order to get the benefits of a Roth IRA, there are immediate tax costs. If these benefits don’t outweigh the costs involved, a Roth IRA conversion is wasted money for the wrong person. So, consider these three reasons a Roth IRA conversion is a mistake. Continue Reading…
Preparing For The Q3 Earnings Season

October 6, 2011

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Jon

The third quarter earnings season begins Oct. 11 with the Alcoa earnings report at the market close. It should definitely be an interesting earning season to say the least. As earnings reports battle with the European debt crisis and the political environment, I don’t expect this season to go smoothly. In fact, I wouldn’t be surprised to see stocks fall on great earnings reports, when news comes out of Europe.

The Third Quarter Review

The story for the past three months has been defense. We’ve seen the Dow drop from its highs of the quarter, about 12%. The worst single quarter decline since Q1 2009, thanks to the debt ceiling crisis, political infighting, and increased global economic fears. The market’s been extremely volatile for much of the quarter. Even those with iron stomachs must have felt squeamish at times.

After the initial August plunge from the US debt downgrade, the markets were on a steadily declining trading range based entirely on European economic woes and mixed US economic data. Fairly nauseating to say the least and I for one am hoping for calmer waters ahead. Continue Reading…
Avoiding The New Norm: Debit Card Fees

October 4, 2011

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Jon

Bank of America took a big leap last week, jumping head first into the monthly debit card fee ring. Starting the next round of additional banking fees introduced to counteract the new limits on debit card swipe fees which took effect Oct 1^st. Which has not made me and a few million other BofA customers happy campers. But don’t fret, there are still options available to avoid them.

There have been a few banks that have tested the debit card banking fee, but on a small scale. Wells Fargo has tested the new fee in five states. J.P. Morgan has done it in a small part of Wisconsin, and Suntrust Banks began charging a debit card fee in June to new customers.

With Bank of America jumping on board, it’s only a matter of time before other big banks adopt debit card fees as the norm. With the announcement last week, BofA will be charging account holders $5 each month they use a debit card for a purchase starting in 2012. The charge will not apply to BofA mortgage customers or to those account holders with a combined amount of $20,000. Continue Reading…
Market Musing: The Day Of The Fed Meeting

September 23, 2011

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Jon

“Significant” was the word of the day. As in “significant downside risks to the economic outlook.” The day was not, however, sponsored by any letter and number.

If you plan on refinancing a mortgage, yes it’s still a good idea, and yes you will have all kinds of time to do it. With 15 year and 30 year rates easily falling to and possibly below 3% and 4%, respectively, for the foreseeable future.

“Operation Twist” or “The Twist” if it hasn’t already, should make Chubby Checker more money this week than he made on the first two versions of the song. It was the most played songs rolling into and out of commercials on CNBC. Got to love free advertising.

Europe is still trying to figure out if Greece will be allowed to play in their sandbox.

The one ray of good news, new home sales were better than expected. The market acted as if it never happened.

And lastly, Apple unofficially announced the new IPhone will be out in October, which was largely drowned out by the Fed meeting.

Just My Opinion

The market has made it’s mind up about the announcement and it wasn’t good. But I’m not so sure it’s quite as bad as the market made it out to be. I’m not saying it was rosy, but I think the market overreacted. Continue Reading…
Gambling With An Investment Strategy

September 21, 2011

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Jon

Gambling and investing tend not to fall in the same sentence, yet the line between the two can be blurry at times. Each can force images of losing it all or winning it big in a single moment. When you picture gambling, it’s the 24 hour gambling mecca of Vegas, a cheering craps table, the alarms of the slot machine. A place to let loose, have some fun, spend some money.

Gambling can be broken down into two categories. There are the games of pure chance, like the lottery, slot machines or roulette. These require absolutely no thought or skill to play and even less to win. I guess you could argue that picking numbers requires some thought, but it’s about as much as one would put into breathing. And the odds of winning are the same every time you play.

Then there are the skill games, like blackjack, poker or baccarat. Skill isn’t a requirement per say, even the most unskilled player can get lucky. But your chances are increased significantly when you have some knowledge of the game. Knowing that the odds change each play and can be in your favor. It can range from speculation to guarantee. Yet it’s tossed in with the lotteries and slot machines because it’s not common knowledge to everyone. Unfortunately the same can be said about investing. Continue Reading…