February 27, 2006 Podcast from the Money Guy, J. Brian Preston, CPA, CFP®, PFS and Special Guest Co-host, Brandon Verner, CPA.

Articles of Interest

“The 12 Biggest Money Mistakes.” Monday, February 13, 2006 from Yahoo! Finance by Suze Orman.
“Trade With China: More Gain Than Pain for Americans.” Monday, February 20, 2006 from Yahoo! Finance by Ben Stein.

Other Useful Links
Salvation Army Valuation Guide
Verner, Perling & Company, P.C. Consumer Reports

Common Deductions That Too Many People Miss

1. Noncash Contributions:

Donated items such as clothes, furniture, etc. are tax deductible. Be sure to get a receipt and use tools such as the Salvation Army Valuation Guide to estimate the contribution amount.

2. New Points on Refinancing:

Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan.

3. Old Points on Refinancing:

All unamortized points on an old refinancing are deducted in the year of a new refinancing.

4. Health Insurance Premiums:

Any health insurance premiums you pay are potentially deductible. However, they must be added to your medical expense pot.. If you’re self employed and not covered by any other employer-paid plan, you can deduct 100% of your health insurance premiums above the line.

5. Educator Expenses:

If you’re a qualified educator, you can get an above the line deduction of as much as $250 for materials you buy in 2005.

6. Miscellaneous Expenses:

Expenses such as investment advisory fees, tax preparation fees, and unreimbursed mileage or business expenses can earn you tax benefits, but they must exceed 2% of your adjusted gross income.

Homework/Additional Reading

 

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Upcoming Financial Chaos Topic: Windfall Planning (In case you win the lottery or discover a rich uncle you never knew you had!)