Chicken lovers push to lift town’s ban on backyard coops
CARY - Why did the chicken cross the road?
Because Cary told it to scram.
That’s a growing joke in urban poultry circles. Long stereotyped for its rule-happy sameness, Cary refuses to allow backyard chicken coops. Too noisy. Too smelly. Too … well, un-Cary.
But the town’s defiance has stirred a grass-roots chicken push; its supporters hope to bust Cary’s reputation as a snooty killjoy.
Check out the new Web site carychickens.com, or the poultry fans flocking on Facebook, the popular Internet social hub.
They point to Raleigh, where chicken coops are common enough that in some neighborhoods you can pass three on a single block, and where the annual Tour d’Coop draws a curious crowd.
Wake Forest just relaxed its poultry rules — letting homeowners keep up to 10 hens — and Durham is pondering the fresh-egg benefits of city chickens.
Cary, like the farmer in the dell’s cheese, stands alone.
“They don’t want to be seen as rednecks,” coop hopeful Michael Manfre said. “I don’t see how that association works, because cities like New York, they also allow chickens.”
In July, Manfre and his wife, Alissa, laid out their chicken plan for the council.
The rules: No roosters. No slaughtering. Permits required.
The perks: Tastier eggs. Locally grown food. Pets that eat bugs.
But the idea died when the council voted down a motion to study the possibility. Cary does allow poultry in its scarce agricultural zones, but council members backed firmly away from putting birds in neighborhood yards.
“Everywhere I went, I had people begging me not to let this happen,” council member Don Frantz said. “Noise, smell, disease, property values. It’s not an urban thing. It’s best left to the country.”
As to Cary’s image, and whether the chicken ban adds to its renown for regulation, Frantz shrugged.
“I guess that’s part of the reason we win so many national awards,” he said.
Chicken supporters in the Triangle and nationwide say most of the fears are misguided.
Having a few chickens in the backyard isn’t any noisier or messier than keeping a pet dog, fans say. Roosters are a different story, but they aren’t asking Cary for anything that crows.
“I’m not a morning person,” Manfre said. “I don’t want to hear them, either.”
Most towns require coops that keep hens from wandering, and any owner will tell you that a coop needs constant cleaning.
Cary leaders warned that for every law-abiding chicken keeper, you’d see two scofflaws. But in Raleigh, longtime chicken owners say they are vigilant.
“All of us are sensible, so they don’t crack down,” said Bev Norwood in the Five Points neighborhood. “We had our chickens for months, and the people whose bedroom window is 20 feet away didn’t even know we had chickens.”
Manfre said it is ironic that Cary would hold up its award-winning status when defending the no-chicken stance.
The town recently ranked 16th on Money magazine’s list of best small cities. Nearly every place that ranked higher — including Fort Collins, Colo., and Round Rock, Texas — permits poultry.
Cary’s council might not fret about how that looks to outsiders, but some residents do.
Read More:News & Observer
(ARA) - According to the Internal Revenue Service (IRS), the number of electronically filed tax returns surpassed a record in 2007 when nearly 80 million tax returns, approximately 60 percent of all individual federal income tax returns, were e-filed. Over 57 million returns came from tax professionals. More than 22.5 million taxpayers used software e-filing services from their home computers — up almost 10 percent compared to the prior year.
But just how secure is the IRS’ e-file system? IRS e-file transmissions are very secure because the IRS is extremely diligent in the design, development, analysis and testing of its infrastructure and systems. Perhaps the most telling is that, as of Tax Year 2007, nearly 800 million tax returns have been filed electronically since 1986 with no security incidents. In a nutshell, it is safe!
Yet, while there is a substantial portion of taxpayers who use tax preparation software to prepare their return — a surprising number of these filers opt to print and mail their tax forms rather than using e-file.
“There are two predominate explanations why those who use tax software to prepare their return opt to mail rather than e-file their taxes. In some instances, taxpayers may have a lingering distrust of technology — concerned the privacy of their data may be compromised. Still there are other taxpayers who simply feel their tax software service provider charges too much for e-filing tax data to the IRS,” says Stephanie Behrends, spokesperson for 2nd Story Software, Inc., makers of the popular TaxACT tax preparation software and Web-based services.
Behrends continues, “The reality is that e-file eliminates most opportunities for mistakes and enables filers entitled to a tax refund to receive it faster. In fact, e-file increases a filer’s control over their tax data because of the security and safeguards in place.”
Indeed, when you e-file your taxes, there are a number of advantages.
* Convenience. You can electronically file 24 hours a day, 7 days a week – from anywhere you have access to a computer.
* Security. Your tax return information is encrypted and transmitted over secure lines to ensure confidentiality.
* Accuracy. With a reported error rate of less than one percent by the IRS, electronically filed returns have far fewer errors than paper returns. Conversely, the IRS reports up to a 20 percent error rate for paper returns.
* Proof of Filing — E-filing your tax return will provide you with an Electronic Postmark — also referred to as an Acknowledgement. When you e-file your taxes, you’ll receive an e-mail — within 24 to 48 hours — acknowledging the IRS has received your return and that it will be processed.
* Improved Communication. If an error is detected by the IRS (e.g. a SSN does not correspond with the taxpayer’s name on record), error codes can be communicated faster and more efficiently. In most cases, Error Code Explanations supplied by the IRS and your tax software provider can identify the location of the error in the tax return and provide complete information with regards to how you can make the correction.
* Faster Refunds. E-filing your tax return gives you the added advantage of receiving your tax refund in half the time it would take if you mailed a paper return. And, when you use e-file in combination with Direct Deposit, you can receive your money in as few as eight days.
But what about the high fees that some tax software companies charge to e-file your taxes? Behrends reveals not all software companies charge these fees. “TaxACT is a very unique tax preparation product. TaxACT Standard (Online or software download for Windows) is completely free tax software that enables all taxpayers to prepare, print and e-file a federal tax return — no gimmicks, no rebates, no restrictions.”
Are you thinking about using tax software to file your taxes — helping you to conserve time, save money, and avoid making costly mistakes? Still have questions about e-file? Visit http://www.IRS.gov/efile for more information. More information regarding TaxACT may be found by visiting http://www.TaxACT.com .
A recent National Water Commission (NWC) stock take reveals an amazing array of charging regimes for household water use. The stock take of 57 of Australia’s urban supply systems found that
• 25 set a fixed service charge and then add an “inclining block” charging regime on top of this fixed charge that increases the charge per kilolitre (Kl) in a number of steps;
• 4 use an “inclining block” regime without a fixed service charge;
• 1 uses a “declining” block regime; and
• 24 use a “two part” tariff regime that superimposes a volumetric charge on a fixed service charge; and
• 3 apply a service charge only and don’t charge for the amount of water used.
The record for the maximum number of “inclining blocks” goes to Busselton Water with an eight block regime. You pay $0.48/Kl for the first 150 Kl, $0.62 for the next 150 Kl, etc. Over 1,950 Kl per annum, you pay $2.53/Kl. Busselton, however, does not set a fixed service charge. Lower Murray Water is the only water supplier with a seasonal charge. Water is cheaper in winter.
Given the state of our water supply systems, what is the best way to charge for and ration household water use? Have any water suppliers of the 57 supply systems got it right or have they all got it wrong?
Clarification of objectives
Unfortunately, governments tend to use water pricing regimes to achieve equity, environmental, revenue and economic efficiency objectives simultaneously. This approach violates a golden rule in policy development, to avoid conflicts – use a separate instrument to achieve every objective and, once an instrument is assigned to one objective, don’t try to use it to achieve another objective.
Economic efficiency when there’s lots of water
What we pay influences what we do and what we buy. If water is abundant, then the efficient price to set is the long-run marginal cost of supplying one more kilolitre – including management costs, the costs of being the supplier of last resort and providing a return on capital.
The next step in pursuing efficiency is to charge according to the actual costs of delivering water to each suburb in each season. In regions where delivery costs vary significantly, this means that postage stamp pricing arrangements need to be replaced with city or town by town pricing arrangements.
Further, it is also necessary for the cost of upstream environmental and other externalities to be reflected in your water supply bill. To encourage you to manage for downstream externalities, however, these need to be charged separately and in proportion to their extent.
Once built, the cost of maintaining and depreciating all infrastructure becomes part of the long-run marginal cost of water supply. The more supply reliability you want, the more you have to pay per kilolitre. Desalination plants, for example, are expensive and, once built, have to be paid for. Great when there a water shortage but an expensive white elephant if there is lots of water around.
Economic efficiency when water is scarce
When it unexpectedly gets or stays dry, water supplies have to be rationed. There are two ways to ration water use. One way is to introduce water restrictions which impose indirect costs on many people. The other way is to increase the price.
Economic research keeps on pointing to the fact that water users respond to price increases. Pragmatic as ever, Quentin Grafton recommends that the best way to set a scarcity price is to estimate the amount of water in storage every quarter and charge accordingly. As dam storage goes down, the price goes up. To drive home the scarcity message, meters need to be read and bills sent, at least, quarterly. In the USA, many utilities read every meter every month.
As outlined in Droplet 5, another way of achieving the same outcome, is to allow urban water trading. Set the maximum amount of water that an average household can use in a quarter and let those who really want water buy it from those prepared to sell.
In times of scarcity, the water supplier collects more money than is needed to cover costs. Some people think that this money should be returned to users, others think it should be used to finance new infrastructure. Either way, it is quite clear that there is a need to change the way we charge for water.
Equity
Many people think that water, especially non-discretionary water (water used inside houses), should be supplied at an “affordable” price. This is why there is so much interest in inclining block tariff regimes. “Affordable” is code for not having to pay for the full cost of the water delivered. The idea is that the first amount of water you use should be cheap. Those who use lots of “discretionary” water (gardens, pools, etc) should have to pay more for it. The result is a cross-subsidy from large water using households to small water using ones. At first glance, this may seem reasonable.
But when you dig a bit deeper, it becomes clear that inclining block tariff regimes transfer money from disadvantaged households to richer ones which, as a result of the block regime, gain access to cheap water. Concerned that inclining block systems are inequitable, John Quiggin has shown that if you want to help disadvantaged households, it is better to set a uniform charge and then pay rebates to every-one or only to those in need. In short, use separate policy instrument to chase each objective you are interested in. Remember, however, that a typical person uses around 46 kilolitres per year. At current prices, the cost of water used per person is less than the cost of running an old fridge in your garage.
Inclining block tariffs are inequitable also because most of them are implemented on top of a fixed service charge. For the 25 NWC’s water supplier utilities who combine an inclining block tariff with a fixed service charge, the average fixed service charge is $124 per household. If you use of 100 kilolitres per year and are charged $0.50 per kilolitres for this first block of water, the real cost per kilolitre delivered to you is $1.74/ kilolitres. This is not cheap water.
Revenue
The real reason water supply utilities set fixed charges is that this guarantees them a revenue base. These utilities are monopolies but it is hard to argue that they should not be subject to the same pricing disciplines as other businesses. In summary, inclining block tariff systems represent a clumsy attempt to achieve efficiency and equity objectives simultaneously. We believe they should not be used.
Read More:Water and Wastewater.com
Raleigh, NC – Nathan R. “Chip” Hymiller, III, CFP®, a principal with the Raleigh-based Beacon Financial Strategies, has announced that Erin Campbell, CPA, CFP®, will speak to the clients of Triangle Family Services on February 20, from 6:00 p.m. until 7:30 p.m. at the Durham office, and on February 26, from 6:00 p.m. until 7:30 p.m. at the Raleigh office. Campbell’s informative presentation will include information on the basics of tax filing and the important reasons to file tax returns.
“Knowing basic information about how to file taxes and why it is so important is something that everyone can benefit from,” said Campbell. “This educational session will help make preparing and filing returns easier and less stressful. Furthermore, the session will inform individuals of the risks and consequences of not filing, as well as the benefits of filing correctly, every year and on time.”
Campbell was given the opportunity to speak to Triangle Family Services through the NCACPA Financial Literacy effort, a statewide grassroots endeavor to get CPAs to volunteer in their communities addressing the importance of saving and understanding the basics of personal finance.
For more information on Beacon Financial Strategies, call 919-321-8625 or visit www.BeaconFinancialStrategies.com.
For more information on Triangle Family Services, visit www.tfsnc.org.
For more information about NCACPA Financial Literacy, visit www.ncacpa.org or www.growyourgreen.org
Read More:CarolinaNewsWire
You may be in Mail Order, Direct Mail, or you may be a local merchant with 150 employees; whichever, however or whatever - you’ve got to know how to keep your business alive during economic recessions. Anytime the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a “tight ship.”
Some of the things you can and should do include protecting yourself from expenditures made on sudden impulse. We’ve all bought merchandise or services we really didn’t need simply because we were in the mood, or perhaps in response to the flamboyancy of the advertising or the persuasiveness of the salesperson. Then we sort of “wake up” a couple of days later and find that we’ve committed hundreds of dollars of business funds for an item or service that’s not essential to the success of our own business, when really pressing items had been waiting for those dollars.
If you are incorporated, you can eliminate these “impulse purchases chases” by including in your by-laws a clause that states: “All purchasing decisions over (a certain amount) are contingent upon approval by the board of directors.” This will force you to consider any “impulse purchases” of considerable cost, and may even be a reminder in the case of smaller purchases.
If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads, or even one of your suppliers.
If your business is a sole proprietorship, you don’t have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don’t really need it or can’t afford it.
While you may think you cannot afford it, be sure that you don’t “short-change” your self on professional services. This would apply especially during a time of emergency. Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you’re skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan
that could ruin you.
As an example, an experienced business consultant can fill you in on the 1244 stock advantages. Getting eligibility for the 1244 stock category is a very simple process, but one with tremendous benefits to your business.
The 1244 status encourages investors to put equity capital into your business because in the event of a loss, amounts up to the entire sum of the investment can be written off in the current year. Without the “1244″ classification, any losses would have to be spread over several years, and this, of course, would greatly lessen the attractiveness of your company’s stock. Any business owner who has not filed the 1244 corporation has in effect cut himself off from 90 percent of his prospective investors.
Particularly when sales are down, you must be “hard-nosed” with people trying to sell you luxuries for your business. When business is booming, you undoubtedly will allow sales people to show you new models of equipment or a new line of supplies; but when your business is down, skip the entertaining frills and concentrate on the basics. Great care must be taken however, to maintain courtesy and allow these sellers to consider you a friend and call back at another time.
Your company’s books should reflect your way of thinking, and whoever maintains them should generate information according to your policies. Thus, you should hire an outside accountant or accounting firm to figure your return on your investment, as well
as the turnover on your accounts receivable and inventory. Such an audit or survey should focus in depth on any or every item within your financial statement that merits special attention. In this way, you’ll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.
Many small companies set up advisory boards of outside professional people. These are sometimes known as Power Circles and once in place, the business always benefits, especially in times of short operating capital. Such an advisory board or power circle should include an attorney, a certified public accountant, civic club leaders, owners or managers of businesses similar to yours, and retired executives. Setting up such an advisory board of directors is really quite easy, because most people you ask will be honored to serve.
Once your board is set up, you should meet about once a month and present material for review. Each meeting should be a discussion of your business problems and an input from your advisors relative to possible solutions. These members of your board of advisors should offer you advice as well as alternatives, and provide you with objectivity. No formal decisions need to be made either at your board meeting, or as a result of them, but you should be able to gain a great deal from the suggestions you hear.
You will find that most of your customers have the money to pay at least some of what they owe you immediately. To keep them current, and the number of accounts receivable in your files to a minimum, you should call them on the phone and ask for some kind of explanation why they’re falling behind. If you develop such a habit as part of your operating procedure, you’ll find your invoices will magically be drawn to the front of their piles of bills to pay. While maintaining a courteous attitude, don’t be hesitant, or too much of a “nice guy” when it comes to collecting money.
Something else that’s a very good business practice, but which few business owners do is to methodically build a credit rating with their local banks. Particularly when you have a good cash flow, you should borrow $100 to $1,000 from your banks every 90
days or so. Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month or so before it’s due. By doing this, you will in crease the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable.
By all means, join your industry’s local and national trade associations. Most of these organizations have a wealth of information available on everything from details on your competitors to average industry sales figures, new products, services, and trends.
If you are given a membership certificate or wall plaque, you should display these conspicuously on you office wall. Customers like to see such “seals of approval” and feel additional confidence in your business when they see them.
Still another thing often overlooked: If at all possible, you should have your spouse work in the business with you for at least three or four weeks per year. The important thing is that if for any reason you are not available to run the business, your spouse will be familiar with certain people and situations about your business. These people should include your attorney, accountant, any consultants or advisors, creditors and your major suppliers. The long-term advantages of having your spouse work four weeks per year in your business with you will greatly outweigh the short-term inconvenience. Many couples share responsibility and time entirely, which is in most cases even more desirable.
Whenever you can, and as often as you need it, take advantage of whatever free business counseling is available. The Small Business Administration published many excellent booklets, checklists and brochures on quite a large variety of businesses. These publications are available through the U.S. Government Printing Office. Most local universities, and many private organizations hold seminars at minimal cost, and often without charge. You should also take advantage of the service s offered by your bank and local library.
The important thing about running a small business is to know the direction in which you’re heading; to know on a day-to-day basis your progress in that very direction; to be aware of what your competitors are doing and to practice good money management
at all times. All this will prepare you to recognize potential problems before they arise.
In order to survive with a small business, regardless of the economic climate, it is essential to surround yourself with smart people, and practice sound business management at all times.h people trying to sell you luxuries for your business.
Garner NC City Guide and Business Directory
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One of the most important, least understood and appreciated aspects of any business, is its bookkeeping or accounting system. And, because very few people know much about the reasons for a bookkeeping system, most people are frightened by the thought of the work involved in setting up such a system, and the drudgery of daily maintenance.There’s really nothing complicated to bookkeeping - it’s as sim§ple as keeping a daily diary and/or maintaining your personal checkbook. At the bottom line, it’s simple a matter of recording your deposits - your incoming monies - and keeping a record of the money you spend.
So, the first thing you need to do is open a business account for your extra-income business or endeavors. Generally, this is simply a matter of asking the new accounts teller at a local bank for a business account registration card. Fill this card in, and with the small registration fee, send it in to the appropriate commissioner, and from there, open your new business account - complete with imprinted checks.
Drop by a local sxtationery store and pick up a loose leaf notebook, and a supply of paper. We’ve always picked up a supply of index tabs at the same time - either to separate the months or the accountability sections for each item we sell.
Assuming that you want to make it as simple as possible, while at the same time keeping it as efficient as is necessary - here’s what you do and how you do it.
On the first page in your notebook, write on the top line and in the middle of the page: Monday, January 1st, 1994 or whatever day you officially start your business. Then, as your orders come in - if by mail, as you open your mail - jot down starting from the left side of page, the amount you received - dash - for what - from whom, and their address. The page might look like this:
Monday - January 1st, 1994
$3 - Tax-Saving Report - Jim Sloan, 97301
$6 - Tax-Saving & Dating Report - Steve Nelson, 30261
$3 - 5-Letters P/Day Report - Gloria Watson, 63222
$10 - Easy Money - Bob Elliott, 42134
$10 - How To Sell Books by Mail - Dave Sasseen, 11301
TOTAL INCOME: $3…EXPENSES: None
That’s all there is to it, and emphatically, all it is to recording what you receive and what you spend.
The next entry, immediately under the first day’s entry, might look like this:
Tuesday - January 2nd, 1999
$60 - Deposit
$11 - Check to Printer
$11 - Consulting Manual - H.P. Barnum, 33351
$3 - Tax-Saving Report - Rulon Collins, 21265
$3 - Seminar Promoter’s Report, Kim Novak, 90631
$7 - H/B Business Ideas Report - Charles Johnson, 97620
$10 - Hong Kong Directory - Robert Carpenter, 89401
$2 - Money Getter’s Guild Member - Glen Brinks, 83801
$15 - How To Steal $1,000,000 Free Publicity - Joe O’Malley, 77919
$20 - New Release Program - Nancy Hall, 82109
TOTAL INCOME: $7…+EXPENSES: $11…DEPOSIT: $60
And then, carry on with this recording of the money you deposit, receive and spend each day with similar entries for each day of the week - every day Monday through Saturday for each week. It’s simple, uncomplicated, and a positive record of your business activity.
Then at the end of each month transfer this daily diary information to one of the low cost bookkeeping registers that your tax consultant or accountant can work from. These people won’t work from your daily diary, and will not transfer the information you record in it to a formal bookkeeping register without charging you a small fortune. It’s not that big of a job, and if you do it after the close of business on the last day of each month, it won’t take you but just a very few minutes. Then, of course, when you’re ready to file your taxes, you simply give your bookkeeping register to whoever is going to do your taxes, and you’re home free.
The bookkeeping register you’ll need can be any simple columnar notebook - we use an “Ekonomik Register, Form RL-17″ available in a number of different styles and sizes form Ekonomik Systems - PO Box 11413 - Tacoma, WA 98411. All you really need is some sort of notebook with a number of columns marked off, a title written at the top of each column, and a record of the money received for each day relative to the product or service each column represents. Then at the end of each month, you can simply add the totals from each column and you’ll instantly know how much money you took in form each of your offers.
Beyond the date column, will be your record of expenses or money spent. Again, you should title each of the columns you’ll be entering figures into, and then record your expenditures for items falling into those categories. Then at the end of each month, it’s a simple matter to add the totals from each column and know exactly where you stand relative to profit or loss - how much you took in compared to how much you spent.
Bookkeeping and/or accounting is very simple and should not scare you. Just keep it simple, and up-to-date.
Garner NC City Guide And Free Local Classifieds
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RALEIGH, N.C. - Tax season is nearly here and Legal Aid of North Carolina (LANC) is reaching out to its clients and other low-income persons to provide free, personal income tax return preparation assistance. To qualify for this free service, a family has to have made under $40,000.
“Whether a person worked all year or just a part of the year, they can use this free service,” said Willette Crews, LANC’s Tax Assistance Project coordinator.
The service is sponsored by LANC with the IRS providing oversight under its VITA (”Volunteer Income Tax Assistance”) Program. Trained volunteers will be able to help with special credits, such as Earned Income Tax Credit (EITC), which is refundable federal income tax credit for low-income working individuals and families.
“We want people to take advantage of this free service,” said Crews. “Family budgets are tight and this directly benefits families by saving them money.”
In addition to free tax return preparation assistance, LANC will also offer free electronic filing (e-filing). Individuals taking advantage of the e-file program will receive their refunds in half the time compared to returns filed on paper - even faster if you have your refund deposited directly into your bank account.
Tax preparation services will take place by appointment at 20 LANC offices across North Carolina.
Appointments for tax preparation can be scheduled by calling LANC’s toll-free telephone number, 1-866-219-LANC (1-866-219-5262) or by calling local LANC offices.
Additional information on the LANC Tax Assistance Program (TAP) may be found on the LANC Internet website, https://www.legalaidnc.org/Public/Participate/TAP/default.aspx.
Legal Aid of North Carolina (LANC) is a statewide, nonprofit law firm that provides free legal services in civil matters to eligible, low-income people in all 100 counties in North Carolina through 24, geographically located offices in North Carolina. LANC’s clients typically have an annual income of 125% or less of the federally established poverty levels.
CONTACTS:
Willette Crews
(Coordinator, Tax Assistance Program, Legal Aid of NC), Durham, NC, 919-688-6396
George R. Hausen
(Executive Director, Legal Aid of NC), Raleigh, NC, 919-856-2564
Dock Kornegay
(Director, Public Relations & Development, Legal Aid of NC), Raleigh, NC, 919-856-2564
SOURCE:CarolinaNewsWire
ARA) - The individual Alternative Minimum Tax (AMT), implemented in 1969, is a parallel income tax system that was created to prevent 155 wealthy Americans from aggressively using tax credits, deductions, and legal tax shelters as tools to help them avoid having to pay federal income tax. The idea was simple: Create a minimum tax that ensured everyone pays Uncle Sam his due.
Fast forward to present day and you’ll find millions of middle-income Americans are now getting snared by the AMT. The main reason the AMT now reaches into the pockets of the middle-class is because regular income tax brackets are indexed for inflation but the AMT thresholds are not. The result has been the steady expansion of households who find themselves hit by the AMT — especially households with a large number of children, education credits, residential energy credit and/or state and local taxes.
Why haven’t Americans been clamoring for an immediate overhaul to the AMT? Thus far, the full effects of the AMT have been deferred by Congress enacting a series of temporary patches — boosting the amount of the AMT exemption.
The last temporary fix to increase the exemption, however, expired at the end of 2006. If Congress fails to ratify another provisional one-year increase in the next few months, the number of households paying the AMT will escalate exponentially from approximately 4 million in 2006 to nearly 23 million for 2007.
To determine if a taxpayer owes tax under the AMT, filers must calculate their taxes under both the regular tax and AMT systems — making the “Alternative Minimum Tax” tax a bit of a misnomer considering taxpayers must pay the higher of the two. The biggest factor impacting AMT filers is that they are no longer eligible to claim certain deductions and exemptions (i.e. education credits, child care credits, and the deduction for state and local taxes).
Sound complicated? It can be if taxpayers don’t plan ahead and use the tools that are available to them as a significant portion of taxpayers may be surprised when they are suddenly hit with a big tax bill, plus possible penalties come next April. Some planning tools are even free, such as the tool offered by 2nd Story Software, Inc., makers of the popular tax program TaxACT.
“It seems unlikely that lawmakers will fail to pass another patch to serve as a quick fix to hold down the reach of the AMT. Guessing wrong, however, could prove costly. Unfortunately, there are a vast number of factors that will trigger the alternative tax for any given taxpayer,” says Stephanie Behrends, spokeswoman for 2nd Story Software.
“TaxACT Preview is a taxpayer’s ally, allowing users to perform what-if scenarios to determine their estimated tax liability,” she says. “Users simply need to step through the TaxACT interview entering their forecasted income and deductions for the tax year by answering simple questions in layman’s terms. TaxACT simultaneously calculates your projected tax with the regular tax system and the AMT system based on the taxpayer’s tax bracket and the most recent tax information available.”
Visitors need only to complete the site’s free online registration to gain access to TaxACT’s Online Deluxe Preview version. The tools available at www.taxact.com allow users to generate a forecasted federal and state income tax refund or liability amount – which will provide valuable insight into their tax situation. Once the final version of TaxACT releases in early January 2008, users can easily finalize their tax return and print and/or e-file their federal tax return for just $9.95.
Do you have more questions regarding the AMT and how it may impact you? More information is available at www.IRS.gov — just enter keyword “AMT” or “Alternative Minimum Tax”.
Courtesy of ARAcontent
RALEIGH, N.C. - Discriminating North Carolina beer lovers toast the season with festive ales that range from dark, rich brews to more hoppy varieties. Colder months bring on ‘winter warmers’ that pair nicely with hearty dishes and often have warming strength with a touch of holiday spice.
“More North Carolinians are looking for craft brews, and the craft beer market is growing. Over the holidays, that means seasonal beer,” said Dean Plunkett, Executive Director of the NC Beer & Wine Wholesalers Association. “These brews are a great addition to the foods we all love around the holidays. Prepare meals with unique seasonal beers in mind as the perfect pairing.”
N.C. beer distributors play a key role in bringing seasonal beers to store shelves, and balance taste between local and national brands, supporting the local economy in the process. Beer sales help support roughly 17,791 jobs at local retailers in the state, which include supermarkets, convenience stores, restaurants, bars, stadiums, and other outlets.
Top seasonal picks from N.C. distributors:
Highland Cold Mountain Winter Ale - from Asheville, the Highland Cold Mountain is an ever-changing spiced winter seasonal. A tasty brew that complements all your holiday festivities, it’s lightly hopped, and rounded out with spices that vary from year to year. Try Highland paired with the subtle, yet robust, flavor of lamb.
Sierra Nevada Celebration Ale - Wonderfully robust and rich, Celebration Ale is dry-hopped for a lively, intense aroma. Brewed especially for the holidays, it is perfect for a party or for a quiet evening at home. Celebration is the best with prime rib, lamb, or wild fowl, making a wonderful holiday meal. Pastas also work well — try goat cheese ravioli, a rich fettuccine, or gnocchi with Gorgonzola cheese sauce.
Carolina Winter Stout - Brewed in Holly Springs, this stout is brewed in the style of a dry Irish stout, but is quite different from the draft Guinness widely available in the Triangle. It’s much more full bodied and much higher in alcohol (5.9 % by volume). It’s blackish brown in color and features an initial caramel flavor with a dry, roasted finish. Carolina Winter makes a great addition to a ribs dinner, with garlic mashed potatoes and a vegetable side.
Beer brewing has a long history in North Carolina, dating as far back as the 17th century. And the business of beer has since grown to support local economies where today, North Carolina’s 70 beer distributors employ approximately 2,773 people across the state. Distributors across the state are paying over $150 million in wages to their local employees, and collecting over $100 million in state taxes
Read More:CarolinaNewsWire
(ARA) – As the April 15 tax deadline creeps closer many people may still be wondering: will I owe? It may be time to take proactive steps to set aside money that can be used to cover the extra expense you may soon face.
Whether you underestimated your withholdings or experienced an unanticipated bump in income, you wouldn’t be alone if you found that you owe money on your taxes. Owing a lot — or even just a little — can be stressful and burdensome, especially as the bill arrives while many are still paying off debts incurred during the holidays.
“The good news is, preparing to pay for a tax bill may be easier than you think,” says Stephen Semprevivo, president of LowerMyBills.com. “Many people can find simple ways to save some money that can then be used to pay off any taxes they might owe. Even if you ultimately find that you don’t owe anything, you can use the money you saved to buy yourself a treat or, better yet, to put away in savings.”
Here are five simple savings techniques:
1. Evaluate your entertainment expenses. Americans spend more on entertainment than they do on other vital expenses such as gas, furniture and clothing, according to the Bureau of Labor Statistics. Entertainment is one of the easiest areas in which to find savings. How much do you spend in a month on movies, restaurants and other outings? Simply staying home and watching TV, or eating your own home-cooked meal, can create substantial savings.
2. Reduce your rates – on everything from phone bills to credit cards. You may be paying more than you need to for simple monthly expenses such as insurance, cell phones or Internet service. Sites like LowerMyBills.com can help you search across multiple service providers to find low rates on these and other monthly bills.
3. Spend to save – really. Unless you’re willing to alienate everyone in your life, holiday gifts will always be an expense. Since you have to spend on holiday gifts anyway, do so wisely by taking advantage of seasonal sales. From post-holiday sales to Presidents’ Day to Easter, the months before tax season are full of opportunities to purchase – and save on – holiday gifts for next year. Next November, when everyone else is scrambling and spending, you will have the satisfaction of knowing your holiday shopping is done and that you saved money doing it. You can earmark those savings for paying next year’s taxes.
4. Minimize your mortgage payment. Right now there’s a lot in the news about adjustable rate mortgages that are resetting to higher rates – with bigger monthly payments. If you have an ARM that’s about to reset, or if you just want to get better terms on your fixed-rate loan, it may be a good time to consider refinancing. Sites like LowerMyBills.com can help you investigate your refinance options. Just be sure to read all the terms of your loan carefully, and if possible, consult a financial advisor or other professional.
5. Consider seeking professional help. If you even suspect you’re going to be facing a big tax bill, consider consulting a tax consultant or other financial advisor. These professionals may be able to help you find ways to trim your budget and set more money aside to pay your taxes. They may also be able to help reduce the amount you owe, or set up a payment plan with the government.
“It’s never too late, or too early, to start saving and preparing for tax season,” says Semprevivo. “With a few money-saving techniques, you may be able to save enough to cover your tax payments this year and put a little away to take care of next year as well.”
For more information on how to save money on your monthly bills, visit www.LowerMyBills.com.
Courtesy of ARAcontent
