Benjamin Franklin said that two things were inevitable in life: death and taxes. And the nice thing about death is that you don’t have Swift Boat Veterans saying that your wounds were superficial.
2004. The election campaign was the movie “The Never Ending Story” with no hope for a sequel.
It was the “Burning Bush” against the “Petrified Forrest.”
Lincoln and Douglas turned over in their respective graves during the debates.
At the end, the Republicans were playing “Dixie” while the Democrats were playing “Taps.”
Kerry was victorious. He goes home to a billionairess who can do “things” in 57 varieties. And they save millions of dollars because of Bush’s tax cuts with more to follow.
Bush has an interesting interpretation of the term “mandate.” He nominates Alberto Gonzales who believes in that a little bit of torture can be a good thing and that the Geneva Convention is like Santa Claus. It’s something for children and not to be taken seriously.
Merck and Company with Vioxx found a permanent cure for Arthritis. By the time the lawsuits are finished it will probably be called …And Company. They say John Edwards is available for litigation.
J. Lo broke up with Ben Affleck and married Marc Anthony. She is contemplating divorcing him and marrying herself. This could cause a constitutional crisis. From a tax standpoint, her status would be married filing double jointly.
The United States has rejected Ukraine’s poll results and Putkin turned around and rejected our 2000 election results. Their history books now have Gore as our president.
Many ABC affiliates refused to broadcast “Saving Private Ryan” because it was possibly obscene. It wasn’t the bullets riddling the soldiers landing on D day that were obscene. It’s the swear words used by the soldiers when the bullets were ripping through their bodies. The pen is more obscene than the sword.
BUT THE PEN IS MIGHTIER THAN THE CITY OF LOS ANGELES. Writers who earn less than $300,000 a year do not have to pay city tax starting July 1, 2005.
Bill O’Reilly learned that talk isn’t cheap.
There was the opening of the Clinton Library which some people say has a “Lady Chatterly’s Lover” wing. All the living past presidents and the current one attended. One might wonder what will happen when George W retires. It seems like the only book he’s ever admitted to reading is “My Pet Goat.” This is also the nickname that Kerry gave Edwards.
The average person spends 52 minutes a day looking for stuff they’ve misplaced. Ohio has spent 52 days looking for votes they’ve misplaced.
Martha Stewart will be hosting a TV show once she gets out of prison. A lot of actresses are firing their agents and getting a parole officer.
Republicans are laughing saying that it’s as easy for a Democrat to win a National election as it is for a rich man to get into heaven. Of course if Bush has his way in After-life reform, it will be much easier for the wealthy to enter there.
Because of the country being divided between Red states and Blue states, the Republicans refuse to sing the blues and the Democrats have refused to “see red.”
There is a new reality show about to be broadcast. It’s called “Accountants Gone Wild.”
And here’s to DEDUCTIONS GONE WILD.
There was THE WORKING FAMILIES TAX RELIEF ACT and the JUMPSTART OUR BUSINESS STRENGTH ACT in 2004. Though some people want to call it THE LET THEM EAT DEDUCTIONS ACT.
The ten per cent tax bracket has been extended through the year 2010.
The personal exemption is now $3,100. Children still cost more than this.
THERE IS A “HIE THEE TO A NUNNERY” TAX DEDUCTION: You may be able to use private school tuition as medical deduction. The school does not have to employ physicians but it must have a curriculum designed to provide medical care. Helping the student overcome physical or mental problems is the essence of special education.
MORE MEDICAL EXPENSE DEDUCTIONS. If a person needs help in performing two or more activities of daily living: eating, bathing, dressing, transferring, toileting, continence then all care giving services at home are medical deductions as long as there is a prescription from a licensed health care practitioner. Those of you who are just uncoordinated can not deduct this.
SALES TAX DEDUCTION IS BACK. This was basically set up for states that do not have state income tax. Taxpayers can either take the state tax deduction or look up in a sales tax chart what their sales tax would be plus sales tax on boats and cars etc. Most of you who live in states with a state tax will not benefit from this change. But those of you who have been reluctant to purchase an 80 foot yacht, this may now be the time to buy.
GIVE AWAY YOUR CAR TO CHARITY BY DECEMBER 31, 2004. Starting next year, you will be forced to go with the price that the charity will receive for selling your classic car that you have given away. This will curtail all charity car giving. Your family is never considered a charity.
SOCIAL SECURITY WAGE BASE RISES. The maximum FICA wage base will be $87,900. As a note, the world’s largest Ponzi scheme was not set up originally by Franklin Delano Roosevelt in the 30’s. It was Otto von Bismark of Prusso-German fame. He suggested that the retirement age should be 70 years old. Unfortunately, the average person only lived to 49. I guess the system would work better if we let people collect at 89 years old. Of course not raiding the social security coffers would have helped also.
YOU CAN NOW HAVE KIDS THROUGH 2010. There is a child tax credit of $1,000 for 2004 is allowed for each qualifying child under age of 17. There is a phase-out of the credit when married taxpayers make $110,000 and for single taxpayers who make $75,000.
MORE TEACHER’S DIRTY LOOKS…at least in California. The credit given to teachers for years of service has once again been taken away. I guess they should have supported Arnold Schwarzenegger. The $250 federal class material deductions has been extended.
HEALTH SAVINGS ACCOUNTS CAN HELP. For those single people who have medical deductibles of between $1,700 and $2,600 (married couples and family are between $3,450 and $5150), there is an individual retirement account for medical expenses.
GIFT TAX EXCLUSION is still $11,000. You can only give away $1,000,000 without any gift tax consequences. I’m sorry, Teresa Heinz.
There is an Indian employment tax credit that has been extended through 2005. Check your heritage.
THE $100,000 SUV deduction is gone. If you purchased an SUV after 10/22/04, you are limited to a $25,000 immediate write-off. There is still bonus depreciation. Ever since this was enacted gas prices have gone down.
STARTING A NEW BUSINESS? One can elect to take off the first $5,000 in start-up fees and up to $5,000 in organizational expenses.
STANDARD RATE FOR AUTOMOBILES SHIFTS INTO FOURTH. For 2004, it will be 37 ½ cents a mile. In 2005, it will be 40 ½ cents. So save your cross country research trip for 2005.
YOU MAY BE DRIVING A LUXURY CAR AND NOT KNOW IT. This year a luxury car is one that costs more than $14,800. So forget the Bentley and buy a Taurus.
A HUNDRED THOUSAND IN EQUIPMENT. For those of you holding out on Christmas business equipment, you can now deduct up to $100,000 in equipment. A business satellite is always a good idea.
BUY THE CAR BEFORE 12/31/04. Autos will have 50 per cent bonus depreciation until 12/31/04. Then it’s gone. So if you’re thinking of buying an auto that you use in business now may be the time. There is no bonus depreciation if you use it less than 50% for business or the vehicle is used.
The road to hell can now be depreciated with good intentions over 15 years. You can also deduct paving on a rental or commercial property over 15 years.
AMNESTY. And I don’t mean political amnesty in Canada. California wants everyone to come out of the closet. At least those people who have not filed tax returns. If you have balances due on an installment agreement, unpaid balance due without an agreement, are involved in a federal audit, have unreported income or questionable deductions, have unfilled tax returns or have appending state protest then you can apply for amnesty and they will waive the penalties. This is for all tax years prior to 2003. You have to apply for amnesty between February 1, 2005 and March 31, 2005. You also have to file the missing returns by May 31, 2005. If you don’t file for the amnesty, the penalties will increase. Businesses can apply for amnesty.
SOCIAL SECURITY AND SOCIAL INSECURITY. Everything will probably be changing soon. If you want to figure out whether to retire at 62 or 66 go to http://www/ssa/gov/retire. If you want to know whether it’s better to retire in Los Angeles or Costa Rica, we can probably help you there.
ELECTRONIC FILING. We do it. It’s a requirement by the state for all preparers with over 100 clients. It speeds up the refund and you only have to see us once. Those of you who want to see us more than once; there are signed photos available at the receptionist’s desk.
BILLING. Since you don’t have to see us more than once, billing has become more of a problem. If the check is really in the mail, then we may have the worst mail service in the world. We expect to receive at the end of our appointment either a check (can be postdated), a credit card charge or cash in any denomination. Your bill should also be current when we see you. It will help us keep our high level of service to you.
YEAR END PLANNING: It’s a different world. It may not be better to send your state estimated tax in December because of alternative minimum tax. You can still use your credit cards for charitable, medical and business deductions. You should also check your stock portfolio. If you have some losers, now might be the best time to sell. Incidentally, the minimum tax is when you want to pay your rightful tax and the government sneaks in their own form which is higher.
WITH THE ELECTION OVER, IT’S TIME FOR TAXES. L.A. Tax Service is now 22 years old. And just like a 22 year old, we are filled with knowledge, optimism and energy. Dom, our officer manager has been with us so long that when we hired her we must have violated child labor laws. She’s still a beautiful joy to behold. You can get into her good graces by asking about her child Alyssa’s report card. Patty still continues to crack jokes in both English and Spanish. At least we think she’s joking in Spanish. Her Jenny is beautiful and brilliant in both English and Spanish. Jim is our Rock of Gibraltar which is important for all 22 year-olds. Hadas with her fashion sense makes sure that we’re all trendy in case we get onto an episode of “Accountants Gone Wild.” Mercy is very important in both name and knowledge. 22 year-olds always need mercy. Nataliya holds all the secrets of our business. Her past experience with the Soviet Union will be very helpful. To balance everything out politically we hired a Keri who’s a Republican. David is our tech man, helping us go paperless. He scans then shreds everything we touch. Maybe that’s why our receptionist is missing. Don’t worry. She’ll be glued back together by tax season. Like most 22-years olds, L.A. Tax Service got a makeover. We painted the building. To be politically correct, by the end of your appointment, you will not be singing the BLUES or seeing RED.
BUSINESS MANAGEMENT. We have been offering this service for the past twelve years. We can pay your bills, invoice your clients and keep your books. We can handle both Quicken and QuickBooks on PC or Mac. We even do WINDOWS. For details of our services please see: Services.