Latest Employment News Paper 2010

Jim Lange and his team offer last minute tax advice

Jim Lange, JD / CPA made presentations at the forefront of RIA Roth conversion strategies throughout the country for consumers and financial professionals. He recorded his best information in a two-hour workshop that is available to consumers going to www.retiresecure.com / Rothiraconversion. (This offer is not intended for financial professionals.) For financial advisors interested Jim made-for-workshop, please call Nicole DeMartino, Director Marketing, at 412.521.2732 / 1.800.387.1129 or visit http://www.rothira-advisor.com/2010rothrevolution.htm.

Last Minute Tax Advice with expert taxes, Steve kOhm, CPA, CSEP veteran team member Lange, Steve kOhm, CPA, CSEP talks last minute tax advice encompasses everything from making contributions to pensions for filing a tax extension.

Welcome to Lange money: Where Smart Money Talks. Led by Beth Bershok, with advice Pittsburgh expert Jim Lange, according to the PCA lawyer and expert in retirement and estate planning. Jim is also the author of secure retirement! Taxes pay later. To learn more about his book, Lange Financial Group practice, and how to protect Jim as a speaker for your next event visit their website www.retiresecure.com. Now willing to talk about smart money.

Bershok Beth: Thanks for joining us, I'm Beth Bershok and talk about smart money. We did tonight, talking about taxpayers' money smart, and talks a lot about why we are far from one week time frame. All First, of course, Jim Lange, Attorney-CPA, renowned author of the book, secure retirement! drugs and the night office. We Kohma Steve, Steve has been with Jim for what, 15?

Steve kohm: Yes, about 15 years thanks to slip out of your office!

Bershok Beth: Well, Steve has been busy. Steve is a CPA, is a planning specialist heritage, he is an analyst hey assessment and certification is much work right now in taxes and there are seven days away. Before turning to everything else tonight, I have a small question for both: Your taxes do?

Steve Kohma: mine Yes, I did before.

Bershok Beth: And you? Look at you go!

Steve kohm: 01 February.

Bershok Beth: Ok Jim, just a brief survey.

Jim Lange: I was expressing my own statement revenue for the past 30 years and extend my return again this year.

Bershok Beth: I ask this question because my husband is an accountant and also said I should consider the October 15 deadline for the rest of my life. We are taking the matter tonight if they want to study online. It is 412-333-9385 if you have a question that we have a hour here to call us at 412-333-9385 if you have a question for Jim and Steve. We also have a very specific agreement, we will be telling a little later in the series, and a couple of upcoming workshops, so come back. But I begin, know that many people are in a frenzy, is the last week here, the taxes are due next Wednesday, and some people think they can not there nothing I can do now with the numbers. But apparently that's not true, provided be the end of 2008.

Jim Lange: Well one of the most important things you can do for your future short-term and longer term, ie not too late contribution to a retirement claim. As many listeners know generally, but not always, I am inclined to favor the Roth IRA to Roth is still working on 403 (b) s. It's too late for the year 2008 to put money into a Roth 401 (k) or even a traditional 401 (k) or 403 (b). But it's not too late to put money into a Roth IRA if you made your statement or otherwise. If you are married filing a joint and your adjusted gross income is below $ 169,000, you qualify for an account Roth IRA if you are single, $ 116,000 and can do it yourself. You can also save money for their spouse. We're talking about $ 5,000 if 49 or less, or $ 6,000 if you are 50 years or more for you and for the same amount for their spouse. If your children are working or have income, it's not too late for them, and I think many of People know about the Roth IRA. But I can tell you something that people do not know and do not and are not thinking?

Beth Bershok: Go there, tell me what it is.

Jim Lange: It is for people who earn too much money put into a Roth IRA and think oh I can not do otherwise. But they can actually put money into a nondeductible IRA.

Bershok Beth: Ok, explain how it works.

Jim Lange: The non-deductible IRA: Do not receive a tax deduction in effect today, so this is after of tax dollars, but the money grows tax-deferred. In other words, they will not have to pay taxes on an annual basis. Many people have non-deductible IRA, even when they were back to $ 2,000, but now are $ 5,000 or $ 6,000 and this is actually kind of non-deductible IRA in particular year 2010 arrives, it will not be very long, where we will be able to convert these non-deductible IRA Roth IRA. We will have the opportunity to contrary increased deferred tax and obtain tax-free growth, and this is something few people know about it, probably should be utilized and it is too late.

Bershok Beth: here I am skipping a second and mention your Seminars Roth happen. You have a couple of workshops that address many of these strategies and get the last two, we went to the building, so I want to talk about dates. A side Comfort Inn hotel in Rodi Road is Saturday and 9:30 to 11:30 a.m., and 1 3 pm. We just booked for a May 16 falls on a Saturday, at the same time. We are currently in the Four Points Sheridan cranberry and I'm going to give again later in the hour, call toll free to register. They have been very quiet up to what it should be reserved soon as possible. But you're covering a large amount of these strategies in these workshops. Now, to return to the non-deductible IRA second limits are the same that you mentioned and the Roth IRA?

Jim Lange: Yes, it is still $ 5,000 and $ 6,000. Change Membership is for individuals earning more than $ 169,000, but it's something people do not know what is one way that people are rich can enter the world of tax-free Roth IRA conversions. Again, this is not too late.

Bershok Beth: Now, something that many people have to cope with his return this year is again the characterization of their Roth IRAs beginning in 2008 because we all know what happened spent on the market, and you can cancel your IRA. In fact, I have a question about what can run this for you?

Jim Lange: If you move forward.

Beth Bershok: Comes from'â € œ Oh, I want to thank our listeners who are listening KQV.com. They are listening around the country and I know this because they we send an email. We've had e-mails from Ohio, New Jersey, Texas, Florida and Maryland, only to receive this morning from San Francisco. This is your question, Raj San Francisco said it reclassified approximately $ 70K. Your question is going back to traditional, you want to know if that means that conversion is not obtained first and the will of their AGI scrolls that amount?

Jim Lange: Well, how about I give you the conceptual answer.

Bershok Beth: Ok

Jim Lange: Steve the more it is difficult to say how the report. Conceptually, I believe that a cancellation. Say you have a Roth IRA conversion during the Calendar years 2008 and lets just say he did for $ 70,000 and now is an amount of $ 40,000 or $ 50,000 and not so happy. If pro-active, you'll pay over $ 70,000 and tax the Roth IRA is only $ 40.000 or $ 50,000. Therefore, break or downgrading is technically appropriate to do strategic and has until October 15, 2009 to recharacterize his Roth IRA conversion in 2008. If you have not yet filed your taxes and re-characterized, Steve will explain the mechanics of this.

Bershok Beth: I think this is the case with Steve.

Kohm Steve: Ok

Jim Lange: If you already filed your of taxes may file an amended return, but it is very important to know that you can re-qualify. Thus, even people who should make a Roth IRA 2009 conversions now, if it fails, if you make a Roth IRA conversion and the market goes down, you'll always have the opportunity either in 2009 or October 2010 to requalify. Now maybe Steve can help us with some mechanics on how to deal with than the 1040.

Kohm Steve: Yes, it's really not as difficult as it looks and what you throw people when they do a reassessment, the amount of money that comes in your traditional IRA is less than you converted. And as people get confused when they have a 1099 for reclassification. Not sure what to do with it and see that has a distribution code and merge. But it is very easy to manage your income taxes. Normally, if you made a conversion that you want to make the amount Crude 15 (distributions) Gross proceeds from the IRA and the tax base, the same amount, perhaps $ 70,000. But if you must change the declaration or reclassify the tax base of 15 (b) is only 0. It is very simple, just put a 0 in 15 (b) which is 0 taxable income and become more or less. I make sure you understand the paperwork and the dollar amounts going in and out of the Roth IRA if there are questions about that later.

Bershok Beth: So what happens, basically, if you have already filed your return? Say, for example, Raj and presented a statement then he decided to reclassify, you can still file an amended return?

Kohm Steve: Yes, you can file an amended return and request a refund of 70 000 Total developed.

Bershok Beth: Well and if you have a question for Jim and Steve take us tonight at 412-333-9385, we here until 8:00, Lange Time is money: Where Smart Money Talks.

Beth Bershok: Talking more money on Lange PrimeTime Smart Money: When the Smart Money talks. I Bershok Beth. Jim Lange with us today, and of course we join Steve Kohma part of Jim's office for the past 15 years. Steve is a CPA, is a specialist in estate planning and a certified valuation analyst. And we will answer your questions too, so call 412-333-9385 if you have a question. Steve, there are many things that are new for this year, I found some confusion for people, and we can play a second on the Housing and Economic Recovery Act of 2008.

Kohm Steve: Yes.

Bershok Beth: And one thing is certain confusion on the first home buyer tax credit refundable. Can you explain first exactly how it works?

Kohm Steve: Well, actually it was a good business that first appeared in 2008. It has allowed home buyers $ 7500 back on your tax return, even if it was not much in taxes is a refundable component. Those who bought a home in 2008 I trained a lot of money and are eligible for this, and do not know anything about it is really a bargain for the year 2008.

Bershok Beth: So, if you bought a house in 2008 should be account in his statement?

Kohma Steve: Yes, I think if you bought a house in 2008. But the bad news is that it would be better buying a home in 2009 because 2009 the law was changed and so did the non-refundable. The original 2008, he had to return more than 15 years, 500 per year on your tax return in the next 15 years, but in 2009 if kept at home for three years, you do not have to reimburse everyone. Who can benefit from buying houses from 1 January 2009 and December 1, 2009.

Bershok Beth: So you actually get quite a break if you buy your home in 2009.

Kohm Steve: Yes, from here November 30 I do not know why it has to stop until December 1.

Bershok Beth: Yes, why stop? It's just one of those things. We have a call North Park is one question about the Roth IRA. Hi good afternoon and what is your question ..

Call # 1: The question is, I contributed some money to a Roth IRA and I think I have to take due to certain reasons. I have to win or be distributed more because I am not eligible for a Roth IRA. So what happens now, what I have all the money you put in? I put in $ 6,000. Or because the market value has fallen in my wallet I withdraw $ 6000 so what? How do I work?

Kohm Steve: Well, you should call your broker and tell them you want to recharacterize the Roth conversion, perhaps because they have never qualified for this top position.

Guest # 1: Ok

Kohm Steve: Or maybe because he was a descendant of value, really does not matter why. Anyone can redesignate their contributions. So, yes, it would return to the traditional IRA or you can ..

Caller # 1: No, I do not think I can contribute to one of them because my income is Social Security and retirement income. He did not return cattle.

Kohm Steve: Well, you had no revenue. So yes, there was a contribution for you have to contact them and explain that to them. Then you have to take this money to a Roth IRA is right.

Call # 1: Yes, the question is: if, for example, put in $ 6,000 and there is nothing in this portfolio, with the exception of $ 6,000 stocks, which I bought. They are now worth $ 3,000 if you can not remove more than $ 3,000.

Kohm Steve: Well, yeah, would be $ 3,000 which goes back to it. There may be some tax benefits by the amount of losses has suffered during this period of time.

Call # 1: I see

Kohm Steve: You have to consider the question yes, but that's okay.

Bershok Beth: Ok, your question?

Guest # 1: Yes, it was, thank you very much.

Jim Lange: And I will do what people hate and tell you what should have done.

Jim Lange: Instead of making a Roth IRA contribution, which could be done is a conversion Roth IRA. I am a great believer in that retirees must come, probably with the help of a consultant, but should reach a long-term strategy Roth IRA conversion. Perhaps, without knowing more about your situation, freedom but I could guess, it might be appropriate for you to do a series of Roth IRA conversions, although a relatively small amount for a number years what could have been a more appropriate strategy for retirees.

Bershok Beth: Hi Many thanks for your call, answer your question?

Call # 1: Yes, it does thanks.

Bershok Beth: Thank you, he had control of the northern part of the park, and if you have a question from the 412-333-9385, Kohma Jim Lange and Steve. I want to jump to the employer and the employee retired Recovery Act of 2008 because I believe that this effect many people. It has to do with the suspension MDM 2009, when seniors do not take their RMD. However, their cause much confusion about exactly how it works, and also some confusion about what to do with their taxes. So let's start with its performance for the year 2009 in terms of you do not take your distribution, you can take a partial distribution?

Jim Lange: Yes, you can take a partial distribution and technically not even really need to do something. You can sit there and say guess Why? I did not take the required minimum distribution years and my taxes are lower. Behold, I will be in a lower tax levels and I really appreciate it Congress. You take the passive role and that would be fine with it, assuming you do not need the money from your minimum required distribution for their expenses. But Step 1. What it's like to go a step further and say that at this for a minute. You are retired, no job or income even if you do that is not its primary source. You have a required minimum distribution not normally 2009, but it usually does happen to a level higher taxes. But since you do not have to take a distribution minimum required by reason of the State of year, you are in a lower tax bracket. Instead of simply saying thank you very much, I'll be in a category lower tax, This year, I would say proactively Hey, this is an excellent opportunity for a Roth IRA conversion for what is probably the lower rate of income tax you will never be for the rest of his life, even forgetting the tax arising in the future which I believe is almost inevitable. Your personal rate will lower because it has no required minimum distribution. I used to tell people the best years was to make retirement but before distribution required minimum. Now, people over 70 will have a break this year with no minimum required distribution, and probably the lowest ever in.

Type Bershok Beth: It is an accidental bonus, actually.

Jim Lange was a bonus of an accident, I do not think it was intended for people who have an amount of money to operate and take initiative. In fact, other sources that I came with, and you know we have press releases that have been recognized throughout the country in numerous major newspapers, nobody said being proactive on this, make a Roth IRA conversion this year and depending on the numbers that can be s $ 10,000, $ 100,000 s on the way to his family, a ¢ â, ¬ â € œ even better $ 1,000,000.

Beth Bershok: Steve to jump something.

Kohm Steve: It is an ideal plan for people who have a good income and maybe a lot of money, but there is a trap for some people who do not are, and have social security income. It is strange by the tax law that makes more of its social security taxable income, the more has income. Without your MRD for 2009, could end up having little or no tax all their income. If they had the DSU, they can calculate your taxes with and without what DRM would have been his, and could pay 25%, 35% tax on what would have been his MRD or Roth conversion may be, unless it is a conversion of large numbers. He appeared as a high tax in the next part of the extra income you have, as a Roth conversion. It is a trap, I found the numbers to ensure it makes sense for you.

Beth Bershok: a reality tha niche Steve à ¢ â, ¬ â € œ make projections in such situations.

Kohm Steve: Yes, and it's just a strange part of the tax code that makes people with less income tax sliced extremely high. There is much more that there are tax credits that phase out, itemized deductions, credits retirement investors à ¢ â, ¬ â € œ all such things as money just disappear to ensure that they are taxed more than anyone when I have a lot of money.

Beth Bershok: All kinds of unusual things in the tax code are not there, Steve?

Beth Bershok: We talk about money, the smart money Lange time: When the Smart Money Talks. When return in a moment we have a very special which I will talk to you and if you want to call is 412-333-9385 The Lange Time money: Where Smart Money Talks.

Beth Bershok: Time Lange money: Where Smart Money Talks. I Bershok Beth Lange, Jim and Steve Kohma tonight. We talked about taxes, because we are a week away from the tax deadline and before continuing, we have a special agreement. It has to do with the extensions, because at this stage, you think ooh d '1 week date imposed limits, there is no way able to conclude. So our office is in Squirrel Hill and give you a toll free number, it is good if you are a resident of Pennsylvania. The professional staff is completely free of extensions. That's what you need to do, give us a call, the number is 1-800-387-1129, give us your name, phone number and relevant information. What they offer to do is take care of the expansion in terms of – you guys make the papers, right? Now, we will not estimate at this time must have some kind of idea of what you owe. And then ensure that is delivered, then one of Accountants will meet later to make sure everything is filed Oct. 15. This is the offer of a free extension if you listen tonight, it's good for the residents of the Palestinian Authority and you can call to the office at 1-800-387-1129. You can call the office tomorrow morning, in fact, and we will handle it. You only need your name, phone number, then we will contact you. Now you want to talk about capital gains, I read this right? There is a new 0% tax rate on profits capital long-term dividends and qualified.

Kohm Steve: Yes, and there is another part of the tax code that is very strange.

Beth Bershok: Steve like the tax code

Kohma Steve: There is a 0% tax rate on dividends and capital gains would be qualified to what your tax rate 15%. For example, if you are married filing a joint return, you can have $ 65 100 of taxable income that is above the 15% range and not pay no income tax. Let's say that your itemized deductions and personal exemptions are $ 20,000, say you have $ 85,000 of taxable income. Say you have a value of $ 2,500,000 to buy blue chip stocks that paid dividends, and you win $ 85,000 in dividends. Well guess what, you pay no taxes ¢ â, ¬ â € œ another quirk of the tax code ¢ â, ¬ â € œ $ 2,500,000 persons with not paying taxes!

Bershok Beth: It is a rarity, it is very interesting. How do you keep these changes in the tax code, how do you take seriously?

Kohm Steve: Well you see when you do return a lot of tax work and have different situations. One thing that is important in your tax return is to take the remaining capital. People have a lot of capital losses this year with the scholarship and had some last year and is important if you have a situation where they lost money in the bag, a small tax revenue loss on sale Create your capital loss. Because if you do not sell the shares, no capital loss, and some investment funds, however, driven by capital gain distributions, and certainly do not want to pay taxes on capital gains this year or next year when you have lost money.

Bershok Beth: Do you think many people do not understand these? Do you think that many people make their statement and the failure rate 0% because they try to do it themselves and are unaware that part of the tax code?

Jim Lange Well what is possible. Annex D is where calculated capital gains and qualified dividends spreadsheets, one of the more complicated the tax return and almost everyone has that as part of your tax return. I recommend doing it with a tax preparer or a computer, hand-made is very difficult these days.

Beth Bershok: 412-333-9385 if you have a question for Jim and Steve. Another thing you can à ¢ â, ¬ â € œ to reduce their college tuition. How is this possible?

Kohm Steve: Well, has always been in recent years, a tax credit available to good credit, the Hope and Lifetime Learning Credit. It is potentially offer up to $ 18,000 per student for the Hope credit. There is good news on the horizon for 2009, many people may have been eliminated with this credit because their incomes are too high and in 2009 the phase-out range has increased a little, for a married couple from $ 116,000 to $ 160,000 AGI. This will be much more relevant to a large number of people à ¢ â, ¬ â € people œ a lot more in 2009 and the sum of $ 1,800 to $ 2,500 to break the credit hope. Also another credit voucher hope is good at spending money for books and tuition for the year 2009 while it has improved a bit and people should be aware of it.

Beth Bershok: Something that I think many people do not understand, do you know if you feel trying to do your taxes yourself, you lose, you're certain deductions and something that Steve has been observed earlier opinion often overlooked medical expenses. Steve, take us through some of them.

Kohm Steve: Well, There are basic things, one of the things that people who lack Medicare premium is deducted from your income for social security. This is part of medical expenses, also is their basic things as the cost of prescription co-payments and insurance long term care. One thing that often leads to a car is that insurance premiums franchise long-term care and health insurance premiums are also contributions on their own health insurance where you can get on the first page of your statement taxes, even if you do not have enough medical expenses to use as a deduction detail. Here are some things you should know. Some other things that may not know is if you have an elderly parent is in a care center and need assistance in daily life and tasks, can be certified by chronic disease and deduce the total cost of living in the facility as a nursing home, which also would be deductible as medical expenses. This is an expense of long-term care in this case, if they are certified as chronically ill.

Bershok Beth: You know a lot of changes for this year. Jim, there is a difference in the mass and the law of gift tax this year and, no, ok? What do you want to cover? More medical expenses?

Jim Lange: Actually, I wanted to do focus on something, I asked Steve a very interesting question, you said How can you make this? And Steve said, you know, many returns I prepare tax is even more valuable than reading all advanced card preparation of tax collection. I think many times what people are not necessarily lacking missing deductions when you change the statement, but lack of planning opportunities. Let me give an example, the harvest tax losses when offset gains and losses. This must be done before year end and if you prepare your taxes and who thinks of these things and do not receive a letter saying an accounting firm hey, it's time for tax loss harvesting, and here's how you get it, you might not think about it. Lets even say that somehow someone tells regard. Steve just mentioned the deduction if you can find a certified elderly with chronic diseases. Well let's say you have $ 60,000 or $ 70,000 or even $ 100,000 for medical expenses that is deductible, and now they say that only $ 10,000 or $ 20,000 of income. For me it is an opportunity to make a significant Roth IRA conversion could have a huge impact on the family later. So it's tax preparation at a time, but also the planning that is dedicated what I think people should be aware.

Beth Bershok: Speaking of Roth IRA conversions have a question, we have Bob on the line of Penn Hills has a question about Roth IRA conversions. Hi Bob, what is your question?

Bob: Hey, if you do not make a Roth conversion also must file Form 8606 and when you return from your tax return?

Bershok Beth: 8606, which looks like something Steve would be the top of the head.

Kohm Steve: Well, 8606 they changed a bit the last year. I think we should fill it when you withdraw money from a Roth IRA, but you must keep track of your Roth IRA conversion base is a party. I'm not sure is really necessary in the year 8606.

Beth Bershok: Bob, you have a Roth IRA?

Bob: I did a conversion and I spat in 8606 a computer program, but not completely filled and was curious if that was a requirement or just added information?

Kohm Steve: Yeah, I just look at what he says and complete this part of 8606 withdrew the money a Roth IRA, so I guess not this time.

Bob: Well, thank you very much

Bershok Beth: Thank you, Bob.

Jim Lange: Steve has to help me on this. Is not this 8606, when I think about 8606, perhaps I have bad form, I think the base you need to keep track of your non-deductible IRA, because if you make a contribution is not deductible IRA, then you must make a monitor what is deductible and what is not, and I thought that was the end of Form 8606.

Steve Kohma: the objective was expanded to cover 8606 Roth IRA does not lose of view the basis of them because you can not take a lot of your Roth IRA before you are 59 ½ Â income before taxes. Now, rarely happens, but you have the track.

Jim: And what I say, what is really valuable for keeping track of 8606 is the after-tax dollars because one of the things that are spoken in Beth Bershok two seminars that will give you the time and date is how to make a Roth IRA conversion money already paid tax on the form of a non-deductible IRA.

Bershok Beth: This is a favorite of Jim strategies.

Jim Lange: It's done! It is so cool especially for people who have dollars after tax on your pension plan. It shows how, even if you just say $ 50,000 Non-deductible IRA or after tax dollars and a retirement plan, you may be $ 500,000 more in the future and who knows what it will cost $ 500,000 in taxes in the future now?

Bershok Beth: What?

Jim Lange: Nothing, nothing.

Jim Lange: Do not work for everyone, but is one of my favorite strategies and have made several times in practice.

Beth Bershok: We have conducted workshops in graphics, and if I'm right, Steve you're the only one with the graphics of this workshop. Am I right?

Kohm Steve: Yes, of course.

Bershok Beth: Well, here's the deal, I will take this second to inform the workshops because they really go through this and come next week. It is at the Comfort Inn on Rodi Road and make a 30-11 9:00 am, and then 1-3 in the afternoon.

Jim Lange: When you say it means to week .. From next April?

Beth Bershok: 18

Jim Lange: 18 is not right on Saturday.

Bershok Beth: Exactly. Not this Saturday, April 18 and will have to tell us when you call to book your session you want to go to 9:30 to 11:30 or 1-3. And by the way whose phone number to register is 1-800-748-1571. Following is the calendar, because we are approaching capacity in each Once we make of these seminars. The next is scheduled for Four Points Sheridan blueberries Saturday, May 16 while their 09 hours 30-11 hours 30, then a 3 pm 1-800-748-1571, you must tell us what session you want to go. I do not think that I have never said this, but something cool to go to them not only get these great strategies, but you get a copy of the book Jim, secure retirement! Pay taxes later, all the graphics are there, all these strategies and it was a number one bestseller on Amazon.com where you get to go through all these great strategies and can also get a free copy of the book. So if you want to know more about the workshops, which have always sent. They are on our site all the time, those to come, so you can always check in www.retiresecure.com for later on this point. And we back in a minute with more tax strategies we approach the deadline. It is time that the money Lange: Where Smart Money Talks.

Bershok Beth: The Hour of money Lange: Where Smart Money Talks. I'm Beth Bershok with Jim Lange and Steve today kOhm. We are one week from the tax deadline, through high because strategy is not too late for 2008. If you have a question, its 412-333-9385. We had people checking in from the North Park and Penn Hills and only we have about 20 minutes if you have any questions 412-333-9385. A second quick, Jim, you mentioned earlier about how important it is not only when making their statements, but we really need to plan some strategies in advance, and helps to actually see a financial professional. When should you start doing that for the next year? Looking towards 2009, it is too soon?

Jim Lange If you are a private company that prepares tax returns now and say I want to do a little planning for 2009, go to your head! Moreover, one of the best moments is actually after 15 April. After a return has been filed, in general, or expanding and you are in a state of mind that you think about taxes. Personally, I think one of the best times to speak with a financial adviser done after doing something dynamic. To learn a bit before going to a counselor, like going to a workshop or read something and be motivated. Currently, there is such fear of what is happening with the economy that people sometimes forget the big picture, and this tax can make a big difference and I would say that especially today, is even more important tax strategies do well and investment strategies.

Bershok Beth: That's why you should consult a financial professional?

Steve Kohma: I'd say yes, it is important to consult with your tax advisor for planning. Although some of the movements occur early years planning. For example, if you are projected to fall to do Roth conversions in January of 09, knowing that you take no minimum distribution, you can at once a very good chance when the bag was 65,000 and is a conversion when taxes were very low conversion. Therefore, plans should be implemented in advance, maybe fall is the best time to see ACC.

Bershok Beth: Well, because they often are certified public accountants of golf in April, May, June, July and August I'm right?

Kohm Steve: Well perhaps the end of April, yes, fine

Kohm Steve: Yes, the planning process will include measures to make all year.

Bershok Beth: It's easier for you, right? If customers come in and do some planning with you, it's much easier for you when return. Back to the estate and gift tax laws have changed ..

Jim Lange: I will add one more.

Bershok Beth: Ok, of course.

Jim Lange: Steve did an excellent point, if he had done before, which would have enjoyed the advantage. Leave for example, who went the other way. Then you still have time to train and then a Roth IRA conversion. So, sometimes at the beginning of the year is more appropriate for year-end. People often come in the year -end planning, but sometimes in early or mid-year is even more effective.

Beth Bershok: final planning Well, sometimes years, when you say types of planning year-end which means the 4th quarter, but some people say that December 29. So ..

Jim Lange: Sometimes is difficult to do things that the end of the year, it makes sense to get there before Thanksgiving.

Bershok Beth: Ok, can we talk very fast, I just want what gift tax increases from $ 12,000 to $ 13,000 right?

Jim Lange: $ 12,000 to $ 13,000 is the amount of money authorized to give a person, without taking up valuable time lifetime exclusion.

Bershok Beth: Oh, at 13 years?

Jim Lange: Right, so if had been used, or if you are interested in making gifts to your children, you can now give, in general, children can be anyone, but if you are in the habit of gifts to their children and want to give the maximum amount allowed to give, without taking up valuable time lifetime exclusion would be $ 13,000 per beneficiary if married and your spouse joins in the delivery would be $ 26,000. And I'm a big fan of gift, assuming you can afford it and I occurs as three types of donations. I just before of appropriate gifts for children, said happy birthday or Christmas or whatever, here is a bit of money. I also like the Section 529 plans are typically some form of education grants in general to the grandchildren, sometimes for children. And I like life safety, especially if you are married, second die life insurance and I did it as a mixture of these three types of donations.

Bershok Beth: Well, the second to die life insurance is something that we cover in our workshops as well, and there is plenty of information on the key in the book, secure retirement!. 15 minutes 412-333-9385 if you have a question for Steve and Jim. Another thing that Steve is advisable to check if their children are subject to tax on Kiddy. Steve, can you explain first what it is yet.

Kohm Steve: Well, the tax Kiddy is almost an adult now because taxes have increased for children age 17-24.

Bershok Beth: Oh this is not a unibody, not a kiddy at all!

Kohm Steve: So, basically, the rule is that if they have a lot of investment income that is taxed at marginal tax rate of parents ends, resulting in more taxes. It's something to be aware of, that changed the rules in this regard. It is a tax planning strategy to transfer funds to over their children to pay taxes at lower rates and still is a valid planning technique. The thing is, now that children even in college tax Kiddy can be applied to them so it's a bit complicated to get into this show. THA something has changed, and perhaps not for the better, but always the possibility of planning is there to transfer money to their children. Transfer money to their children is something that happens when you make a donation of $ 13,000 years as Jim spoke. The gift is also a good strategy for estate planning because it reduces the property tax, but even people who are not subject to federal property tax or taxed AP Estates, some planners not to mention the tax money 4.5% goes to his children and could be more than 10% of the money goes to other people, other parents. Therefore, it saves a lot of money by making donations if you are a person who has great wealth and want to convey to others, sooner or later.

Bershok Beth: What is the deadline for that from year to year, is this the end of the year?

Kohm Steve: Yes, that sort of thing happens every year in a calendar year can be do every year.

Bershok Beth: So, is this amount each year, so now is $ 13,000 that could literally between you and your spouse $ 26,000 per year per beneficiary.

Steve Kohma: For every person without having to file a gift. But even if it exceeds these amounts, if the child or the person who needs a lot of money and needs help, you can file a gift tax is not always as complicated a thing to do and we will be happy do so. Usually, you do not pay taxes when you file a gift tax unless your total donation of over a million dollars in his life.

Bershok Beth: I have a question, in general, because you know that we have been mentioning that you should see a financial professional and not a little planning. Seeing kids new customers or clients of the taxes that you see at this time of year, what kind of information do you need to bring? Because I know that some people and really sounds like a joke, but people do this, provide a large box of old shoes and have all sorts of recipes, and all kinds of documents scattered across the table. A little difficult at first, I am sure that would be organized, but in reality there is to see that you can begin making plans for a client?

Kohm Steve: Well, I just want to see every 1099 years and the deductions that the person has, the 1099 is the core of the course and W2. They have a lot are sent in January to the best of February each year, automatically. They come in a small envelope that indicates the important tax document here, so put it on the file and give your accountant. I prefer clients who take away the envelope, so I'll cut the paper to open the envelope.

Bershok Beth: Well, do a little fussy, Steve.

Kohm Steve: But others I listed the gifts of charity, business deductions and if you have other sources of income. You sort of make a list of the above is a handwritten list, is not as big of a deal.

Jim Lange: And that's assuming you want to get your income tax professionally prepared. If you are in a strategy meeting is one of our sister companies, the financial group by Lange Lange accounting opposition group, and generally meeting would be with me. I'm actually more interested in a list of assets and a tax return. We currently have a list of examples of assets that have shapes or spaces blank that can fill in. So for me when I see a client that have before me a list of assets and tax returns.

Beth Bershok: But this is to help make financial planning is generally why you need to see it.

Jim Lange: Well, I'm much more interested in overview and give advice to anyone in the big picture, I have to know if you have $ 100,000 or $ 20 million ..

Bershok Beth: Well, it has a big difference their strategy is completely different. 412-521-2732 is the number of the office. So say, for example, one of these for your interest and you want a bit of financial planning would be the number to call, 412-521-2732. I have, we talked earlier about a special offer we are launching tonight tha good for next week and I'll tell you in a minute. Lange money is time: Where Smart Money Talks.

Beth Bershok: We talked through the night smart money from taxes, Lange money Time: Where the smart money talks. I'm with Beth Bershok Kohma Jim Lange and Steve. A week of the due date of taxes and we are just minutes away from this show packaging, so if you have a question for Jim or line of study is 412-333-9385 Steve Get your questions in the final minutes. Now we have a special offer and is a free extension offer and that's what I mean. First I want to emphasize that for PA residents only. But here's the deal. If you called the office and the office is in Squirrel Hill, and say I want to take this free extension and give you the number in just one second, the professionals are really documents for you. But this time they are busy, do not have time to do your estimate you still have to pay. The following is to take care of that, but do paperwork. They will make sure that is delivered, ensure that the check was delivered, and found to be hand stamped. They take care of him, and then meet with you after April 15 and make sure they can get their physical extent. It is 1-800-387-1129 and Jim and Steve, you are giving all residents of AP?

Jim Lange: Yes, you. Note that the extension is a file extension is not an extension to pay. So if you owe money you have to take a the best things to do with us, or most important people in any business of the ACC, is that we physically deliver the extension to the IRS. Got be sealed so it is proof that this expansion has been rather than waiting until midnight April 15 and no one knows when the IRS did.

Bershok Beth: So you are willing to do it in the next week. You should call the office at 1-800-387-1129 and give us your name and phone number and they will get everything went well for you. Real quickly, said this is not an extension is a file extension is not an extension to pay. What if I miscalculate?

Jim Lange: You may need a bit of penalty and interest. On the other hand, sometimes you do not owe anything. The most prudent to do if you think you could probably have something to put money when you have an extension request, just in case.

Beth Bershok: Only if not to end up with penalties and interest.

Steve Kohma: The usual procedure is that you must add your estimated tax for the first quarter payment of the extension so if you are covered for a bit for 2008 and adjust the estimated tax for the year ahead. This is a typical strategy adds the first quarter estimated payment, payment extension.

Bershok Beth: Now, you must raise confusion if you take advantage of this offer of free extension, because you are going to do all the leg work on it. Therefore, 1-800-387-1129. OK in the perspective of 2009 and i really is not too early to start planning. Steve has some ideas for you.

Steve Kohma: Here a planning technique, not only for 2009 but also for your tax return for 2008 if you have not yet submitted. And if you do wrong file, can change. But for people who take the standard deduction and have a house, there is an additional deduction of property taxes you do not have last year and in 2007 did not exist. But 2008 for you to add up to $ 1,000 in a joint statement the amount of your deduction amount for property taxes. Even a simple tax deduction you can get this extra and save a few hundred dollars in taxes. It will happen again next year in 2009, and another good thing for the year 2009 people may not be aware of and now I'll report it. If you buy a new car here and at the end of the year, in fact, if you bought a car 16 February 2009 and the end of the year, you can deduct sales tax on the purchase of new car.

Bershok Beth: This is new?

Jim Lange: It's new.

Bershok Beth: I would say that when they occur?

Jim Lange: Add to your standard deduction if you do not need to itemize deductions. It is good in the sales tax paid on the first $ 49,500 of a new car.

Bershok Beth: I can save when it comes to these things because it seems to me just as there are so many new things. Because I am married to a CPA, I am not my own taxes, so do not look back, so do not know. This information is in front of you when you do your taxes? Do you?

Jim Lange: Not always, people can get the forms and fill them with the way last year. They may not be aware of it.

Beth Bershok: How can you be aware of it?

Beth Bershok: Umm, well now, how could I not know? There are difficult for me to answer, I know!

Jim Lange: It is certainly an interesting point, because one of the good things that Steve is not fair, and we have not really talked about this aspect of his career. Where did all the letters and numbers makes it all Running to Roth IRA conversions after-tax dollars and the Roth IRA and the various strategies, which is already scarce. But what is rare is the combination of someone who understands and includes strategies mechanics of making tax returns. I remember a professor of law in my old used to say if you do not know where in 1040, then you really do not understand! And I think there is something about it and one of the advantages of working with Steve is that it has both.

Kohm Steve: One of the things about these tax laws if you are not careful, no are really aware of what is happening, you can make mistakes. One of the things people do in 2008 was that I went out and bought a home adaptation, isolation, perhaps new doors or windows again and thought they were receiving a tax credit, and then went on ABC and had to be told not to pass this law does not apply to 2008.

Bershok Beth: Why do so?

Steve Kohma: Applies to all purchases in the year 2007 to date review and said the tax credit, we get to 2008 and they went and spent the money and not 2008. They did not extend this part of the law should be expanded. But the good news is for 2009 and 2010, credit renewal energy efficiency has tripled to 30% with a new ceiling of $ 1,500, making it much credit better and will apply for 2009 and 2010.

Bershok Beth: How long Did you file an amended return if you realized you made a mistake or has lost one of these things. Say someone is listening at this point, have already filed their return and you just found a car of a ¢, ¬ â € œ property tax. What if I just found about it?

Kohma Steve: Well, actually, have three years to file an amended return date expiration of his original statement, which is 3 years from April 15 this year, so its a little good time. You have plenty of time to correct a statement.

Bershok Beth: I want really fast, because time is short, always a matter, married or married filing jointly separately. How do you know?

Kohma Steve: Well, it's usually better to make a deposit married. Married filing separately is worse than the single statement not allowed to do once you're married. Therefore, marital status at end of year dictates how it should occur. You may have not only if you are married on December 31 and there are situations where it could be a tax advantage to submit separate statements. It takes some considerable calculation to arrive at this result. Our office does that, we use computer programs to calculate the profit that could be.

Beth Bershok: Jim, last minute ideas on your 2008 Taxation before entering?

Jim Lange: I think the important thing is to think long term and short term more. Get Roth IRA contributions for you, your spouse, maybe even their children. Not deductible if your income is high enough and go ahead and plan for the future.

Bershok Beth: And I want to urge, one our workshops, because they arrive. I mention the date again. The Saturday, April 18 is the Comfort Inn Rodi Road 09 hours 30-11 hours in the morning, 1-3 in the afternoon. same time on May 16, which is also a Saturday. Four Point at Sheridan blueberries and you can register by calling 1800-748-1571. You can also visit our Web site which is www.retiresecure.com. And I want to mention that the week is the audio of this program if you missed and want other ideas to be published in this site www.retiresecure.com check. Thank you very much, Steve join us. Will return the office and do it tonight or more statements.

Steve kohm am until midnight. The end is near.

Beth Bershok: Jim Lange, Steve kOhm thank you very much. We have a very special guest, two weeks from today, Paul Merriman and we'll tell you more about it on our website, www.retiresecure.com. Money is time Lange: Where Smart Money Talks.

Prepare the best Roth IRA conversion information available today! Jim Lange, JD / CPA, is now available to train your computer from any where in the country à ¢, ¬ â € professional financial advisers and insurance œ training. For more information about Jim availability and rates, please contact Nicole DeMartino, CLTC, Director of Marketing or nicole@paytaxeslater.com 412.521.2732/1.800.387.1129 http://www.retiresecure.com/speakertour.php visit. About the Author

Jim Lange, JD/CPA is a nationally-recognized IRA and Roth IRA conversion expert and the best-selling author of Retire Secure! Pay Taxes Later. For more information on Jim Lange or if you are interested in hiring Jim as your next keynote speaker, visit http://www.retiresecure.com/speakertour.php.