Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Monday, December 31, 2007

Amber Alert System
Missing & Exploited Children
Nat'l Center For Missing Adults
Homeland Security
Michigan Homeland Security

Search Accounting Blogs: (Includes cpasense)

Sunday, December 30, 2007

Filing Season Opens On Time Except For Certain Taxpayers Potentially Affected By AMT Patch

The Internal Revenue Service has announced that the upcoming tax season is expected to start on time for everyone except certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax (AMT)“patch.”...........

AMT - How It Affects Filing Season 2008
Updated 12-28-07

Saturday, December 29, 2007

H.R. 3648: Mortgage Forgiveness Debt Relief Act of 2007

To amend the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income, and for other purposes..........

Became Public Law December 20, 2007

Includes a short synopsis of bill's highlights

For Peace of Mind, Create an Emergency Fund

Your car breaks down and you need repairs immediately. You or a loved one has a medical problem and there are related expenses that......

Michigan Association of CPAs

Monday, December 24, 2007

The IRS is reducing the "float" on checks mailed with income tax returns. It will convert checks into direct debits so it gets the money right away.

Kiplinger Tax Letter

Michigan Business Tax Estimator

The NFIB Michigan Business Tax (MBT) Plan Estimator is an Excel 2003 spreadsheet based program. Its purpose is to allow users to estimate tax liability under the new MBT that replaces the previous Michigan Single Business Tax (SBT)........

Saturday, December 22, 2007

Michigan cannot be e-filed without the Federal. Taxpayers may paper file if they would like their refunds sooner rather than wait for e-file to be available

Michigan Dept. of Treasury

Friday, December 21, 2007

If You Charge Deductible Items This Year , Take Note Of Some Tricky Rules:

For charges made with a retail store credit card, you are allowed to claim the deduction only in the tax year in which you pay the bill

For transactions with a bank credit card, you can take the deduction in the year that the item was charged, even if you pay the bill next year.

Kiplinger Tax Letter

Thursday, December 20, 2007

Identity Theft: Don't Let It Happen To You

Could you become a victim of identity theft? It’s more likely than you might expect. Identity theft occurs when someone uses your identification-—such as your Social Security number or credit card number—-without authorization to commit a crime. When it comes to identity theft, prevention is the best defense, according to the National Crime Prevention Council. The Michigan Association of CPAs offers these tips and observations to help you avoid becoming a victim..........

On The 12th Day Of.......Financial Planning?

Does holiday debt, the threat of identity theft, looming college costs, and meager retirement savings have you singing the blues? Texas CPAs can help fine tune your finances with 12 days of tips, loosely based on the carol, The Twelve Days of Christmas...............


Wednesday, December 19, 2007

Christmas Wish Movie

This song is a love song ... it comes from the heart, and it is for all those who have loved ones that they wish would come home from war torn countries ...with the Ultimate Christmas Wish: that peace now resides in the places they are serving.

Mary & Craig Reynolds

Silent Night Movie

May the peace that passes all understanding embrace you and sustain you as you enjoy this exquisite musical rendition of Silent Night and it's message of

Mary & Craig Reynolds

Ashland University Has Done It Again This Year!

Have a wonderful Christmas and please remember what we are celebrating, Christ's birth.....
This is an interactive card.Follow the directions and enjoy the animation.The final part is the best!

Thursday, December 13, 2007

Do You Face Foreclosure On Your Home?

Includes Chart
If you are one of millions of homeowners unable to pay the mortgage debt on your home, you may be facing what is called ‘foreclosure,’ the process by which a bank or other lender seizes your home to pay off the debt. Foreclosure is governed by state law, so you will need to become familiar with the laws in your state. Typically, the lender must wait a certain period of time (during which you are not making payments on
the loan) before serving you notice of default..........

ABA Taxation


Wednesday, December 12, 2007

Michigan Surcharge And Other Changes

On December 4, 2007, Governor Jennifer M. Granholm signed Public Act 145 of 2007 ("PA 145") amending the MBT, Public Act 36 of 2007. Although the primary purpose of PA 145 was to institute a surcharge to replace the revenue from the repeal Section 3d of the Use tax Act, PA 145 makes additional changes. PA 145 is summarized below.........

Michigan Treasury

Tuesday, December 11, 2007

Long-Term Care Insurance: What You Need to Know

The average cost of a private room in a nursing home is about $200 a day, or roughly $75,000 a year, according to a survey by the........

Michigan Association of CPAs

IRS Releases Guidance On Medical Expense Deductions

The IRS has issued guidance regarding the deductibility of amounts paid by individuals for diagnostic and similar procedures, including certain devices, not compensated by insurance or otherwise, as medical care expenses under Code Sec. 213(a). In each of the three scenarios presented, the amounts paid by taxpayers were expenses for medical care deductible under Code Sec. 213(a), subject to the limitations of that section including the seven and a half percent floor on deductibility........


Saturday, December 08, 2007

New Mortgage Plan: Do You Qualify?

As the Bush administration unveils its plan to help homeowners, we look at the proposal's details..........


Four Scenarios: How AMT Impacts Taxpayers

Nat'l Association of Tax Professionals

Thursday, December 06, 2007

2007 Federal Tax Changes

Retrieved from Tax Almanac

For additional Highlights of 2007 Tax Changes, refer to 2007 Publication 553.

Wednesday, December 05, 2007

Safekeeping Records Essential To Financial Wellbeing

Protecting important family records from the ravages of fire and water damage could save a family heartache and possible financial difficulties should a natural disaster like a fire or earthquake occur.........

Smart Pros

Tuesday, December 04, 2007

Michigan MBT Surcharge Enacted, Credits Amended, Other Changes

Michigan Governor Jennifer Granholm has signed a bill (H.B. 5408) that adds an annual surcharge to the Michigan business tax (MBT) and repeals the use tax on services. The bill also makes changes to the compensation, investment, and research and development credits against the MBT and potential refunds if MBT collections exceed certain targets.........


Millions Of IRS Tax Refunds Could Be Delayed

The Internal Revenue Service is looking hard at delaying the start of its filing season, set to kick off on Jan. 14, if Congress fails to pass AMT legislation in the next two weeks. At issue is how to handle what could be a dramatic increase in the number of people facing a higher alternative minimum tax.
If there is a delay and it extends into mid-February, it would slow nearly 38 million refunds worth a total of about $87 billion, the IRS Oversight Board predicts.

Smart Pros

Late News: With Congress returning from its Thanksgiving recess, Senate Majority Leader Harry Reid (D-Nev) on December 3 promised quick action on the AMT

Tax Analysts

Monday, December 03, 2007

Money-Wise Gifts for the Holidays

When buying presents at this time of year, people often spend a lot of money without being sure that they have really found the right.......

Michigan Association of CPAs

Sunday, December 02, 2007

New Deloitte Tax Planning Guide For 2007

Private Client Advisors

Saturday, December 01, 2007


Hours of closed-door negotiations on Friday. November 30, between administration officials and legislative leaders finally resulted in an agreement to replace the expanded sales tax on services with a surcharge of 21.99 percent on a company's Michigan Business Tax assessment, with the accord reached shortly before the December 1 effective date for the services tax but the first vote to approve the measure coming some hours after the deadline

Gongwer News

Mutual Funds- This year , many funds are warning shareholders that payouts will be large

Note The Holding Period Rules For Dividends
The 15% top tax rate is not available unless you have owned the shares for at least 60 days before and after the date the stock goes ex-dividend. So, if you buy stock just before it pays a dividend and sell it soon thereafter, the dividend is taxed as ordinary income.

Tax-Favored Dividends Won't Help You Deduct Your Margin Interest, as a general rule. You have to elect to waive the 15% top rate on them to have them count as investment income so you can deduct more interest
Taking short-term gains can boost your margin interest deduction, which is limited to your net investment income. Short-term capital gains count as investment income. Note that long-term gains are not treated as investment income unless filers forgo taking the 15% top rate on them

Watch The Holding Period For The 15% Top Rate On Long-Term Gain. You must own the asset for more than one year to be eligible. Taxpayers in the 10% & 15% brackets get a 5% rate on long-term gains. However, once their gains lift their income into the 25% tax bracket, the balance of their profit is taxed at the standard 15% maximum rate

Some Gains Have Higher Tax Rates - Collectibles. Profits on sales of art, antiques, gems, stamps, coins and bullion have a top rate of 28% Depreciation Recapture On Real Estate. It's taxed as much as 25%. Short-Term Gains. Ordinary income rates of up to 35% apply.

Look Out For The Wash-Sale Rule -Selling close to the date the mutual fund dividends are reinvested can trigger this rule, and you may be nabbed if you use your IRA to quickly buy back the stock you sold at a loss. You're OK , however, if you sell one mutual fund and buy another with similar investment goals.
It can also affect bond "swaps". If you sell bonds at a loss and reaquire bonds of the same issuer, you can avoid the wash-sale rule by purchasing ones that have different maturities or interest rates.