All Cash Donations Must Be Documented in 2008 Pretty soon, you'll no longer be allowed any write-offs for contributions of cash, checks, or other monetary gifts unless you retain either a bank record that supports the donation (for example, a cancelled check) or a written statement from the charity that meets tax-law requirements. The existing rule that requires you to obtain charity-provided receipts for cash donations of $250 and more remains in force Smaller cash donations will fall under the new rule. Important: Once the new rule takes effect, you won't get any write-offs for undocumented cash contributions (such as money placed in church collections plates and cash dropped into Salvation Army pots). Write checks instead. Beginning Now: Stricter Rules for Donated Clothes and Household Stuff Effective for donations can no longer claim deductions for used clothing and "household goods" that are not in "good" condition or better. In addition to clothes, this unfavorable new rule applies to furniture and furnishings, electronics, appliances, linens, and the like. An exception allows you to write off single items that are in "less than good" condition if they're appraised at more than $500. It's been observed many people are giving away their tax deductible dollars and not taking benefits. Could you take benefit this year? Contact us. |
Clarity Accounting & Tax Services CATS
New Rules for Gifting and Donations
| Your NEWS - DID You WANT to KNOW?... |
Your Articles We encourage our clients and customers to share their business news and financial achievements. The NEWS submitted by our clients will be reviewed, edited, and posted on the website because of their merit and benefit to others. If you have some important information or business suggestions to share, contact us |
 | |  | |  | |  | |  | |  |
Affect You This Year? Vehicles Purchased or Placed in Service The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006. The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit. Hybrid vehicles have drive trains powered by both an internal combustion engine and a rechargeable battery. Many currently available hybrid vehicles may qualify for the tax credit. Certain models have been certified for the credit in the following amounts: Although not finalized, there will be energy credits for newer vehicles this year. To be announced. Residential Energy Credits In 2006 Individual taxpayers claimed up to $500.00 credit for installing energy efficient property in a personal residence. $500.00 is a lifetime credit, meaning the total amount of credit taken over a person's lifespan cannot exceed this exact amount. For improvements to property, qualifying individuals may receive 100% of the credit not to exceed the maximum amount. Other examples, like credit for a circulating fan would be at a $50. Natural gas or propane, oil furnace of hot water boiler would qualify for $150. Heat Pumps, water heaters and central A/C would gain a credit of $300.00 Are these credits to continue in the new tax year? If you have additional questions on these credits call our office (816) 734-1911 |
| Clarity Accounting & Tax Services CATS |
It’s been said that American citizens, by and large, don’t want to hear the real news that can dramatically affect their lives. I would guess that a number more like 20% of people are really interested in news that will help them live a better life and live it profitably. The remaining 80%? It’s anyone’s guess. What occupies the minds and time of the average person is really puzzling. We know about GAMES, we know about DRUGS, we know about Educational shortcomings that seem to be focused on destruction of our schools and engage in creating zombies rather than citizens of tomorrow. Parents may not be wise and the average person seldom pays enough attention to the Economic news of today. The discussion about Economics is so riddled with idiotic pundits who tend to confuse the issues we deal with every day. I realize that when the word ‘economics’ is mentioned, it’s like a Pavlovian signal to some and they immediately go into a ‘dumbing’ status with their minds turned off and the average person thinks that the subject is beyond their understanding. Last Spring I published a news article about -the Aware American - for the person who knew the USA was entering a Recession period. It is here. NOW. WE are in a recession/depression. The economic indicators (mountains of information) from our government offices are not good but few government agencies really tell you the truth, and maybe that is why people are turned 'off' when they hear something from economists, especially the hired guns on the Hill who spin everything to meet their agenda. Wake Up America! This is not Rocket science. This is simple stuff and I will show you how simple it is without any hidden agenda or hocus-pocus. If you're motivated to get to 'the truth' , here is your chance. 90% of the time when you think that something is not 'right' with the economic news you're hearing you're RIGHT! Too often people are only too wiling to give up their Common Sense intuition to comply and become subservient to other's ideas. We've seen only the collapse of housing prices....the problem is tht 89% of the people STILL do not understand WHAT went on, where the problem is, and WHY it is NOT getting resolved with the people we have at the helm of our financial systems in Washington and in government. It goes much deeper than that. There is a sharp reduction in Federal Funds, and this means Serious Problems ahead for USA 2008-2009-2010 and maybe beyond these years. Even with a massive Stimulus package, aimed, not at the middle class workers (which was supposed to help the middle class) was really created to help the big boys in corporation and unions who supported the Democratic party. That is the long and short of it. It was pay-back time. Even Stimulus package # 2 or Stimulus # 3 will do very little to alleviate the American financial problems except enrich the lobbyists and the people in Congress and their 'good fellows' who support them. The public voted on HOPE. (that was the Obama message) The public is so anxious for HOPE, they did not know and could not know through this opaque and dishonest DEM system, that there is little else behind the words of HOPE. How would it be if we quit the HOPE agenda and get on the Knowledge agenda? Wouldn't that be a good way to help ourselves and reverse the negative trends that are robbing us and our children to decades of poverty coming up on the horizon? Mr. HOPE has no economic background and relies on the 'internationals' expert's" knowledge to make up for what HE does 'not know'. Too bad. It was exactly the same "international experts" and 'big brains"hat got us into the financial crisis we are in. To hope that the same people will have a vested interest in fixing the problem is something like hoping the goodness and love will rule the world one day and that the foxes will watch the chickens on the roost. . IF Hope is our only tool we have in our Toolbox of remedies, this county is in serious trouble. It does not take a brain-scientist to realize that two plus two is still equal four and when Washington spends sixteen and takes in two, we have a serious shortfall problem and printing phony money won’t cover the cost. As a matter of fact, Phony-money, called Monopoly money when we were kids, only aggravates the problem as it prints more money with less and less value. Therefore, inflation will get greater and larger and value becomes less and less. . This is a simple A-B-C concept, and one that everyone can understand. This one is easy to understand isn' t it? Have we all played monopoly- when you loose, you loose. The sad things today is that the AMERICAN worker and the American public DID not loose - they were Robbed! Big time. And how did this happen? The principle cause for concern today is that the TOOLS needed to change the economy around is not a remedy Washington and the Federal Reserve board wants to use. The remedy is much too painful, and if there is any pain to be experienced, in their view, they would rather it was the taxpayer who had the pain. What is happening today is that with the Unprecedented national failure in house prices, household wealth is diminishing by $2 trillion dollars for each 10% decrease in housing prices.. Consumers are loosing money which means they are loosing buying power. But much more than that. ....I can't go into all the details of the 'why and wherefore' in this short news item, but in terms that most people understand....The sum of about 63 Trillion Dollars has been stolen from the USA economy. How did they do it? Who are THEY? What is the results we have seen? Loss of buying power means businesses fail; Commodities stopped being produced; Deliveries fail to arrive; Investment funds loose 40% or more of their value Stores close Employees loose their jobs Credit becomes harder to get The cost of Living jumps up all over as inflation sets in Energy costs surge (new tax on energy) There is no money for public projects consumers are left wanting as the shelves become empty and prices skyrocket as the value of the dollar has dropped to almost nothing. Not a pretty picture.. Falling prices also discourage home building that has fallen 48% (and more) in the past twelve months. The combination of ‘loss of wealth’ with the paralysis in the domestic and foreign money (credit) markets, there is no hope for market expansion. Understanding these simple mechanics of credit will help you understand. As credit disappears and diminished in our society that has been built upon the principles of “Credit extensions” and money velocity (how often one dollars goes around the market), and when the velocity decreases and the real value of money decreases and shrinks, there is only one direction possible, and that is down to a depression. This is the news no one wants to tell you and you don’t want to hear. We live on Hope and wish to continue living on Hope. It’s not a coincidence that MR Hope is so popular these days - he offers HOPE to many who see that soon we will have nothing left but hope. If the Federal government could do something about the Credit and money crunch, it would. The discouraging thought is that there is nothing the Feds can do except print phony money. Our financial markets have disappeared, not only because of mismanagement and lack of oversight by our federal trustees, but because (worthless) monetary instruments (what are they and how do they work?) were allowed to be created by permission of federal agencies who are supposed to be watching the chicken coop but instead, are watching special interest pockets . The structure of investments vehicles like SIV’s, credit conduits that are only paper and have no value, credit swaps and other ‘credit obligations’ that are as worthless as the wind in the desert. These were created with the complicity and support of the government financial arm. The implications of this lack of Federal oversight and their sustained policy of ‘laissey-faire’ and working with new economic theories of 'risk' to see how far they could push the envelope lead to all types of new credit instruments that are worthless. But having SOLD these worthless (supposedly money) instruments with the Guarantee (why did they sell so well?) from the Governments BANKS of the Money Through that Barney Frank and FNMA and FREDDY MAC have (given their guarantee of the government( to BACK the useless paper) they were then encouraged to SELL this phony paper (yes encouraged) to European banks and investment houses, as well as investment banks all over the world. Of course, why not? They were backed by USA government weren't they? And what happened? While the SELLERS of these instruments (most of the Investment and stock selling companies) and the AIG company who sold Insurance on the useless paperwork (why not spread it around and tie an insurance company into it?) made millions and trillions of dollars (and stashed them away - wonder where?) the SELLERS and the government KNEW that this was a house of cards waiting to come down. And who is left holding the bag? The guarantees (US taxpayer, of course) made by the Finance committee and the Federal Reserve people (the SAME people who know are trying to FIX the problem?) Yes. What a surprise. Now , is this hard to follow? Didn't the genius of our times say something to the effect that one cannot SOLVE a problem with the same sources (players groups) that caused the problem? We are in deep doo-doo. Notice how the problem becomes a 'we' problem when talking about consequences, and yet, we don't hear 'we' when its time to distribute profits from all those exotic financial instruments? Trust me, many people made bit profits.....equal to the losses we are experiencing. It does not take an expert to understand that our federal agencies and others on Wall street and the Hill have sold the US economy down the drain and offered floral bouquets along the way to allay our fears of mismanagement in the financial markets. We can only Hope they will actually put the real remedies in place, aside from printing more phony dollars, that will give our country real Hope as it adjusts to a difficult future. It’s going to be a belt tightening and interesting time ahead. What is being sold to the public in the news media these days and all the CRISIS problems brought forth by the people in CONGRESS are only smoke screens to hide their inneficiencies. Hopefully, so we remain dumb and will vote them back in office? Wake up America! . |
Need to Advertise? Call us with your advertising needs (816) 734-1911 |
Interesting Numbers Inflation Numbers on Some Commodities since 2002 Gasoline is up 40.0% Sugar is up 79.3% Aluminum is up 98.3% Gold is up 132.0% Coffee is up 148.5% Platinum is up 183.7% Silver is up 198.8% Natural Gas is up 202.5% Rubber is up 262.5% Heating Oil is up 276.4% Oil is up 279.7% Copper is up 389.4% Nickel is up 408.4% Cadmium is up 1,375.4% |