Charity Begins at Home.

Deducting Charitable Contributions at Tax Time.

Many of us do good during the year, making both cash and non-cash contributions to charitable organizations. We often forget however, that we are able to take a tax deduction for those items we donated come tax time. To do this, a little housekeeping is necessary.

• First off, to take the deduction, you must itemize your deduction on Schedule A. Your itemized deductions must exceed your standard deduction in order for it to be of greater benefit to you, than your standard deduction.
• The contribution must be made to a qualified organization, not to an individual, political organization or political candidate.
• The cost of games of chance, raffles or bingo cannot be deducted, and if you get merchandise or admission to an event in exchange for your donation you will need to deduct the fair market value of the merchandise or ticket price you received from the donation amount, to determine the dollar amount that can be used as a deduction.
• If you donate stock, it is generally valued at the fair market value.
• The old stuff from your kitchen or your linen closet that you wouldn't give to another family member does not qualify for a deduction. Donated household items and clothing must be in good condition to qualify.
• Written bank records or records from the receiving organization are required and should be retained. It should indicate what the donation was, the date it was made and the dollar amount of the donation. If your donation exceeds $250, the organization needs to indicate whether you received benefits in exchange for your contribution.
• If your total contributed property is greater than $500, IRS form 8283 will be required.
• If the value of your total contributed property is greater than $5000 IRS form 8283 will also be needed and items must be appraised by a qualified appraiser.
• You cannot deduct the time or value of your sevices, however you can deduct the items used while carrying out the charitable service.
• You can also deduct the miles driven to provide charitable deeds or donate products. In 2009, the rate is 14 cents per mile.

So keep doing good, keep good records and watch as your tax liability is whittled away.

Are You Up to Date on Your Tax Returns?

Are all your tax records in order? Have you filed all your returns? If you have not, what's preventing you from completing this task? Not filing your return when you are required to can get pretty expensive as penalties and interest start accruing on the due date of the return. If you do not file timely, you could also forfeit a refund that was due to you. You generally have 3 years from the original due date of the return to make a request for a refund, so lets not leave money on the table. If the return you have not filed is not the current year return, make sure that you use the correct forms for that year.

Don't Leave Money on the Table

In these economic times, leaving money on the table is not an option.
Please remind your families, friends and people who are needy in neighborhoods that your churches may serve, people who may not have families to care for them, that the deadline to file a 2007 return to qualify for the Economic Stimulus Package, is October 15th. Many people who do not normally have to file a return believe that they are ineligible for the Stimulus Package, but that is not so. The average payment is $600 ($1200 for married couples), plus $300 for each child (must be under age 17 as of December 31st 2008), who also qualifies for the Child Tax Credit.

The Economy: Marmalade or Jam?

Well, for everyone who has not been hiding behind a rock in the last 10 days, (and man that is a place that might feel a lot more comfortable than facing what we do now face) we all now know that we are going through a lot more than a rough patch in the economy. For most of us, the big resolution is out of our hands, as the Treasury Secretary – Henry (Hank) Paulson, Federal Reserve Chairman, Ben Bernanke, Securities and Exchange Comissioner, Christopher (Chris) Cox, and Federal Housing Finance Agency Director, James Lockhart, volley with the Congress to find a palatable solution for our economic hit in the jugular.

Of course, most of us are wondering how we got here. We hear that this started with the sub-prime mortgage market and the bad lending practices of financial institutions. Bank made “no-paper” or “liar” loans to people who showed absolutely no ability to repay this loan. Why? Greed, on the parts of both the borrowers and the lenders. Banks and financial institution took a gamble that with the way that loans are packaged and sold, there would be little or no trail back to the institution that made the risky loan. The risk would be exported. The chief motivator in this financial plan, was making as much money as possible, and pushing the risk as far away from you as possible.

But we all as a culture also have to absorb a piece of blame, First, folk who could not afford the homes that they insisted on buying, were doing this because they have come to believe that having as big a home as possible is what the “American Dream” is all about. Main streeters wanted to be in their own piece of the “American dream” and Wall Streeters wanted to make sure that they had the biggest estate among their peers – their “American dream.” Folks who allowed the institutions to document their loans with false information were obviously complicit in the deed. Second, folks who live on credit again want more than they can afford, and will charge or borrow ad infinitum to get it, and third, the culture of this country has for many years chosen to motivate people to be creditors or negative savers.

So without delving into the details which abound on the web, we got to the point where the drag of these poorly made mortgages on the American economy started to take a toll on financial institutions, and their liquidity. Of course this simply made a bad situation worse, because the financial sector had already been playing darts with their holdings, by using a model that did not maintain adequate liquidity for the loans they made.

As we speak, home prices continue to deteriorate, and credit markets are at a stand still. If the credit markets are not working, more houses will be lost, and the economy will have a harder time in recovering, if it will be able to recover at all. It has been estimated that to get out of this mess, each and every man woman and child in these here Unites States will basically be in hock for approximately $2300. Most of us would gladly pony up our $2300, if that would really fix everything, but will it? Only time will tell.

But let’s see what we can do about stabilizing our own lives. It's really just going back to the basics.

For starters, we have to stop believing that the adults that are in charge, really know what they are talking about, and start taking a real interest in our own finances so we can do the safe and right things for our lives. Next, we all have to start living within our means. Yes, starting right now we will have to tighten our belts and stick to an austerity program. Much of the rest of the world goes through this on a regular basis. Although this is a foreign concept in America, we as individuals have to do just that, as does our government. It will be difficult times ahead, very difficult times indeed. To start the process, if you aren’t already living on a workable budget, you need to immediately create a working budget for your own life. We also have to start saving for a rainy day, if you haven’t noticed, its pouring down torrentially right now. Maybe that will be a start to a situation where if Ben Bernanke chooses to repeat the statement below, that he means it this time.

Comments made by Ben Bernanke on Milton Friedman’s 90th birthday (Novemebr 8th, 2002) – “Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.” (1)

(1) See the entire speech here.

NOTE: Vast Bailout by U.S. Proposed in Bed to Stem Financial Crisis - NY Times.

Do not "CLICK HERE"

Hello again...


As you probably noticed I have been gone for awhile, had to deal with some medical and surgical issues. While I am not yet 100%, I am now able to focus on reading instead of pain, so, today I came across an article that suggested that folks are still falling prey to email and "phishing" scams. Here's how they work. These scammers are now impersonating the IRS and yes, guess what they are after, no, not just your stimulus payment, but also the account you might deposit your funds into. There intent is to clean you out, and once they have your personal information, it spreads exponentially as they may then be able to get to your investment accounts and other financial accounts.


Most of us are accustomed to clicking on a link to access various pieces of information at other sites, it has become so second nature, that we no longer even have to think about it, and that is one way that our financial privacy gets invaded and usurped, that simple click on a link that you make, may allow "the enemy" at your invitation, into your computer to search and find additional information, your information that they will now use against you.


Another way is they simply pretend to be one of your financial vendors, and ask for detailed personal information. Generally it comes with a sense of urgency, e.g. if you dont send this information, you'll lose out on something; we'll have to close your account; you'll be charged a fee, and so on, and of course if caught off guard, we might succumb, after all we think its our vendor, and so we may go ahead and key in the information. NO credible financial vendor will ask for your information via email, or ask you to key in your information after clicking on a link. You will generally be asked to go to the authentic website and make your changes through a secure website - where you will see a "locked padlock" symbol. An additional word of caution here - you should also watch out for oddities in the websites that you visit, e.g. if you see words that are spelt incorrectly, it could also mean you are not on the authentic website of your financial institution. Use the tools in your internet security package to check whether the site is known as a "phishing" site.

Regular check-ups of your financial accounts should also clue you into whether or not someone has gotten hold of your information.


Here is some information from the IRS , they have seen a sharp increase in the number of scams being perpetrated in their name.

Lastly, adults, please inform your kids, young adults, please inform your friends - its not cool to CLICK on phishing sites, or on links in emails you receive.

Were You Better Off Than Your Parents? Will Your Kids Be Better Off Than You?

While you may feel that you are better off than your parents, and I hope you do, our kids will have a definitely more difficult time making this statement. Much has changed. Our national economy has been impacted by a number of things, a war, not yet concluded; much increased fuel prices with expectations they will continue to rise, lower job creation, and increased competition globally. While we as Americans have had a much lower savings rate than most of the rest of the world, we are now in the realm of having a negative savings rate. Retirement benefits have decreased, and health care costs have risen. Social Security in all probability will not be around in the way we know it today, for our children. With all these factors that impact wealth creation, what can we do to ensure that our kids have a fair chance at being better off?

While some things are outside of our individual control, there are some areas where we can direct and guide our kids of all ages.

Understand money. Help your kids really understand money. Online payments, debit cards, credit cards and check books, may give children the impression that there is an unending supply of money. Teach your children that these are payment tools, and that you have to earn the money and have it in the bank, before you can use them. Help them understand interest rates and the cost of money. Help them understand how much money you make, and how it is spent. This will give children a good idea of the cost of living and also make indelible the fact that they will need to start saving early.

Wean yourself off of credit cards. There is no better education than the one observed. If your children observe your saving habits and not using credit cards and payday loans for regular expense items, they will be more likely to prevent the credit monkey from climbing on their backs.

Start saving now. Mandate that 10-25% of all the money that comes through your children’s hands be saved. During a regular year, kids rack up money from allowances, jobs – part-time or full-time, gifts, contest winnings, etc. Saving a percentage on a consistent basis is a good life lesson. Help your child monitor the growth of their savings, and eventually move those savings into investments. Having a real savings goal helps this process, for younger kids it may be some toy or electronic purchase, for older kids, it may be spending money on a trip, or even a partial payment on a car, for young adults, among other things it will be saving for retirement. Savings also means looking for bargains on the items that must be purchased.

Learn to budget. Introduce your children to budgeting as early as possible, but it is never too late to implement this most important wealth building tool. Also referred to as a spending plan, a budget simply puts you in control of your money so that you spend your money on the most important things to you and avoid frittering it away on impulse items. Help them create written budgets and set up a regular monitoring process. A budget must be written down and followed to be useful. Budgets in your head are not reliable.

Help your children understand that a budget is a dynamic document as income and expenses change. Help them understand the power of directing their money where they want it to go, to what is really important to them, and not frivolous impulse purchase that often generate buyer’s remorse.

Help them understand that the celebrity lifestyle that is conveyed unendingly on television and in magazines apply to a very small part of American society. Understanding that trying to rival the designer shoes or purses in a celebrity’s closet on a non-celebrity’s budget, will almost certainly lead to financial ruin, or at the very least the inability to obtain some things that may be higher on their personal goal list.

Keep good records. Along with budgeting, good record keeping is important. Learning to do this at an early age, will keep this habit throughout life. Good budget records show where you are overspending and allow you to make changes. Later on good record keeping will help you make sure you are able to claim all the tax-deductions legally allowed. Good records are also key when you have to make credit card or other purchase disputes.

Learn to give back. Being better off doesn’t begin and end with money, helping your kids learn to help ones less privileged than themselves at all levels, this is one way to fill their lives with meaning.

Get as much education as possible. Gone are the days of working a lifetime in one company. Investing in education throughout their life-time will keep your child ahead of the trends and be able to participate in the workforce as changes occur.

Get a career in an area that will support their desired lifestyle. Help your child examine the lifestyle that they may want to lead and guide them towards jobs and careers that can make that happen, based on the remuneration available for those jobs. Help them connect with people who are currently in similar jobs to determine whether salary or income expectations are valid.

As parents our job on guiding our children in financial matters really never ends, but if we start teaching them about money when they are young, the skills will be a lifelong asset. If your kids are teenagers or young adults and you fear that you may not have done a good job of guiding them, remember it is never too late to start.

20 Ways to Give Yourself Your Own Gas Tax Holiday

1. Keep your car well-tuned: This could increase your gas mileage by up to 4 percent - based on government studies. Keep good maintenance records.
2. Change the oil in your car: Clean oil reduces the wear on your car caused by friction of the moving parts. Make sure you use the right grade of oil for your vehicle. Keep good maintenance records This will help increase your gas mileage.
3. Replace the air filter in your car: Replacing a clogged air filter could improve your mileage by up to 10% - Savings 10-15c per gallon.
4. Replace the fuel filter in your car: Replace your filter at regular maintenance checkups. The cleaner your fuel, the more efficiently your car will run.
5. Check the alignment of your car: Engine drag will increase the amount of gas used.
6. Rotate your tires: Rotation on a regular basis, prevents uneven wear and will save your tires and reduce your gas costs. Don’t just wait until you align your tires, you may need to rotate your tires more often
7. Replace your tires: Check your tire treads. Balding tires need to be replaced immediately. Better tires give you better gas consumption.
8. Replace your seasonal tires: At the end of winter replace winter tires with summer tires. Bigger snow tires use more gasoline than lighter summer tires.
9. Make sure your tires are properly inflated: Check your tire pressure every month – the best time to do this when your car is cool and your care has been inactive for a few hours. Under-inflated tires reduce your fuel efficiency by up to 2% for each pound that your tires are under-inflated.
10. Make sure you are using the proper tires for your vehicle.
11. Keep your car clean and waxed: This helps reduce drag on your car and decreases your gas consumption.
12. Service your vehicle prior to the season: Winter or summer.
13. Plan your trips to avoid repeating routes.
14. Purchase fuel in the cool of the morning or late evening: Gasoline becomes denser in colder temperatures and gas pumps are set to measure the volume of the fuel that you pump and not the density.
15. Buy gas from a busy station: Stations with slower traffic may have contaminated gas from sitting too long in underground tanks and therefore less powerful gas.
16. Avoid topping off your gas tank: When you purchase only a small amount of gas, at the station the pump doesn’t have enough time to really activate, resulting in short bursts of fuel which may short change the amount of gas that you are purchasing. The best time to fill up your gas tank is when you have half a tank or less left.
17. Avoid running your gas tank close to empty: Keep your gas level above the quarter tank mark if possible. Driving your car when the gas gauge is close to empty, means that you may be pulling sediment from the bottom of the tank into the fuel system, fouling up fuel plugs, carburetors or fuel-injection jets, so you will probably be using more gas because your vehicle is running less efficiently.
18. Avoid buying gas from a just re-filled station: When a gas station’s tank is replenished, sedimentary particles are stirred up in the gas, and could lead to efficiency problems, clogging your fuel filter, possibly causing your car to stall and possibly having difficulty starting.
19. Turn the nozzle: After filling up your gas tank, turn the nozzle of the hose a full 180 degrees, this will drain up to an entire half-cup more gas into your tank, instead of into the tank of the person behind you. As you know, these half-cups add up.
20. Don't buy high octane gas: Buying higher octane gas is a waste of your money for most cars. Regular unleaded has approximately 87 octane already and is fine for your vehicle. Octane is simply a measurement of how difficult it is to ignite the gas in your car and has nothing to do with the quality of the gas. If you are experiencing engine pings, rattles, or knocks you can switch to high octane gas. Note: Some cars like Mercedes Benz require premium fuel so you want to be sure and check your owner's manual before switching.