Congress Amends Laws of Nature for 2010

Just when you thought Congress would never solve its tax and spending problems, it has taken a bold step forward: It has suspended the laws of nature and arithmetic starting January 1, 2010.  Just wait until you see what it has in mind:    

Make 2010 Deaths Retroactive to 2009 

Congress has left in place a law that will forgive estate tax for anyone who dies in 2010. Unfortunately, many decedents who would never have paid that tax will be hit with an additional capital gains tax. To solve this problem, congressional Democrats have declared their intent to make any death in 2010 retroactive to 2009. Of course, small business owners and farmers worth less than $10 billion will be allowed to defer death for an extended period. Republicans have objected, stating that they would make all past deaths prospective to 2010, thereby refunding all past estate taxes, since they are pro-life and Democrats are pro-death. They would also eliminate all future capital gains taxes, since that would increase revenues to government and probably make people want to live longer.

Reduce the Deficit by Giving Government Money Away Through 2010 Roth Conversions

Congress has decided to let taxpayers pay a few dollars of tax today to avoid paying hundreds of dollars of tax tomorrow, merely by allowing them to shift their retirement assets from traditional tax-deferred accounts to Roth-style IRAs. This would reduce the budget deficit for the near term, although it would cost the Treasury tens of billions of dollars over the long run. Democrats insist the long-term doesn’t matter because we don’t know the future…and since we don’t know the future, we can continue to give as much of it away as we want. Republicans also love the Roth rollover, but for a different reason. They believe that with a bit of deductible borrowing, Roth accounts can generate negative tax rates on capital income, which will actually increase long-term government revenues. Word has it that bank and hedge fund managers have figured out how to put highly leveraged “net equity” investments into Roth accounts that will generate billions of dollars of nontaxable earnings. This will create a stronger banking and financial sector.

Spend Medicare Savings Twice Starting in 2010

In their health bills, congressional, Democrats have attempted to generate some saving in Medicare to help pay for expanded benefits for the nonelderly. Unfortunately, the hospital insurance (HI) portion of Medicare cannot pay out money unless it resides in its trust fund, which is running dry. Therefore, Medicare “savings” can now be used to fund other Medicare benefits and forestall other reforms.  Democrats say, therefore that there will be no cut in net “guaranteed” benefits for the elderly. But Republicans object, insisting government should keep its hands off of Medicare, and that no Medicare saving should be spent on the elderly or the non-elderly or on deficit reduction. Thus, GOP candidates will run on their new platform: No elderly person anywhere should pay for anything for anyone else.   

Unite Keynesians and Supply-siders in 2010 

Although deficits are at levels unseen since World War II,, Democrats assure us that deficits don’t matter as long as we are in a recession, coming out of a recession, or in danger of moving into another one. Thus, in any circumstance, the best time to deal with the deficit is after the next election. Besides,  stimulus spending pays for itself by increasing incomes and revenues in the long run. Republicans object.  They say we need lower taxes, not more spending. Lower tax rates pay for themselves by increasing incomes and revenues in the long run. And, even if they don’t, deficits don’t matter anyway. 

And you wondered whether Congress would deal creatively with our problems!

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Ask TaxMama Issue 534 - Happy New Year

Dear Family,

Before we go any deeper into this issue, let me just tell you how very, very, very, deeply I appreciate you for being part of TaxMama’s family. We have just finished 11 years together. Can you believe it? Yup – January 1999

You and your friends and colleagues have made it a joy to start each of my days, wondering what interesting and challenging question, or comment you will bring me today. Because of you, my days have not been boring.

Thank you for making this a wonderful decade.
Just wait until you see what I have in store for you in the decade coming up!

Hey! Did you see the Kennedy Center Honors last night? You missed a great show.

The people being honored included Robert De Niro, Mel Brooks, Dave Brubeck and Grace Bumbry and the Boss – Bruce Springsteen. The show was terrific and funny. For me, Ben Stiller, stole the show. He was there to honor Mel Brooks, but tossed off comments about about the other honorees, including the Nobel winner. He was unexpectedly smooth and hilarious. Every person introducing the film about their honoree had something kindly funny or charming to bring up. Dave Brubeck was surprised with the announcement about his 89th birthday that night – and having his sons play a tribute to him on stage.

If only I could find you a picture of Roumanian Opera Star Angela Gheorghiu’s gown last night. It was breathtaking. Utterly tantalizing and elegant. Why isn’t there a picture online? There are several complaints on the CBS website because the whole show isn’t available for viewing. It’s not on the Kennedy Center site either. Otherwise, I’d show you. Wow!

Today’s Money Funny came to us from Floyd T. Greenman, an Enrolled Agent here in the Valley. Floyd is a regular member of our San Fernando Valley Breakfast meeting crowd. He used to be an IRS auditor; then ran his own tax practice for years. Floyd recently retired. Why? Well, it just gets too hard and too frustrating to conduct client interviews using only one arm – an arm that is occupied with typing on a speaking machine. Whew! I can’t imagine how Floyd managed to keep working for as long as he has, facing a variety of physical obstacles. Clearly, his clients must love him. After all, it’s easy to love someone who’s always cheerful, pleasant, funny, and – who provides excellent advice and insights. You should appreciate him because he’s the source of many of the best Money Funny columns we’ve run during the past few years. Floyd, this issue is dedicated to you and Reva.

Second-hand smoke! Yech!!! I just got a call from Rights Radio host, Joyce Starr. She just wrote an amazing book called Called Secondhand Smoke Crimes. It’s all about the problem you face when you live in an apartment or condo building and your neighbor smokes excessively. Have you ever felt trapped because an abundance of smoke keeps seeping into your home – and you can’t do anything about it? Your breathing is getting constricted; your children are growing up sickly; or worse. Your landlord or condo board won’t help you. What can you do? You need to know more about the horrors you face. Joyce outlines your legal options – and the limitations.
http://secondhandsmokecrimes.com
You can also follow this topic on Twitter:
http://twitter.com/smokecrimes

Please add ONE helpful tip to WeFoundASolution.com for the New Year.
Let’s help everyone get some prosperity in their lives!
http://wefoundasolution.com/

In IRS News this week you will learn how to get a free electric car. Amazing.
http://taxquips.com/index.php?cat=IRSNews

For an overview on the latest activities on the tax front, keep an eye on Marketwatch.com’s tax site. We’ll be filling it up with new articles and tips. Starting early in January, TaxMama’s TaxWatch column goes weekly again. Remember, if you have any interesting stories, let me know. You could be the subject of a column!
http://www.marketwatch.com/taxes

In today’s Money Funny we are faced with Things You Don’t Hear Anymore, a trip down memory lane for some of us – and a visit to an alien world for those born after 1970 or so.
http://taxquips.com/index.php?cat=MoneyFunnies

In TaxQuips this week we learn how to handle franchise costs; what to do if you filed an amended return with IRS and have no response; whether someone living on SSI can get the earned income credit or either of the homebuyer credits?
http://taxquips.com/index.php?cat=TaxQuips

As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!

Please use the Comments link online.
http://taxquips.com/index.php?id=1435

TaxNerd gear makes a bold statement year-round. And it helps attract the opposite sex!
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Hugs from your favorite TaxNerd,

Eva Rosenberg, EA

Your TaxMama is watching…out for you.

www.TaxMama.com
www.TaxQuips.com
www.IRSExams.com
www.taxnerd.net
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TAX CALENDAR 2009
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12.15.2009 Employers Make monthly Payroll tax deposit
12.15.2009 Corporations – 4th Quarter Estimate Due
12.31.2009 Last Day to Open KEOGH account for 2009 deposits
01.15.2010 4th Estimated Payment for 2009 Due
01.15.2010 Employers Make monthly Payroll tax deposit
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Download the book here (just use your e-mail address in this e-mail, so you can avoid subscribing to
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Feel free to share this link with your friends, your clients and your mailing list.
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Explore Simpleology 101 - It includes set of step-by-step daily missions for you to follow to get more focused and become more successful this year.
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Get extra discounts for yourself and friends after you order.

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Wouldn’t you love to get your logo or family crest, or picture or whatever, EMBROIDERED on hats and T-Shirts?

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• Ask TaxMama :: Where taxes are fun and answers are free
• www.TaxQuips.com :: The number ONE free tax podcast online
• Money Funnies :: A walk down memory lane
• IRS News :: Free Electric Cars
• TaxMama's MarketWatch.com :: Beating the estate tax to death - or Estate tax will rise from the dead in 2010
• TaxMama's ebook :: 100% Home-Based Business Tax Solution.

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Die Now

If you’re single, not in great health, and are worth a lot but not a really huge lot, you could do your heirs a favor and die today or tomorrow. Sure, you may want to hang around to ring in the New Year but that could cost the beneficiaries of your will a chunk of change.

Wait a minute, you say, wouldn’t it be better to wait a few days and die in 2010 when, because the Senate didn’t act, the estate tax will disappear for a year and all inheritances will pass free of federal taxes? That’s true, as I discussed a couple of weeks back, but only if you’re really wealthy—worth more than $3.5 million ($7 million if you are married). If your estate totals between $1.3 million and $3.5 million, it’s cheaper—from a tax perspective—to die this year.

The little wrinkle causing that oddity is the 2010 limitation on “step-up in basis.” If you die before Jan. 1, anything you leave to your heirs gets a new basis for tax purposes, equal to the value of the asset when you die (or six months later if your executor chooses). If you’ve got assets with a lot of unrealized capital gains—think that IBM stock you bought back in the 1960s or that little cape you’ve lived in the past forty years—step-up could save your heirs a lot of capital gains tax when they sell.

Under 2010 rules, your estate may increase basis for  “only” $1.3 million of assets ($3 million if it goes to your spouse). The excess is stuck with your basis, called “carry-over.” That poses two problems: figuring out what the basis is and paying higher taxes.

Calculating basis is the first challenge. It isn’t a problem for stocks, bonds, and mutual funds acquired recently; your broker knows your basis for those. But what’s the basis for your house, which you bought in 1970 for $30,000 and on which you’ve made a variety of capital improvements over the decades? Or the family business? And that IBM stock you bought 40 years ago—it split how many times and you reinvested which dividends? A major reason step-up was created in the first place was to avoid those pesky valuation issues.

Let’s say your heirs manage to figure out your basis. Now, they get to pay the tax. Suppose your estate consists entirely of IBM stock—26,500 shares worth not quite $3.5 million. If you die today, your heirs would pay no estate tax on those shares and, thanks to stepped-up basis, they’d pay no capital gains tax either if they sold right away. (Of course, they would owe tax on any profits earned after they inherit the stock.) As a result, they get the full (nearly) $3.5 million.

If you hold on until Friday, there’s still no estate tax but your heirs enjoy stepped-up basis for only $1.3 million. That covers a bit more than 9,500 shares. But they’re stuck with your basis for the rest—about $2 a share for nearly 17,000 shares if you bought the stock in 1962 and reinvested all dividends since then. (Getting that $2 value wasn’t easy; I used simplifying assumptions and rounded off.) If the estate sells it all at today’s price, the federal tax on about $2.16 million of gains would total more than $300,000 and the states would get perhaps another $100,000. Is it really worth $400,000 (to your heirs) for you to live an extra day or two?

Of course, Congress might act retroactively in 2010 to re-establish the estate tax and reverse the carry-over basis rules so your heirs would never pay tax on your gains. But why take that chance? Die now and make your heirs happy. On the other hand, if you’re still having a good time, you might want to watch your back.

Link to the original site

Free Electric Cars

By Eva Rosenberg, EA

Last week, I got a note from a CPA asking me if I knew anything about getting an electric car for free.

She said one of her clients had just ordered a free golf cart-type vehicle from www.freeelectriccar.com . And they had asked her about it after buying it – not before.

So, I went to see what this was all about. Let me tell you folks, I was blown away by this. Why didn’t anyone bring this to my attention earlier? This is terrific!

But is it for real?

I asked IRS spokesman Robert Marvin about this tax credit.

Marvin quotes from the Internal Revenue Code:

Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. Some low speed vehicles may qualify for the credit if acquired prior to January 1, 2010. The amount of the credit for 2009 is equal to the sum of $ 2,500 plus $ 417 for each kilowatt-hour of traction battery capacity in excess of four kilowatt-hours. The maximum credit can range from $ 7,500 to $ 15,000, depending on the gross vehicle weight rating of the vehicle.

So, it looks as if this is for real.

IRS has a webpage with more information about the credit.
http://www.irs.gov/businesses/article/0,,id=214841,00.html

Marvin tells us the credit was changed for 2010:

For vehicles acquired after 12/31/2009, the maximum amount of the credit will be $7,500 and the 30D credit will no longer apply to low speed vehicles. However, the credit under section 30, applies to certain low speed vehicles acquired after 12/31/2009. The vehicle must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States.

Scroll down to the bottom of the IRS page for a list of manufacturers. Clicking on the manufacturer of the vehicle of your choice will give you the maximum available credit for 2009 and 2010. There are still some cars where you can get the full credit.

Clearly, the credit does not cover the cost of shipping. So see if you can find a dealer or outlet near you, to avoid having to pay anything at all.

So, how does that relate to the website we started with? www.freeelectriccar.com

They tell you that your purchase will qualify for the credit, as long as the invoice is dated by December 31st 2009. That may not be quite correct.

According to Marvin – 07 Acquired. A vehicle is not “acquired” before the date on which title to that vehicle passes under state law.
http://www.irs.gov/irb/2009-48_IRB/ar09.html#d0e2520

It’s quite possible that title doesn’t pass until you get it registered with your state’s version of DMV (department of motor vehicles). You will have to find out the rules in your own state. Can you do that, and still get title to the vehicle this year?

I don’t know. Time is seriously running out.

Don’t despair.

There are still vehicles you can buy in 2010 for full credit. Just look up the manufacturer on the list – and find their closest sales outlet.
http://www.irs.gov/businesses/article/0,,id=214841,00.html

Oh look, the Zone Electric cars are qualified for the 2010 credit. You can still buy 4 different models for nothing more than the shipping charge, if you get it from this website. http://www.irs.gov/businesses/article/0,,id=215053,00.html

Who is this for?

Naturally, if you have no car right now, this might be a way to get a free vehicle. (except for shipping). It will have limited range. But if you don’t need to go more than a few miles at any one time, it’s great. You can always add on some fabric for external walls if you want a little protection from the elements.

For couples with one car, a second car like this might be ideal for local grocery shopping, errands, eating out, and visiting neighbors. Naturally, you’re not safe on the freeway

And for all you folks running a home-based business who rarely get out and drive anywhere – this could be a great replacement for the expensive lump of metal in your driveway. Sell it. Cut your insurance costs, registration costs and all the other costs associated with that space hog you only use for about 2,000 miles a year – or less.

• Ask TaxMama :: Where taxes are fun and answers are free
• www.TaxQuips.com :: The number ONE free tax podcast online
• www.freeelectriccar.com :: Representatives for Zone Electric Car, Lido, and Western Golf Car
• IRS FAQs :: Plug-In Electric Vehicle Credit (IRC 30 and IRC 30D)
• Deadline Discussion :: What is “acquired”?
• Zone Electric Cars - 2010 Credit ::

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Things You Don’t Hear Anymore

As we end one year, and start a brand new decade,
enjoy this poignant reminiscence of times past.

Be sure to refill the ice trays, we’re going to have company.

Watch for the postman, I want to get this letter to Willie in the mail today.

Quit slamming the screen door when you go out!

Be sure and pull the windows down when you leave, it looks like a shower is coming up.

Don’t forget to wind the clock before you go to bed.

Wash your feet before you go to bed, you’ve been playing outside all day barefooted.

Why can’t you remember to roll up your britches legs? Getting them caught in the bicycle chain so many times is tearing them up. You have torn the knees out of that pair of pants so many times there is nothing left to put a patch on.

Don’t you go outside with your school clothes on!

Go comb your hair; it looks like the rats have nested in it all night.

Be sure and pour the cream off the top of the milk when you open the new bottle.

Take that empty bottle to the store with you so you won’t have to pay a deposit on another one.

Put a dish towel over the cake so the flies won’t get on it.

Quit jumping on the floor! I have a cake in the oven and you are going to make it fall if you don’t quit!

Let me know when the Fuller Brush man comes by, I need to get a few things from him.

You boys stay close by, the car may not start and I will need you to help push it off.

There’s a dollar in my purse, get 5 gallons of gas when you go to town.

Open the back door and see if we can get a breeze through here, it is getting hot.

You can walk to the store; it won’t hurt you to get some exercise.

Don’t sit too close to the TV. It is hard on your eyes.

If you pull that stunt again, I am going to wear your bottom out!

Don’t lose that button; I’ll sew it back on after awhile.

Wash under your neck before you come to the table, you have beads of dirt and sweat all under there.

Get out from under the sewing machine; pumping it messes up the thread!

Be sure and fill the lamps this morning so we don’t have to do that tonight in the dark.

Here, take this old magazine to the toilet with you when you go, we are almost out of paper out there.

Go out to the well and draw a bucket of water so I can wash dishes.

Don’t turn the radio on now, I want the battery to be up when the Grand Ole Opry comes on.

No! I don’t have 10 cents for you to go to the show. Do you think money grows on trees?

Eat those turnips, they’ll make you big and strong like your daddy.

That dog is NOT coming in this house! I don’t care how cold it is out there, dogs don’t stay in the house.

Sit still! I’m trying to get your hair cut straight and you keep moving and it is all messed up.

Hush your mouth! I don’t want to hear words like that! I’ll wash your mouth out with soap!

It is time for your system to be cleaned out. I am going to give you a dose of castor oil tonight.

If you get a spanking in school and I find out about it, you’ll get another one when you get home.

Quit crossing your eyes! They will get stuck that way!

Soak your foot in this pan of kerosene so that bad cut won’t get infected.

When you take your driving test, don’t forget to signal each turn.
Left arm straight out the window for a left turn;
left arm bent up at the elbow for a right turn;
and straight down to the side of the door when you are going to stop.

It’s: ‘Yes Ma’am!’ and ‘No Ma’am!’ to me, young man, and don’t you forget it!

Bring back any Memories?

It surely did for Me!

Courtesy of Floyd T Greenman EA, honorably retired.

Please remember to send us your humor.
Clean jokes preferred.

• Ask TaxMama :: Where taxes are fun and answers are free
• www.TaxQuips.com :: The number ONE free tax podcast online

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Getting Credit

Today TaxMama hears from Maxine in Florida, who has two quick questions. “Can someone living on Supplemental Security Income receive an Earned Income Credit if she has one dependent? Can someone who is retired received the existing homebuyer tax credit $6,500?”

Dear Maxine,

In order to received the EIC, you must be supporting that one dependent. However, since the SSI is not earned income, it doesn’t qualify for the ‘Earned Income’ Credit. The credit is based on the amount of wages or self-employment income a person has. (Even rental income, since it is not considered ‘earned’,
does not qualify.)

However, there is no income requirement for the housing credits. All you have to do is qualify for the conditions. The existing homeowner credit requires that you have owned and lived in a principal residence for 5 years out of the last 8 years. And that your income be below $125,000 if you’re single. You sound as if you meet those requirements, right? Go for it!

And remember, you can find answers to all kinds of questions about IRS credits and other tax issues, free. Where? Where else? At TaxMama.com.

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

• Ask TaxMama :: Where taxes are fun and answers are free
• www.TaxQuips.com :: The number ONE free tax podcast online

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2010: Get Ready for a Tax-a-palooza

Let’s face it, from a tax policy perspective, 2009 was a bust. Except for creating a bunch of new credits in the name of economic stimulus, Washington pretty much ignored the revenue code. 2010 will be very different. Facing trillions of dollars of expiring Bush-era tax cuts, President Obama and Congress will be forced to make some critical decisions in the new year. 

Since this is the season of lists, here are five big revenue issues to look out for in 2010.

1. Paying for Health Care: While the House and Senate health bills are remarkably similar in their fundamentals (despite the howling over the public option and abortion), there are big differences when it comes to taxes. The House would fund a big chunk of health care with a 5.4 percent surtax on those making more than $500,000 ($1 million for joint filers). By contrast, the Senate would raise the Medicare tax on people making $200,000 or more, impose an excise tax on high-cost health plans, and enact a kennel full of cats-and-dogs revenue-raisers. The most likely outcome: a split-the difference compromise that will raise taxes on high-earners and, for the first time, limit the tax subsidy for some employer-sponsored insurance policies.

2. The Bush tax cuts: Most expire at the end of 2010. Without action, tax rates would revert to their 2000 levels. But since his presidential campaign, Obama has vowed to extend nearly all of them. He’d also extend the Alternative Minimum Tax patch. However, he’d restore the 36 percent and 39.6 percent rates for most top-bracket taxpayers and boost the 15 percent rate on capital gains and dividends to 20 percent for those making more than $250,000. This will set off another nasty partisan battle in Congress along the lines of “You’re raising taxes. We are not. You are too.” But lawmakers are likely to go along with most of it (Remember, Republicans can’t filibuster. No action means all the Bush tax cuts die.

3. The estate tax: As of January 1, this tax is repealed for one year, after which the old 2001 rules will apply (a 55 percent rate on the value of estates above $1 million). Before it left for the holidays, the House agreed to a 45 percent levy on estate assets in excess of $3.5 million. The Senate, however, did nothing. Democratic leaders promise to fix this mess early in 2010 and make any changes retroactive to January 1. 

4. The Budget: Obama is going to have to pull off an incredibly delicate fiscal balancing act. The economy is slowly but steadily improving. Yet unemployment—the indicator that matters most to politicians running for reelection– remains stubbornly high. So while White House aides will continue to talk about deficit reduction, Obama’s focus will be on more stimulus. But he is aware that international bond markets are getting increasingly worried about fiscal deficits (just ask the Greeks or the Irish).

And here is where the math fails the president. Extending the Bush tax cuts (except for the highest earners), patching the AMT, restoring the estate tax parameters to 2009 levels, and continuing Obama’s signature Making Work Pay tax credit will slash Treasury revenues by at least $2.5 trillion over the next decade. Obama can cut spending or find other taxes to raise, but he’ll make long-term deficit reduction that much harder by first digging the hole even deeper.

5. Tax Reform. One solution could be broad-based tax reform. But not in 2010. Obama has shown little interest and the post-health reform Congress will be too exhausted.

Still, while the conventional wisdom says Congress hates to confront big tax issues in election years, it looks increasingly as if it will have no choice in 2010.           

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Refund Delays

Today TaxMama hears from Dee in Virginia, with this concern. “I filed an amended return for 2007 in July of 2009 and am expecting a refund. I have called the IRS numerous times for a status and was told ‘’It is assigned to a desk, but held up because of tax credit overload and later (11/13/09) that the return was ‘’under review’ I have not received any written correspondence from the IRS. Is there a time limit on a response or acknowledgement from the IRS? What the heck is going on?!”

Dear Dee,

Great news! IRS acknowledges that they have the return. That’s not the case for many other amended returns that have disappeared in the system.

Bad news. IRS really is overloaded with homebuyer credit returns and net operating loss amendments – and they just don’t have enough staff to handle them all MANUALLY in any efficient time frame. Expect a delay of 4-6 months.

More good news! If the return is ‘under review’, that means someone has the file and is working it. You should get some correspondence soon. (Note: Soon could mean 60 days.)

Even more good news! You will get interest on your refund. The rate is at 4%, which is higher than you’re going to get from any bank right now. (See the Resource Box below for the current interest rates for payments and refunds.)

So, kick back, relax, and let IRS take their time to get you the correct refund!

And remember, you can find answers to all kinds of questions about IRS refunds and other tax issues, free. Where? Where else? At TaxMama.com.

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

• Ask TaxMama :: Where taxes are fun and answers are free
• www.TaxQuips.com :: The number ONE free tax podcast online
• IRS Interest Rates for 2010 ::
• IRS Interest Rates for 2009 ::

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Are You Being Audited Or Examined By The IRS?

Under IRS audit or exam? Help yourself and know what to expect. The IRS publishes information – Guides - telling you what it looks for during an audit. The Audit Techniques Guides (ATGs) contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations. These Guides focus on developing highly trained examiners for a particular market segment. These Guides cover all types of business, such as:

Construction Industry

Factoring of Receivables

Golden Parachutes

Retail Industry

Veterinary Medicine

Get help and use an experienced professional. Call Mitchell A. Port at (310) 559-5259.

Link to the original site

Top 10 End-of-Year Office Upgrades (You Can Probably Write Off)

By this time next week, it’ll be next year—and too late to turn a great investment in your work life into a lower tax burden in April. Splurge wisely on yourself with these write-off-friendly wishlist items.

Photo by jnyemb.

We have to point out that none of the Lifehacker editors are tax preparers, accountants, or financial advisors. Most of us pay taxes as freelancers, and have grown used to the idea of deducting everything we use to get our jobs done from our independent income. If you’ve got a sideline or freelance business, or itemized business deductions, shopping for some of these purchases—if you need them—could make a lot of sense before the year is up, but consult with a professional before dropping any serious cash in the hopes of a big tax move.

For another take on end-of-year tax moves, check out Gina’s list of essentials for 2009.

10. Plants, lights, and other soft touches

It’s easy to think that the only way to upgrade an office is to come home with a box from OffiStapleDepot. Grab some plants that produce better air or are hard to kill. Give your office some ambient rope lighting, or better sunlight coverage with a mirror. Buy some paint, tarps, and rollers and clear up a Saturday afternoon. You can do a lot for your office without breaking out a single screwdriver or USB cable.

9. A better keyboard and mouse

Your keyboard and mouse still work, but do they actually feel good to use? Do they just function, or do they manage to get entirely out of your way and reduce friction between thought and computer action? Enough said—check out the best mouse and keyboards our readers have used, and invest not only in your tax liability, but your wrists, fingers, forearms, and long-term comfort.

8. Second (or third) monitor

ZDNet columnist and writer of all-things-Microsoft Ed Bott recently tweeted that the loss of his second monitor saw “productivity plummet,” and he wondered how anyone worked with one monitor. It sounds ridiculous—unless you’ve gotten used to the ease of having more than one screen. The easy example is when you’re writing or chatting about something: you keep it open, full-size, on one screen, and use the other to type. You can monitor inboxes and browse on one monitor while injecting thoughts into documents on another, keep files and windows from two different projects separate but within arm’s reach, and, of course, rock much cooler wallpaper. Need more convincing? Check out Gina’s guide to making the most of your dual monitors for how-to inspiration.

7. USB car adapter

This one’s not much in the way of cost, unless your family’s got a fleet. Then again, you’ll be glad you can charge any gadget that accepts any kind of USB connection as a power source, all for the price of two fancy coffee drinks. Want the sleeker solution? This iLuv model goes for $15, and almost fits flush with your car charging port, so it looks like your car was just made to power everyone’s phones, cameras, iPods, and other devices. (Original post)

6. Label maker

Why do label makers capture the hearts of geeks and make organizing actually, sometimes, enjoyable? Because handwriting is often awful and looks unprofessional, and because cutting Post-It notes into little strips is monotonous. Gina has shown us how her Brother changed her life, and many of our readers can vouch for other models, as well.

5. Filing cabinet makeover supplies

If you don’t have a filing cabinet, buy one. If you have one that’s just acting as a side table for your papers and coffee mugs, you need to whip it into shape. That involves folders, labels (and maybe a label maker), and supplemental storage, such as airtight bins, for the files you still need to keep around. After the initial purge, you’ll also need a shredder to start getting a filing system workflow down. Among the safest items you can claim as a home office expense, a filing cabinet is a decidedly un-sexy, but necessary, purchase.

4. Serious, extra battery for a laptop or smartphone

It’s the smartest thing I’ve ever done for myself, at least as far as computers are concerned. My ThinkPad came with a standard six-cell battery, that held a decent charge, at first. But since it’s my main work computer, it sat with a charge constantly connected, and didn’t age that well when consistently exposed to the system’s own heat, or some other abuse I leveled upon it. So I bought a bigger nine-cell battery, wrote it off, but kept it in my laptop bag, not the computer. I keep it charged at about 80 percent, use it only when I’m going to be away from a power plug for some time, and it continues to be my steady backup. If you’ve got a laptop or smartphone with a kind of “meh” battery, you should do the same.

3. External hard drives and online storage

If you’ve got a Time Machine capsule or a big enough USB drive, and you remember to back it up constantly, then you’ve got your data security training wheels on. If you don’t have a storage space in a separate physical location, you’re still just practice pedaling. There are lots of free options, and for most home users, Mozy or Carbonite should fit the bill just fine. Then again, if you don’t have all that much to back up, or it’s not super-private stuff, a simple Dropbox upgrade can be very liberating.

2. A really nice office chair

You and your office chair are probably pretty close. Find a chair that’s not an expense-account-draining special, like certain brands fronted with a particular gentleman’s name (what is it, German Ziller?), but does more for your back than just stand behind it. You can find chairs that offer the same kind of lumbar support and breathe-able fabric, as we once did, and consult our readers’ office chair show-and-tell session for some great ideas. Image from commenter unleashed.

1. Pay for apps you’ve put off buying

We’ve always felt that great software can, and should, be free, but some great software can be made better with a premium edition or subscription. Among the apps we’ve paid for, or reviewed in spite of costing (gasp!) actual money, are virtualization solutions like Parallels 5 and VMware Fusion 3, both of which make Windows a smooth, easy part of the Mac life. Universal capture tool Evernote offers faster transcription and more storage to premium users (along with new offline capabilities on iPhones), while Remember the Milk offers access to its very cool iPhone and Android apps. Speaking of mobile apps, there are quite a few worth considering, including many Pro/Premium versions of our most popular iPhone apps. Point is, if there’s a premium app you’ve put off buying that might actually make a significant impact on your ability to get things done, consider taking the plunge.

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What business or office purchases have you previously made with the end of the year in sight? How are you spending your no-time-left funds next week? Give us your game plan in the comments.

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